Alliance Data Systems Shares Jump On Blackstone Buyout

Alliance Data Systems shares jumped nearly 25% Thursday after it was announced private equity group Blackstone was taking the company private for a total of $7.8 billion - a 30% premium to Wednesday's closing price. The deal is expected to close by year's end. The deal includes debt assumption of more than $1 billion by Blackstone and offers $81.75 a share, returning Alliance Data Systems to private ownership just six years after it went public. Blackstone will acquire all outstanding shares in the deal. The company handles credit-card purchases for retailers such as J. Crew and Victoria's Secret, and designs marketing programs for clients like Citigroup. Alliance Chairman and CEO Mike Parks believes "by maximizing the value of their investment, this agreement is clearly in the best interests of our stockholders." Shares gained $15.50, 24.62%, to $78.46 on heavy volume of nearly 25 million shares.

Sources: Press Release, Wall Street Journal, Bloomberg, MarketWatch, Financial Times, Reuters
Commentary: Death of Public Companies? Oh, Please! • 'Perfect Strategic Fit': Alliance Data Systems To Buy DoubleClick’s Abacus Division
Stocks/ETFs to watch: Alliance Data Systems (ADS). Competitors: Electronic Data Systems Corporation (EDS), Affiliated Computer Services (ACS), Fiserv (FISV), Global Payments (GPN)
Conference call transcripts: Alliance Data Systems Q1 2007 Earnings Call Transcript

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