UK competition watchdog invites comments on acquisition of First Data Corporation by Fiserv

Maria Nikolova

The CMA is considering whether the deal may result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.

The UK Competition and Markets Authority (CMA) is inviting comments on the anticipated acquisition of First Data Corporation by Fiserv, Inc. 

The invitation to comment closes on May 27, 2019.

The regulator is considering whether it may be the case that this transaction if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.

To assist it with this assessment, the CMA invites comments on the transaction from any interested party.

These comments should be provided by the deadline set out above to:

  • Case officer name: Gaile Walters
  • Tel no: 0203 738 6186

The deal was first announced in January this year. 

The deal is set to unite two premier companies to create one of the world’s leading payments and financial technology providers, and an enhanced value proposition for its clients.

Under the terms of the agreement, First Data shareholders will receive 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. This represents $22.74 based on closing prices as of January 15, and a premium of 29% to the five-day volume weighted average price as of that date.

Following the close of the transaction, Fiserv shareholders will own 57.5% of the combined company, and First Data shareholders will own 42.5%, on a fully diluted basis. The all-stock transaction is intended to be tax-free to First Data shareholders.

The combined entity 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™ cloud-based point-of-sale solution. The combined company will offer comprehensive distribution channels and have deep expertise in partnering with financial institutions, merchants and billers of all sizes, as well as software developers.

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