First Data has inked a deal acquire CardConnect for $750 million. The transaction is expected to close in the third quarter.
CardConnect is a provider of payment processing and technology solutions and is one of First Data’s largest distribution partners. CardConnect processes approximately $26 billion of volume annually from about 67,000 merchant customers which are served by its large base of distribution partners.
CardConnect recently introduced Bolt, which brings the power of PCI-Validated P2PE. The company’s small-to-midsize business offering, CardPointe, is a comprehensive platform that includes a powerful reporting and transaction management portal which extends to a native mobile app. CoPilot is a centralized business management tool to help distribution partners manage their business. For enterprise-level organizations, CardSecure integrates omni-channel payment acceptance into several ERP systems – such as Oracle, SAP, JD Edwards and Infor M3 – in a way that minimizes PCI compliance requirements and lowers transaction costs.
CardConnect says the transaction improves its ability to innovate and deliver leading technology-oriented commerce solutions to the combined customer base. The Company believes its growth trajectory improves with First Data’s breadth of products and its powerful distribution network.
The merger agreement has been unanimously approved by CardConnect’s Board of Directors. In addition, CardConnect shareholders holding approximately 40% of CardConnect common stock have entered into tender and support agreements agreeing to tender their shares of common stock into the tender offer and support the transaction.
The transaction is expected to be modestly accretive to First Data’s adjusted EPS in the first full year post-closing, before expected synergies.
For additional information on First Data’s Performance visit CardData
