Kison Patel is the Founder and CEO of DealRoom, a Chicago-based diligence management software that uses Agile principles to innovate and modernize the finance industry. As a former M&A advisor with over a decade of experience, Kison developed DealRoom after seeing first hand a number of deep-seated, industry-wide structural issues and inefficiencies.
CEO and Founder of DealRoom
DealRoom's M&A lifecycle management software has been adopted by world-class organizations to play a host to hundreds of deals across virtually every industry over the past decade.
Analysts are divided on how 2023 is set to play out, with projections ranging anywhere from a lull in activity to a historical high for M&A transactions.
Below we look at some of the deals agreed upon in 2022, which are set to close in 2023.
List of the Biggest Recent M&A Deals in 2023
L3Harris acquisition of Aerojet Rocketdyne
Amgen's acquisition of Horizon Therapeutics
Thoma Bravo acquisition of Coupa Software
Marsâ acquisition of Hotel Chocolat
Japan Industrial Partners Inc., Suzuki Motor Corp., and ROHM Co. Ltd. acquisition of Toshiba Corporation
Broadcom acquisition of VMWare
Advent acquisition of Maxar
Keurig Dr. Pepper Inc.'s acquisition of Nutrabolt
Krogers acquisition of Albertsons
United Health acquisition of LHC Group
Amazonâs acquisition of One Medical
BHP Billitonâs acquisition of OZ Minerals
Opentextâs acquisition of Micro Focus
Bunge acquisition of Viterra
Newmont acquisition of Newcrest Mining
Pfizer acquisition of Seagen
Tapestryâs acquisition of Capri Holdings
Databricksâ acquisition of Mosaic ML
Thales acquisiiton of Imperva
Clearlake Capitalâs acquisition of Alteryx
IBMâs acquisition of Apptio
Silver Lakeâs acquisition of Qualtrics
Ciscoâs acquisition of Splunk
MIPâs acquisition of Iberdolaâs gas power portfolio
1. L3Harris acquisition of Aerojet Rocketdyne
Deal Value: $4.7 billion
Date Agreed: December 19, 2022
Industry: Aerospace
The U.S. defense contractor market, already heavily weighted towards the biggest players, is set to become even more consolidated thanks to L3Harris Technologies' $4.7 billion acquisition of Aerojet Rocketdyne.
The transaction, which was announced in December, closes the curtain on a two-year back-and-forth between Aerojet Rocketdyne and a number of suitors, which included Lockheed Martin, General Electric, and others.
L3Harris believes the acquisition will bring two of the most innovative R&D teams in the industry together as well as deliver a range of operational cost savings.
2. Amgen acquisition of Horizon Therapeutics
Deal Value: $26.4 billion
Date Agreed: December 12, 2022
Industry: Biopharmaceuticals
The biggest biopharma transaction of the year was left right until the end, with Amgenâs proposed $26.4 billion acquisition of Horizon Therapeutics. Horizon Therapeutics focuses on treatments for rare, autoimmune diseases such as thyroid eye disease (TED), gout, and several inflammatory diseases.
The most well-known drug produced by Horizon Therapeutics is its best-seller, Tepezza, which treats eye bulging and double vision. The price of $116.50 offered to Horizonâs shareholders was a 48% premium to Horizonâs price of slightly under $79 when the deal was first announced in November.
The acquisition is Amgenâs third in rare diseases and seems to point to a strategy shift for the biopharma giant.
3. Thoma Bravo acquisition of Coupa Software
Deal Value: $8 billion
Date Closed: February 28, 2023
Industry: Software
The much-talked-about 2022 tech slump didnât dissuade Thoma Bravo from taking Coupa Software's price in an $8 billion all-cash transaction, which closed in February 2023, just two months after being announced..
Coupa is a cloud-based business software firm, whose shareholders before the deal closed included the Abu Dhabi Investment Authority (ADIA).The price of $81 per share in cash represented a 77% premium to the unaffected stock price.
