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SUNDAY, NOVEMBER 8, 2009
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Blackstone Makes $7.8B Deal for Alliance

Private equity continues to pour into financial processing

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(Newser) – Blackstone has snapped up credit card services provider Alliance Data for $7.8 billion, joining a surge of private equity into dull but profitable back-office firms. The 30% above-market offer for Alliance, which also runs a data processing unit, is the latest in a wave of takeovers in the financial-processing sector that started with KKR's April bid for First Data.

Dallas-based Alliance originally went public only six years ago. Today's deal to turn the company private, which includes more than $1 billion in debt, will allow senior management to stay on, Bloomberg reports. Shares in Alliance rose 25% to $78.49, close to Blackstone's $81.75 a share offer, in afternoon trading.

Signs for MasterCard and American Express are posted outside a New York parking garage in a file photo from April 26, 2006. MasterCard Inc., the world's second-biggest credit card franchise, on Wednesday, May 2, 2007 reported favorable currency exchanges and stronger use of its brand overseas pushed first-quarter profit to...
Signs for MasterCard and American Express are posted outside a New York parking garage in a file photo from April 26, 2006. MasterCard Inc., the world's second-biggest credit card franchise, on Wednesday,...   (Associated Press)
This image obtained 19 March, 2007 shows chairman and CEO of...
This image obtained 19 March, 2007 shows chairman and CEO of...   (Getty Images)
Consumer Spending Drives Two-Thirds Of U.S. Economy
Consumer Spending Drives Two-Thirds Of U.S. Economy   (Getty Images)
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Deal a winner for Alliance
TheStreet

Bloomberg: Alliance grew 20% a year in last four years
Bloomberg

FT: Alliance runs branded credit cards, loyalty programs
Financial Times (UK)

Stock quote: Alliance Data Systems
MarketWatch

Alliance Data Systems website
Alliance Data


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private equity • Blackstone Group • takeovers • Alliance Data Systems Corp. • merger • business • KKR • First Data • privatization • acquisition

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