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WEBVTT JULIE: A FORTUNE 500 COMPANY WITH THOUSANDS OF EMPLOYEES IN OMAHA IS IN THE MIDDLE OF A MAJOR MERGER. DAVID: TONIGHT WE’RE ASKING -- WHAT DOES THIS MEAN FOR ALL THOSE EMPLOYEES AT FIRST DATA? JULIE: KETV NEWSWATCH 7’S ALEXANDRA STONE IS LIVE WITH THE DEVELOPING STORY. ALEXANDRA: DAVID, JULIE, FIRST DATA WILL MERGE WITH WISCONSIN-BASED FISERV IN A $22 BILLION DEAL, AND EXPERTS SAY FIRST DATA, WITH ROOTS HERE IN OMAHA, WILL NOT HAVE THE UPPER HAND. FIRST DATA STARTED PROCESSING CREDIT CARD PAYMENTS IN 1971 RIGHT HERE IN OMAHA. NOW, THE COMPANY’S FUTURE IN THE METRO IS UNCERTAIN. >> WHEN A MERGER HAPPENS IN THE COMMUNITY, PEOPLE GET NERVOUS. ALEXANDRA: WISCONSIN-BASED COMPANY FISERV WILL BUY FIRST DATA FOR $22 BILLION. DAVID BROWN, PRESIDENT AND CEO OF THE GREATER OMAHA CHAMBER OF COMMERCE, SAYS WHILE THE NEWS CAN BE UNSETTLING -- >> I THINK THESE KIND OF THINGS HAPPEN IN THE MARKET EVERY DAY. ALEXANDRA: THE CHAMBER WILL KEEP TABS ON POTENTIAL CHANGES AND TALK TO COMPANY LEADERS IN THE COMING MONTHS. >> WE WERE SURPRISED, BUT I THINK THERE’S SUCH A GREAT OPPORTUNITY FOR GROWTH WITH THIS MERGER THAT WE’RE LOOKING FORWARD TO WHAT THE GOOD NEWS CAN BE DOWN THE ROAD. ALEXANDRA: A BUSINESS PROFESSOR AT UNO ISN’T AS OPTIMISTIC. >> THERE WILL BE MORE FDR JOBS AFFECTED THAN FISERV JOBS, AND THAT IS UNFORTUNATE FOR OMAHA. ALEXANDRA: PHANI TEJ ADIDAM EXPECTS TO SEE GOOD PAYING JOBS LEAVE THE METRO. >> SO, IF I’M A MIDDLE LEVEL MANAGER OR A SLIGHTLY UPPER MIDDLE LEVEL MANAGER AT FIRST DATA, THEN I WOULD DEFINITELY BE CONCERNED ABOUT WHAT WOULD HAPPEN TO MY JOB PROSPECTS. ALEXANDRA: DAVID BROWN HOPES THE NEWER, BIGGER COMPANY WILL SEE OMAHA EMPLOYEES AS A TOP RESOURCE. >> I DIDN’T WANT TO SPECULATE ON WHERE THE JOBS END UP, I’M CONVINCED THAT OMAHA IS A VERY COMPETITIVE PLACE. FIRST DATA HAS A LONG TIME HISTORIC PLACE HERE IN THIS MARKET THEY CONTINUE TO BE AN IMPORTANT EMPLOYER. ALEXANDRA: FISERV OFFICIALS SAY THE COMPANIES’ BOARDS OF DIRECTORS HAVE UNANIMOUSLY APPROVED A DEFINITIVE MERGER AGREEMENT. THE ALL-STOCK TRANSACTION COULD CLOSE LATER THIS YEAR. REPORTING LIVE, ALEXANDRA STONE, KETV NEWSWATCH 7

Advertisement First Data to be sold to Wisconsin-based Fiserv In a press release Wednesday, Wisconsin-based Fiserv announced its plans to purchase Omaha company First Data for $22 billion Share Shares Copy Link Copy

In a press release Wednesday, Wisconsin-based Fiserv announced its plans to purchase Omaha company First Data for $22 billion. First Data was started in Omaha in 1971.Board members from both companies approved the merger, calling it highly complimentary.Neither company has said what will happen to its employees, especially those based in Omaha with First Data.According to the release, First Data shareholders will receive a fixed exchange ratio of 0.303 Fiserv shares for each share of First Data common stock they own, for an equity value of $22 billion. This represents $22.74 based on closing prices as of January 15, and a premium of 29% to the five-day volume weighted average price as of that date. Following the close of the transaction, Fiserv shareholders will own 57.5% of the combined company, and First Data shareholders will own 42.5%, on a fully diluted basis. The all-stock transaction is intended to be tax-free to First Data shareholders. David Brown, President and CEO of the Greater Omaha Chamber of Commerce said he and his staff will keep tabs on potential changes and talk with company leaders in the coming months. "We were surprised, but I think there's such a great opportunity for growth with this merger, that we're looking forward to what the good news can be down the road," Brown said. Brown said he is confident the newer, bigger company will see its current employees as a top resource. "I didn't want to speculate on where the jobs end up," Brown said, "I'm convinced that Omaha is a very competitive place. First Data has a long time historic place here in this market. They continue to be an important employer," Brown said. Though, Phani Tej Adidam, chairman of the Department of Marketing and Entrepreneurship at the University of Nebraska Omaha said Fiserv will have the upper hand moving forward, as it becomes majority owner. "So, if I'm a middle level manager or a slightly upper middle level manager at First Data then I would definitely be concerned about what would happen to my job prospects," Adidam said.