KKR Acquires Datagroup SE at 33% Premium Amid Market Volatility

KKR & Co. has agreed to acquire Datagroup SE, a German IT services company, in a deal that marks another significant acquisition by the private equity giant amidst market volatility. The acquisition is set to be completed at a price of 54 euros (approximately 61 USD) per share, representing a 33% premium over Datagroup's closing price on Tuesday. This move is part of a series of transactions totaling 80 billion USD that KKR has announced over the past week, driven by heightened market fluctuations.

Max Hans-Hermann Schaber, the founder and chairman of Datagroup, plans to transfer his 54% stake to a holding company controlled by KKR. This transfer is expected to facilitate long-term joint control of Datagroup between KKR and the Schaber family's holding company. The transaction is anticipated to be finalized in the third quarter of this year.

KKR's recent acquisitions include a 16 billion GBP (approximately 21 billion USD) cash deal for Assura Plc, a London-listed company, in partnership with Stonepeak Partners. Additionally, KKR acquired Karo Healthcare, a Swedish consumer health company, valued at over 25 billion EUR (approximately 28 billion USD). The firm also secured a deal for OSTTRA, a post-trade services company, with an enterprise value exceeding 30 billion USD, following a competitive bidding process.

KKR's aggressive investment strategy contrasts with the cautious approach of its peers, who have paused transactions due to economic uncertainty and rising financing costs. For instance, bidders for the home care brands of Reckitt Benckiser were unwilling to submit binding offers, and the valuations provided were significantly lower than the company's expectations. KKR's ability to self-finance its deals has been a key advantage in the current environment, where banks are increasingly wary of expanding their balance sheets through leveraged transactions.

Despite the economic uncertainties, other investors remain active. Brookfield Infrastructure Partners LP led a consortium to acquire Colonial Enterprises Inc. for approximately 90 billion USD. Additionally, Bain Capital agreed to acquire Sizzling Platter, a chain restaurant operator, from CapitalSpring for over 10 billion USD, including debt. KKR, founded by George Roberts, Henry Kravis, and Jerome Kohlberg in 1976, manages over 6000 billion USD in assets across private equity, credit, infrastructure, and real estate.

KKR's recent article on U.S. tariffs suggests that the global economic recovery is shifting from the Americas to Europe and Asia, marking a significant change in the global economic landscape. In the UK, Thames Water, the largest water and wastewater treatment company, selected KKR as its preferred partner for the next phase of equity financing and debt restructuring. The company aims to finalize the agreement with KKR by the end of the second quarter of 2025, with a potential investment of 40 billion GBP from the private equity firm.