Fiserv CEO Jeffrey Yabuki will become CEO of the combined entity, while First Data CEO Frank Bisignano will serve as president and COO, according to the outlet.
“The merger underscores the general trend of consolidating different parts of the financial services ecosystem, providing a one-stop-shop to clients, and building more integrated services overall.”
“The merger underscores the general trend of consolidating different parts of the financial services ecosystem, providing a one-stop-shop to clients, and building more integrated services overall,” says TechCrunch, describing the financial landscape once dominated by traditional banks now altered by startups whose embrace of technology is helping them slash financial services costs and pass along savings to customers eager for alternatives.
A 35-year-old digital banking company, Fiserv has tried to help banks stay competitive, once building its own smartphone-based card reader for banks as an answer to Square, according to TechCrunch.
TechCrunch observes that First Data, on the other hand, is a public company that has focused its attention on digital merchants, serving 6 million physical businesses and 4,000 financial institutions in over 100 countries, and processing some 3,000 transactions per second and $2.4 trillion per year.
“Through this transformative combination, we expect to redefine the manner in which people and institutions move money and information,” said Jeffery Yabuki, President and Chief Executive Officer of Fiserv in a statement. “We admire First Data for its excellence in merchant acquiring and global issuing services, and the tremendous progress they have made under Frank’s leadership. We expect this combination to catalyze and support an enhanced value proposition for our collective clients and their customers.”
“I have long admired what Fiserv has achieved over the years, and I look forward to working with the talented associates of both companies as we set a higher standard of innovation and service in the industry,” said First Data Chairman and CEO Frank Bisignano in a statement. “Our goal at First Data has always been to provide our clients with the most comprehensive suite of innovative, highly-differentiated solutions and services, and I am excited by the significant value that the combination with Fiserv creates for all stakeholders.”
Run-rate cost savings as a result of the merger are expected to reach $900 million as well as $500 million or more in revenue synergies, according to TechCrunch. The companies expect to close the deal by late 2019.