First Data To Buy CardConnect For $15.00/shr In Cash

(RTTNews) - First Data Corp. (FDC) said that it agreed to buy CardConnect Corp. (CCN) for $15.00 per share in cash.

The transaction is expected to be modestly accretive to First Data's adjusted EPS in the first full year post-closing, before expected synergies.

Under the terms of the definitive merger agreement between the parties, a subsidiary of First Data will commence a tender offer to acquire all of the outstanding CardConnect common stock for a purchase price of $15.00 per share in cash, followed by a merger in which each share of CardConnect common stock not tendered will be converted into the right to receive $15.00 per share in cash. The aggregate transaction value is approximately $750 million, including repayment of CardConnect's outstanding debt and the redemption of CardConnect's preferred stock.

First Data intends to fund the transaction with a combination of cash on hand and funds available under existing credit facilities.

The merger agreement has been unanimously approved by CardConnect's Board of Directors. In addition, CardConnect shareholders holding approximately 40% of CardConnect common stock have entered into tender and support agreements agreeing to tender their shares of common stock into the tender offer and support the transaction.

The parties expect the transaction to close in the third quarter of 2017.