Corporate Financier’s Notes by Aivars Jurcans
Done! And Done
Citizens Financial Group has agreed to buy JMP Group, a San Francisco-based boutique investment bank, for USD 149 million. JMP has a focus on the healthcare, technology, financial services and real estate industries.
PayPal, a US online payments company, has agreed to acquire Paidy, a Tokyo-based “buy now, pay later” group, for USD 2.7 billion, paid for principally in cash. Paidy was valued at USD 1.3 billion when it raised USD 120 million in March 2021.
JPMorgan Chase & Co has agreed to buy “close to 75%” of Volkswagen Payments. Launched in 2017, Volkswagen Payments operates in 32 countries and offers its customers the option to use digital payments for car purchases, fuel, parking and other services. The financial terms of the deal were not disclosed.
State Street, a custody bank, has agreed to buy Brown Brothers Harriman investor-services business for USD 3.5 billion in cash. State Street and the BBH Investor Services had combined assets under custody of about USD 37.3 trillion as of 30 June 2021.
Source: Bloomberg, WSJ
HDFC Life, India’s insurer, has agreed to buy the life insurance unit of Exide Industries, a manufacturer of lead-acid storage batteries, in a share and cash deal worth USD 915 million.
Deals On The Table
Goldman Sachs is said to be considering listing Petershill Partners, which buys stakes in alternative asset managers (it currently owns minority stakes in 19 alternative asset companies with a combined USD 187 billion of assets under management). The sought valuation of about USD 5 billion would equate to around 22x times estimated net income in the 12 months to June.
Altisource Portfolio Solutions, a tech-enabled mortgage services company, is said to be working on a potential sale of Lenders One, its origination business. Lenders One, which is a mortgage cooperative managed but not owned by Altisource, originates about 15% of US residential mortgages.
Renaissance Insurance Group, a Russian insurer, is said to be considering an initial public offering on the Moscow Exchange potentially as early as this autumn. It is expected to seek a valuation of around USD 1 billion.
Eurobank, a Greek lender, is said to be in “advanced-stage discussions” with Italy’s Nexi and Worldline, a French payment firm, to sell its merchant acquiring business.
BNP Paribas Asset Management is said to be “in talks” to form a wealth management venture with a unit of Agricultural Bank of China. BNP Paribas is expected to hold a majority stake in the planned venture.
Thanks, But No Deal
Cinven, London-based private equity firm, has decided to bow out of a USD 2 billion bid battle with Apex Group, a US fund servicer, to acquire Sanne, a British asset management services provider.
Standard Chartered has agreed a JV deal with Singapore’s National Trades Union Congress to launch a digital-only bank in Singapore. A Standard Chartered vehicle will take a 60% stake in the venture, worth USD 107.28 million. The venture’s branding still to be decided.
According to data compiled by Refinitiv, global M&A dealmaking has reached USD 3.9 trillion this year to date, more than double the amount from the same period in 2020, and up from USD 2.6 trillion in 2019.
A Thought Worth Noting
“This is a time where you could take a small step down in terms of risk appetite, but it is not the time to turn risk-averse. There is a strong distinction between tapering and rate hikes.”
Marija Veitmane, senior strategist, State Street Global Markets
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