The deal is done. First Data (FDC) and CardConnect have completed their acquisition agreement. CardConnect is now a wholly-owned subsidiary of FDC and CardConnect shares will no longer be traded on the NASDAQ.
CardConnect CEO Jeff Shanahan will continue to lead CardConnect operations and will serve as an Executive Vice President and as a member of FDC’s Management Committee, reporting to Frank Bisignano.
CardConnect and FDC’s merchant acquiring businesses will be consolidated in First Data’s financial statements starting in the third quarter of 2017, but CardConnect will continue to operate under its own brand and will remain headquartered in King of Prussia, PA.
CardConnect is a provider of payment processing and technology solutions and is one of FDC’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 FDC 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 transaction is expected to be modestly accretive to FDC’s adjusted EPS in the first full year post-closing, before expected synergies.