Fiserv's Acquisition of First Data Corporation

Fiserv's Acquisition of First Data Corporation
Case Code: BSTR584
Case Length: 15 Pages
Period: 2008-2018
Pub Date: 2019
Teaching Note: Available
 Price: Rs.400
Organization: Fiserv, Inc.
Industry: Payments industry
Countries: United States
Themes: Mergers and Acquisitions, FinTech
Fiserv's Acquisition of First Data Corporation
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

The case study discusses one of the biggest merger and acquisition deals in the global Payments industry. Fiserv, one of the leading players in the Payments industry, acquired another prominent but debt laden player, First Data Corporation, at a relatively cheap price. Fiserv was expecting significant cost and revenue synergies from the acquisition. The case details the factors that led to the decision of the two companies to come together and the synergies to be reaped after the merger.

Issues

The case is structured to achieve the following teaching objectives:

  • To understand the trend in the Payments industry and its challenges
  • To understand the significance of mergers and acquisitions in the context of the US Payments industry
  • To explore the various motives behind the acquisition
  • To understand the importance of timing of an acquisition
  • To analyze the disadvantages of excessive debt financing

Contents

Keywords

Payments industry, Financial Services, FinTech, Debt Refinancing , Business Strategy Analysis, Expansion Strategy, Impact of Leverage Buyout, Challenges in M&A, Synergies, M&A

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