=First Data (FDC) to be acquired by Fiserv Inc. (FISV) for approx. $22.74/share

• update Jul-29-19 Fiserv, First Data complete $22B merger

Fiserv Inc. (FISV) said Wednesday it has reached an agreement to acquire First Data Corp. (FDC) in an all-stock deal with an equity value of $22 billion that will create a company will a strong footing in payment systems and fintech.

Fiserv will pay 0.303 Fiserv shares for each First Data share owned, equal to $22.74, or a 29% premium over the five-day volume weighted average price as of Jan. 15. Fiserv shareholders will own 57.5% of the combined entity, while First Data shareholders will own the remaining 42.5%. The deal is expected to boost adjusted per-share earnings by more than 20% in the first full year after close. It is expected to generate at least $500 million of revenue synergies over a five-year period and to create $900 million of run-rate cost synergy savings, mostly due to the elimination of corporate structures. The deal is expected to close in the first half. The combination "will offer leading technology capabilities that enable a range of payments and financial services, including account processing and digital banking solutions; card issuer processing and network services; e-commerce; integrated payments; and the Clover(TM) cloud-based point-of-sale solution," the companies said in a statement. Fiserv shares fell about 8% premarket on the news, while First Data shares soared 16.9%.