Mar 11, 2010, 6:17am

First Data Corporation and its board of directors today announced the appointment of board member Joe Forehand, former chairman and CEO of Accenture, as chairman and interim chief executive officer (CEO). Forehand will succeed Michael Capellas on March 31, 2010. Capellas, after serving as CEO for three years, has accepted a new role as senior advisor at KKR focusing on technology. He will continue to support First Data in an advisory capacity.

Henry Kravis, co-founder of KKR and a member of First Data’s board of directors, said, "I would like to express my deep appreciation to Michael Capellas for his leadership and significant accomplishments at First Data. First Data has shown exceptional resiliency and continues to grow and invest during this economic downturn. I look forward to working with Michael in his new role as KKR senior advisor, and I am confident he will be a strong contributor to our technology team.”

Under Capellas’s leadership, First Data undertook multiple strategic initiatives and expanded into new businesses, becoming the global leader in electronic commerce and payment solutions for merchants, financial institutions and card issuers. Since 2007, the company has achieved its strategic goals of delivering solid organic growth, investing heavily in technology and realizing substantial cost savings. Capellas has recruited a world-class management team, reestablished new product development as a core capability and has realigned the company around two global lines of business – retail and alliance services and financial services. Other accomplishments that have strengthened First Data’s market and financial position include:

• Signing more than 500,000 new merchants in 2009, bringing the total to 6 million merchants in 36 countries;
• Creating industry-changing strategic alliances, including with Bank of America and ICICI, India’s largest private-sector bank;
• Extending and expanding distribution agreements with Wells Fargo, PNC and Citi;
• Announcing significant new client wins and renewals with American Express, Capital One and Citi;
• Launching new products, including a new eCommerce platform; TransArmor, a new data security solution in partnership with RSA; and FirstVision, the market-leading platform for issuing and processing credit, debit and prepaid cards around the world; and
• Dramatically improving service quality through the consolidation of data centers, call centers and merchant platforms.

“We have made great strides in a difficult economic environment, and I feel privileged to have worked with so many accomplished professionals that helped steer the company in the right direction. Markets are made at the bottom, and the accomplishments of the past three years will undoubtedly strengthen our position once the economy recovers. I am extremely proud of the team and all of the employees. With the company on a solid path, I have decided that this is the right time for me to join KKR as senior advisor focusing on technology,” said Chairman and CEO Capellas.

Forehand, 61, currently a member of First Data’s board of directors and a senior advisor at KKR, was most recently 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.

Said KKR member and First Data Board Director Scott Nuttall, "Joe Forehand is a proven leader. He guided Accenture through its IPO and a period of significant growth and success. He has been an important part of KKR's efforts as a senior advisor and has more recently been directly involved with First Data as an advisor to management and a board member. As a result, we expect a seamless transition and no change in the strategic direction of the company."

“First Data has a great history, a great team and a great future. I am very excited about the opportunity to make the company an even stronger leader in electronic commerce and payment technology solutions,” said newly named Chairman and Interim CEO Forehand.

Biographical highlights on Joe Forehand, newly named chairman and interim CEO

Forehand is currently a senior advisor at KKR and prior to that served as chairman and chief executive officer at Accenture, where he spent 34 years of his career. Forehand served as Accenture’s CEO from November 1999 through August 2004 and as chairman from 2001-2006. He led Accenture through a period of significant change and growth – including launching one of the largest global rebranding campaigns. In July 2001, Forehand led the company in its IPO, one of the largest in U.S. history. During Forehand’s term as CEO, Accenture grew from $9.6 billion in revenue and 66,000 employees to $13.7 billion in revenue and 103,000 employees. As a public company under his leadership, Accenture's total return to shareholders was 74 percent over a period of time when the S&P 100 Index decreased 14 percent. He also serves as chairman of the board of Aricent, a global innovation, technology and services company, and on the board of directors of the Auburn University Foundation. Forehand holds a bachelor’s degree in industrial engineering from Auburn University and a master’s degree in industrial administration and an honorary doctorate from Purdue University.

About First Data

First Data powers the global economy by making it easy, fast and secure for people and businesses to buy goods and services using virtually any form of electronic payment. Whether the choice of payment is a gift card, a credit or debit card or a check, First Data securely processes the transaction and harnesses the power of the data to deliver intelligence and insight for millions of merchant locations and thousands of card issuers in 36 countries. For more information, visit www.firstdata.com.

Media Conference Call

First Data will host a media conference call at 11 a.m. EST to discuss this announcement. Participants will include First Data Chairman and CEO Michael Capellas and incoming Chairman and interim CEO Joe Forehand.

Dial-In Information:

To access the “First Data Update” conference call, you will need to dial one of the following telephone numbers. Please dial in 10 minutes prior to the start time to be entered into the conference in a timely fashion.

