Monday, March 23, 2020View Showroom
BROOKFIELD, Wis.--(BUSINESS WIRE)-- Fiserv, Inc. (NASDAQ:FISV), a leading global provider of payments and financial services technology solutions, announced today that it will postpone its previously scheduled March 25, 2020 Investor Conference in New York City to a date that will be determined later in the year. This change is being made due to an abundance of caution related to the coronavirus (COVID-19), and the priority Fiserv places on the health and well-being of its investors, partners and associates.
The company also announced new cost and revenue synergy targets related to the First Data acquisition which closed on July 29, 2019. The company now expects to achieve $1.2 billion of run-rate cost synergies and more than $600 million of run-rate revenue synergies for the five year period ending in 2024. These new goals represent an increase of $300 million and $100 million, respectively, compared to the originally communicated targets.
In addition to synergy benefits, the company also expects interest expense savings of more than $250 million. Overall, the company anticipates transaction accretion to adjusted earnings per share to be in excess of 55% at full synergy run rate. The company will provide more detail on the updated synergy targets on its first quarter 2020 earnings call.
“The well-being of our clients, associates and shareholders is our number one priority. Although we are disappointed to postpone our Investor Day due to the current environment, we look forward to sharing our strategic, operational and financial plans with investors later in the year,” said Jeffery Yabuki, Chairman and Chief Executive Officer of Fiserv. “We are pleased with the incredible effort of our associates around the world, which allows us to surpass the original synergy targets while continuing to deliver differentiated value for clients.”
The company also affirmed its previously communicated 2020 financial outlook of 6% to 8% internal revenue growth and adjusted earnings per share growth of 23% to 27%.
“We remain comfortable with our outlook for the full year based on the diversity and resilience of our business along with our current view of the market,” said Yabuki.
Fiserv, Inc. (NASDAQ:FISV) aspires to move money and information in a way that moves the world. As a global leader in payments and financial technology, the company helps clients achieve best-in-class results through a commitment to innovation and excellence in areas including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and the Clover® cloud-based point-of-sale solution. Fiserv is a member of the S&P 500® Index and the FORTUNE® 500, and is among FORTUNE World's Most Admired Companies®. Visit fiserv.com and follow on social media for more information and the latest company news.