Kohlberg Kravis may be near $25.6-billion deal for First Data

Kohlberg Kravis Roberts & Co. is in talks to buy payment processor First Data Corp. for $25.6 billion in what would be the second-largest private equity transaction ever, a person familiar with the matter said.

A deal could be announced as early as today, the source said.

At $34 a share, the proposal represents a 26% premium to First Data’s closing price Friday of $26.90 a share.

KKR declined to comment. A spokeswoman for First Data, based in Greenwood, Colo., could not be reached for comment.

If KKR completes an agreement with First Data, the private equity pioneer will be able to claim credit for history’s three largest leveraged buyouts.

KKR and Texas Pacific Group reached an agreement in February to buy Texas utility company TXU Corp. for nearly $32 billion in cash. KKR bought RJR Nabisco for $25.1 billion in 1988.