First Data Completes Its Merger with Concord

As expected, First Data Corp. completed its merger today with Concord EFS Inc. in a deal valued at $7 billion, based on the Feb. 25 First Data closing price of $40.79 per share. The acquisition of Concord means the combined company has 30,000 worldwide employees. It expects to take in more than $10 billion in revenue this year. The consummation of the merger brings to an end a long and tortuous process that started last April when Denver-based First Data first bid for Concord, a Memphis-based processing company that owns the Star Systems Inc. EFT network. The U.S. Department of Justice, along with eight states and the District of Columbia, later challenged the deal on anti-trust grounds, charging that it would concentrate control of the market for debit cards secured by personal identification numbers in the hands of First Data. The government relented only in December with a settlement agreement that requires First Data to divest its 64% interest in the NYCE EFT network. Under the terms of the settlement, First Data has until August to sell its NYCE stake, but expects to complete the sale sooner. Concord shareholders today approved the amended merger agreement reached in connection with the settlement. First Data also announced that Richard P. Kiphart, a member of the Concord board of directors, is joining First Data's board.