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Mike Rosendahl

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Industry Trends

Microsoft Proposes to Acquire Activision Blizzard

When the purchase is complete, Microsoft will become the world's third-largest gaming firm by revenue, behind Tencent and Sony, in an all-cash deal valued at around $75 billion.The deal is subject to approval by The U.S. Federal Trade Commission and Shareholders of Activision Blizzard, Inc. are expected to vote on the deal on April 28, 2022. The deal is expected to close by July 2023.1

Nvidia Halts Acquisition of Arm

Nvidia halted its planned $40 billion acquisition of Arm, the British semiconductor manufacturer owned by SoftBank. The FTC had previously announced it would sue to block the merger, so the termination of the merger was expected. The deal, first signed in 2020, would have been the largest semiconductor takeover in history but failed as regulators argued the merger would violate U.S. and E.U. antitrust regulations.2

Google to Acquire Mandiant

Google reached a deal to buy Mandiant Inc. for nearly $5.4 billion. Mandiant is a cybersecurity company that was groundbreaking in publishing detailed reports about cyber campaigns. The acquisition will enrich Google’s cybersecurity offerings at a time when ransomware attacks have shut down critical parts of the infrastructure in the U.S. and several businesses throughout the last year.3 4

U.S. and E.U. Reach Preliminary Data Privacy Deal

The U.S. and the European Union reached a preliminary deal to allow data about Europeans to be stored on U.S. soil, easing the growing threat to companies with trans-Atlantic operations. The deal would mark a victory for companies in various sectors that transfer data from the E.U. to the U.S. Officials and observers on both sides of the Atlantic expect the new agreement to be rechallenged in court.5

Rising Cybersecurity Threats

The Cybersecurity & Infrastructure Security Agency (CISA) reported an increase in sophisticated, high-impact ransomware incidents against critical infrastructure organizations globally. In 2021, several government agencies observed ransomware incidents against 14 of the 16 U.S. critical infrastructure sectors. Ransomware strategies and approaches are evolving, revealing ransomware threat actors' increasing technological proficiency and a growing ransomware threat to enterprises worldwide.6

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Xilinx, Inc.
  • Advanced Micro Devices, Inc.
  • $36,788.85
  • McAfee Corp.
  • Advent International Corporation; GIC Pte. Ltd.; Canada Pension Plan Investment Board; Abu Dhabi Investment Authority; Permira Advisers LLC; Crosspoint Capital Partners, LP
  • $20,862.21
  • Nuance Communications, Inc.
  • Microsoft Corporation
  • $19,796.03
  • GreenSky, Inc.
  • Goldman Sachs Bank USA
  • $2,840.28
  • SimpleNexus, LLC
  • nCino, Inc.
  • $1,168.30
  • MoPub, Inc.
  • AppLovin Corporation
  • $1,050.00
  • Linode, LLC
  • Akamai Technologies, Inc.
  • $900.00
  • Payrix Solutions, LLC
  • Fidelity National Information Services, Inc.
  • $777.00
  • ITRenew, Inc.
  • Iron Mountain Incorporated
  • $725.00
  • Power Line Systems, Inc.
  • Bentley Systems, Incorporated
  • $700.00

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • COPT DC-6
  • Cloud Capital
  • $22.50
  • TriMech Solutions, LLC
  • Sentinel Capital Partners, L.L.C.
  • n/a
  • AirDNA LLC
  • Alpine Management Services III, LLC
  • n/a

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • AlsoEnergy, Inc.
  • Stem, Inc.
  • $682.28
  • Four Existing Data Centers in Houston, Texas
  • DataBank Holdings, Ltd.
  • $670.00
  • Royal Die & Stamping Co., Inc.
  • Eaton Corporation plc
  • $600.00

 

Source S&P Capital IQ as of 4/4/2022 and PCE Proprietary Data

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PCE Transactions

Contacts

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Orlando Office

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Michael Poole

Orlando Office

407-621-2112 |

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Data Assumptions

This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only.

Glossary

EBIT - Earnings Before Interest and Taxes
EBITDA - Earnings Before Interest, Taxes, Depreciation, Amortization
LTM - Last Twelve Months
TEV - Total Enterprise Value

Sources:

  1. Lombardo, C., Grind, K., & Tilley, A. (2022, January 18). Microsoft to Buy Activision Blizzard in All-Cash Deal Valued at $75 Billion. The Wall Street Journal.
  2. “Nvidia Calls Off Its Efforts to Acquire Arm” , Frederic Lardinois, TechCrunch, February 8, 2022.
  3. Shead, S. (2022, March 8). Google to acquire cybersecurity firm Mandiant for $5.4 billion. CNBC.
  4. Feuer, W., Volz, D., & Uberti, D. (2022, March 8). Google to Buy Cybersecurity Firm Mandiant in $5.4 Billion Deal. The Wall Street Journal.
  5. Michaels, D., Schechner, S. (2022, March 25). U.S., Eu Reach Preliminary Deal on Data Privacy. The Wall Street Journal.
  6. Joint Cybersecurity Advisory. (2022, February 9). AA22-040A: Trends Show Increase Globalized Threat of Ransomware. Cybersecurity & Infrastructure Security Agency (CISA).
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