CardConnect Sold for $15 per share

Payments solution company #CardConnect $CCN agreed to be acquired by #FirstData $FDC for $15.00 per share in cash.

The transaction is expected to be modestly accretive to First Data’s EPS in the first full year post-closing

ccn
CardConnect to be acquired by First Data

CardConnect CCN is a provider of payment processing and technology solutions and is one of First Data’s largest distribution partners. It processes approximately $26 billion of volume annually from about 67,000 merchant customers which are served by CardConnect’s large base of distribution partners. CCN closed at $13.65. FDC closed at $16.64.

First Data FDC will commence a tender offer to acquire all of the outstanding CardConnect common stock for a purchase price of $15.00 per share in cash. The aggregate transaction value is approximately $750 million, including repayment of CardConnect’s outstanding debt and the redemption of CardConnect’s preferred stock. First Data intends to fund the transaction with a combination of cash on hand and funds available under existing credit facilities.

First Data Corporation provides electronic commerce solutions for merchants, financial institutions, and card issuers worldwide. It operates through three segments: Global Business Solutions, Global Financial Solutions, and Network & Security Solutions. The Global Business Solutions segment offers retail point-of-sale merchant acquiring and e-commerce services; and mobile payment services and Webstore-in-a-box solutions, as well as its cloud-based Clover point-of-sale operating system. FDC has a market capitalization of $15.3 billion.

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Barron’s says, Buy Yahoo, Sell Foot Locker

Barron’s is bullish on Ford, Crox, McKesson, and Yahoo

Barron’s is bearish on Nike, Foot Locker and Tesla

 

In its weekly review of stocks and market, Barron’s tells its readers:

Yahoo! $YHOO continues to look undervalued, with shares trading at a “sizable” discount to estimated asset value, Barron’s contends in a ‘Follow Up’ column. According to the report, #Gabelli analyst Brett Harriss calculates Yahoo’s asset value at $71 per share, though the expected sale of those assets could fetch closer to $60 after accounting for taxes and discounts.

Tiernan Ray of the Barron’s Technology Trader column argues that tech companies “often reach critical mass” when annual revenues approach $1B. Some young companies have already passed that benchmark and stand out, the publication says, including #Arista Networks $ANET . Among companies approaching $1B, Pure Storage $PSTG looks “noteworthy,” with Barron’s also naming Veeva Systems $VEEV , #FireEye $FEYE , #Splunk $SPLK , Box $BOX and Atlassian $TEAM .

Despite wider concerns over the future of retail, investors and analysts should “renew their faith” in #Crocs , Barron’s contends in a ‘Trader Extra’ column. The company has already undergone a restructuring effort, and the cheap shares offer an “excellent deal” as Crocs $CROX returns to profitability and finds its place in the marketplace.

Headwinds are appearing for Foot Locker $FL as mall traffic slumps and the basketball sneaker boom potentially loses steam, Barron’s contends in a ‘Trader Extra’ column. The already-weakened stock is vulnerable to another double-digit percentage slump, the publication adds. The report also cites independent analyst Jonathan Hanlon of Research 360, who highlights lackluster execution in apparel and growing competition from online, particularly from #Nike $NKE .

International Paper $IP offers “plenty to entice investors,” including rising free cash flow and a steadily growing dividend, Barron’s contends in a feature article. The packaging and paper name is a beneficiary of ecommerce trends, and could return 25% by year end as volumes rebound and the company hikes prices, the publication says. “We are at an inflection point. We expect margins to return to peak levels at the end of this year. In industrial packaging, we will exit the year in the 23% to 25% range, compared with trough margins in the first quarter of 18.5%,” CFO Glenn Landau told the publication in an interview.

Newly appointed #Ford $F CEO Jim Hackett “looks like an inspired choice” to accelerate the company’s autonomous driving effort and lift shares, Barron’s contends in a cover story. Investors could make 30% in a year as #Hackett makes his case in the coming months, the publication says, adding that the stock has an “excellent chance” of outperforming Tesla $TSLA over the next five years.

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The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.