June 1, 2017
Payments processing giant First Data on Monday revealed a deal to acquire distribution partner CardConnect for $750 million. First Data said the Philadelphia-area company, which processes around $26 billion annually for 67,000 merchant customers, will be “modestly accretive” to earnings in the first year. CardConnect, which went public just last year, is best known for its integration with ERP providers like Oracle and SAP, enabling companies to accept payments within their CRM systems.
The company also has a robust business processing e-commerce and in-app payments. Almost exactly one year ago, CardConnect hired Braintree and PayPal veteran Abe Marciano as its CIO to bolster its digital offerings.
“This transaction is consistent with our strategy of integrating and scaling innovative technologies across our distribution footprint to better serve our partners and customers,” said First Data Chairman and CEO, Frank Bisignano. “CardConnect is a long-standing First Data distribution partner and we are excited to incorporate its state-of-the-art solutions across some of our most important strategic initiatives such as partner-centric distribution, integrated payments, and enterprise payments solutions.”
CardConnect is First Data’s largest acquisition since its re-emergence as a public company in 2015. Both companies expect the transaction to close in the third quarter of 2017.