U.S. financial services technology provider Fiserv has agreed to a definitive merger agreement under which it will purchase financial services company First Data Corp. in an all-stock deal.
Under the terms of the transaction, First Data Corp. shareholders will get a fixed exchange ratio of 0.303 Fiserv shares for each share of First Data common stock they own, for an equity value of $22 billion.
The merged company will offer technology capabilities that enable several payments and financial services, including account processing and digital banking solutions among others. The move will generate at least $500 million of revenue synergies over a five year period.
Following the completion of the deal, expected during the second half of 2019, Fiserv shareholders will own 57.5 percent of the merged company whereas First Data shareholders will own 42.5 percent, on a fully diluted basis.