In closing, the Coupa Software management team stated that they had weighed the options of continuing as a standalone business or accepting the Thoma Bravo offer, and accepting was the clear winner, giving the company access to the latterâs resources as well as âaccelerating the vision to transform the office of the CFO.â
4. Mars Confectionery acquisition of Hotel Chocolat
Deal Value: $660 million
Date Agreed: November 20, 2023
Industry: Food and Beverages
Mars confectionary, more known for its mass market food and beverages brands, made a push into the premium segment in November 2023 with its acquisition of Hotel Chocolat, a UK company that produces and distributes chocolate and other cocoa-based products.
Although this may be the smallest deal on this list in dollar value, it tells us a lot about the confectionary industry in general. Changing consumer tastes and government pressure are forcing the sectorâs major players to move away from low-cost high-sugar foods. A push towards sustainably sourced cocoa is also believed to be one of the drivers of the deal.
Until the acquisition, Mars was the only one of the big chocolate producers not present in the premium segment. This acquisition may be the first of several in the space in the coming years.
5. Japan Industrial Partners Inc., Suzuki Motor Corp., and ROHM Co. Ltd. acquisition of Toshiba Corporation
Deal Value: $16.23 billion
Date Closed: September 20, 2023
Industry: Technology (diversified)
A drawn out deal for the financially stricken Toshiba Corporation concluded in September 2023 after more than a year of negotiations. The acquirers were a conglomerate that included Japan Industrial Partners (JIP) Â and Suzuki Motor Corporation, and distances Toshiba from years of wrangling with foreign activist investors.
Toshibaâs businesses include everything from nuclear power to defense technology and microchip manufacturing. Any potential acquisition would be another nail in the coffin of the famed keiretsu, the group of Japanese conglomerates that once looked set to take over the world one business at a time.
6. Broadcom acquisition of VMWare
Deal Value: $61 billion
Date Closed: November 22, 2023
Industry: Semiconductor
Broadcomâs proposed acquisition of VMWare, first announced in May 2022, received clearance from regulators in the last of its major markets - China - in November 2023, allowing the deal to close.
The deal was sold to these stakeholders on the basis of VMwareâs multi-cloud offerings and Broadcomâs diversified software portfolio, creating a sort of one-stop-shop for âthe incredibly complex IT landscapeâ (to use Broadcomâs words).
Whether it is a good strategy is anyoneâs guess, with tech showing over the past few years that, in the long-term, innovation is a far more powerful value adder than integration.
7. Advent acquisition of Maxar
Deal Value: $6.4 billion
Date Closed: May 3, 2023
Industry: Technology
2023 was the year in which the near $2 trillion of âdry powderâ that private equity firms had been sitting on finally began finding its way into public markets.
A good example of this could be seen in the news that Advent was acquiring Maxar, a space infrastructure and imagery company in an all-cash deal.At $53 a share, the price paid by Advent represented a 130% premium above where the stock had been trading.
In addition to providing excellent value to the Maxar shareholders, the executive team at the space infrastructure firm said that it would enable them to make vital investments in Legion seven and eight satellites and other technologies under development.
8. ExxonMobil acquisition of Pioneer
Deal Value: $59.5 billion
Date Announced: October 11, 2023
Industry: Energy
Just when you thought ExxonMobil couldnât control any more of the U.S. oil and gas industry, in Nit announces a $59.5 billion deal for Pioneer, in an all-stock deal. Exxon Mobilâs shares were valued at $253 when the deal was announced.
The acquisition will help ExxonMobil cement its status as the dominant force in the U.S. fracking industry, ensuring that Exxon has more places to drill than all of its main rivals. It also gives Exxon increased access to the Permian basin, which runs through parts of Texas and New Mexico, where Exxon will accelerate Pioneerâs net-zero Permian ambition to 2035.
On the announcement of the deal, ExxonMobilâs Chairman and CEO, Darren Woods, said:
The combined capabilities of our two companies will provide long-term value creation well in excess of what either company is capable of doing on a standalone basis,â
9. Krogers acquisition of Albertsons
Deal Value: $25 billion
Deal Agreed: October 14, 2022
Industry: Food retail.
