Mubasher: US financial technology provider Fiserv on Wednesday announced that it would purchase payment processor First Data in an all-stock $22 billion deal.

In one of the biggest takeovers in the financial technology sector, Fiserv offered  0.303 of its shares for each First Data share owned, an equivalent to $22.74, or a premium of 29% over First Data’s closing price on Tuesday.

Fiserv shareholders would have 57.5% of the merged entity, with First Data shareholders owning the remaining 42.5%.

The deal, which will be finalised in the first half of this year, is expected to shore up adjusted earnings per share (EPS) by more than 20% in the first full year after close.

It would also generate at least $500 million of revenue synergies over five years and create $900 million of run-rate cost synergy savings.

The combined entity “will offer leading technology capabilities that enable a range of payments and financial services, including account processing and digital banking solutions; card issuer processing and network services; e-commerce; integrated payments,” both companies said in a statement.