Fiserv acquires First Data in a $ 22 billion share sale

U.S .. Fiserv said on Wednesday that it will buy payment processor First Data in a $ 22 billion deal, making it one of the biggest acquisitions in the financial technology sector.

The Public Limited Companies Act has a premium of almost 30 per cent above the First data closing price on Tuesday.

First Data shares rose 17.1 percent to $ 20.55 in early trading, while Fiserv shares fell 5.4 percent to $ 71.

Fiserv's shareholders will own 57.5 per cent of the total company and First Data shareholders will own 42.5 per cent. Fiserv offered 0.303 shares for each First Data share.

Fiserv's Managing Director, Jeffery Yabuki, becomes CEO and head of the merged company.

After the agreement was concluded in the second half of 201[ads1]9, the total company's adjusted earnings per share is expected to increase by more than 20 percent in the first year, the companies said.

JP Morgan Securities was financial adviser to Fiserv and Bank of America / Merrill Lynch for first data.