DENVER — First Data Corp. (NYSE: FDC) says it has completed its merger transaction with Concord EFS (NYSE: CE). First Data now has more than 30,000 employees and by the end of 2004 expects to have more than $10 billion in annual revenues.
"The new company will bring significant offerings to the payments industry, including more choices at the point-of-sale, to benefit consumers, merchants and banks alike," said Charlie Fote, First Data's chairman and chief executive.
Fote insisted that the merger was about bringing more choice to the EFT industry, its customers and consumers, even when the Department of Justice in late October filed a suit to block the deal, contending it would substantially reduce competition, particularly in PIN-based debit transactions. (See related story DOJ sues to block First Data/Concord merger)
In December, First Data reached an agreement with the DOJ and with eight states and the District of Columbia, who were also part of the suit. First Data made the key concession of agreeing to divest its 64 percent ownership stake in NYCE Corporation and its NYCE network. (See related story First Data to divest NYCE; Concord merger now looks likely)
First Data shareholders voted to approve the issuance of First Data shares pursuant to the merger on Oct. 28. Concord shareholders voted to approve the merger transaction today.
Under the terms of the merger agreement with Concord as amended, each share of Concord stock was converted into 0.365 First Data common shares. The transaction is valued at approximately $7 billion based on yesterday's closing price of $40.79.
First Data issued approximately 170 million common shares to Concord shareholders, who now own approximately 19 percent of the outstanding shares of the combined company.
Additionally, Richard P. Kiphart from the Concord Board of Directors will join the First Data Board of Directors.
