Comdata Fields Interest After IPO Filing

June 23, 2014 3:43 p.m. ET

Payments business Comdata Inc. is fielding interest from potential buyers after filing for an initial public offering earlier this year, according to people familiar with the matter.

Comdata’s IPO plans morphed into a so-called dual-track process after potential buyers approached the company, one of the people said. A different person said private-equity firms are among Comdata’s suitors.

The company, owned by Thomas H. Lee Partners LP and


Fidelity National Financial Inc.,



FNF +0.94%



Fidelity National Financial Inc.


U.S.: NYSE


$33.20


+0.31
+0.94%



June 23, 2014 4:00 pm

Volume (Delayed 15m)
:
3.72M



AFTER HOURS



$32.85


-0.35
-1.05%


June 23, 2014 4:34 pm

Volume (Delayed 15m):
29,759




P/E Ratio
26.14

Market Cap
$9.11 Billion


Dividend Yield
2.17%

Rev. per Employee
$135,028









06/23/14 Comdata Fields Interest From P…
06/13/14 More Financial Advisers Insuri…
More quote details and news »



said in April it had filed confidentially for an IPO. It could fetch more than $3 billion in a sale, some of the people said.

Brentwood, Tenn.-based Comdata processes purchases, payroll and accounts payable for companies in a range of industries. It also processes more than 1 billion transactions each year for corporate gift card and loyalty programs. The company is a smaller rival of


KKR



KKR -0.67%



KKR & Co. L.P.


U.S.: NYSE


$23.88


-0.16
-0.67%



June 23, 2014 4:00 pm

Volume (Delayed 15m)
:
1.98M



AFTER HOURS



$23.88


0.00
0.00%


June 23, 2014 6:31 pm

Volume (Delayed 15m):
37,246




P/E Ratio
9.67

Market Cap
$9.99 Billion


Dividend Yield
7.20%

Rev. per Employee
$4,276,480









06/23/14 Comdata Fields Interest From P…
06/23/14 The Morning Leverage: TPG in T…
06/20/14 Warburg Pincus Returns to Banc…
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& Co.’s payment processor First Data. KKR, which bought First Data in 2007 for roughly $26 billion, last week pumped $1.2 billion of additional equity into the company as part of a $3.5 billion private placement that also included equity from new investors.

Thomas H. Lee and Fidelity National bought payroll and employee-benefits processor Ceridian Inc. in 2007 for $5.3 billion. Ceridian last year legally separated the Comdata business.

Before it was sold to Thomas H. Lee and Fidelity National, Ceridian was a target of activist investor

William Ackman,

who urged the company to sell Comdata.

Several payment-processing companies have attracted buyer interest this year. In March, KKR bought Sedgwick Claims Management Services Inc. for $2.4 billion.


Vantiv Inc.



VNTV +1.01%



Vantiv Inc.


U.S.: NYSE


$33.07


+0.33
+1.01%



June 23, 2014 4:01 pm

Volume (Delayed 15m)
:
1.05M



AFTER HOURS



$33.07


0.00
0.00%


June 23, 2014 4:28 pm

Volume (Delayed 15m):
2,114




P/E Ratio
34.09

Market Cap
$6.38 Billion


Dividend Yield
N/A

Rev. per Employee
$769,505









05/29/14 Fifth Third Bancorp Sees $81M …
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earlier this month completed its $1.65 billion acquisition of Silver Lake-backed Mercury Payment Systems LLC, which had filed for an IPO in March.

Write to Gillian Tan at gillian.tan@wsj.com

  Click to listen highlighted text! June 23, 2014 3:43 p.m. ET Payments business Comdata Inc. is fielding interest from potential buyers after filing for an initial public offering earlier this year, according to people familiar with the matter. Comdata’s IPO plans morphed into a so-called dual-track process after potential buyers approached the company, one of the people said. A different person said private-equity firms are among Comdata’s suitors. The company, owned by Thomas H. Lee Partners LP and Fidelity National Financial Inc., FNF +0.94% Fidelity National Financial Inc. U.S.: NYSE $33.20 +0.31 +0.94% June 23, 2014 4:00 pm Volume (Delayed 15m) : 3.72M AFTER HOURS $32.85 -0.35 -1.05% June 23, 2014 4:34 pm Volume (Delayed 15m): 29,759 P/E Ratio 26.14 Market Cap $9.11 Billion Dividend Yield 2.17% Rev. per Employee $135,028 06/23/14 Comdata Fields Interest From P… 06/13/14 More Financial Advisers Insuri… More quote details and news » said in April it had filed confidentially for an IPO. It could fetch more than $3 billion in a sale, some of the people said. Brentwood, Tenn.-based Comdata processes purchases, payroll and accounts payable for companies in a range of industries. It also processes more than 1 billion transactions each year for corporate gift card and loyalty programs. The company is a smaller rival of KKR KKR -0.67% KKR & Co. L.P. U.S.: NYSE $23.88 -0.16 -0.67% June 23, 2014 4:00 pm Volume (Delayed 15m) : 1.98M AFTER HOURS $23.88 0.00 0.00% June 23, 2014 6:31 pm Volume (Delayed 15m): 37,246 P/E Ratio 9.67 Market Cap $9.99 Billion Dividend Yield 7.20% Rev. per Employee $4,276,480 06/23/14 Comdata Fields Interest From P… 06/23/14 The Morning Leverage: TPG in T… 06/20/14 Warburg Pincus Returns to Banc… More quote details and news » & Co.’s payment processor First Data. KKR, which bought First Data in 2007 for roughly $26 billion, last week pumped $1.2 billion of additional equity into the company as part of a $3.5 billion private placement that also included equity from new investors. Thomas H. Lee and Fidelity National bought payroll and employee-benefits processor Ceridian Inc. in 2007 for $5.3 billion. Ceridian last year legally separated the Comdata business. Before it was sold to Thomas H. Lee and Fidelity National, Ceridian was a target of activist investor William Ackman, who urged the company to sell Comdata. Several payment-processing companies have attracted buyer interest this year. In March, KKR bought Sedgwick Claims Management Services Inc. for $2.4 billion. Vantiv Inc. VNTV +1.01% Vantiv Inc. U.S.: NYSE $33.07 +0.33 +1.01% June 23, 2014 4:01 pm Volume (Delayed 15m) : 1.05M AFTER HOURS $33.07 0.00 0.00% June 23, 2014 4:28 pm Volume (Delayed 15m): 2,114 P/E Ratio 34.09 Market Cap $6.38 Billion Dividend Yield N/A Rev. per Employee $769,505 05/29/14 Fifth Third Bancorp Sees $81M … 05/13/14 The Morning Leverage: Katzen E… 05/13/14 Stocks to Watch: Allergan, Dir… More quote details and news » earlier this month completed its $1.65 billion acquisition of Silver Lake-backed Mercury Payment Systems LLC, which had filed for an IPO in March. Write to Gillian Tan at gillian.tan@wsj.com Powered By GSpeech