First Data, the listed US electronic commerce and payment solutions firm, has agreed to be bought out by the private equity firm of the moment, KKR.
Under the agreement, First Data shareholders will receive $34 in cash per share, representing a premium of approximately 26 per cent over First Data’s closing share price of $26.90 on March 30, 2007. Bloomberg says the deal is number two in the list of largest LBOs (after TXU) and the largest by a sole purchaser.The deal involves a veritable army of advisers and includes most of the leading investment banks on Wall Street. Citigroup, Credit Suisse, Deutsche Bank, HSBC, Lehman Brothers, Goldman Sachs and Merrill Lynch are providing debt financing and acting as financial advisors to KKR. Simpson Thacher & Bartlett is acting as legal advisor to KKR.
The other side is a little less crowded. Morgan Stanley is sole financial advisor to First Data and Evercore Group is financial advisor to the Strategic Review Committee of the First Data board of directors. Sidley Austin is legal counsel to First Data. Sullivan & Cromwell is acting as legal counsel to the company’s independent directors.