Banking M&A Digest #107 (7.1.2021)

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Corporate Financier’s Notes by Aivars Jurcans

Done! And Done

United Health Group, a health insurer, has agreed to buy Change Healthcare, a health technology company, for USD 7.84 billion in an all-cash deal. Change Healthcare, which is 20% owned by Blackstone Group, provides billing and payment processing services.

Source: Reuters

Natixis, a French investment bank, has agreed to sell its majority stake in H2O, a London-based asset management firm, to its management. The details of the deal were not disclosed.

Source: FT

Centene, a health insurer, has agreed to buy Magellan Health, a provider of mental health services, in a USD 2.2 billion deal including debt. 

Source: Reuters

PT MNC Kapital, an Indonesian financial group, has acquired “a controlling stake” in Auerbach Grayson & Company, a New York-based brokerage, from Beltone Financial Holding, an Egyptian investment bank. Previously Beltone said it planned to sell a 60% stake in Auerbach Grayson.

Source: Reuters

Admiral Group, a UK insurer, has agreed to sell its price comparison division, including Confused.com, to Zoopla, a property search company, in a cash deal worth GBP 508 million. The price is said to be equal to about 16x times forecast earnings.

Source: FT

JPMorgan Chase has agreed to buy the global loyalty division of cxLoyalty Group Holdings, a third-party credit card loyalty program service provider. The terms of the transaction were not disclosed. 

Source: Reuters

Deals On The Table

Italy’s government is said to be working on a plan to take on about EUR 14 billion of UniCredit’s non-performing loans to make a takeover of Monte dei Paschi, a state owned lender, more attractive. 

Source: Reuters

Vinci Partners, a Brazilian asset manager, is said to have filed for an IPO on Nasdaq. The amount to be raised was not disclosed.

Source: Reuters

Nuts And Bolts

Unicaja, a Spanish lender, will own 59.5% of the new entity created by its merger with Liberbank, another Spanish lender. The deal thus values Liberbank at EUR 763 million. The combined entity will become the 5th largest lender in the country with EUR 110 billion in assets.  

Source: Reuters

Metrics To Watch

Perella Weinberg Partners, a boutique investment bank which is going public via reverse merger with a SPAC (special purpose acquisition company), has its equity valued at USD 975 million. It is being priced at 15x times its forward earnings, compared to 20x times for Moelis and 18x times for PJT.

Source: FT

Up-and-Comers

Affirm Holdings, a lending startup founded by Max Levchin (a PayPal co-founder), is said to be aiming to raise as much as USD 935 million in its IPO.

Source: Reuters

Exciting Numbers

Investment banks across the world generated a record USD 124.5 billion in fees in 2020. The companies have raised more than USD 5 trillion in debt, a threshold never before topped.

Source: FT

A Thought Worth Noting

“It’s not healthy to have just monetary policy run by independent people, accountable but not democratically elected, in charge of all of the stabilisation policies.”

Laurence Boon, chief economist, OECD

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Aivars Jurcans has more than 20 years of corporate finance and investment banking experience. His services are currently available through MURINUS ADVISERS.

Design by Artis Briedis, Photo by Joe Taylor on Unsplash

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