The boom in the M&A sector has certainly continued into 2022 with the top five M&A Deals in 2022. According to Morgan Stanley, 2021 marked a record year for M&A with more than $5 trillion in global volume – eclipsing prior records and a remarkable rebound from 2020. European M&A value and volume shouted to new annual records in 2021. Looking ahead, the environment remains very good for M&A.
Elon Musk acquired Twitter
Let’s begin with the latest M&A deals in 2022. The word had spread fast; Elon Musk acquired Twitter for $44 billion. The goal of this acquisition may be to put the world’s richest man in charge of one of the world’s most influential social networks. Musk’s deal to buy Twitter sits at the confluence of multiple ongoing societal debates, including about the power and influence of billionaires; the impact of mis- and disinformation; the responsibilities tech platforms owe to their users and society, and what new regulations should back them up. However, we will soon know what this deal will hold for the future of Twitter.
CD&R to Acquire Humana’s Home Hospice and Personal Care Divisions
In one of the recent M&A Deals in 2022, private equity firm Clayton, Dubilier & Rice (CD&R) acquired healthcare services company Humana, Inc. – Home Hospice and Personal Care Divisions from Humana, Inc.
Under the agreement, Humana will divest a 60 per cent interest in KAH Hospice. In return, receive approximately $2.8 billion in cash proceeds. That reflects an enterprise valuation of $3.4 billion. It also involves multiple of roughly 12 times the divisions’ current year forecast. In the forecast are included adjusted earnings before interest, income taxes, depreciation, amortisation, or Adjusted EBITDA. Therefore, the goal is to pursue growth centred on improved access, equity and quality of care across an expanded group of patients.
After they close this transaction, the Hospice and Personal Care divisions will be restructured into a standalone operation. Humana intends to use proceeds from the transaction for the repayment of debt and share repurchases.
Blackstone Property Partners’ acquisition of American Campus Communities
Another M&A deal in 2022 was closed in April; Blackstone Property Partners’ acquisition of American Campus Communities. The deal values the company at about $12.8 billion, indicating the firm expects rents to rise as more college students return to campus.
ACC’s portfolio comprises 166 owned properties in 71 leading university markets. The majority of ACC’s properties are high-quality, purpose-built student housing assets. Student housings are located within walking distance of their respective university campuses. As a condition to the transaction, ACC has agreed to suspend the payment of its quarterly dividend, effective immediately.
TD Bank Group First Horizon Corporation
TD Bank Group announced to acquire of First Horizon Corporation. Toronto-based TD Bank Group announced the $13.4 billion all-cash agreement to obtain Memphis-based First Horizon as part of the group’s plans to accelerate its growth in the United States. The transaction is expected to close by the first quarter of TD Bank Group’s 2023 fiscal year. With this deal, TD Bank wants to offer their clients with a broader product set and advanced technology.
M&A Deal in early 2022 – Microsoft acquired Activation Blizzard
In January 2022, Microsoft acquired Activision Blizzard for $95.00 per share, in an all-cash transaction valued at $68.7 billion. This deal was a significant step toward Microsoft’s entry into the gaming market. That said, Microsoft became the world’s third-largest gaming company by revenue. The acquisition includes iconic franchises from Activision, Blizzard and King studios such as “Warcraft,” “Diablo,” “Overwatch,” “Call of Duty” and “Candy Crush,” in addition to global eSports activities through Major League Gaming.
Looking at the biggest M&A deals of 2022 so far we can clearly see a strong majority of transactions in the gaming and tech sector, showcasing how eager companies are to adapt to the digital environment.
