I'm hearing rumors that Fiserv is about to announce a split between Financial and Merchant? half goes Private Equity the other half gets purchased.
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@dx First Data acquired Fiserv with Fiserv's money.
Fiserv should rebrand to Clover.
Jeff Y wasn’t ousted by Frank, he was ready to cash out and leave Fiserv behind. Don’t get me wrong, F-B is a miserable person, but JY welcomed the move.
@ah, I think your timeline is off. Ric Duques was FDC CEO at the time of the KKR acquisition. At that time, Frank B was with JP Morgan-Chase. He became FDC CEO in 2013
100% true, or, something extremely similar. We are ripe for hostile take over or cheap sale. Within 3-6 months.
I have to come on hear every once in awhile to put a nail in the Fiserv saved First Data. I’m a current Fiserv employee brought over in the FD merger. Yes it was a merger we had something Fiserv wanted and needed. The big mistake Fiserv made was not looking closer at the claws that KKR had put into FD. FD was a very profitable company for years before some id--ts let KKR in. The id--t was Frankie B. Guy was a total sellout to KKR and helped put FD in over 20 billion in dept which it had never been in just so KKR could get their pound of flesh out of FD. Fiservs second mistake was letting Frankie B any where near the board or any kind of power position. We at FD at the time knew this merger was doomed after Frankie B had Jeff Y ousted from leadership of Fiserv and took over himself and all the rest they say is history sadly.
@dx please learn proper English!
Fiserv never save First Data, Fiserv acquired First Date Corporation, in an all-stock transaction. Under the terms of the agreement, FD shareholders received a fixed exchange ratio of 0.303 Fiserv shares for each share of FD common stock, representing a 29% premium to FD’s closing price on the day before the announcement. Fiserv shareholders were expected to own 57.5% of the combined company, while FD shareholders would own 42.5%. Fiserv assumed approximately $17 billion in net debt from FD, which originated from its 2007 leveraged buyout by private equity firm KKR & Co..
This is the Truest statement that Fiserv ever made, " First Date in now Fiserv." Barbarian at the gate...Get over it, your Fiserv die on July 29, 2019. FD company my be dead but lives on here @ Fiserv
@dq so sorry but Fiserv saved Failed Data
Private equity saved First Data.
@a4 There Is, of course, the possibility that the company and KKR are preparing for a big settlement Fiserv will have to pay as a result of the Class Action Lawsuits, you know, when that stock price hit a High of $238 and was a bit less than the actual truth with their filings. Look it up for yourself; it is out there.
KKR contemplated doing that, but it was like untangling spaghetti
Based on the stock collapse, that dropped to half the stock price, and still dropping further, there is a high chance this could happen to improve its financials.
@a4 the split would likely still have an overall same holding company, but financials would be separate and they could be different stock tickers. Would allow clover growth to standout more and investment in traditional Fiserv to be less scrutinized. IN THEORY, who knows. I think the org changes looks like that, but it also finally gets rid of the total strange issuer disconnect and better aligns the clients, so that makes sense too.
Maybe Clover splits from Fiserv?
Many have speculated since the hostile takeover. Fact is from a business perspective it doesn’t make sense to split them. The end to end monopoly from merchant to network to issuer processor and core is too valuable together to split up. It is perfectly vertically integrated for high margins. Splitting them up breaks up this financial advantage. You have seen other mergers of competitors have to split when they are poorly vertically integrated or have too many of the same things. For all the cuts they have put Fiserv in a place to stay whole.