News

First Data, Concord reach terms for acquisition

April 1, 2003

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NEW YORK -- As expected, First Data Corp. (NYSE: FDC) and Concord EFS, Inc. (NYSE: CE) say they will merge in an all-stock transaction valued at approximately $7 billion.

According to a news release, the combined company will have approximately $10 billion in annual revenues with more than 31,000 employees worldwide.

Under terms of the agreement, each Concord share will be exchanged for 0.4 First Data shares. At April 1's closing price of First Data stock, the transaction was valued at $13.87 for each common share of Concord, a 17 percent premium.

To complete the transaction, First Data will issue approximately 200 million common shares to Concord shareholders. Upon completion of the transaction based on the current shares outstanding, Concord shareholders will own approximately 21 percent of the outstanding shares of First Data.

According to the release, First Data expects the transaction to be neutral to its earnings per share in 2004, prior to non-recurring items, and accretive thereafter. The combined company expects to generate cost savings of approximately $230 million on an annualized basis by 2005.

In the release, First Data Chairman and Chief Executive Charlie Fote called the deal "a significant step in developing an open and flexible electronic payments system that will foster competition to the benefit of consumers, merchants and banks."