Banking M&A Digest #134 (22.7.2021)

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Corporate Financier’s Notes by Aivars Jurcans

Done! And Done

Blackstone, a private equity firm, has agreed to acquire a 10% stake in AIG’s life insurance unit for USD 2.2 billion.

Source: FT

Kin Insurance, an insurance-technology startup, has agreed to go public through a merger with Omnichannel Acquisition Corp, a blanc- cheque firm. The combined company is set to have an enterprise value of about USD 1 billion.

Source: Bloomberg

Great-West Lifeco, a Canadian insurer, has agreed to buy Prudential Financial’s full-service retirement business for about USD 3.51 billion. 

Source: Reuters

Santander, a Spanish lender, has agreed to buy Amherst Pierpont, a US fixed-income broker, for around USD 600 million. Amherst Pierpont generated a return on equity of 28% in 2020.

Source: Reuters

Banco Sabadell, a Spanish lender, has agreed to sell its 51.6% stake in BancSabadell d’Andorra, its Andorran business, to Mora Banc Grup for EUR 67 million. 

Source: Reuters 

Deals On The Table

Robinhood, an online brokerage, is said to be seeking a valuation of up to USD 35 billion in its initial public offering. Robinhood’s total revenue grew 245% in 2020 to USD 959 million.

Source: FT

Up-and-Comers

FTX, a cryptocurrency exchange, has raised USD 900 million from more than 60 investors in a funding round valuing the business at USD 18 billion. A previous round of funding valued FTX at USD 1.2 billion in 2020.

Source: FT

Revolut, a UK neobank, has raised USD 800 million in a fundraising round that, it says, valued it at USD 33 billion. 

Source: FT

Exciting Numbers

According to CB Insights, a research firm, there are more than 700 unicorns at the moment. 

Source: FT

A Thought Worth Noting

“It’s really hard for investor to understand the long-term value of technology investments being made [by the banks] now. In part because historically there’s been over-promises and under-delivers and in part because no one knows the future.”

Vivian Merker, consultant, Oliver Wyman

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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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