In 2021, the mergers and acquisitions market showed unprecedented growth: in the first half of the year, the value of transactions reached a record $3 trillion. According to a study by Baker Tilly and Mergermarket, 75% of respondents believe that financing conditions will improve at the end of 2021. And this means that 2022 portends new records in the M&A market. According to Invest Foresight, a website about M&A events, the largest deals for 2021-2022 are as follows!
1 – H&F and Bain Capital Acquire Athenahealth ($17 billion)
Private equity firms Hellman & Friedman LLC and Bain Capital have agreed to buy Athenahealth for $17 billion. The latter, a privately held company, delivers software that can facilitate organizing patient visits, documenting medical records, and simplifying payments. In 2019, Athenahealth became privately owned by Evergreen Coast Capital, the private equity arm of hedge fund Elliott and investment firm Veritas, in a $5.7 billion deal. It later merged with Virence Health, a healthcare software provider that Veritas bought from General Electric Co.
2 – KKR, Global Infrastructure & CyrusOne ($11.5 billion)
KKR & Co. and Global Infrastructure Partners have agreed to acquire CyrusOne Inc., the owner of the data center, in a deal worth approximately $15 billion. The buyers agreed to pay $90.50 per share, representing a 25% premium to CyrusOne’s share price on September 27, 2021, the last trading day before the published report on the potential sale of the company. The total purchase price includes the assumption of debt. The deal is expected to close in the second quarter of 2022.
3 – Advent, GIC & Sobi ($8 billion)
Advent International and GIC will buy Sweden’s Orphan Biovitrum (SOBI), a drug maker primarily focused on rare diseases, for around $8 billion. This is the second largest deal in Swedish company history. SOBI’s stock soared well above the buyback offer price. This suggests that investors expect a bidding war. SOBI’s main shareholder, Investor AB, said it supports Advent’s offer but hopes for a better offer.
4 – Japanese MUFG SellS Union Bank to American Bancorp ($7.3 billion)
Mitsubishi UFJ Financial Group (MUFG) is pulling out of US retail banking by selling MUFG Union Bank (MUB) for $8 billion to Bancorp as digital technology and industry consolidation crowd out smaller lenders. The deal includes $5.5 billion in cash and $2.5 billion in shares, giving Japan’s largest lender a 2.9% stake in Minneapolis-based US Bancorp, the fifth-largest US bank. Following the deal, which is expected to close by the end of June 2022, MUFG will focus on corporate and investment banking in the United States through other divisions and through a partnership with Morgan Stanley, a fifth of which is owned by a Japanese bank.
5 – Renesas & Dialog Chipmaker ($5.9 billion)
Renesas Electronics has agreed to buy Dialog Semiconductor for $5.9 billion in cash as it seeks to strengthen its position in low-power connectivity for smart devices, vehicles, and enterprises. Renesas offered €67.50 per share for Dialog, a supplier to Apple Inc., representing a 20% premium by Friday’s close and a 52% premium on a three-month weighted average price.
6 – Blackstone Selling Cosmopolitan Hotel-Casino ($5 billion)
The largest US homeowner of commercial and residential real estate, Blackston, has agreed to sell the Cosmopolitan casino and Las Vegas hotel for $5.65 billion. According to the company, Blackstone has received a tenfold return on invested capital in 7 years.
According to Blackstone’s letter to investors, the total profit after the sale will be about $4.1 billion, including real estate cash flow. In other words, the company returned nearly 10 times the capital it invested in Cosmopolitan, Blackstone said in the letter.
7 – British Cobham & Ultra Electronics ($3.6 billion)
Cobham, the privately owned aerospace and defense group, has agreed to buy rival firm Ultra Electronics for $3.6 billion. Under the deal, Ultra shareholders will receive £35 per share, plus an interim cash dividend of 16.2p payable next month, which values the company at £2.57bn. The price represents a 63% premium on Ultra’s June 24 closing price ahead of Cobham’s first offer at £28 per share.
8 – Novo Nordisk & Dicerna ($3.3 billion)
Pharmaceutical company Novo Nordisk, best known for its insulin and diabetes products, will acquire biopharmaceutical company Dicerna Pharmaceuticals for $3.3 billion in a deal that is said to accelerate and expand Novo Nordisk’s development of RNAi therapeutics using Dicerna’s patented technology. The announced deal has already led to litigation.
9 – Uber Freight & a Logistics Company ($2.25 billion)
Uber Freight, a subsidiary of Uber, has completed its $2.25 billion acquisition of Dallas and Northwest Arkansas-based Transplace. The deal was signed over the summer of 2021, and Uber Freight’s network merged with Transplace technology to build a new platform for shippers and carriers around the world. In the context of financing the deal, Abu Dhabi Growth Fund, D1 Capital and GCM Grosvenor invested $550 million in Uber Freight.
10 – Sitel Group & Sykes Enterprises ($2.2 billion)
Sykes Enterprise, which provides corporate services, customer assistance, and technical support, will be sold to Sitel Group, an international customer service firm. Sitel Group will buy all of its outstanding shares of common stock for cash at $54, up 31.2% from before.
The deal is expected to close by 2022, after which Sykes will cease to be traded as a public company. The consolidated company will operate under the name Sitel and be headquartered in Miami.