First Data strikes a deal to acquire a fellow payment processing company CardConnect

30 May 2017

First DataFirst Data, a worldwide payment solutions provider with the revenue exceeding $11 billion, is acquiring its long-time partner CardConnect, a company providing payment processing services and IT services, for $750 million. CardConnect went public in 2016 and was purchased by FinTech Acquisition Corporation.

CardConnect is currently processing about $26 billion in transactions, working with nearly 67 thousand merchants. Last year the payment processor reported $589 million revenue with the losses accounting for about $16 million.

The deal will be closed under the terms of $15 per share to be paid by First Data, which is 10% higher than the closing price of CardConnect recorded last Friday. With CardConnect First Data gets access to a massive base of ERP payments.

Frank Bisignano, First Data, comments the deal noting that the acquisition comes in line with the company’s vision of extensive integration and adoption of IT technologies across their operations ensuring higher quality of services to their customers and partners.

The acquisition is the latest in a series of First Data’s moves to diversify their business with new services and financial products. This March the card processing provider joined forces with FLEETCOR Technologies to form their joint-venture involving the current gift card operations of First Data (Transaction Wireless and Gyft) and prepaid card business and gift card program management assets of FLEETCOR (Stored Value Solutions)

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