There was a reference here to KKR being involved background, particularly with FData. Some years back KKR, a well financed but deceitful leverage buyout firm took First Data into it's care and I think that is how FB came into the picture. Henry Kravis runs it and research him - see Barbarians at the Gates for his RJR Nabisco battle. He piles on enormous debt to finance an acquisition, like FData, so they have to cut and cut. Used to be through Junk bonds. FData culture is toxic as a result. Now the ex-CEO of Home Depot was fired and after a few months on a beach found another CEO job. Robert Nardelli - so JY can find another CEO spot with ease. It is a small club with golden parachutes. So this some business perspective on the issues being discussed herein.
7 replies (most recent on top)
For the record, Wikipedia is far from a system of record for facts. Wikipedia can be updated by anyone and is governed by administrators. When KKR bought into First Data, Chase began dissolving its joint partnership for Chase Paymentech. This is a fact as I was an employee of Chase Paymentech at the time. Chase was only too eager to sever its relationship with first data.
It’s awesome when bedazzled loosens up his lap band enough so he can set up and comment on this board
Where did those facts come from? A f—ing cracker jack box? Another "wikipedia" ?
Let me add facts to the post. KKR LBO in 2006; yes LBO’s are financed in Debt, 10x leverage in FDC case. 5 CEO’s from 2007-2013 then Frank hired reputation as Mr. Fixit working for arguably the best CEO in America, Jamie Damon. Frank proceeded to save 20,000 jobs, reduced leverage to 4x, built great client relationships, invested in technology and improved moral and engagement. These are all public facts can be checked easily—-now FRANK is CEO of Fiserv and we are fortunate. Judge for yourself use objective means —- new customers, financials, moral, engagement and attrition.
The fact is it’s less a business serving customers and growing employees and more a place ran by Wall Street sharks to extract maximum value before dumping and running. If your career plans exceed 3 years, run
The history you won't read is that KKR had been looking at an LBO of Fiserv several years ago. Although it didn't happen at the time their intention was to combine Fiserv and First Data long before the actual merger.
I am baffled by your inability to do simple research on this topic before posting. There is a full account of the history of First Data and the KKR LBO on First Data wiki. If you want to pose as an expert witness on a topic do your homework.