US-based payment technology provider First Data has wrapped up the acquisition of payment processing firm CardConnect in a transaction valued at the $750m.
As per the terms of the agreement, which was originally inked in May this year, First Data purchased nearly 72% of CardConnect’s outstanding shares of common stock through tender offer for $15 per share in cash.
First Data said that all CardConnect shares of common stock that were not validly tendered have been converted into the right to receive $15 per share in cash, without interest and less any applicable withholding taxes.
First Data chairman and CEO Frank Bisignano said: “We are thrilled with the acquisition of CardConnect and the opportunity to partner with Jeff Shanahan and his team and to integrate and expand the innovative products and skills that they bring to First Data.
“This acquisition allows us to improve our service offerings for our JVs and other distribution partners, accelerate our integrated solutions strategy, and enter the ERP integration business.”
CardConnect CEO Jeff Shanahan will continue to head CardConnect operations and will serve as an executive vice president and as a member of First Data’s Management Committee, reporting to Frank Bisignano.
Starting third quarter of 2017, CardConnect and First Data’s merchant acquiring businesses will be consolidated in First Data’s financial statements; however, CardConnect will continue to operate under its own brand and will remain headquartered in King of Prussia, Pennsylvania.