(Reuters) - U.S. monetary expertise supplier Fiserv Inc stated on Wednesday it should purchase cost processor First Knowledge Corp in a $22 billion deal, making it one of many largest acquisitions within the monetary expertise sector.
The all-stock deal is at a premium of almost 30 % over First Knowledge’s closing worth on Tuesday.
First Knowledge shares rose 17.1 % to $20.55 in early buying and selling, whereas Fiserv shares fell 5.four % to $71.
Fiserv shareholders will personal 57.5 % of the mixed firm and First Knowledge shareholders will personal 42.5 %. Fiserv supplied zero.303 of its shares for every First Knowledge share.
Fiserv Chief Govt Officer Jeffery Yabuki will turn into CEO and chairman of the mixed firm.
After the deal closes within the second half of 2019, the mixed firm’s adjusted earnings per share is predicted improve by greater than 20 % within the first full yr, the businesses stated.
J.P. Morgan Securities LLC was the monetary adviser to Fiserv and BofA Merrill Lynch for First Knowledge.
Reporting by Supantha Mukherjee and Munsif Vengattil in Bengaluru; Enhancing by Bernard Orr and Arun Koyyur