Fiserv Inc. (NASDAQ: FISV) said on Wednesday that it will acquire payment processor, First Data, in a USD 22 Billion deal, making it one of the largest acquisitions in the financial technology sector, as per CNBC.

First Data shareholders will receive 0.303 Fiserv shares for each share of First Data stock they own, valuing First Data shares at USD 22.74, and offering those stockholders a 29% premium based on prices over the past five days, according to the companies. First Data shares rose 17.1% to USD 20.55 in early trading, while Fiserv shares fell 5.4% to USD 71.

According to The Wall Street Journal, the companies believe their customers would benefit from the complementary business. The combined company plans to invest USD 500 million over five years, targeting risk management, merchant solutions and payment technologies. It would also generate significant incremental revenue, related to adding new value to bank merchant services, credit processing and other products, the Company said.

The combined company would be able to trim USD 900 Million in expenses over five years, aided by the elimination of duplicative corporate structures, streamlining technology infrastructure, operational efficiencies and other changes, Fiserv and First Data said.

Fiserv’s Chief Executive Officer Jeffery Yabuki will serve as the Chairman and CEO of the combined company, which will be called Fiserv. Frank Bisignano, Chief Executive Officer of First Data, will serve as President and Chief Operating Officer.

After the deal closes in the second half of 2019, the combined company’s adjusted earnings per share are expected to increase by more than 20% in the first full year.