Although this one hasnât yet closed, and was announced in October 2022, weâve included it here because of the impact it will have on North American retail, and because it should close sometime in early 2024.
As mentioned before, the economies of scale required in the food retail sector are undoubtedly the main driver for Krogersâ proposed acquisition of Albertsons. When closed, the deal would create Americaâs fifth biggest retailer, with 5,000 stores and 2,000 centers.
Before that can happen, Krogers and Albertsons need to overcome several obstacles. In addition to attracting antitrust attention, the deal is now subject to a lawsuit filed at the beginning of February by consumers from across four US states.
They claim, justifiably, that the deal will lead to higher prices, lower quality, less jobs, and less choice. 2024 is a pivotal year for the future of North American food retail.
10. United Health acquisition of LHC Group
Deal Value: $5.4 billion
Deal Agreed: February 22, 2023
Industry: Healthcare
The past two-three years have seen a rampup in acquisitions that cater to an ageing population. As 75 million Baby Boom generation Americans reach retirement before 2030, healthcare companies are looking to consolidate their service offering to reach this demographic.
That also appears to be the motive underpinning United Healthâs $5.4 billion acquisition of LHC Group, which offers value-based home care.Importantly for United Health, the $170-a-share offer accepted by the LHC Group only represented an 8% premium over the listed price, meaning that the transaction may deliver outstanding value for the acquirer over time. The transaction underwent significant investigation by the FTC before gaining the green light.
On closing the deal, United Health said that it would fold the LHC Group into its Optum subsidiary.
11. Amazonâs acquisition of One Medical
Deal Value: $3.9 billion
Deal Agreed: February 22, 2023
Industry: Healthcare
Amazon continues its forays into the world of pharmaceuticals and healthcare. The latest acquisition in an increasingly long line is One Medical. Altough the deal is still subject to regulatory approval, it should get the go-ahead given Amazonâs potential to build the logistical capabilities that could result in better delivery of healthcare the American public.
The deal has already received clearance in Oregon, among other states.One Medical will enable Amazon to add 188 medical clinics across 29 markets. The Orgeon-based company has is a membership-based, tech-integrated, consumer-focused primary care platform. It currently has over 800,000 members and works with at least 8,000 employers. With Amazonâs supply chain and purchasing power, this deal could be a powerful combination.
Whether the benefits accrue to consumers remains to be seen.
12. BHP Billitonâs acquisition of OZ Minerals
Deal Value: $9.6 billion
Deal Closed: May 2, 2023
Industry: Mining
BHP Billiton, author of some of the worldâs largest M&A transactions in the period leading up to the global financial crash, had been very quiet on the deal front until recently. Then, an opportunity arose to acquire OZ Minerals, a gold and copper producer.
The deal would be the largest to be closed by the Australian mining giant in over a decade, and would expand its already significant footprint in Brazil, where most of OZ Mineralsâ operates are based.
The motive behind this deal is likely to be a desire to capitalise on rising costs of the metals used in clean energy and electric cars. Because of the size of the assets in Brazil involved in the takeover, BHP Billiton had to receive regulatory clearance from Brazilâs antimonopoly authority. It duly received this in February 2023. At the time of writing, in January 2024, the share price has upticked by about 25% since the dealâs announcement.
13. Opentext acquisition of Micro Focus
Deal Value: $5.8 billion
Deal Closed: February 1, 2023
Industry: Technology
There was a time during the pandemic, when it looked like SAAS companies were going to hit values that put them among the most highly valued companies in the world. With a return to workplaces, valuations have cooled, but SAAS companies remain darlings of the tech world. The acquisition of the UKâs Micro Focus by Canadaâs Opentext is the latest in a long line of transactions that bring consolidation to the industry.
Opentext was spun out of the University of Waterloo in 1991, and provides an integrated management system for companies across the industry spectrum. The Micro Focus deal is the latest in a long line of transactions for the Canadian firm, having grown the business over the past three decades through acquisitions.
This has given them, what they call: âa structured and disciplined approach to acquisitions.â (i.e., they conduct thorough due diligence).
