First Data Corp. (FDC) to be Sold to KKR
Credit-card and payment processor First Data Corp. (NYSE:FDC - News) said on Monday it has agreed to be acquired by private equity firm Kohlberg Kravis Roberts & Co. (KKR.UL) for about $29 billion in the second-largest buyout ever. The deal is the latest in a string of high-profile leveraged buyouts of U.S. corporations in an era of easily accessible financing, ranking only behind KKR's and Texas Pacific Group's ongoing takeover of TXU Corp. (NYSE:TXU - News) in terms of size. Under the agreement, First Data shareholders would be paid $34 for each share of the company they own, a 26 percent premium to where the shares closed on March 30। Based on the 775.1 million shares outstanding the company had in February, the deal has an equity value of $26.4 billion. At $34 per share, KKR is paying 27 times estimated 2007 earnings of $1।24 per share. Based on the $26.4 billion equity value, KKR is paying nearly 14 times estimated 2007 earnings before interest, taxes, depreciation and amortization of $1.9 billion, according to Reuters Estimates. First Data said it was a great time to maximize the company's value and deliver cash to shareholders.
The agreement was unanimously approved by the First Data board of directors based upon the recommendation of the strategic review committee made up of three independent directors.
The deal is expected to close by the end of the third quarter, subject to shareholder and regulatory approvals.
First Data intends to tender for all of its outstanding bonds in conjunction with closing.
The move comes about six months after First Data spun off Western Union (NYSE:WU - News), the payment processing company that built the first transcontinental telegraph line. With private equity firms competing hard for large buyout targets, the First Data deal makes KKR the firm behind the top three largest leveraged buyouts.
Source: ReutersLabels: FDC, Hot Stocks, Private Equity, TXU, WU
posted by Stock Administrator @ 10:17 AM
First Data Corp. (FDC) to be Sold to KKR
Credit-card and payment processor First Data Corp. (NYSE:FDC - News) said on Monday it has agreed to be acquired by private equity firm Kohlberg Kravis Roberts & Co. (KKR.UL) for about $29 billion in the second-largest buyout ever. The deal is the latest in a string of high-profile leveraged buyouts of U.S. corporations in an era of easily accessible financing, ranking only behind KKR's and Texas Pacific Group's ongoing takeover of TXU Corp. (NYSE:TXU - News) in terms of size. Under the agreement, First Data shareholders would be paid $34 for each share of the company they own, a 26 percent premium to where the shares closed on March 30। Based on the 775.1 million shares outstanding the company had in February, the deal has an equity value of $26.4 billion. At $34 per share, KKR is paying 27 times estimated 2007 earnings of $1।24 per share. Based on the $26.4 billion equity value, KKR is paying nearly 14 times estimated 2007 earnings before interest, taxes, depreciation and amortization of $1.9 billion, according to Reuters Estimates. First Data said it was a great time to maximize the company's value and deliver cash to shareholders.
The agreement was unanimously approved by the First Data board of directors based upon the recommendation of the strategic review committee made up of three independent directors.
The deal is expected to close by the end of the third quarter, subject to shareholder and regulatory approvals.
First Data intends to tender for all of its outstanding bonds in conjunction with closing.
The move comes about six months after First Data spun off Western Union (NYSE:WU - News), the payment processing company that built the first transcontinental telegraph line. With private equity firms competing hard for large buyout targets, the First Data deal makes KKR the firm behind the top three largest leveraged buyouts.
Source: Reuters
The agreement was unanimously approved by the First Data board of directors based upon the recommendation of the strategic review committee made up of three independent directors.
The deal is expected to close by the end of the third quarter, subject to shareholder and regulatory approvals.
First Data intends to tender for all of its outstanding bonds in conjunction with closing.
The move comes about six months after First Data spun off Western Union (NYSE:WU - News), the payment processing company that built the first transcontinental telegraph line. With private equity firms competing hard for large buyout targets, the First Data deal makes KKR the firm behind the top three largest leveraged buyouts.
Source: Reuters
Labels: FDC, Hot Stocks, Private Equity, TXU, WU
posted by Stock Administrator @ 10:17 AM
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