irst Data Corp. announced the completion of its acquisition of Concord EFS, Inc. on Feb. 26, 2004. The transaction is valued at approximately $7 billion, according to First Data.

Concord EFS shareholders of record gave their approval of the merger at a meeting called specifically for them to formally vote on the deal. First Data's shareholders had approved the merger on Oct. 28, 2003.

The transaction was completed slightly ahead of schedule; it had been anticipated to be finalized by the end of Q1 2004.

Under terms of the merger agreement with Concord, each share of Concord stock was converted to 0.365 First Data common shares. The closing price of Concord's stock was valued at $40.79 per share on Feb. 25, 2004.

First Data issued approximately 170 million common shares to Concord shareholders, who now own roughly 19% of the outstanding shares of the combined company.

The road to completion of the merger transaction was not a smooth ride for First Data. The U.S. Department of Justice (DOJ) brought a suit against First Data over anti-trust concerns over the merger, settled in December 2003.

Under terms of the settlement, First Data agreed to sell its 64% stake of NYCE, the nation's third largest PIN debit and ATM network. NYCE is a competitor of Concord's STAR network, the nation's largest.

First Data had planned on combining NYCE and STAR, but the DOJ said the combined network would give First Data control of at least 50% of the PIN debit processing market.

First Data will now have 30,000 employees worldwide. The company expects to earn more than $10 billion in annual revenues by the end of the year.

First Data said the new company will bring significant offerings to the payments industry and create more choices for consumers, merchants and banks.