First Data Corporation, a provider of electronic commerce and payment solutions to businesses worldwide, says it has received all domestic and international regulatory approval required to
First Data Corporation, a provider of electronic commerce and payment solutions to businesses worldwide, says it has received all domestic and international regulatory approval required to complete its USD26bn acquisition by Kohlberg Kravis Roberts, easing concern by investors that the transaction might fall victim to turbulence in the credit markets.
‘Achieving this milestone is a critical step for First Data and KKR,’ says First Data chief executive Ric Duques. ‘We continue to work closely together to ensure a smooth transition and expect to close the transaction by the end of September.’
First Data, which serves more than 5 million merchant locations, 1,900 card issuers and their customers, offers portfolio of services and solutions includes merchant transaction processing services, credit, debit, private label, gift, payroll and other prepaid card offerings, fraud protection and authentication solutions, receivables management solutions, electronic check acceptance services through TeleCheck and internet commerce and mobile payment solutions. The company’s Star Network offers PIN-secured debit acceptance at 2 million ATM and retail locations.
Observers are watching to see whether the acquisition will proceed at the agreed price of USD34 a share, but Duques did not suggest that any renegotiations were under consideration. The debt package underpinning the acquisition of First Data will be marketed next month and is expected to demonstrate the level of appetite by investors for private equity debt securities
