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Top 7 most profitable mergers and acquisitions 2021-22

The mergers and acquisitions industry is showing no signs of slowing down. It has only started. The global mergers and acquisitions market is thriving, and we’ve seen many massive deals in the last year. These transactions will almost certainly shape the industries they affect for many years to come.

If 2020 demonstrated that M&A activity is highly resilient to almost any economic downturn, 2021 indicates that it will always rebound to new levels after recovering from those downturns. The COVID-19 pandemic has not put a halt to mega-mergers and acquisitions. Mergers and acquisitions is a broad term that refers to the consolidation of businesses or assets through various financial transactions.

We’re taking a look at some of the most significant M&A transactions of 2021 so far. Global M&A activity has been extremely successful in 2021, and these massive transactions will almost certainly have a substantial impact in the coming years.

Stay tuned in 2022 as we continue to investigate the ramifications for those companies and their customers. Let’s take a look at some of the biggest deals of 2021, and beyond that, we believe they will have an extraordinary impact on their respective industries in the coming years.

Top 7 most profitable mergers and acquisitions 2021-22:

1. Oracle acquires Cerner

Oracle nears deal to buy health IT company Cerner for $30bn | Financial  TimesIt is a significant opportunity to assist customers in utilizing Oracle’s cutting-edge technologies, such as cloud, AI, ML, as well as other innovations to make health care more accessible, safe, efficient, and effective for patients and caregivers. A tender offer for $95.00 per share, or around $28.3 billion, is additive to Oracle’s earnings.

Cerner will be a significant additional revenue growth engine for Oracle for many years to come as the company expands into many more countries around the world. Cerner is a healthcare IT industry leader and Oracle’s complementary business. Cerner is a leading provider of digital information systems used in hospitals to assist doctors and nurses in providing better care to patients and communities.

 Oracle currently serves the following industries: Financial Services, Pharmaceuticals, Telecom, Utilities, Hospitality, Retail, Food & Beverage, Construction & Engineering, Manufacturing, and Government. Cerner leverages Oracle’s infrastructure, resources, and cloud capabilities to accelerate the pace of product and technology development.

According to market researcher IDC, Oracle’s acquisition of Cerner gives it a significant foothold in the healthcare technology sector, which is expected to spend $15.8 billion on cloud infrastructure and software by 2023. This would be an example of a legacy tech behemoth investing heavily in a healthcare-focused player with deep cloud and AI expertise. Oracle also provides best-in-class cloud infrastructure to drive digital modernization, significantly lowering total IT costs in these critical industry sectors.

2. Canadian National Railway acquires KCS

Kansas City Southern in talks on rival $33.7bn Canadian National bid |  Financial TimesFinally, the Canadian National Railway has completed the year’s largest merger and acquisition transaction. The combined firm would bring an integrated logistics firm spanning Canada, the United States, and Mexico, potentially at a perfect time for the United States and Mexico to re-establish trade relations. According to the CEO of Canada’s largest rail company, this transaction will increase competition in North America. The more you read about CN’s CEO praising the deal’s ability to generate competition, the more you suspect it’s a case for antitrust.

The merger could be the most significant deal we’ve seen yet, as it could help reduce trade tensions between our two countries by forming an integrated logistics firm with access across Canada, the United States, and Mexico. This would come at an ideal time as relations resume after a months-long hiatus caused primarily by Trump’s withdrawal of his trademark threat against automotive imports. Rogers Communications has acquired Shaw Communication for US26 billion.

Shaw and Rogers announced an agreement on March 15, 2021, for Rogers to acquire all issued and outstanding Class A and Class B shares of Shaw for $40.50 per share in cash, representing a transaction value of approximately $26 billion. Shaw Shareholders overwhelmingly approved the plan of arrangement for the proposed business combination with Rogers on May 20, 2021, with 99.8 per cent voting in favour of the arrangement. Rogers’ purchase of Shaw Communication creates a national behemoth in Canadian mobile communications.

As part of the transaction, Rogers will invest $2.5 billion over the next half-decade to build 5G infrastructure in Western Canada, driving economic growth and strengthening the innovation sector, enhancing competitiveness, offering consumers and businesses more choice and improved services, and delivering significant long-term benefits for businesses and consumers.

Rogers is a major player in the Ontario market, and it is nearly impossible not to come into contact with at least one branch of the media conglomerate. However, in Western Canada, where Shaw has more than five million cable and internet customers and two million cellphone subscribers through its Freedom Mobile brand, the company is nowhere near as dominant. On the other hand, consumer groups have been vocal in their opposition, claiming that it represents a bad deal for Canadian telecoms customers.

3. Vonovia acquires Deutsche Wohnen

Vonovia Considering to Buy Deutsche Wohnen in $22 Billion Deal: Sources -  BloombergIn May, Germany’s largest residential property company made an offer for the country’s second-largest residential property company. The transaction remains Europe’s largest so far this year. Vonovia had obtained 87.6 per cent of the voting rights in Deutsche Wohnen, completing its takeover bid of a former competitor.

