- Accelerates First Data’s ISV strategy,
particularly in Card-Not-Present and eCommerce
- BluePay’s integrated solutions are
highly complementary to First Data’s recently-acquired CardConnect
ISV capabilities; BluePay will benefit from CardConnect’s
best-in-class merchant and partner management tools
- Expands First Data’s ERP integrated
payment offering, and adds Member Based Organization solutions to
First Data’s product suite
- Further enhances the overall product
suite that First Data offers its JVs, acquiring partnerships, and
other distribution channels
- Transaction is modestly accretive
before expected synergies
- Modest impact on leverage; medium-term
deleveraging objective remains intact
First Data Corporation (NYSE:FDC), a global leader in
commerce-enabling technology and solutions, today announced that it
has entered into a definitive stock purchase agreement for First
Data to acquire BluePay Holdings, Inc. (“BluePay”) from current
owners, including TA Associates and BluePay management, for $760
million in cash, subject to adjustments. The transaction is
expected to be modestly accretive in the first full year
post-closing, before expected synergies.
BluePay, a provider of technology-enabled payment processing for
merchants in the U.S. and Canada, is one of First Data’s largest
distribution partners with a strong focus on software-enabled
payments and Card-Not-Present transactions. BluePay processes
approximately $19 billion of annual volume for more than 77,000
merchants and is integrated into more than 450 software platforms.
The company has software integration solutions that complement
those offered through First Data’s CardConnect business.
“BluePay is a long-standing First Data distribution partner with
an excellent track record of innovation and growth. We are pleased
to add BluePay’s unique capabilities and its talented team to the
First Data family,” said First Data Chairman and CEO, Frank
Bisignano. “We believe BluePay’s best-in-class integrated
Card-Not-Present solutions, combined with CardConnect’s
cutting-edge ISV product suite acquired earlier this year, clearly
sets First Data apart from the competition in the high growth
integrated payments space.”
“This is an exciting day for BluePay as this transaction
presents a great opportunity to join an outstanding global
organization like First Data,” said BluePay Executive Chairman,
John Rante.
“We believe First Data can accelerate our software-driven
payments strategy and provide value to clients and partners through
the combination of First Data’s payment facilitation capabilities,
global processing expertise, and an unparalleled distribution
network,” said BluePay CEO, Bala Janakiraman.
The transaction is subject to customary closing conditions,
including expiration of the applicable waiting period under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976. The
parties expect the transaction to close in the fourth quarter of
2017.
Weil, Gotshal & Manges LLP acted as legal advisor to First
Data. Credit Suisse served as financial advisor to BluePay, and
Goodwin Procter acted as legal advisor.
Conference Call and Webcast
First Data will host a conference call and webcast to review the
transaction on Friday, October 20, 2017, at 8 a.m. ET. To listen to
the call, dial +1 (844) 826-3033 (U.S.) or +1 (412) 317-5172
(outside the U.S.). The call will also be webcast on the Investor
Relations section of the First Data website at
investor.firstdata.com, along with a slide presentation to
accompany the call.
A replay of the call will be available through November 20,
2017, at +1 (877) 344-7529 (U.S.) or +1 (412) 317-0088 (outside the
U.S.); passcode 10113742, and via webcast at
investor.firstdata.com.
About First Data
First Data (NYSE:FDC) is a global leader in commerce-enabling
technology and solutions, serving approximately six million
business locations and 4,000 financial institutions in more than
100 countries around the world. The company’s 24,000
owner-associates are dedicated to helping companies, from start-ups
to the world’s largest corporations, conduct commerce every day by
securing and processing more than 2,800 transactions per second and
$2.2 trillion per year.
About BluePay
BluePay is a leading provider of technology-enabled payment
processing for merchants in the United States and Canada. Through
physical POS, online, and mobile interfaces, as well as CRM and ERP
software integrations, BluePay processes business-to-consumer and
business-to-business payments while providing real-time settlement,
reporting, and reconciliation, along with robust security features
such as tokenization and point-to-point encryption. BluePay is
headquartered in Naperville, Illinois.
Cautionary Statement Regarding Forward-Looking
Statements
This communication contains forward-looking information relating
to First Data and the proposed acquisition of BluePay by First Data
that involves substantial risks and uncertainties that could cause
actual results to differ materially from those expressed or implied
by such statements. These forward-looking statements generally
include statements that are predictive in nature and depend upon or
refer to future events or conditions, and include words such as
“believes,” “plans,” “anticipates,” “projects,” “estimates,”
“expects,” “intends,” “strategy,” “future,” “opportunity,” “may,”
“will,” “should,” “could,” “potential,” or similar expressions.
Forward-looking statements in this communication include, among
other things, statements about the potential benefits of the
proposed acquisition; First Data’s plans, objectives, expectations
and intentions; the financial condition, results of operations and
business of First Data; industry, business strategy, goals and
expectations concerning First Data’s market position, future
operations, future performance and profitability; and the
anticipated timing of closing of the acquisition. Risks and
uncertainties include, among other things, risks related to the
satisfaction of the conditions to closing of the acquisition
(including the failure to obtain necessary regulatory approval) in
the anticipated timeframe or at all; the occurrence of any event,
change or other circumstance that could give rise to the
termination of the stock purchase agreement; risks related to the
potential impact of the announcement or consummation of the
proposed transaction on First Data’s important relationships,
including with employees, suppliers and customers; disruption from
the transaction making it more difficult to maintain business and
operational relationships; negative effects of this announcement or
the consummation of the proposed acquisition on the market price of
First Data’s common stock and on First Data’s operating results;
significant transaction costs; the risk of litigation and/or
regulatory actions related to the proposed acquisition; and risks
related to the ability to realize the anticipated benefits of the
acquisition, including the possibility that the expected benefits
from the proposed acquisition will not be realized or will not be
realized within the expected time period. Many of these factors are
beyond First Data’s control. A further description of risks and
uncertainties relating to First Data can be found in its Annual
Reports on Form 10-K for the fiscal year ended December 31, 2016,
and in its subsequent Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K, all of which are filed with the SEC and
available at www.sec.gov. Unless otherwise required by applicable
law, First Data disclaims any intention or obligation to update
forward-looking statements contained in this communication as the
result of new information or future events or developments.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171020005319/en/
Peter PoillonInvestor RelationsFirst
Data212-266-3565Peter.Poillon@firstdata.comLiidia LiuksilaPublic
RelationsFirst Data212-515-0174Liidia.Liuksila@firstdata.com
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