23 August 2017
Visit http://response.ncr.com

First Data to acquire Concord EFS

02 April 2003  |  3429 views  |  0 sale

First Data is to acquire Concord EFS in a $7 billion all-stock transaction. The deal creates a payments processing powerhouse with combined annual revenues of approximately $10 billion and employing some 31,000 staff worldwide.

Under the terms of the transaction, First Data will exchange 0.4 shares for every Concord common share. At yesterday's closing price, the deal values each Concord share at $13.87. The combined company expects to generate cost savings of approximately $230 million on an annualised basis by 2005.

The deal is likely to raise the stakes in First Data's ongoing battle with Visa as it bids to stem bank defections from Concord's Star ATM network to the rival Visa InterLink system. Condord's share price has nose-dived this past year, partly due to worries over the vendor's ability to renew long-term bank subscriptions to Star. First Data is already engaged in a legal dispute with Visa over bank use of the First Data Net transaction processing network.

The real war, however, will be waged at the checkout, where First Data's merchant connections and Concord's networking capabilities give the firm an edge in the battle with the card schemes for dominance in the emerging market for PIN debit payments.

First Data chairman and CEO Charlie Fote, hails the merger with Concord as a significant step in developing an open and competitive electronic payments system. "Access to our combined depth and scale will give banks and merchants an unprecedented voice in the introduction of innovative payment offerings to consumers," he says.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

First Data poised to buy Concord EFS - WSJ

First Data poised to buy Concord EFS - WSJ

01 April 2003  |  2887 views  |  0 comments
First Data wins Scotiabank card contract

First Data wins Scotiabank card contract

12 March 2003  |  5355 views  |  0 comments
HBOS outsources merchant processing to First Data

HBOS outsources merchant processing to First Data

26 February 2003  |  7106 views  |  0 comments
First Data acquires Telecash Kommunikations from Deutsche Telekom

First Data acquires Telecash Kommunikations from Deutsche Telekom

25 February 2003  |  3739 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.vasco.comvisit www.abe-eba.eudownload the paper now

Top topics

Most viewed Most shared
Rabobank constructs physical model to understand IT architectureRabobank constructs physical model to unde...
17877 views comments | 41 tweets | 78 linkedin
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
13181 views comments | 28 tweets | 23 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
11814 views comments | 22 tweets | 34 linkedin
Australia regulates digital currenciesAustralia regulates digital currencies
11041 views comments | 21 tweets | 35 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
10918 views comments | 10 tweets | 8 linkedin

Featured job

Competitive
New York, NY - USA (some flexibility on location)

Find your next job