The Institute for Mergers, Acquisitions and Alliances (IMAA) provides a detailed weekly roundup of mergers and acquisitions news, highlighting the most significant global M&A deals. This essential update offers a snapshot of the latest movements and trends within the M&A market, showcasing the top transactions that stand out in the corporate world. Through this coverage, IMAA aims to furnish M&A professionals and enthusiasts alike with a comprehensive overview of the week’s M&A activities, helping them stay informed about the evolving landscape of global mergers and acquisitions.
The global mergers and acquisitions (M&A) market rebounded strongly after a slow start, with 752 deals announced between January 6 and January 12, totaling USD 52.20 billion. Of these transactions, 21 surpassed the USD 500 million mark, accounting for USD 44.81 billion, or 86% of the total deal value for the week.
This week’s top deals are largely concentrated in the U.S., with three notable transactions in the Energy and Power sector. Leading the list is Constellation Energy’s USD 16.4 billion acquisition of Calpine Corporation, which positions Constellation as the nation’s largest clean energy producer. Calpine is the top U.S. producer of natural gas generation and the largest geothermal operator. This acquisition substantially enhances Constellation’s power generation capabilities, reinforcing its position as the nation’s largest nuclear power plant operator. By integrating Constellation’s expertise in zero-emission nuclear energy with Calpine’s low-carbon natural gas and geothermal generation, the combined entity will offer a broad portfolio of energy solutions. Both companies have been key players in advancing America’s transition to cleaner, more secure energy, and will continue to invest in both emerging and established clean technologies to meet growing demand.
Week-on-week data shows a striking 177% increase in M&A activity, with the number of deals rising from 271 to 752, and deal value increasing more than fivefold, from USD 9.91 billion to USD 52.20 billion.
Top 5 M&A Deals for the Week
Here are the top 5 M&A Deals for the week of Jan 6 to 12, 2025 in detail:
Deal No. 1: Constellation Energy Corp. to Acquire Calpine Corporation for USD 16.40 Billion
Deal No. 2: Stryker Corporation to Acquire Inari Medical, Inc. for USD 4.90 Billion
Deal No. 3: Paychex, Inc. to Acquire Paycor HCM, Inc. for USD 4.10 Billion
Deal No. 4: KKR & Co. Inc.; Public Sector Pension Investment Board to Acquire AEP Ohio Transmission Company, Inc. / AEP Indiana Michigan Transmission Company, Inc. for USD 2.82 Billion
Deal No. 5: Phillips 66 Company to Acquire EPIC Y-Grade, LP/EPIC Y-Grade GP, LLC for USD 2.20 Billion
Deal No. 1:
Constellation Energy Corp. to Acquire Calpine Corporation for USD 16.40 Billion
Constellation Energy, a major US clean energy company, has announced a USD 16.4 billion cash-and-stock acquisition of Calpine Corporation, a leading provider of natural gas and geothermal power, marking one of the largest transactions in the country’s energy sector.
The deal includes 50 million shares of Constellation stock, USD 4.5 billion in cash, and the assumption of USD 12.7 billion in Calpine’s net debt. Adjusted for expected cash generation and tax attributes, the net purchase price is USD 26.6 billion.
Constellation, the nation’s largest producer of emissions-free electricity, will expand its portfolio by incorporating Calpine’s significant low-emission natural gas and geothermal assets, including the largest geothermal operations in the U.S. The merger will create a leading retail electricity supplier, serving 2.5 million customers with enhanced energy solutions and sustainability offerings.
The combined entity will boast nearly 60 gigawatts of capacity from nuclear, natural gas, geothermal, hydro, wind, solar, cogeneration, and battery storage. It will also strengthen its presence across the U.S., particularly in high-demand markets such as Texas, California, and New York, with Texas identified as a key growth region for electricity consumption.
This transaction is projected to deliver substantial financial benefits, with adjusted (non-GAAP) earnings per share (EPS) expected to increase by over 20% in 2026 and at least USD 2 per share annually thereafter. Additionally, the combined company is anticipated to generate more than USD 2 billion in annual free cash flow.
The deal is expected to close within a year, pending regulatory approvals. Lazard and J.P. Morgan Securities LLC are advising Constellation, while Calpine is receiving financial counsel from Evercore, Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, and Barclays US.
Deal No. 2:
Stryker Corporation to Acquire Inari Medical, Inc. for USD 4.90 Billion
Stryker, a global leader in medical technology, is acquiring Inari Medical for USD 4.9 billion (USD 80 per share). The acquisition aims to strengthen Stryker’s presence in the peripheral vascular sector, with a particular focus on advancing solutions in the venous thromboembolism (VTE) market.
