Commerce tech and solutions firm First Data is acquiring payments processor CardConnect for approximately $750m.
Pennsylvania-based CardConnect is already one of First Data largest distribution partners and currently processes more than $26bn annually from 67,000 merchants.
CardConnect board of directors has already approved the deal that will see First Data acquire all outstanding shares of common stock of for $15 per share. The price $750m price tag includes repayment of CardConnect outstanding debt and the redemption of CardConnect preferred stock.
The transaction is expected to be accretive to First Data in the first full year post-closing, before expected synergies. First Data plans to fund the acquisition with a combination of cash on hand and funds available under existing credit facilities.
First Data Chairman and CEO Frank Bisignano commented: ?This transaction is consistent with our strategy of integrating and scaling innovative technologies across our distribution footprint to better serve our partners and customers.
?CardConnect is a long-standing First Data distribution partner and we are excited to incorporate their state-of-the-art solutions across some of our most important strategic initiatives such as partner-centric distribution, integrated payments, and enterprise payments solutions.p>
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