DENVER – First Data Corp. on Thursday reported that revenues continued to grow at a healthy 6% last year but debt service incurred to finance the 2007 takeover of the processing giant by Kohlberg Kravis Robert & Co. continues to push the company into the red.
The company said it lost $368.6 million in the fourth quarter and $1.1 billion for all of 2009 – all of it debt service costs. The 2009 loss compared to a loss of $3.8 billion for 2008.
Fourth quarter revenues were up 12% to $2.6 billion and full-year revenues were up 6% to $9.2 billion. Revenue growth was driven by the creation of a new merchant services joint venture with Bank of America.
KKR acquired First Data and took it private for $27 billion in one of the biggest leveraged buyouts ever.
First Data also announced yesterday that its CEO Michael Capellas is leaving to work as a senior advisor for KKR on technology investments and will be succeeded by Joe Forehand, former CEO of Accenture, as president and CEO.
Forehand, 61, currently a member of First Data’s board of directors and a senior advisor at KKR, most recently was chairman and CEO of Accenture, where he spent 34 years of his career. Forehand served as Accenture’s CEO from November 1999 through August 2004 and as Accenture’s chairman from 2001-2006.