14. Bunge acquisition of Micro Focus
Deal Value: $30 billion
Deal Closed: Jun 13, 2023
Industry: Agribusiness
Like semiconductor manufacturers and pharmaceutical giants, deals involving global agribusiness and food companies are seldom far from the headlines these days. Bungeâs massive acquisition of Viterra LImited, a Canadian agribusiness company, was approved by Bungeâs shareholders on October 5, and completed shortly thereafter.
The deal was primarily composed of shares, with the Viterra shareholders receiving just $2 billion in cash. CPP Investments also acquired a 12% position in Bunge under the terms of the deal. It creas a premier diversified global agribusiness solutions company, accelerating Bungeâs strategy of connecting farmers directly to consumers.
Despite significantly increasing cash flows and resulting in a healthy balance sheet, it appears the markets are underwhelmed by the dealâs long-term potential. As of January 2024, Bungeâs share price on Nasdaq has fallen by around 10% since the deal was announced.
15. Newmont acquisition of Newcrest Mining
Deal Value: $16.8 billion
Deal Closed: November 6, 2023
Industry: Mining
The quantity of all-stock deals on this list suggests that the market is already getting frothy, with public companies looking to cash in on what they see as potentially over-valued share prices. To this list, we can add Newmontâs acquisition of Newcrest Mining, an all-stock transaction valued at approximately $16.8 billion.
The deal gives Nemont what is widely considered to be the best gold and copper portfolio in world mining, with a wide range of tier 1 assets and projects being held by the new company. It is notable that the dealâs clearance didnât take long to pass through antitrust, with most of the assets being exploited falling outside of North America.
Despite the positive statements around the time of the transaction from both parties, the deal has so far failed to convince the markets, with Newmont trading at around 5% below where it was at the dealâs announcement date.
16. Pfizer acquisition of Seagen
Deal Value: $43 billion
Deal Closed: December 14, 2023
Industry: Biotechnology.
What âdeals of the yearâ list would be complete without a megadeal involving big pharma? In 2023, year, the honor fell to Pfizer, who acquired Seagen for $229 in cash per share.
Seagen is a global biotechnology company that specializes in discovering, developing, and commercializing transformative cancer medicines.
The acquisition will enable to make significant progress in the field of oncology, an expected growth area for pharmaceuticals companies owing to the ageing population. The combination with Seagen enables it to better leverage its protein engineering and medicinal chemistry capabilities to advance the development of novel combinations.
The scale of the acquisition is expected to have a large impact on the biotech market, leading to speculation about how Pfizerâs resources and structure may influence Seagenâs existing operations and the broader biotech landscape.
17. Tapestryâs acquisition of Capri Holdings
Deal Value: $8.5 billion
Deal Closed: December 14, 2023
Industry: Fashion
Tapestry Inc, the parent company of the Coach and Kate Spades brands, announced in August 2023 that it would acquire Capri Holdings, the parent company of brands like Michael Kors, Jimmy Choo, and Versace.
The deal was an all-cash transaction worth $8.5 billion. The deal brings together six brands with global reach, underpinned by Tapestryâs in-house data-rich customer engagement platform, and a diversified direct-to-consumer operating model. It is expected to generate revenues in excess of $12 billion in 2024, with sales in over 150 different countries.
For Tapestry, it represents the first step into the luxury fashion segment, and Capri should benefit from the new parent companyâs better ability to tap into e-commerce sales.
18. Databrick acquisition of Mosaic ML
Deal Value: $1.3 billion
Deal Closed: December 14, 2023
Industry: Technology
The scramble to acquire artificial intelligence and machine learning specialists is already well underway. The deal involving Databrick and Mosaic ML brings together two such companies, whose combined AI capabilities should mean that they are well positioned to power the next wave of enterprise data applications.
This deal may turn out to be a major landmark in the history of artificial intelligence, with many observers noting that the integration of MosaicML's expertise and pipeline of generative AI models with Databricks' capabilities could create new opportunities for innovation and growth in the field of AI.In an exciting development, the combined companies planned to make generative AI accessible to any size organization, enabling them to build, own, and secure generative AI models with their data.
