Latest Reports



March 05, 2021 | Technology | Europe | Active


Aggreko / TDR and I Squared Consortium : New Deal Insights

On 5-Mar-21, Aggreko, a leading global supplier of power equipment, confirmed a definitive agreement to be acquired by a private equity consortium consisting of TDR Capital and I Squared Capital (50/50 each in equity commitments). Through the public-to-private leveraged buyout, which will be implemented via a UK scheme of arrangement, Aggreko shareholders are being offered 880p cash per share, representing a 39% premium over Aggreko’s undisturbed price on 4-Feb-21. The consideration will be reduced if the scheme becomes effective after any Aggreko dividend record date, and this includes the company’s recently announced final dividend of 10p per share (payable to shareholders on record as of 23-Apr-21) ... Deal risks assessed in this research report: • Unexpected antitrust or foreign investment scrutiny • Ability to attract counterbids • Debt financing wobbles

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February 24, 2021 | Health Care | North America | Ended


PRA Health Sciences / ICON : New Deal Insights

Within the Pharmaceutical Outsourcing (PO) industry, M&A among Contract Research Organisations (CRO) slowed in 2020 since COVID-19 caused many clinical trials to be delayed. Now, with stresses of the pandemic somewhat subsiding, and new technology advances to conduct decentralised trials, consolidation within the CRO subsegment is ramping up. Dublin-based ICON and North Carolina-based PRA Health Services are the latest CROs to agree to a tie up, and a definitive agreement was signed on 24-Feb-21. Deal risks assessed in this research report: • Horizontal antitrust in creating the #2 player globally • Acquirer vote or bid, since shares are -11.6% since announcement

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February 10, 2021 | Technology | Global | Active


What to Expect from China's SAMR / Dialog, Inphi, Maxim, Siltronic, and Xilinx : In-Depth Report

State-of-the-art computer chips underpin many of today’s strategically important emerging technologies and are vital to the balance of global military power, owing to their use in telecom networks, high-performance computing, Internet of Things (IoT), artificial intelligence (AI) and next-generation weapons platforms. Gaining the technology upper hand requires control over their production, and both China and the US profoundly recognise that semiconductor technology and fabrication is critical to reaching their respective goals of global economic and military superiority. Unfortunately for China, although the semiconductor supply chain is global, its foundation is based largely on US technology, and the world’s leading chipmakers, from Qualcomm to Samsung to TSMC, all rely on the tools and intellectual property of only a handful of mostly American companies. This dependence on foreign technology has created challenges for China, exemplified by the Trump administration’s attempts to cut Huawei’s access to key technologies, subsequently putting the Chinese company into survival mode while hampering Beijing’s strategic ambitions in 5G. For Washington, implementing export controls and placing restrictions on Chinese companies is necessary to protect US economic competitiveness and national security. But this approach comes with risks, including reciprocal actions by China against US businesses. Armed with the ability to block or significantly delay a transaction, China’s State Administration for Market Regulation (SAMR) arguably offers an effective retaliatory tool against US trade aggressions. In this report, we assess this risk against five pending large cap semiconductor deals – Dialog, Inphi, Maxim, Siltronic, and Xilinx. We speak with experts to explain the reasons behind SAMR delays and assess precedents to determine the extent of political influence on China's merger control outcomes. Based on China’s key semiconductor priorities, we identify which deals are the ‘riskiest’ and most prone to a lengthy review at SAMR.

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February 09, 2021 | Financials | Europe | Ended


Natixis / Groupe BPCE : New Deal Insights

French financial cooperative BPCE has offered to buy out minority shareholders of its troubled investment banking subsidiary, Natixis, for €4.00 per share (cum dividend). The acquirer is trying to buy the remaining 29.3% that it does not already own through a public tender offer at a 15.5% premium over Natixis’ share price on 5-Feb-21, and a 39.6% premium to the target’s closing price on 11-Jan-21, the day before the market began to speculate of a renewed corporate event. In July 2020, the Financial Times broke a story about BPCE exploring a buyout for its remaining stake, but after BPCE confirmed that it did not intend to file a draft tender offer for Natixis, the acquirer was reportedly subject to a mandatory six-month lock-up, which only expired on 17-Jan-21. We now have a firm offer ... Deal risks assessed in this research report: • Deal termination upon failure to reach the 90% minimum acceptance threshold (due to activist-BPCE game theory)

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February 08, 2021 | Technology | Europe | Active


