First Data

First Data was an American financial-services and payments-technology company that processed card, debit, prepaid, electronic-commerce, and other digital transactions for merchants, financial institutions, governments, and consumers. Its roots lay in the bankcard-processing cooperative formed in Omaha in 1969 and in First Data Resources, established in 1971 to provide processing services to the Mid-America Bankcard Association. The company expanded from back-office card processing into a broad payments platform supporting merchant acquiring, issuer processing, point-of-sale technology, debit networks, prepaid products, fraud controls, e-commerce, and mobile payments. The company became an important infrastructure provider for the American card system. In 1976 it became an early processor for bank-issued Visa and MasterCard cards. American Express acquired an initial majority interest in 1980 and completed its purchase of the remaining shares by 1983. First Data Corporation was incorporated in 1989 and spun off from American Express in 1992 as a public company. Its 1995 merger with First Financial Management expanded the business across card-issuer services, merchant services, and consumer-facing operations. Western Union also became part of First Data through that transaction, although it was later separated into an independent public company in 2006. Acquisitions were central to First Data's growth. The purchase of PaySys International in 2001 added the VisionPLUS issuer-processing system. The 2004 merger with Concord EFS brought the STAR Network, a large U.S. PIN-debit and ATM network. First Data subsequently developed or acquired businesses in electronic payments, tax payments, merchant acquiring, prepaid cards, e-commerce, loyalty, and point-of-sale technology. Its international expansion included a joint venture with Allied Irish Banks in Ireland, the acquisition of ICICI Bank's merchant-services business in India, and the formation of Bank of America Merchant Services. In 2007, an acquisition by Kohlberg Kravis Roberts took First Data private in a highly leveraged transaction. Michael Capellas became chief executive, and the company faced a substantial debt burden. Frank Bisignano became chief executive in 2013 and chairman in 2014, emphasizing technology for small and medium-sized businesses, integrated commerce, tokenized payments, security, and merchant analytics. Under this strategy First Data introduced or expanded products such as Clover, Insightics, TransArmor, Fraud Detect, and Global PFAC, while acquiring or partnering with companies including Perka, Gyft, Transaction Wireless, Spree Commerce, Acculynk, CardConnect, BluePay, ShopKeep, Alipay, Apple, and Samsung. First Data returned to public markets in 2015 through an initial public offering intended in part to reduce leverage. It continued to operate as a large payments processor, with merchant acquiring, issuer services, prepaid processing, debit-network operations, and point-of-sale solutions. The company also promoted veteran employment and veteran-owned businesses through First Data Salutes and related philanthropy. In January 2019, Fiserv announced an all-stock acquisition of First Data valued at approximately $22 billion. Fiserv completed the transaction on July 29, 2019, ending First Data's existence as an independent publicly traded company. Its products, technology, and merchant relationships were incorporated into Fiserv's payments business.

