JANUARY 16, 2019 / 1:30PM, FDC - Fiserv, Inc., First Data Corporation - M&A Call
I joined this company in 2013. And since that time, we have invested in and developed a
number of industrys most innovative products in an ever-evolving industry. Our Clover platform developed from a concept in 2012 to a leading tablet-based integrated POS solution, our next-generation
ISV solutions, our cutting-edge agent and merchant tools like CoPilot and CardPointe, a full suite of digital solutions for our financial institution clients,
full
non-PIN
and signature debit capabilities for our STAR Network and some of the most robust security and fraud solutions in the industry. Those are just a handful of examples, and we will always look to
innovate and evolve our solutions.
Because of us, it has always been about the client. Weve looked at the client, whether its the
mom-and-pop
corner bakery, a global financial institution or anything in between.
Even more important than where First Data is today is where we will go together tomorrow. The strategic fit is compelling, and the opportunity to create value
is extraordinary. We are uniting 2 premier financial technology and payments companies. Through this transformative transaction, we will be better positioned to more fully participate in the
end-to-end
consumer payments value chain while generating significant value for our stakeholders.
Together with
First Data, Fiserv will deliver an expanded set of integrated, technology-driven solutions to all of our clients, including financial institutions, billers and merchants. In addition, we will have the largest and broadest merchant services platform
in the world. We will be a
one-stop-shop
with the ability to enhance distribution channels and capabilities through
e-commerce,
integrated payments and cloud-based
point-of-sale
solutions.
We will also meaningfully expand our issuer processing
capabilities across credit, debit and network services. As the payment landscape continues to evolve, these services, together with our leading account processing, digital
DDA-based
payment and biller
capabilities, we will create a world-class, differentiated platform for our clients to better compete in the ever-evolving market.
Ill turn it back
to you, Jeff.
Jeffrey W. Yabuki
- Fiserv, Inc. - President, CEO
&
Director
Thanks, Frank. You and the team should be quite proud of what youve done, and it sounds like were going to have a pretty exciting future together.
Now we all know that scale is increasingly important in the network and payments processing businesses. This combination meaningfully extends our
leadership in payments, broadens client reach and provides opportunities to deliver differentiated integration, which will translate to more value for our clients and their customers. Together, we will be the #1 global issuer and merchant processor.
Closer to home, were the leading provider of core account processing, digital services and merchant acquiring. The combined company will have thousands of clients, millions if you include individual merchants, supported by nearly 50,000
associates based in more than 100 countries.
Now while those are impressive stats, we see opportunities to do much more and are committed to achieving
results in a manner that enables long-term success for our clients, to retain and attract the best and brightest associates and to deliver significant value for you, our shareholders.
As you may know, one of our core values is create with purpose, which is a nod to delivering innovation and excellence. To better align talk and action,
were allocating an incremental $500 million over a
5-year
period, which is well above any of the other market participants. This commitment should and will ensure that the combined company
both achieves the
closer-in
benefits identified earlier but will also enable new sources of growth and client value over the longer term. We intend to advance our solution capabilities across a wide range of
fronts, including digital enablement, advanced risk management, cognitive technologies and machine learning, data management, next-generation merchant solutions and, very importantly,
best-in-market
integration to our account processing solutions to better serve commercial customers.
Importantly, while weve included this reinvestment in our long-term financial model, we have not incorporated any revenue benefits from these
investments.
The new Fiserv will be a much larger, broad-based, global company. On a trailing
12-month
basis and
including run rate synergies, well have nearly $15 billion of adjusted revenue, a 36% adjusted operating margin and baseline, before-future-growth free cash flow of $3.6 billion. After layering in the strong growth characteristics
and opportunities of the company, theres a tremendous business with even more potential.
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