Dialog Semiconductor / Renesas Electronics : New Deal Insights

Semiconductor consolidation continues unabated in 2021 with the 8-Feb-21 announcement of a definitive offer by Japanese chip manufacturer, Renesas Electronics, for Anglo-German semiconductor company, Dialog Semiconductor. The agreed offer price is €67.50 per share, a headline premium of 20.3% and 28.9% higher than Dialog’s undisturbed share price on 4-Feb-21, the day before rumours of a tie-up hit the headlines. The transaction is structured as a UK scheme of arrangement and, accordingly, requires 75% approval by Dialog’s shareholders at a Court Meeting and EGM; approval by Renesas shareholders is not required ... Deal risks assessed in this research report: • Delays due to antitrust or national security reviews • Antitrust risks from China's SAMR • National security risks from the UK

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February 03, 2021 | Health Care | North America | Ended


GW Pharmaceuticals / Jazz Pharmaceuticals : New Deal Insights

Marijuana stocks rallied on 3-Feb-21 after Jazz Pharmaceuticals agreed to a $7.2bn cash and stock acquisition of GW Pharmaceuticals, a drug company known for a cannabis-derived medication for epileptic seizures. Representing a 50% premium to GW’s previous day’s close, Jazz’s offer is for $220.00 per GW ADS through $200 in cash and $20 in Jazz shares ... Deal risks assessed in this research report: • Pushback from Congress on US cannabis policy reforms • Scrutiny of GW / Jazz pipeline overlaps • Hedging leakage from collar

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January 11, 2021 | Industrials | Europe | Ended


Signature Aviation / Global Infrastructure Partners : New Deal Insights

The battle to control Signature Aviation heated up on 11-Jan-21 after infrastructure investment fund, Global Infrastructure Partners (“GIP”), offered £3.4bn to buy the British aviation services group, outbidding a buyout consortium of Blackstone and Cascade Investment. Signature’s board agreed to GIP’s offer, which is an all-cash deal at $5.50 per share (405p based on announcement exchange rate), but added that it would consider any further offers from Blackstone and Cascade, as well as from private equity firm Carlyle. This follows weeks of press speculation, starting on 17-Dec-20, when Signature disclosed possible offers while confirming that Blackstone had proposed $5.17 (or 383p) per share. Deal risks assessed in this research report: • The other two private equity suitors walk away • Antitrust concerns stemming from GIP’s airport assets

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January 06, 2021 | Health Care | North America | Active


Change Healthcare / UnitedHealth Group : New Deal Insights

On the heels of Centene’s $2.2bn agreement to acquire Magellan Health (MGLN US), UnitedHealth (“UHG”) has announced a definitive, $8bn all-cash takeover of healthcare software and data analytics firm, Change Healthcare. Announced on 6-Jan-21, UHG’s offer represents a 41.2% one-day premium and requisite conditions include Change shareholder approval and antitrust and other regulatory approvals. Blackstone owns 20% of the target and has agreed to support the deal ... Deal risks assessed in this research report: • Antitrust scrutiny leading to divestitures required • Uncertain market definitions • Questions over UHG’s dominance

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January 04, 2021 | Technology | North America | Ended


FLIR Systems / Teledyne Technologies : New Deal Insights

US industrial sensor giant, Teledyne Technologies, has agreed to acquire smaller rival, FLIR, an Oregon-based company that makes thermal imaging and night vision technology. The cash and stock deal values the target at $8.0bn and based on FLIR’s last undisturbed date of 31-Dec-20, shareholders were offered total consideration of $56.14 per share at announcement, representing a one-day premium of 28%. The merger is subject to both FLIR and Teledyne shareholder approvals and applicable antitrust clearances, including HSR approval. Deal risks assessed in this research report: • Timing bottlenecks stemming from China's SAMR or US antitrust • Significant US government contracts could require remedies

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December 21, 2020 | Technology | North America | Ended


RealPage / Thoma Bravo : New Deal Insights

Following its successful $3.9bn LBO of UK-based cyber security company, Sophos (SOPH LN), in March 2020, Thoma Bravo is now targeting a much larger buyout, and the largest in its history. RealPage, a Texas-based real estate software company, is being taken private at $88.75 per share, which equates to an enterprise value of $10.2bn. The buyout is the second largest LBO of 2020, behind Advent and Cinven’s €17.2bn acquisition of Thyssenkrupp’s elevator business in February. The offer price represents ... Deal risks assessed in this report: • High pro forma leverage • Undisclosed competition issue with a sponsor holding • Timing on money transmitter approvals

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