First Data developed from the early U.S. bankcard-processing industry. The Mid-America Bankcard Association was established in Omaha in 1969 as a nonprofit bankcard-processing cooperative. First Data Resources was founded there in June 1971 by Perry "Bill" Esping, Mike Liddy, and Jack Weekly, initially processing transactions for the cooperative. In 1976 the business became an early processor of bank-issued Visa and MasterCard credit cards. American Express Information Services Corporation acquired 80 percent of First Data in 1980 and bought the remaining interest in stages through 1983. First Data Corporation was incorporated in 1989 and spun off by American Express in 1992. The company expanded its capabilities through the 1995 merger with First Financial Management Corporation, which created major operating areas serving card issuers, merchants, and consumers. Western Union entered the First Data portfolio through that merger and was later spun off as a separate public company in 2006. During the 2000s, First Data pursued an acquisition-led expansion. PaySys International and its VisionPLUS payment-software platform were acquired in 2001. In 2004, First Data merged with Concord EFS in a transaction that added the STAR Network and a large PIN-debit and ATM acceptance footprint. The company also developed international operations and partnerships, including AIB Merchant Services in Ireland, the acquisition of ICICI Bank's merchant-services business in India, and Bank of America Merchant Services in the United States. KKR agreed to acquire First Data in 2007 and completed the transaction that October. The leveraged buyout placed substantial debt on the company. Michael Capellas became chief executive, and First Data later experienced workforce reductions as it managed its private ownership and financial structure. Joe Forehand, Jonathan Judge, and Edward Labry held leadership roles during the transition before Frank Bisignano became chief executive in 2013 and chairman in 2014. Bisignano focused the company on technology-enabled commerce, particularly services for small and medium-sized businesses. First Data expanded Clover point-of-sale technology, merchant analytics through Insightics, payment-data security through TransArmor, and artificial-intelligence-supported fraud controls through Fraud Detect. It also acquired or partnered with businesses in gift cards, e-commerce, debit payments, integrated point-of-sale systems, and payment facilitation. First Data supported tokenized and mobile payments associated with Apple Pay, Samsung Pay, and Alipay. The company raised capital privately in 2014 to reduce leverage and completed a public offering in 2015. It continued to operate across merchant acquiring, issuer processing, debit networks, prepaid cards, e-commerce, and point-of-sale services. In 2019 Fiserv agreed to acquire First Data in an all-stock transaction. Completion on July 29, 2019 made First Data part of Fiserv and ended its independent corporate history.

1. 2019Fiserv acquisition is completed

   Fiserv completes its acquisition of First Data on July 29, 2019.

   Source
2. 2017CardConnect and BluePay expansion

   First Data announces acquisitions of CardConnect and BluePay while expanding integrated solutions and fraud technology.

   Source
3. 2015First Data completes initial public offering

   The company returns to public markets and raises approximately $2.56 billion.

   Source
4. 2014Insightics and mobile-payment initiatives expand

   First Data introduces merchant analytics and supports tokenized payment services associated with Apple Pay.

   Source
5. 2013Frank Bisignano becomes chief executive

   New leadership begins a technology and small-business-focused repositioning.

   Source
6. 2007KKR completes leveraged buyout

   First Data becomes privately held after a KKR-led acquisition.

   Source
7. 2006Western Union is spun off

   First Data separates Western Union into an independent publicly traded company.

   Source
8. 2004Concord EFS merger adds STAR Network

   The transaction gives First Data a major U.S. PIN-debit and ATM network.

   Source
9. 2001PaySys and VisionPLUS are acquired

   The acquisition adds the VisionPLUS payment-software platform for card issuers.

   Source
10. 1995Merger with First Financial Management

    The merger broadens First Data's issuer, merchant, and consumer-services operations and brings Western Union into the group.

    Source
11. 1992First Data is spun off and goes public

    American Express separates First Data as an independent publicly traded company.

    Source
12. 1989First Data Corporation is incorporated

    The corporate entity is incorporated as First Data Corporation.

    Source
13. 1980American Express acquires a majority interest

    American Express Information Services Corporation purchases 80 percent of First Data.

    Source
14. 1976Visa and MasterCard processing begins

    First Data becomes an early processor for bank-issued Visa and MasterCard credit cards.

    Source
15. 1971First Data Resources is founded

    First Data Resources begins processing bankcard transactions for the Mid-America Bankcard Association.

    Source
16. 1969Mid-America Bankcard Association is formed

    A nonprofit Omaha bankcard-processing cooperative that later became an early customer and institutional predecessor in First Data's history is established.

    Source

Payment-processing infrastructure and integrated commerce technology provider serving merchants, financial institutions, payment facilitators, and consumers.

• STAR NetworkDebit network

  STAR was First Data's U.S. PIN-debit and ATM network. It connected merchants, ATMs, financial institutions, and cardholders and supported debit acceptance across retail and electronic channels. First Data also integrated common Visa and MasterCard application identifiers for EMV-compliant debit transactions.

• VisionPLUSIssuer-processing software

  VisionPLUS was a payment and card-management software platform acquired through PaySys International. It supported issuer processing and related card-program functions for financial institutions and other payment organizations.

