Acxiom buyout called off, CEO retires

NEW YORK (Reuters) - Acxiom Corp (ACXM.O) said on Monday its private-equity buyers have broken off their proposed $2.25 billion acquisition, sending shares of the data management company down 24 percent.

Silver Lake and ValueAct Capital, which agreed in May to acquire Acxiom, will pay a $65 million settlement in cash to terminate the merger agreement, the company said, below the $110 million termination fee originally agreed to in the deal.

Neither side of the transaction gave a reason for the cancellation, but it comes at a rocky time for leveraged buyouts due to a credit crunch in global capital markets.

The buyouts of student loan provider SLM Corp (SLM.N), or Sallie Mae, and of mortgage and vehicle fleet company PHH Corp (PHH.N) are both in jeopardy.

Last month audio equipment maker Harman International Industries Inc (HAR.N) said Kohlberg Kravis Roberts & Co LP and Goldman Sachs Group Inc's (GS.N) private equity arm had pulled out of their $8 billion buyout deal.

Acxiom Chairman Charles Morgan said he was "disappointed" the merger could not be concluded. Separately, Morgan also announced his retirement which he said he originally hoped would coincide with the completion of the takeover.

Morgan said his retirement becomes effective once a successor has been selected. The board said a search committee has been formed and the search will include both internal and external candidates.

Acxiom's most recent quarterly earnings report showed a net loss of $11.5 million, compared with a year-earlier profit of $17.8 million.

Little Rock, Arkansas-based Acxiom provides customer data management technology for clients in the direct marketing industry.

The proposed buyout by Silver Lake and ValueAct had valued Acxiom at $27.10 a share. Shares of Acxiom dropped $4.77 to $15.02 on Monday morning.

(Reporting by Jonathan Keehner and Yinka Adegoke)