Alliance Data Agrees to Be Acquired by The Blackstone Group for $7.8 Billion

Alliance Data Agrees to Be Acquired by The Blackstone Group for $7.8 Billion

Alliance Data Systems Corporation , a leading provider of loyalty and marketing solutions derived from transaction-rich data, today announced that it has entered into a definitive agreement to be acquired by Blackstone Capital Partners V L.P., an affiliate of The Blackstone Group, in a transaction valued at approximately $7.8 billion, including the assumption of certain debt. Under the terms of the agreement, Blackstone will acquire all of the outstanding common stock of Alliance Data for $81.75 per share in cash. The purchase price represents a premium of approximately 30 percent over Alliance Data’s closing share price of $62.96 on May 16, 2007.

Following the unanimous recommendation of a special committee of the Alliance Data board of directors, composed solely of independent directors, the board unanimously approved the agreement and has recommended that Alliance Data stockholders adopt the agreement. Completion of the transaction, which is currently expected to occur by year-end, is contingent upon customary closing conditions, including antitrust, other regulatory approvals and the approval of Alliance Data’s stockholders, who will be asked to vote on the transaction at a special meeting.

There is no financing condition to the obligations of Blackstone to consummate the transaction, and equity and debt commitments for the full amount of the merger consideration have been received. It is currently anticipated that substantially all of Alliance Data’s outstanding series A and series B senior notes will either be tendered for or repaid in connection with the transaction.