First Data
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First Data Corporation is a payment processing company based in Greenwood Village, Colorado. First Data Corp. is a provider of electronic commerce and payment solutions. The company's portfolio includes merchant transaction processing services; credit, debit, private-label, gift, payroll and other prepaid card offerings; fraud protection and authentication solutions; electronic check acceptance services through TeleCheck; as well as Internet commerce and mobile payment solutions. The company's STAR Network offers PIN-secured debit acceptance at ATM and retail locations.
[edit] History
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In 1969, the Mid-America Bankcard Association (MABA) was formed in Omaha, Nebraska, as a non-profit bankcard processing cooperative. Two years later, First Data Resources (FDR) incorporated in June to become a for-profit organization providing processing services to MABA. FDR had 110 employees and $2 million in annual revenues.
In 1980, American Express Information Services Corporation (ISC) bought 80% of FDR. The remaining 20% was purchased in 5% increments each subsequent year until June 1983. First Data Corporation spun off from American Express and went public in 1992. In 1995, the company merged with First Financial Management Corp. (FFMC) and was then organized into three major business units serving card issuers, merchants and consumers. Western Union became part of First Data as a result of the merger with FFMC.
By 1998, First Data was providing transaction processing services not only in the U.S., but also in markets around the world, including the United Kingdom, Australia, Mexico and Canada. The company also began to see significant growth in its network of Western Union agent locations. This set the stage for First Data to become a leading global provider of electronic commerce and payment solutions to businesses and consumers worldwide.
From 2001 through 2005, a period of expansion occurred as First Data acquired companies around the globe and in the U.S., including the $6.6 billion merger with Concord EFS in 2004, which added the STAR Network and PIN-based debit acceptance at more than 1.9 million ATM and retail locations. Additional acquisitions and strategic relationships further expanded First Data’s ability to better serve markets in Europe, Asia and Latin America.
In 2005, First Data was among 53 entities that contributed the maximum of $250,000 to the second inauguration of President George W. Bush.[1] [2] [3]
On January 26, 2006, First Data announced its intention to spin off Western Union into an independent publicly traded company through a tax-free spin-off of 100% of Western Union to First Data shareholders. The spin off occurred as planned on September 29, 2006.
On April 2, 2007 it was announced that KKR entered an agreement to acquire First Data (NY Times article)
Now under private ownership, First Data's stock was taken off the New York Stock Exchange on the 24th of September. On October 1, 2007 KKR (Kohlberg Kravis Roberts) officially took over the First Data corporation. Ric Duques retired, leaving the CEO position to Michael Capellas of KKR. Michael Capellas was previously the CEO of MCI, Inc., the president of Hewlett-Packard Company, and also the chairman/CEO of the Compaq Computer Corporation.
After First Data became privately owned, hundreds of workers were laid off.
First Data entered the Ireland market in a joint venture with Allied Irish Banks plc (www.aib.ie). The partnership will be named AIB Merchant Services.
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