Thursday, May 30th, 2019
Despite a recent request, core processor Fiserv Inc. still expects its $22 billion deal to acquire First Data Corp. to close in the second half of 2019. It would seem that the U.S. Department of Justice would like more information about the merger, but it has not stalled progress.
On April 4, the Justice Department asked for more information and documents about the merger. While Fiserv did openly share an update in a press release about the request, the company did not disclose what exactly it provided to regulators. According to reports, the deal is being vetted under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Regardless, Fiserv is pushing forward, believing the plan will be approved and that neither company will have to make divestitures. If all does go as planned, despite the request, the deal will close as originally announced in January. However, Fiserv does face an investor lawsuit over the deal.
“From our perspective we believe the First Data combination provides differentiated solutions and necessary scale to evolve for the long term,” shared Jeffery Yabuki, Fiserv’s president and chief executive. When speaking with analysts, he also confirmed that the company is cooperating with the Justice Department.
In the meantime, the two companies are continuing to operate as separate entities until the closing. Some integration work and planning is already underway. In fact, the two companies have reported that teams of employees are currently reviewing 40 discrete business areas.
Payment Processing Industry Mergers Continue
For some time now, the payment processing industry has been evolving rapidly. Big company after big company have joined forces to stay ahead and compete with fresh startups and their new ideas. When asked for his thoughts on the $43 billion deal between core-processing rival Fidelity National Information Services Inc. (FIS) and Worldpay Inc., Yabuki admitted the markets are changing, and changing fast.
“We believe the combination with First Data gives us a far broader solutions set than any other combination could have created,” he said, noting that First Data’s reach into payments is pervasive. “There hasn’t been a payments conversation in the last 50 years that hadn’t included First Data.”
He went on to comment on other payments news. According to Yabuki, Fiserv’s person-to-person transactions, which include its Popmoney service and Zelle from Early Warning Services LLC, increased 100 percent from last year.
“Zelle transactions alone nearly quadrupled from last year,” Yabuki shared.
Keeping Up with Ever-Changing Technology
Changes are not just taking place at big companies within the industry, merchants off all types today feel the pressure to keep up with the latest technology. Customers’ preferences and expectations change constantly. At times, this can be overwhelming for small business owners trying to balance day-to-day operations and staying up to date on the latest payment processing options.
If you would like to learn more about what payment processing options are available to your business, consider the many reviews Best Payment Providers has to offer. Browse expert advice and reviews on providers – like Cutpay – to determine which processor and services is right for your business type, industry and goals.