Is this the first in a wave of consolidation for the fintech sector in 2019?
Today, Fiserv announced the acquisition of CardLinx founding member First Data in an all stock deal worth $22 billion. The proposed deal is one of the largest acquisitions in the financial technology sector. Fiserv offered 0.303 of its shares for each First Data share. Fiserv Chief Executive Officer Jeffery Yabuki will become CEO and chairman of the combined company. First Data’s CEO Frank Bisignano will become president and COO. The deal is expected to close in the second half of 2019.
This major deal follows the trend of financial institutions merging to create market differentiation through an integrated platform to provide comprehensive financial services to clients and may be the opening salvo in a wave of consolidation for the fintech sector in 2019.Among payments processors, First Data is the leading merchant processor and Fiserv is a leading processor and software provider for banks. The newly formed company will be able to combine insights from merchants and banks to create new products and services that enhance the consumer’s retail purchasing experience while creating value for merchants and banks.