19. Thales acquisition of Imperva
Deal Value: $3.6 billion
Deal Closed: December 4, 2023
Industry: Technology
Thales, a global leader in the cybersecurity industry, completed an all-cash transaction worth $3.6 billion for Imperva, a prominent US-based data and application cybersecurity company, in December 2023.
Thales had been an open admirer of Imperva for some time. Imperva known for its innovative application and data security offerings, differentiated itself in the competitive cybersecurity market through accelerated growth and a string of successfully executed bolt-on strategic acquisitions.
Anybody who has read Nicole Perlrothâs award-winning, âThis is How They Tell Me the World Endsâ will be glad that the cyber-industry is powering up to defend the world against zero day attacks. As of January 2024, Thalesâ share price remains largely unchanged since the announcement of the transaction.
20. Clearlake Capital acquisition of Alteryx
Deal Value: $4.4 billion.
Deal Closed: December 18, 2023
Industry: Technology
In another sign that private equity companies were finally beginning to use their âdry powderâ, in December Clearlake Capital and a few others announced that they were bringing Alteryx private.
Alteryx is a leading data science and analytics software company.At $48.25 for each Alteryx share, the deal represented a premium of 59% on the outstanding share price. The price reflects confidence at Clearlake and their consortium partner Insight that the deal represents a valuable step ahead in data science and analytics, an area expected to see double digit growth for the foreseeable future. Mark Anderson, CEO of Alteryx, said of the deal:
âTogether [with its new private equity owners], we will make investments that matter most to our customers and accelerate our mission of harnessing the power of analytics to enable customers all over the world to transform data into a breakthrough.â
21. IBM acquisition of Apptio
Deal Value: $4.6 billion
Deal Closed: August 10, 2023
Industry: Technology
Another mega deal in the artificial intelligence space, this time involving IBM. In June, IBM announced an all-cash deal for Apptio, an AI-powered provider of financial and operational insights across enterprise IT.
The Apptio acquisition fits neatly into IBMâs portfolio of automated software solutions, and brings together the industry-leading solutions of Apptio's FinOps offerings, including ApptioOne, Cloudability and Targetprocess, and IBM's automation portfolio of Turbonomic, AIOps and Instana to give clients a "virtual command center." Rob Thomas, Senior Vice President, Software and Chief Commercial Officer at IBM said of the deal:
âThe combination of Apptio products and IBM's IT automation portfolio will give businesses a 360-degree technology management platform they can use to optimize and automate decisions across their IT landscapes.â
22. Silver Lake Acquisition of Qualtrics
Deal Value: $12.5 billion
Deal Closed: June 28, 2023
Industry: Technology
In March 2023, Silver Lake Capital announced that it was teaming up with the Canadian Pension Plan Investment Board (CPP Investments) in an all-cash transaction that valued Qulatrics at $12.5B.
Under the terms of the agreement, Qualtricsâ shareholders, who included German enterprise software giant, SAP, received $18.50 per share in cash. Qualtrics is a cloud-native software provider that helps to use advanced AI and data to make decisions based on human sentiment, thereby enabling organizations to retain their best customers and employees.
The deal is yet another in a string of AI-related transactions, which should grow in volume over the coming years as the new technology becomes embedded in our everyday lives.
23. Cisco acquisition of Splunk
Deal Value: $28 billion
Deal Announced: September 21, 2023
Industry: Technology
Ciscoâs massive $28 billion acquisition of Splunk, announced in September 2023, caught the technology community by surprise. The all-cash deal is Ciscoâs largest ever transaction and reflects its strategic refocusing on cybersecurity and observability in technology.
Yet again, this deal has an artificial intelligence element, with Splunk possessing one of the most powerful AI-driven cybersecurity offerings.
It should enable Cisco to offer a more robust and integrated suite of solutions to its enterprise customers. Notably, the Splunk CEO Gary Steele said of the deal: âWe can do a lot together.âAs of January 2024, Ciscoâs shares are trading down around 15% since the deal was announced.
24. MIP acquisition of Iberdola Gas Power Portfolio
Deal Value: $6 billion
Deal Closed: June 28, 2023
Industry: Energy.
