US financial technology provider Fiserv announced it will buy payment processor First Data in a US$22 billion deal, making it one of the largest acquisitions in the financial technology sector.
The deal comes as disruption in the payments industry heats up, with a wave of consolidation seen among traditional financial services providers and technology groups. Fiserv, which has more than 12,000 clients, sells financial processing systems that help banks and other institutions complete debit, credit, and cash machine transactions.
First Data provides payment processing systems such as credit card readers for small and large businesses as well as e-commerce services. First Data stockholders will receive 0.303 shares of Fiserv for each share of First Data they currently hold, worth roughly US$22.74 based on the close of trading on Tuesday, January 15.
“Through this transformative combination, we expect to redefine the manner in which people and institutions move money and information,” said Jeffery Yabuki, CEO of Fiserv.