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First Data

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First Data
Company typePrivate
IndustryFinance and Insurance
Founded1969
HeadquartersSandy Springs, Georgia
Key people
Michael Capellas,
Chairman & CEO
ProductsFinancial services
OwnerKohlberg Kravis Roberts
Number of employees
27,000 (2008)
Websitewww.firstdata.com

First Data Corporation is an American payment processing company headquartered in Sandy Springs, Georgia. First Data is a provider of electronic commerce and payment solutions, and the company's chief rival is TSYS. 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.

History

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. First Data is an agglomeration of various cooperative associations which were initially established to provide credit card data processing services for member banks. These include Eastern States Bankcard Association; Atlantic States Bankcard Association; Southwestern States Bankcard Association; Mountain States Bankcard Association, and Western States Bankcard Association.

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 $17.8 million acquisition of PaySys [1] and their VisionPlus System [2] and 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 included GovOne, the creation of eONEGlobal as a venture capital fund, the acquistion of Paymap, Inc., a company servicing electronic payment products, and the acquisition of Taxware, which would be merged into a new entity, named Velosant to spearhead broad Supply Chain Management initiatives. First Data also established a consumer payments brand which would take Direct Debit offerings to the retail marketplace. First Data further expanded geographically 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 Kohlberg Kravis Roberts (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 officially took over the First Data Corporation. Ric Duques retired, leaving the CEO position to Michael Capellas. 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 across North America, Europe and Australia.

First Data entered the Ireland market in a joint venture(JV) with Allied Irish Banks plc (www.aib.ie). The JV will be named AIB Merchant Services.

Management

Key executives include:

Not been deemed a reliable processing company by many customers

Headquarters

First Data's headquarters are located in Sandy Springs, Georgia.[4][5]

First Data's headquarters were located in Greenwood Village, Colorado.[6][7] In 2009 First Data announced that it was moving its headquarters from Greater Denver to 5565 Glenridge Connector, NE Atlanta, GA 30342 .[8]

References

  1. ^ Drinkard, Jim (2005-01-17). "Donors get good seats, great access this week". USA Today. Retrieved 2008-05-25.
  2. ^ "Financing the inauguration". USA Today. Retrieved 2008-05-25.
  3. ^ "Some question inaugural's multi-million price tag". USA Today. 2005-01-14. Retrieved 2008-05-25.
  4. ^ "City Council Districts." City of Sandy Springs. Retrieved on July 4, 2009.
  5. ^ "Contact." First Data. Retrieved on December 9, 2009.
  6. ^ "Contact Us." First Data. June 19, 2000. Retrieved on December 9, 2009.
  7. ^ "City Boundary Map." City of Greenwood Village. Retrieved on December 9, 2009.
  8. ^ Hoovers.com, Renee. "First Data moving HQ to Atlanta." Denver Business Journal. Friday August 14, 2009. Retrieved on December 9, 2009.
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