By Lisa Kerner
Charlotte, N.C., April 2 - First Data Corp. entered into an agreement to be acquired by an affiliate of Kohlberg Kravis Roberts & Co. for $34.00 per share in a transaction valued at about $29 billion.
The per-share price is a roughly 34% premium over First Data's average closing share price during the previous 30 trading days.
First Data plans to tender for all of its outstanding bonds in conjunction with closing, expected in the third quarter of 2007, according to a company news release.
The company has 50 days to solicit proposals from third parties under the agreement, and First Data shareholders must approve the transaction.
Citigroup, Credit Suisse, Deutsche Bank, HSBC, Lehman Brothers, Goldman Sachs and Merrill Lynch have committed to provide debt financing for the transaction.
"We believe that current market conditions present an exceptional opportunity to fulfill our commitment to maximize the value of First Data by delivering an immediate cash premium to our shareholders," First Data chairman and chief executive officer Ric Duques said in the release.
Denver-based First Data provides electronic commerce and payment solutions for businesses worldwide.
Kohlberg Kravis Roberts, a private equity firms specializing in management buyouts, has offices in New York, Menlo Park, Calif., London, Paris, Hong Kong and Tokyo.
| Acquirer: | Kohlberg Kravis Roberts & Co.
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| Target: | First Data Corp.
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| Transaction value: | $29 billion
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| Payment per share: | $34.00
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| Announcement date: | April 2
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| Expected closing: | Third quarter of 2007
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| Stock price for target: | NYSE: FDC; $26.90 on March 30
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