U.S. Toll-free: +1 (877) 303-6502

Outside of the U.S.: +1 (224) 357-2195

The conference call will be recorded for playback. To access the recording, please use one of the following dial-in numbers and the conference ID 62378336.

U.S. Toll-free Encore Dial In: +1 (800) 642-1687

Outside of the U.S. Encore Dial In: +1 (706) 645-9291

The recording will be available from March 11, 2010, at 12 p.m. EST until March 25, 2010, at 12:59 p.m. EST.

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First Data Fact Sheet

First Data Corporation: The global leader in electronic commerce and payment solutions for merchants, financial institutions and card issuers.

When Michael Capellas took over as chairman and CEO in 2007, his goal was to create the leader in electronic commerce and payment technology solutions. The company is well on its way to achieving this goal.

Despite a difficult economic environment and its impact on consumer spending and their use of electronic payments, the company has continued to grow, generating $9.3 billion in revenue in 2009. Last year, in the U.S. alone, it processed more than $1.2 trillion in total transaction volume, or nearly half of the value all U.S. transactions. Globally, on an annual basis, it serves 6 million merchant locations in 36 countries and settles more than 46 billion transactions. Every second of every day, about 1,500 transactions are conducted through First Data payment systems.

The company accomplished this by capitalizing on market trends in electronic payments, expanding into strategic growth markets and investing $1.5 billion in technology, new product development and strategic alliances. It took advantage of economies of scale and continued to strengthen its balance sheet. Most important was an unrelenting focus on the customer. First Data deepened relationships with a diverse set of clients and partners and dramatically improved service quality.

Today, the company is on sound footing and is well-positioned for future growth.

First Data Fast Facts

• Highly diversified, predictable, stable and customer-focused business
• 2009 performance:
  • Revenues: $9.3 billion
  • U.S. Payment Transaction Volume: $1.2 trillion
• 25,000 employees including a best-in-class sales force
• 6 million worldwide merchant locations in 36 countries
• #295 on Fortune’s 500 List in 2009
• Leading merchant acquirer in the U.S.
• #2 PIN POS Debit Network in U.S. (STAR Network) with 2.2 million locations
• More than 740 million protected card accounts on file worldwide

Preeminent Franchise

• First Data generates strong revenues. In 2007, the company generated $700 million in cash and cash equivalents. In 2009, it generated approximately $1 billion in cash from operations.

• Despite adverse economic conditions, the company continues to deliver solid organic growth. Its 2009 EBITDA was $2.1 billion and more than $700 million above cash interest expense.

• The company has no significant debt maturities until 2014.

• First Data has no liquidity needs. It has a $1.7 billion line of credit available for short-term borrowing and approximately $700 million in cash and cash equivalents.

Capitalizing on Opportunity: The Leader in Electronic Commerce and Payment Technology Solutions

Markets are made at the bottom, and during the past three years, First Data expanded market share and invested more than $1.5 billion in new technology, new product development and strategic alliances.

• First Data reestablished product development as a core capability and accelerated new products, including an eCommerce platform; TransArmor, a secure transaction product developed in partnership with RSA; and FirstVision, the market-leading platform for issuing and processing credit, debit and prepaid cards around the world.

• It deepened all of its go-to-market relationships and alliances, creating Bank of America Merchant Services and ICICI Bank Merchant Services in India and expanding its distribution agreements with Wells Fargo, PNC and Citi.

• First Data accelerated organic growth and signed significant customer or partner relationships with Sovereign/Santander, RSA (division of EMC) and Barclays.

• The company created new market opportunities and pursued geographic expansions in Brazil, India and other emerging markets.

Well-Positioned for the Future: New Chairman and Interim CEO Joe Forehand is Prepared to Take First Data to the Next Level

For the past three years, Joe Forehand has been providing strategic advice and oversight to First Data as a member of KKR’s Portfolio Management Committee and more recently as a member of the company’s board of directors.

• As a current board member and KKR senior advisor, Forehand has helped set its current business strategy.
• Forehand has a track record of leadership and success, having served as Accenture’s CEO from November 1999 through August 2004 and chairman from 2001 to 2006.
• He led Accenture through a period of significant growth and drove some of Accenture’s most important change initiatives. Forehand:
  • moved the firm from a conventional consulting model to a focus on business consulting, technology leadership and outsourcing;
  • launched the firm’s new brand – the largest global rebranding campaign of its kind;
  • led the company in its IPO, one of the largest in U.S. history; and
  • spearheaded Accenture’s growth from $9.6 billion in revenue and 66,000 employees to $13.7 billion in revenue and 103,000 employees.
• As a public company under his leadership, Accenture’s total return to shareholders was 74 percent during a period when the S&P 100 Index decreased 14 percent.