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KKR Completes Acquisition of First Data

Affiliates of Kohlberg Kravis Roberts Monday completed the acquisition of payment processor First Data.

Shareholders approved the deal in July after KKR offered $34 a share, or about $26 billion, for the company in early April.

The deal has been closely watched as a barometer of whether high-profile takeover deals will survive in a tighter credit market. KKR and its banks clashed over terms of the debt and protections for the banks against weakening in First Data's business.

First Data shares will cease trading on the New York Stock Exchange at market close Monday.

The company said Michael Capellas was named as chairman and chief executive of First Data, replacing Ric Duques. Duques had served in those roles since November 2005, and previously was chairman from 1992 to 2003 and CEO from 1987 to 2003.

Capellas previously was CEO of MCI, president of Hewlett-Packard and Chairman and CEO of Compaq Computer.

All of First Data's U.S. operations will be led by Edward Labry. In addition, the company will combine its commercial services and financial institution services segments.

Labry previously was the company's commercial services unit president.