Financial Transactions and Regulatory Compliance Review

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Private Equity Backed Megadeals in 2018

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One major contributor to the return of the megadeal has been the revival of private equity backed blockbusters. In 2017, there were 26 transactions valued at US$4bn or more by PE funds or PE-backed companies.

Toppan Vintage, a trusted financial printing and communications company, in partnership with Mergermarket, is pleased to present the newest edition of M&A Pulse newsletter. This newsletter features expert insights on high-dollar transactions, or "megadeals", in 2018. 

Toppan Vintage question: What will happen to the number of private equity backed megadeals over the next 12 months? Leading deal experts weigh in...

In a deal that made a major splash early this year, alternative asset manager Blackstone Group teamed up with Singaporean sovereign wealth fund GIC and the Canadian Pension Plan Investment Board to buy a 55% stake in the financial and risk unit of Thomson Reuters for US$17bn. The buyers saw strong growth potential in the business’s data services and foreign exchange platforms, Bloomberg reported after the deal was announced.

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This mega-buyout by a Blackstone-led consortium – which Mergermarket ranks as the fourth-largest PE buyout of the last 10 years – came after a year of headline-grabbing PE deals. These included two transactions led by experienced player Bain Capital: the US$10.6bn purchase of Toshiba’s memory chip unit in September 2017 and the US$5.9bn acquisition of German pharmaceutical company STADA Arzneimittel after a bidding war in July 2017.

Our survey respondents largely believe the number of PE megadeals will rise further in the next 12 months. More than three-quarters (76%) think there will be 5-10 more such deals than last year, while 12% foresee an increase of more than 10 mega-buyouts.

 

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A New York-based investment banker predicts that the PE industry’s record fundraising levels will lead to more high -dollar acquisitions. In 2017, PE funds raised US$453bn globally, the most ever in a single year, according to Preqin. “This year will see an additional 5-10 megadeals made by private equity funds,” the investment banker said. “Some PE firms have the capital they need to complete deals above US$4bn rather easily. This year will again see them utilizing those funds and their expertise to make some big disruptive deals in the market.”


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Download the full WHITEPAPER
 

Return of the Megadeal

 
 

High-dollar transactions are making a comeback in 2018. What are some of the main drivers for megadeals in 2018? Which sectors can expect to see the most megadeals this year? What will be the biggest obstacle high-value transactions will face? What will happen to the number of unicorn IPOs? Find expert answers in this whitepaper. 

Toppan Vintage

Toppan Vintage is a leading international financial printing, communications and technology company dedicated to delivering a hassle-free experience with the highest quality accuracy, reliability and value for your organization’s financial printing and communications needs.

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