Fiserv and First Data Proposed Merger Shakes US Payment Ecosystem

February 28, 2019 12:00 am ET


On January 16, Fiserv and First Data announced their intention to merge, with Fiserv offering First Data shareholders 0.303 Fiserv shares for each share of First Data common stock they own, worth about $22 billion at the time. Since then, many questions have arisen about the deal – will it get speedy regulatory approval? Will it deliver on its promises of $900 billion in cost savings and $500 million in additional revenues? How will the cultures get along? How will competitors, partners, and customers react?

In this webinar, exclusive to Mercator members, Aaron McPherson, Vice President of Research Operations at Mercator Advisory Group, and Raymond Pucci, Director of the Merchant Services Advisory Service, will present our latest thinking on the deal, based on our experience covering such mergers in the past, and ongoing research on the merchant acquiring and card issuing markets. Some of the topics to be covered include:

• Potential regulatory hurdles, including anti-trust issues. How regulators are likely to define the market.

• The possibility of rival bidders for First Data, now that it is in play.

• Cultural issues – how the two organizations will work together, and how much autonomy First Data is likely to have.

• Technology integration – what past mergers tell us about the risks and difficulties involved.

• Customer reaction – who might be uncomfortable about this, and what steps the combined company will have to take to avoid attrition.

• Competitor reaction – what competitors, some of whom have existing relationships with First Data, might do in response, such as new acquisitions or new partnerships.

• Cross-selling – a key driver of revenue synergies, but requiring two different sales forces to work together.

As always, there will be ample opportunity for questions and answers during and after the discussion. We hope you will join us on February 25th at 1pm Eastern Time.


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