Credit card transaction processor First Data Corp. said Monday that it is being acquired by an affiliate of private equity firm Kohlberg Kravis Roberts & Co. for about $25.6 billion in cash.
The $34 per share deal is an approximately 26 percent premium over First Data’s closing price on Friday.
Under terms of the agreement, First Data can solicit third party proposals over the next 50 days and the company said it plans to actively solicit proposals.
It has about 754 million shares outstanding. The company put the total value of the transaction at $29 billion, but was unable to say how much of that was debt being assumed by the buyer.
First Data said it plans to tender for all of its outstanding bonds in conjunction with the closing.
First Data’s board has approved the transaction.
The acquisition is expected to close by the end of the third quarter, subject to shareholder approval, regulatory approval and other customary closing conditions. The deal is not contingent on financing by the investor group.
Citigroup, Credit Suisse, Deutsche Bank, HSBC, Lehman Brothers, Goldman Sachs and Merrill Lynch have committed to provide debt financing for the transaction subject to customary terms and conditions, and are acting as financial advisers to Kohlberg.