Kohlberg Kravis Roberts & Co.
), the global private-equity firm, has finally received bids for
its capital research firm - Ipreo, according to a
report. The bidders including
The Blackstone Group L.P.
The Carlyle Group LP
), a few other private equity firms and some buyout firms have
valued the business at around $800 million.
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This latest move comes after Kohlberg Kravis started seeking
opportunities for shedding Ipreo. Though the company was looking
to get a price in the range of $850 million to $1 billion, the
amount is significantly higher than the acquisition price of $425
million, which Kohlberg Kravis paid to acquire this firm back in
Bank of America Corp.
) will run the transaction process. However, any formal
announcement has not been made by Kohlberg Kravis and other
companies associated with the deal.
Ipreo was founded in 2006 and is engaged in providing capital
market data, software services and other investment communication
tools to investment banks and financial institutions globally.
Deals like acquiring market intelligence firms are lucrative to
companies owing to their steady revenue generation ability from
subscription fees. From Kohlberg Kravis' perspective, it seems a
strategic exit from the research firm after running it for period
of three years, as the company is set to reap significant amount
of profits through this divestiture.
Kohlberg Kravis has shown impressive growth backed by its
meaningful mergers, acquisitions and divestments. Further, as the
economy is witnessing a gradual recovery post the financial
crisis, we believe a rise in such transactions that will continue
to benefit the company in the long run.
Kohlberg Kravis currently holds a Zacks Rank #3 (Hold).