While on a shopping spree for acquisitions, First Data itself agreed to be taken over by private equity firm Kohlberg Kravis Roberts & Co. (KKR) in a transaction valued at US$ 29 billion.  There is value in information evidenced by the premium of 26% over Fist Data’s closing share price of March 30, 2007 and a premium of approximately 34% over the average closing share price during the previous 30 trading days.  KKR paid a multiple of 4 times 2006 revenues and a multiple of 16 times EBITD. 

Question:  Where will KKR take the business?  KKR Member Scott Nuttall stated: “First Data is at the forefront of the worldwide trend toward electronic payments. We believe that through continued investments in its technology, people and customer relationships, First Data will build on its history of innovation and industry leadership. We look forward to working closely with First Data’s management team and clients to grow the franchise in the years ahead.”  Source:  First Data Press Release www.firstdata.com

BIIA Newsletter April – 2007 Issue