• CloverPoint-of-sale and merchant platform2013

  Clover is a cloud-connected point-of-sale and business-management platform for merchants. First Data acquired the Clover business and used it as a foundation for services combining payment acceptance, point-of-sale hardware, merchant applications, commerce management, and mobile-payment acceptance.

• InsighticsMerchant analytics2014

  Insightics was a cloud-based analytics service created with Palantir for small and medium-sized businesses. It used business and transaction information to help merchants monitor performance indicators and understand operating trends.

• TransArmorPayment security

  TransArmor was a layered payment-security offering designed to protect card data during payment processing. The solution combined encryption, tokenization, and compliance-related capabilities for merchants, including smaller businesses.

• Fraud DetectFraud prevention2017

  Fraud Detect used transaction scoring, machine learning, cybersecurity intelligence, and information associated with the dark web to identify potentially fraudulent payment activity.

• Global PFACPayment-facilitator infrastructure2017

  Global PFAC provided payment facilitators with access to a common integration interface intended to simplify connections to First Data's acquiring and payment-processing capabilities.

• 2014First Data Salutes

  United States

  First Data launched a company-wide military-engagement program supporting service members, transitioning veterans, veteran-owned businesses, and their families.

  Outcome. The program became a major element of the company's veteran and workforce-engagement efforts.

  Source
• 2008Go-Tag at the Democratic National Convention

  United States

  First Data supplied contactless Go-Tag stickers to delegates and media representatives at the Democratic National Convention in Denver. NFC-enabled stickers were read by First Data scanners and linked to prepaid balances for purchases of food and beverages.

  Outcome. Demonstrated contactless and mobile-payment use in a large event environment.

  Source

• 2019Agree to acquisition by FiservM&A

  Fiserv and First Data sought to combine complementary merchant, payment-processing, and financial-technology capabilities.

  What changed. First Data agreed to an all-stock acquisition by Fiserv.

  Aftermath. Fiserv completed the transaction on July 29, 2019, and First Data ceased to operate as an independent listed company.

  Equity value. Approximately $22 billion (Announced January 2019; completed July 2019)

  Source
• 2015Return to public marketsStrategy

  First Data had been privately owned since the 2007 leveraged buyout and was carrying significant debt.

  What changed. The company completed an initial public offering and sold 160 million shares at $16 per share.

  Aftermath. The offering raised approximately $2.56 billion and was intended to support debt reduction and investment in the business.

  IPO proceeds. $2.56 billion raised (2015)

  Source
• 2007Accept KKR leveraged buyoutM&A

  KKR sought to acquire First Data in a large leveraged transaction.

  What changed. The acquisition was completed and First Data became privately held.

  Aftermath. The company was delisted and operated under a substantial debt burden before later refinancing and returning to public markets.

  Source
• 2006Separate Western Union from First DataStrategy

  Western Union had become part of First Data through the First Financial Management merger.

  What changed. First Data announced and completed a tax-free spin-off of Western Union to First Data shareholders.

  Aftermath. Western Union became an independent publicly traded company, leaving First Data more focused on payment processing and related services.

  Source

• 2019Fiserv agrees to acquire First Data

  Fiserv announced an all-stock acquisition of First Data with an equity value reported at approximately $22 billion.

  M&A
  Source
• 2019Fiserv completes First Data acquisition

  Fiserv completed the acquisition on July 29, ending First Data's independent corporate and listed status.

  M&A
  Source
• 2015First Data returns to the public market

  First Data sold shares in a large initial public offering, raising approximately $2.56 billion, with debt reduction identified as an important use of the proceeds.

  Other
  Source
• 2014First Data announces a major private debt-reduction placement

  The company raised approximately $3.5 billion in a private placement and used proceeds to reduce debt and interest costs.

  Other
  Source
• 2007First Data is acquired by Kohlberg Kravis Roberts

  KKR completed a leveraged buyout of First Data, taking the company private and removing its shares from the New York Stock Exchange.

  M&A
  Source

1. First Data