The Bigger Picture Behind the Fiserv-First Data Deal

January 24, 2019

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MONTHLY ANALYSIS

Fiserv buying First Data in an all-stock, $22 billion-dollar deal has been one of the biggest news pieces of 2019. 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 companies have very optimistic expectations for this merger. The transaction is expected to generate at least $500 million of revenue synergies over a five-year period. The combined company expects to generate significant free cash flow exceeding $4 billion in the third year following the close, including synergies.

Additionally, the combination is expected to generate approximately $900 million of run-r ...

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