Inari Medical is known for its cutting-edge, minimally invasive solutions to treat venous thromboembolism, including deep vein thrombosis (DVT) and pulmonary embolism (PE). Its flagship products, the ClotTriever and FlowTriever systems, are recognized for effectively and safely removing blood clots without the need for thrombolytic drugs, establishing Inari as a pioneer in venous health.
By integrating Inari’s advanced product portfolio, Stryker aims to enhance its offerings for peripheral vascular diseases. Inari’s mechanical thrombectomy solutions align closely with Stryker’s Neurovascular business, creating significant opportunities for synergy. Leveraging Stryker’s robust global infrastructure and resources, Inari will be positioned to accelerate the development of new treatments and broaden its market reach.
The transaction is expected to conclude by the end of the first quarter of 2025, pending regulatory and customary approvals.
Deal No. 3:
Paychex, Inc. to Acquire Paycor HCM, Inc. for USD 4.10 Billion
Paychex has agreed to acquire its competitor, Paycor HCM, in a USD 4.1 billion all-cash transaction valued at USD 22.5 per share, aiming to strengthen its AI-driven HR solutions. This acquisition is part of a broader consolidation trend in the payroll and HR industry.
The transaction unites two significant players in the human resources software and services industry. Paycor, a leading provider of human capital management (HCM), payroll, and talent management solutions, employs over 2,900 people and supports approximately 2.7 million employees across more than 49,000 U.S. clients.
Since its public listing in 2021, Paycor has made significant investments in data and artificial intelligence, strengthening its position in the upmarket. This acquisition is strategically complementary, enhancing Paycor’s AI-driven HR technology capabilities and opening new avenues for sustained long-term growth. Additionally, Paycor’s clients will benefit from Paychex’s extensive HR advisory and employee solutions.
The acquisition is anticipated to close in the first half of 2025. J.P. Morgan Securities LLC is acting as the exclusive financial advisor to Paychex, while Goldman Sachs & Co. LLC is serving in the same capacity for Paycor.
Deal No. 4:
KKR & Co. Inc.; Public Sector Pension Investment Board to Acquire AEP Ohio Transmission Company, Inc. / AEP Indiana Michigan Transmission Company, Inc. for USD 2.82 Billion
Investment firm KKR and Canada’s largest pension fund, PSP Investments, have teamed up to acquire a 19.9% equity stake in American Electric Power’s (AEP) transmission companies in Ohio, Indiana, and Michigan for USD 2.82 billion.
The partnership will enable KKR and PSP to acquire a stake in AEP’s transmission networks across Ohio, Indiana, and Michigan. This investment will bolster the utility’s ability to meet growing customer demand and improve grid reliability. The two firms have formed a 50/50 strategic partnership to pursue the deal.
AEP will maintain majority ownership and continue operating both transmission networks. Serving 5.6 million retail and wholesale customers across 11 states, AEP identifies Ohio, Indiana, and Michigan as some of its fastest-growing regions, driven by robust manufacturing industries and new sources of demand. The transaction aligns with AEP’s five-year capital investment plan aimed at benefiting its customers.
Moelis & Company and Morgan Stanley acted as financial advisors to KKR and PSP Investments.
Deal No. 5:
Phillips 66 Company to Acquire EPIC Y-Grade, LP/EPIC Y-Grade GP, LLC for USD 2.20 Billion
Phillips 66 has agreed to acquire EPIC Y-Grade GP and EPIC Y-Grade LP for USD 2.2 billion in cash, expanding its midstream operations in the Permian Basin.
The acquisition includes subsidiaries, pipelines, fractionation facilities, and distribution systems, collectively known as EPIC NGL. EPIC NGL operates two fractionators (170 MBD) near Corpus Christi, Texas, around 350 miles of purity distribution pipelines, and a nearly 885-mile NGL pipeline (175 MBD) connecting production areas in the Delaware, Midland, and Eagle Ford basins to fractionation complexes and the Phillips 66 Sweeny Hub, which offers a range of refining and petrochemical facilities. EPIC NGL is in the process of expanding pipeline capacity to 225 MBD, with plans for a second phase to reach 350 MBD.
This acquisition enhances Phillips 66’s Permian NGL value chain, providing producers with reliable flow assurance to fractionation facilities in Corpus Christi, Sweeny, and Mont Belvieu, Texas, and is expected to deliver strong returns above internal performance targets.
The transaction is subject to customary closing conditions, including regulatory approval.
This concludes our M&A news coverage of the top global mergers and acquisitions deals for the week of Jan 6 to 12, 2025. For continuous and detailed insights into the evolving landscape of M&A news, we invite you to follow the Institute for Mergers, Acquisitions, and Alliances (IMAA).