Under the deal, First Data shareholders will receive $34 in cash for each share of First Data common stock they hold, representing a premium of approximately 26% over First Data’s closing share price of $26.90 on March 30, 2007 and a premium of approximately 34% over the average closing share price during the previous 30 trading days.
Since its initial public offering in 1992, First Data has grown from $1.2 billion in annual revenue to $10.6 billion prior to the spin-off of Western Union and $7.1 billion post spin-off. First Data intends to tender for all of its outstanding bonds in conjunction with closing.
The deal has already been approved by the board of directors of First Data and is now awaiting approval from First Data shareholders and the appropriate regulatory bodies. The transaction is also subject to customary closing conditions, but is expected to be completed by the end of Q3 2007.
