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.
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.
Great-West Lifeco, a Canadian insurer, has agreed to buy Prudential Financial’s full-service retirement business for about USD 3.51 billion.
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.
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.
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.
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.
Revolut, a UK neobank, has raised USD 800 million in a fundraising round that, it says, valued it at USD 33 billion.
According to CB Insights, a research firm, there are more than 700 unicorns at the moment.
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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