January 16, 2019
Payment processing company First Data is merging with fintech provider Fiserv with the help of Latham & Watkins and some of the country’s top firms for M&A.
First Data, which will be acquired by Fiserv in an all-stock transaction valued at $22 billion, is being represented by and Simpson Thacher & Bartlett, and First Data’s independent directors of the board are being advised by Latham & Watkins.
Simpson Thacher’s team was led by M&A partners Gary Horowitz, Elizabeth Cooper, and Katie Sudol, with the help of three partners and six associates. Latham’s corporate deal team was led by partners Peter Harwich and Charles Ruck, and associate Allison Eitman.
On the other side of the deal, Sullivan & Cromwell is serving as legal advisor to Fiserv.
The deal combines two influential players at the nexus of finance and technology—a booming space. The new company, which will retain the Fiserv name, will offer leading technology capabilities allowing for a range of payments and financial services, including account processing and digital banking solutions.
“Through this transformative combination, we expect to redefine the manner in which people and institutions move money and information,” Jeffery Yabuki, President and Chief Executive Officer of Fiserv, said in a statement.
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, according to the announcement of the deal.
The deal is expected to generate approximately $900 million of run-rate cost savings and at least $500 million of revenue synergies, the announcement said.
Yabuki will serve as CEO and chairman of the new entity. First Data’s CEO Frank Bisignano will become the new company’s president and COO and will serve as director of the board. The deal is expected to close in the second half of 2019.
Kirkland & Ellis also played a role in the transaction, advising New Omaha Holdings, a major First Data shareholder.