KKR Raises Offer for Datagroup by 7.4% to 58 Euros per Share

KKR, a prominent global investment firm, has raised its conditional offer to acquire Datagroup SE, a Frankfurt-listed IT services provider. The new proposal increases the potential acquisition price to 58 euros per share, up from the initial offer of 54 euros per share. This move underscores KKR's strategic interest in expanding its portfolio within the IT services sector, particularly in Europe.

Datagroup SE, renowned for its comprehensive range of IT services, has been a significant player in the German market. The increased offer from KKR reflects the firm's confidence in Datagroup's growth potential and its alignment with KKR's investment strategy. The conditional nature of the offer indicates that certain criteria must be met before the acquisition can be finalized, a common practice in high-stake deals.

The decision to raise the offer demonstrates KKR's determination to secure Datagroup, potentially outbidding other interested parties. This development highlights the competitive landscape in the IT services industry, where major players are vying for strategic acquisitions to enhance their market position and capabilities. The increased offer also underscores the value that KKR sees in Datagroup's assets and its future prospects.

The acquisition, if successful, would mark a significant milestone for KKR in the European IT services market. Datagroup's expertise and client base could provide KKR with a stronger foothold in the region, enabling it to offer more comprehensive IT solutions to its clients. This move aligns with KKR's broader strategy of investing in high-growth sectors and leveraging its global network to drive value creation.

According to the revised terms, if the acquirer secures at least 80% of the circulating shares, the price per share will increase to 56.50 euros. If the holding ratio reaches 90%, the final price will be set at 58 euros per share. If neither of these conditions is met, the original offer of 54 euros per share will remain unchanged. The offer acceptance period ends on June 6, 2025. Notably, KKR has explicitly ruled out the possibility of further price increases in the revised terms. Upon completion of the acquisition, Datagroup will delist from the exchange, with the final settlement of the transaction expected in the third quarter of 2025.

Datagroup, with approximately 3,700 employees across Germany, is projected to achieve revenues between 545 million euros and 565 million euros in 2024, according to its March disclosure. KKR's previous all-cash offer of 54 euros per share valued Datagroup at approximately 450 million euros.

The conditional offer from KKR is subject to regulatory approvals and other customary closing conditions. The outcome of this acquisition attempt will be closely watched by industry observers, as it could set a precedent for future deals in the IT services sector. The increased offer by KKR demonstrates its commitment to acquiring Datagroup and its belief in the company's long-term potential.