KKR, Texas Pacific Group to Acquire TXU…Connect the dots to Intergraph?
The Wall Street Journal reported today that Kohlberg, Kravis Roberts (KKR) and Texas Pacific Group have entered into an agreement to buy TXU, the mega-utility company, in the largest ever leveraged buyout for $32 billion. Remember that just last year, Texas Pacific Group was engaged in the buyout of Intergraph Corporation. Intergraph, of course, has a very large installed base of utility customers. Texas Electric Delivery (formerly ONCOR) is a subsidiary of TXU and an Intergraph customer for geospatial products. And Intergraph, it should be mentioned, is also a large supplier of plant design software. So, this is obviously a very significant connection for Intergraph. Leveraged buyouts of this magnitude don’t happen overnight and I just wonder how much of this played into the Intergraph acquisition scenario.