Following the merger of the two companies, the new company will own over 500,000 apartments with a combined real estate value of approximately 90 billion euros. Vonovia has been contemplating the acquisition of its competitor for several years and has already had two bids rejected.

The merger comes amid public outrage over rising rents and a housing shortage, particularly in Berlin, where Berliners voted in favour to expropriate major landlords to help reduce rents in a provisional referendum last month. The new entity will be known as “Vonovia SE.”

4. Microsoft acquires Nuance Corp.

Microsoft buys Nuance in deal giving voice tech pioneer $16bn equity value  | Financial TimesMicrosoft’s $20 billion purchase of Nuance Corporation gives it a significant presence in healthcare. Microsoft has completed its acquisition of Nuance, a leader in conversational AI and ambient intelligence in industries including healthcare, finance, retail, and telecommunications.

The acquisition is Microsoft’s second-largest, following the $26 billion purchase of LinkedIn in 2016. According to Microsoft’s release of deal details, the target company’s solutions are used by more than 55 per cent of physicians, 75 per cent of radiologists, and 77 per cent of US hospitals.

As a result, it’s an excellent fit for Microsoft Cloud for Healthcare, which launched in 2020 and represented Microsoft’s attempt to apply its industry-specific cloud approach to the healthcare sector. It paid a 23 per cent premium to Nuance’s stock price.

This understanding will be combined with the breadth and depth of Microsoft’s cloud offerings to provide next-generation customer engagement and security solutions.

5. Thermo Fisher acquires PPD

Thermo Fisher acquires clinical research services provider PPDThermo Fisher Scientific has completed its previously announced acquisition of clinical research services provider PPD for $17.4 billion in cash, assuming nearly $3 billion in net debt. Thermo Fisher entered into a definitive agreement to acquire PPD in April for $47.50 per share.

PPD, a global contract research organization based in Wilmington, has been acquired by Thermo Fisher Scientific, Inc. The $17.4 million deal was finalized in December. Thermo Fisher paid $47.50 per share for PPD stock in the transaction, for a total of $17.4 billion, and assumed approximately $3.5 billion in PPD debt.

PPD offers services to the biotechnology and biopharma industries. It is now part of the Laboratory Products and Services division of Thermo Fisher Scientific. Thermo Fisher is the world leader in science service, with annual revenue of approximately $40 billion.

With the addition of PPD, Thermo Fisher will provide a comprehensive suite of clinical development services ranging from scientific discovery to assessing safety, efficacy, and health care outcomes, managing clinical trial logistics, and drug product development and manufacturing.

This collaboration brings together a scientific instrument pioneer and a clinical research services industry leader. As a result of the transaction, synergies are expected to total around $125 million. Additionally, it places Thermo Fisher in the $50 billion clinical research market. The acquisition should allow the company to provide its clients with a broader range of services in areas such as pharmaceuticals and life sciences.

6. Humana acquires William Grace

Humana job cuts were part of plan if merger failedHumana is acquiring its way out of the William Grace situation. Humana already owned 40% of William Grace after acquiring it in 2018 in partnership with private equity firms TPG Capital and WCS. The transaction represents the company’s acquisition of the remaining 60% of William Grace’s stock. Humana, a Louisville-based health insurance company, hopes to acquire full ownership of Kindred’s home care business at an undisclosed price in three to five years.

The new company will also be renamed “CenterWell Home Health,” an extension of the payer-agnostic CenterWell health care services brand. At this point, it appears that TPG Capital and WCS will be the big winners from this transaction.

Humana has announced that its services will expand beyond payer-agnostic healthcare into home care marketplaces exclusively focused on chronic diseases or disabilities requiring assistance with activities such as eating/bathing, etc., after rebranding as “Center Well Home Health.”

7. Amazon acquires MGM Studios

Amazon Closes $8.5 Billion MGM Deal—Adding Blockbusters To Its PlatformAfter purchasing Whole Foods, this is Amazon’s second-largest acquisition. The deal is Amazon’s largest since it agreed to buy Whole Foods for $13.7 billion in 2017. Amazon spent a total of $24 billion on video and music for its streaming services in 2020 and 2021. It’s unclear when Amazon Prime members will be able to access the entire MGM catalogue, which includes over 4,000 film titles and 17,000 TV episodes. Amazon’s acquisition strategy is never easy to pin down.

In 2021, they purchased MGM Studios, whose only notable property at this time appears to be an effort on their part to create Prime Content, allowing for more titles to be released by these already established brands. These include the James Bond and Rocky franchises, both of which have the potential to be highly profitable on their own. Because the transaction, like many others on this list, is still subject to government approval, it is unclear when it will be completed.

Edited by Prakriti Arora



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