Banking M&A Digest #109 (21.1.2021)

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Corporate Financier’s Notes by Aivars Jurcans

Done! And Done

Fitch Group, a parent company of the credit rating agency, has agreed to buy CreditSights, a debt research company. The details of the deal were not disclosed.

Source: FT

Toronto-Dominion Bank, a Canadian lender, has agreed to buy Canadian Direct Equipment Finance, a provider of loans and leases for commercial equipment owned by Wells Fargo. The details of the deal were not disclosed.

Source: Reuters

Deals On The Table

Vinci Partners Investments, a Brazilian asset manager, is said to be planning to raise up to USD 250 million and reach a USD 1 billion valuation in an IPO on Nasdaq. It has USD 8.6 billion in assets under management.

Source: Reuters

Allfunds, a Madrid-based financial services firm, is said to be planning to list its shares on Euronext Amsterdam in an IPO that would value it at between EUR 6 billion and EUR 7 billion.

Source: Reuters

Goldman Sachs is said to be considering acquisition to bulk up Marcus, its consumer banking unit. Digital banking is said to be one area of interest. 

Source: Reuters

Wells Fargo is said to be in “exclusive talks” to sell its asset management business, which manages more than USD 607 billion on behalf of customers. It has been previously reported that Wells Fargo was seeking more than USD 3 billion for the unit.

Source: Reuters

Metrics To Watch

Morgan Stanley’s return on tangible equity, a measure of how profitably it puts shareholders’ money to use, was 17.7% for Q4 2020.

Source: WSJ

Up-and-Comers

Checkout.com, a London-based fintech which focuses on payment processing and acquiring, has raised USD 450 million at a USD 15 billion valuation. Its new price-tag is almost 3x times higher than at its last fundraising round 7 months ago.

Source: FT

Rapyd, an Israeli-founded and London-based company which provides white-labelled digital wallets, has raised USD 300 million at a USD 2.5 billion valuation.

Source: FT

Grab, a south-east Asian ride-hailing and food delivery app, has raised USD 300 million for Grab Financial, its financial services arm, valuing the 3 year old unit at USD 3 billion.

Source: FT

Exciting Numbers

According to Dealogic, the average value of the 27 M&A deals between European banks announced in 2020 hit USD 477 million, up from USD 74 million in 2019 and the highest since 2008.

Source: FT

Hedge fund assets surged USD 290 billion during Q4 2020, marking the biggest-ever quarterly jump and bringing total assets under management to a record USD 3.6 trillion.

Source: FT

More than 250 shell companies listed on US exchanges in 2020, raising a record USD 78.7 billion, 1/2 of the total in 2020 initial public offerings.

Source: FT

A Thought Worth Noting

“I would expect to see some bolder cross-border consolidation [in Europe] emerging in the second half of the year as banks get comfortable with the impact the pandemic has had on their balance sheets. The sector generally remains very well capitalised but the last 12 months have favoured scale players so expect to see them looking for well-priced acquisitions as we move into the summer months.”

Nigel Moden, banking and capital markets leader for emea, EY

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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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