Investment company KKR (KKR) continues to pursue lucrative deals despite the ongoing tariff turmoil. The company has entered into an investment agreement to acquire German IT services provider Datagroup for about $508 million. The news of the possibility of a deal between KKR and Datagroup was first reported by Bloomberg.
The Datagroup deal follows KKR’s acquisition of OSTTRA, a post-trade services provider for over-the-counter markets, from S&P Global and CME Group. The acquisition of OSTTRA, announced earlier this week, is valued at $3.1 billion.
KKR Snaps Up Datagroup
KKR is acquiring Datagroup through its affiliate Bidder. Under the agreement, the company will buy all outstanding shares of Datagroup through a public purchase offer at €54. The deal marks a 33% premium to Datagroup stock’s last closing price of €40.75. Overall, the acquisition is valued at €450 million ($508.3 million).
Datagroup, which has a workforce of about 3,700 across Germany, forecasted in March that its annual revenue for 2025 would be in the range of €545 million to €565 million.
The acquisition is expected to close in the third quarter of 2025. Datagroup’s management and supervisory boards support KKR’s offer and intend to recommend its acceptance to the shareholders.
Is KKR a Good Stock to Buy?
Interestingly, on Monday, HSBC analyst Vikram Gandhi upgraded KKR stock to Buy from Hold but lowered the price target to $119 from $170. The 5-star analyst believes that the risk/reward profile of KKR looks more favorable following the steep correction in the stock so far this year.
With 11 Buys versus just one Hold recommendation, Wall Street has a Strong Buy consensus rating on KKR stock. The average KKR stock price target of $143.25 implies 37.4% upside potential. KKR stock has declined 29% so far this year.
