2021 Transformative M&A Deals

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  • #36312
    Ali AlZahrani
    Participant

    in this post, I thought of sharing some of this year’s largest ongoing M&A deals that are expected to have a transformative impact on the market. certainly covid 19 had an unforgettable impact of the M&A deal causing a decline in the total number of deals during the years 2020 and 2019. however, according to Morgan Stanely M&A activities are expected to gain momentum again with the impact of the pandemic slowly fading away and the businesses feel more confident about the future. This is in addition to overvalued stock in some markets which will be used primarily for acquisitions. Below is a list of these highly regarded deals and their potential size( sources: Kiplinger):
    1. Canadian Pacific Railway-Target :Kansas City Southern:$25 Bn.
    2. Salesforce.com- Target: Slack Technologies : $27Bn.
    3. Microsoft:Target:ZeniMax Media: $7.5 Bn.

    if you are interested more deals are listed in the linke below.
    https://www.kiplinger.com/investing/602785/mergers-and-acquisition-ma-deals-care-about

    #39001
    Ahmed Zainalabedin
    Participant

    Thanks for sharing. According to Refinitiv data as published by Reuters, the total value of deals in 2021 has reached $3.6 trillion which is higher than 2020.

    #39010
    Matthew Brown
    Participant

    All fascinating deals! The one that most caught my eye this year is AT&T’s $43 billion dollar spin off of Warner Media to Discovery. Truly shakes up the media landscape and makes Discovery, who I’m a big fan of, a streaming player in the market with Netflix, Disney, Amazon, etc.

    #39012
    Charles Ladas
    Participant

    This is an intriguing post. It’ll be interesting to see how much M&A activity actually occurs as Covid slowly loses steam.

    #39152
    Shuvam Koley
    Participant

    As per latest Bloomberg data, more than 21,000 global deals announced since the start of 2020, valued at a total $2.5 trillion, remain pending in the period between signing and closing. Of the $4.1 trillion dollars in global M&A deals announced so far in 2021, for which definitive agreements have been entered into, $2 trillion have reached completion, $208 billion have been terminated, and $1.9 trillion remain pending and have yet to close. For the $3.7 trillion in deals announced in 2020, $2.8 trillion have reached completion, $179 billion were terminated, and $699 billion still have yet to close.

    #39154
    Meg Ver
    Participant

    The same day Salesforce announced its Slack acquisition, it announced the acquisition of professional services firm Acumen Solutions. This acquisition adds significantly to Salesforce’s professional services strength, as Acumen’s approximately 1,000 employees will join around same number of employees currently working in Salesforce’s professional services arm, effectively doubling the overall headcount.
    More than 70% of Acumen’s current portfolio is concentrated in three industries: federal; Banking, Financial Services, and Insurance (BFSI); and, manufacturing. The acquisition also will have significant positive impact on Salesforce’s ability to serve the federal services space, where Salesforce has been able to capitalize on multiple opportunities post-pandemic.
    Study suggests that the demand-supply gap for Salesforce services talent has widened over the past two years and now stands at more than 20% for areas such as Lightning, Mulesoft, and Einstein Analytics. The acquisition strengthens the footprint of Salesforce’s professional services arm in North America especially in areas such as Einstein, Lightning, and Service cloud.
    The acquisition also highlights Salesforce’s recognition that it needs to get more involved from a services standpoint. Pure play and niche SIs, in general, are faster to react to vendors’ technology innovation, and they are more flexible in meeting clients’ demands. The need for nimble service partners is more pertinent for Salesforce today given the volume of innovation that they have been bringing to the market.
    Source: Blog by Abhishek Mundra

    #39165
    Justine Vincente
    Participant

    Here in the Caribbean where Covid-19 still seems to be at the forefront of our daily lives, I too look on with anticipation to continue assessing its impact on our region’s M&A activities. While 2020 was very slow, activity has definitely regained momentum in 2021 with well positioned and forward thinking purchasers snatching up acquisitions in somewhat record speed!

    #39224
    Mohammad Alageeli
    Participant

    interesting post, thanks for sharing

    #39233
    James Elding
    Participant

    Great reference to the Canadian Pacific Railway (CP)-Target :Kansas City Southern:$25 Bn. I live in Canada and am following the tactics of Canadian National (CN) Railway to block this transaction. I believe during the summer the CNR countered CP with an offer of 30bn. This will be an interesting deal as there is a bidding war, and regulators are unclear if this is a violation of anti-trust laws

    #39279
    Millie Manning
    Participant

    It seems like M&A strongly followed the trajectory of the general stock market in terms of performance during Covid-19; while it did take a dip due to Covid uncertainty, the dip was much less significant than expected, and recovered at a higher rate. Nice to see a silver lining!

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