First Data completes merger with Concord EFS
27 February 2004 | 1337 views | 0
First Data Corp. (NYSE:FDC), a global leader in electronic commerce and payment services, today announced that it has completed its merger transaction with Concord EFS (NYSE:CE).
First Data now has more than 30,000 employees worldwide and by the end of 2004 expects to have more than $10 billion in annual revenues.
"We are delighted to complete the merger between First Data and Concord. The new company will bring significant offerings to the payments industry, including more choices at the point of sale, to benefit consumers, merchants and banks alike," said First Data Chairman and CEO Charlie Fote. "We appreciate the hard work and dedication of everyone involved in the merger approval process and look forward to delivering on our promise of bringing more choice, voice and innovation to the industry through the strategic integration of these two businesses."
Concord EFS shareholders of record as of January 16, 2004, voted to approve the merger transaction on February 26, 2004. First Data shareholders voted to approve the issuance of First Data shares pursuant to the merger on October 28, 2003.
Under the terms of the merger agreement with Concord as amended, each share of Concord stock was converted into 0.365 First Data common shares. The transaction is valued at approximately $7 billion based on yesterday's closing price of $40.79. First Data issued approximately 170 million common shares to Concord shareholders, who now own approximately 19 percent of the outstanding shares of the combined company.
Additionally, Richard P. Kiphart from the Concord Board of Directors will join the First Data Board of Directors.
"We welcome the talents of Mr. Kiphart to the First Data Board of Directors at this key point in our company history," said Fote. "We look forward to his guidance and contributions as we continue to grow worldwide."