Word just came that KKR has agreed to acquire credit card processing company First Data Corp. (NYSE: FDC) for approximately $29 billion. It would be the fifth-largest leveraged buyout in history, supplanting Harrah’s. See press release here: FirstData.pdf
Under terms of the agreement, First Data shareholders would receive $34 per share, which is around a 26% premium over last Friday’s closing price of $26.90 per share. Debt financing would come from Citigroup, Credit Suisse, Deutsche Bank, HSBC, Lehman Brothers, Goldman Sachs and Merrill Lynch have committed to provide debt financing.
First Data is being advised by Morgan Stanley, and is permitted to solicit proposals from third parties during the next 50 days. The buyers are being advised by Evercore Group.