First Data Completes Its Purchase Of CardConnect

First Data Corporation, the commerce-enabling technology  and CardConnect, a payment processing and technology solutions provider, announced Thursday (July 6)  the successful completion of First Data’s tender offer to purchase the outstanding shares of CardConnect common stock for $15 per share in cash

In a press release, the companies said the  tender offer expired one minute after 11:59 p.m., Eastern Time, on July 5, 2017. First Data also said it completed the acquisition of the remaining CardConnect shares of common stock not acquired in the tender offer through a merger pursuant to Section 251(h) of the General Corporation Law of the State of Delaware. As a result, CardConnect is now a wholly owned subsidiary of First Data, and CardConnect shares will no longer be traded on the Nasdaq.

“We are thrilled with the acquisition of CardConnect and the opportunity to partner with Jeff Shanahan and his team and to integrate and expand the innovative products and skills that they bring to First Data,” said First Data Chairman and CEO Frank Bisignano in the press release. “This acquisition allows us to improve our service offerings for our JVs and other distribution partners, accelerate our integrated solutions strategy and enter the ERP integration business.”

As of the expiration of the tender offer, 22,987,356 shares were tendered, representing approximately 72 percent of CardConnect’s outstanding shares of common stock. All CardConnect shares of common stock that were not validly tendered have been converted into the right to receive $15 per share in cash, without interest and less any applicable withholding taxes, the same price paid in the tender offer. CardConnect CEO Jeff Shanahan will continue to lead CardConnect operations and will serve as an Executive Vice President and as a member of First Data’s Management Committee, reporting to Frank Bisignano, the companies noted. The merchant acquiring businesses of the two companies will be consolidated in First Data’s financial statements starting in the third quarter of 2017.  CardConnect will continue to operate under its own brand and will remain headquartered in King of Prussia, Penn.