Fiserv / First Data Preposed Merger: Philly-area involvement
Tom Paine
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The proposed Fiserv / First Data merger is a big deal in the fintech / payments processing world:
- Number of Employees: Fiserv: 24,000 First Data: 22,000
- Annual Sales: Fiserv: $5.7 billion (2017) First Data: $12.1 billion (2017)
- Price Per Share: Fiserv: $84.73 (Nasdaq 2/20) First Data: $25.24 (NYSE 2/20)
- Market Cap: Fiserv: $33.1 billion First Data: $23.6 billion
Its interesting that while Atlanta-based First Data has twice the revenue of Milwaukee-based Fiserv, its market capitalization is much less.
Its a big deal in the Philly area as well. Fiserv has 400+ employees here, per LinkedIn. First Data has 464.
Some of these positions are regional in nature, others are the result of M&A.
Another Atlanta-based competitor, Global Payments, entered the fray in 2016 by acquiring formerly Princeton-based Heartland Payment Systems for $4.3 billion. Last year, it bought Langhorne-based quick service restaurant software vendor SICOM for
Atlanta, which has numerous employees on both sides of the deal, expects some
FIS (Fidelity National) , which acquired the former SunGard Financial business, is another player in this market.
Fiserv specializes in technology for electronic payments and debit and credit card transactions. First Data owns the cloud-based point-of-sale system Clover.
The deal is expected to close in the 3rd quarter. I haven't seen signs of significant regulatory barriers at this point.
Its a big deal in the Philly area as well. Fiserv has 400+ employees here, per LinkedIn. First Data has 464.
Some of these positions are regional in nature, others are the result of M&A.
Early last year, Warburg Pincus LLC agreed to acquire a 55 percent stake in Fiserv's King of Prussia-based lending solutions business while Fiserv retained a 45 percent stake. As a result of the transaction, Fiserv received about $395 million. Later that year, it was rebranded as Sagent Lending Technologies.
In 2017, First Data agreed to buy King of Prussia -based CardConnect for $750 million.
Another Atlanta-based competitor, Global Payments, entered the fray in 2016 by acquiring formerly Princeton-based Heartland Payment Systems for $4.3 billion. Last year, it bought Langhorne-based quick service restaurant software vendor SICOM for
$415 million.
Atlanta, which has numerous employees on both sides of the deal, expects some
significant cuts after the merger is completed but more growth longer-term.
FIS (Fidelity National) , which acquired the former SunGard Financial business, is another player in this market.
Fiserv specializes in technology for electronic payments and debit and credit card transactions. First Data owns the cloud-based point-of-sale system Clover.
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