KKR’s Acquisition of First Data

B. Rajesh Kumar
Additional contact information
B. Rajesh Kumar: Institute of Management Technology

Chapter 41 in Wealth Creation in the World’s Largest Mergers and Acquisitions, 2019, pp 335-338 from Springer

Abstract: Abstract On April 2, 2007, First Data Corp. announced that it had entered into an agreement to be acquired by an affiliate of Kohlberg Kravis Roberts (KKR) & Co in a transaction valued at $29 billion. First Data shareholders received $34 in cash for each share of First Data common stock held which represented a premium of approximately 26% over First Data’s closing price of $26.90 as on March 30, 2007, and a premium of approximately 34% over the average closing price during the previous 30 trading days. First Data being a privately owned company was delisted from the New York Stock Exchange on September 24, 2007. This leveraged buyout by KKR was financed with $24 billion in debt. It was the second largest buyout ever. According to Reuter estimates, at $34 per share, KKR paid 27 times its estimated 2007 earnings of $1.24 per share. On the basis of $26.4 billion equity value, KKR paid approximately 14 times estimated 2007 EBITDA of $1.9 billion. The deal came about 6 months after First Data spun off Western Union.

Keywords: Kohlberg Kravis Roberts (KKR); Buyout; Shareholder Data; Merchant Acquirer; Portfolio Companies (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:mgmchp:978-3-030-02363-8_41

Ordering information: This item can be ordered from
http://www.springer.com/9783030023638

DOI: 10.1007/978-3-030-02363-8_41

Access Statistics for this chapter

More chapters in Management for Professionals from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().