Software

Blackstone Taking Out Alliance Data

TSC Staff

05/17/07 - 09:16 AM EDT

Alliance Data Systems (ADS Quote - Cramer on ADS - Stock Picks) agreed to be acquired by private-equity behemoth Blackstone Group in a $7.8 billion deal.

Blackstone will pay $81.75 a share for the transaction-services company, representing a nearly 30% premium over Alliance Data's closing price Wednesday. The $7.8 billion value of the deal includes the assumption of certain debt.

Dallas-based Alliance Data, which specializes in marketing services and loyalty programs such as Air Miles, said its board has unanimously approved the deal. The transaction is expected to close by the end of the year.

Shares of Alliance Data were surging $18.04, or 29%, to $81 in premarket trading Thursday.

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