Bain Capital to buy financial software vendor Envestnet in $4.5 bn deal

Bain Capital will acquire financial software vendor Envestnet in a $4.5 billion deal, backed by investors including Reverence Capital, BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors. Envestnet, based in Berwyn, Pennsylvania, serves 16 of the 20 largest U.S. banks and 48 of the 50 largest wealth management firms. Bain will pay $63.15 per share in cash. The deal follows activist investor Impactive Capital’s push for Envestnet to cut costs and improve margins. Envestnet’s stock has risen 24.6% this year. CEO Bill Crager will step down and become a senior adviser in April.

Source

Alphabet in advanced talks to buy cybersecurity startup Wiz for $23bn

Google’s parent company Alphabet is in advanced talks to acquire cybersecurity startup Wiz for $23 billion, potentially its largest acquisition ever. Neither party has confirmed the talks, which occur as Alphabet faces global antitrust scrutiny, including two US Department of Justice lawsuits.

Founded in 2020, Wiz provides cloud-based cybersecurity and serves 40% of Fortune 100 companies. Alphabet aims to boost its cloud security credentials and strengthen ties with major Wiz clients like Slack, BMW, and Siemens.

Regulatory approval for the deal is uncertain due to Alphabet’s ongoing scrutiny by competition watchdogs in the US and Europe. If approved, this acquisition would join other significant cybersecurity deals in the past year, such as Cisco’s takeover of Splunk and HPE’s purchase of Juniper Networks.

Source

Morgan Stanley sees $180B patent cliff, $380B deal capacity fueling biopharma M&A

Morgan Stanley highlights a favorable environment for biopharma M&A, driven by Big Pharma’s $380 billion deal-making capacity and looming patent cliffs risking $180 billion in revenue. Key drugs losing exclusivity by 2030 could significantly impact companies like Amgen, Bristol Myers, Merck, and Biogen. Amgen faces the highest risk, with 67% of its 2024 revenue at stake, compared to an industry average of 38%.

Morgan Stanley notes that companies like Merck, with its strong balance sheet and risk from Keytruda’s patent expiry, are well-positioned for acquisitions. Oncology and immunology are expected to remain key focus areas, following trends such as Pfizer’s $43 billion acquisition of Seagen. The industry’s financial strength, particularly of firms like J&J, Merck, and Novo Nordisk, supports continued M&A activity.

Source

FTC Delays Chevron-Hess Decision to After Exxon Arbitration

Chevron Corp and Hess Corp anticipate the U.S. Federal Trade Commission (FTC) will review their proposed $53 billion merger in the third quarter of 2024. Bloomberg News reported the FTC may delay its decision until after an arbitration case with Exxon Mobil is settled, potentially extending into the fourth quarter or beyond.

Exxon filed for arbitration in March, claiming a right of first refusal over Hess’s assets in Guyana, delaying the merger initially planned for the first half of the year. The arbitration decision is expected by the end of 2024, though Exxon suggests it could extend into 2025. Hess owns 30% of Guyana’s Stabroek block, operated by Exxon with a 45% stake, while China’s CNOOC holds 25%. Production in the block is projected to double by 2027.

Source

How will the US election impact M&A? Morgan Stanley answers

The upcoming US election is expected to impact the M&A landscape, but Morgan Stanley predicts a robust M&A cycle regardless of the outcome. A Democratic win would likely support the strong economy, boosting M&A, while a Republican win might lead to more favorable regulatory conditions. Despite political uncertainties, Morgan Stanley analysts are confident M&A activity will continue to rise in 2024, driven by strong equity markets, rate cuts, and positive industry expectations. Historical data shows mixed impacts of presidential elections on M&A, but macroeconomic indicators are seen as more influential. A Trump win could slightly ease anti-trust enforcement, potentially encouraging more large-cap M&A.

Source

India-involvement M&A activity grew 4.4% in H1 at $37.3 billion: LSEG Deals Intelligence

Source

MGM Healthcare expands its footprint; acquires SevenHills Hospital

MGM Healthcare, a multi-specialty quaternary-care group based in Chennai, has acquired SevenHills Hospital in Visakhapatnam through the Corporate Insolvency Resolution Process. This acquisition marks MGM’s first expansion outside Chennai, increasing their total capacity to over 1,000 beds within five years. SevenHills Hospital, founded in 1988, is a renowned multi-specialty hospital with 300 beds, over 100 doctors, and 700 staff, offering a wide range of medical services. The facility, located in Visakhapatnam, provides high-quality care and serves over 100,000 patients annually. MGM Healthcare aims to expand access to quality healthcare in the region. Ernst & Young acted as the advisory partner for the acquisition.

Source

Ambuja Cements’ acquisition of Penna Cement for ₹10,422 crore raises Adani’s cement market share by 8%

Ambuja Cements, a part of the Adani Group, has finalized the acquisition of Penna Cement Industries Ltd (PCIL) for ₹10,422 crore. This acquisition adds 14 MTPA capacity to the Adani Group, increasing their total to 89 MTPA. The deal, funded through internal accruals, includes acquiring 100% shares from PCIL’s promoter group. PCIL operates in Andhra Pradesh, Telangana, and Rajasthan, with expansion projects underway.

The acquisition enhances Ambuja’s market share by 2% nationwide and by 8% in South India, strengthening its position as a leading cement producer in India. It includes strategic benefits such as access to bulk cement terminals across India and potential expansion opportunities. Earlier this year, the Adani family invested ₹8,339 crore in Ambuja Cements.

Source

Small finance banks thinking big likely to switch on the M&A mode

Several small finance banks, established within the last decade, are considering mergers with competitors, non-bank lenders, or fintech firms to accelerate growth, achieve economies of scale, and broaden their range of financial products.

Source