In June, Spanish energy giant Iberdola sold 55% of its Mexican business to Mexican Infrastructure Partners (MIP). The portfolio did contain some wind assets but was primarily composed of gas assets.
Taken together with the Exxon deal for Pioneer, this deal illustrates the dichotomy that exists between the North American and European energy sectors. In the latter, there is now a much stronger push towards renewable energy, as European energy players seek to satisfy ever more stringent EU regulations around carbon emissions.
The valuation of the deal is likely to have hinged almost completely on the power purchase agreement that existed between the gas portfolio and the Federal Electricity Commission (FCE) in Mexico. In January 2024, Iberdolaâs shares are trending only slightly above where they were at the time the deal was announced.
Summary
The growing number of deals that fail to make it over the line suggests that at least one of the deals on this list may end up being scrapped in 2023. Check out an extended list of the largest M&A deals in 2023 here.
A combination of economic conditions, shareholder unease with transactions, and inevitably, due diligence, puts a halt to many deals. Talk to DealRoom today about how our due diligence software can ensure that you understand your acquisition targets well before reaching the final stretch of the transactionâs lifecycle.
List of the Biggest Recent M&A Deals in 2023
L3Harris acquisition of Aerojet Rocketdyne
Amgen's acquisition of Horizon Therapeutics
Thoma Bravo acquisition of Coupa Software
Marsâ acquisition of Hotel Chocolat
Japan Industrial Partners Inc., Suzuki Motor Corp., and ROHM Co. Ltd. acquisition of Toshiba Corporation
Broadcom acquisition of VMWare
Advent acquisition of Maxar
Keurig Dr. Pepper Inc.'s acquisition of Nutrabolt
Krogers acquisition of Albertsons
United Health acquisition of LHC Group
Amazonâs acquisition of One Medical
BHP Billitonâs acquisition of OZ Minerals
Opentextâs acquisition of Micro Focus
Bunge acquisition of Viterra
Newmont acquisition of Newcrest Mining
Pfizer acquisition of Seagen
Tapestryâs acquisition of Capri Holdings
Databricksâ acquisition of Mosaic ML
Thales acquisiiton of Imperva
Clearlake Capitalâs acquisition of Alteryx
IBMâs acquisition of Apptio
Silver Lakeâs acquisition of Qualtrics
Ciscoâs acquisition of Splunk
MIPâs acquisition of Iberdolaâs gas power portfolio
DealRoom's M&A lifecycle management software has been adopted by world-class organizations to play a host to hundreds of deals across virtually every industry over the past decade.
Analysts are divided on how 2023 is set to play out, with projections ranging anywhere from a lull in activity to a historical high for M&A transactions.
Below we look at some of the deals agreed upon in 2022, which are set to close in 2023.
List of the Biggest Recent M&A Deals in 2023
L3Harris acquisition of Aerojet Rocketdyne
Amgen's acquisition of Horizon Therapeutics
Thoma Bravo acquisition of Coupa Software
Marsâ acquisition of Hotel Chocolat
Japan Industrial Partners Inc., Suzuki Motor Corp., and ROHM Co. Ltd. acquisition of Toshiba Corporation
Broadcom acquisition of VMWare
Advent acquisition of Maxar
Keurig Dr. Pepper Inc.'s acquisition of Nutrabolt
Krogers acquisition of Albertsons
United Health acquisition of LHC Group
Amazonâs acquisition of One Medical
BHP Billitonâs acquisition of OZ Minerals
Opentextâs acquisition of Micro Focus
Bunge acquisition of Viterra
Newmont acquisition of Newcrest Mining
Pfizer acquisition of Seagen
Tapestryâs acquisition of Capri Holdings
Databricksâ acquisition of Mosaic ML
Thales acquisiiton of Imperva
Clearlake Capitalâs acquisition of Alteryx
IBMâs acquisition of Apptio
Silver Lakeâs acquisition of Qualtrics
Ciscoâs acquisition of Splunk
MIPâs acquisition of Iberdolaâs gas power portfolio
1. L3Harris acquisition of Aerojet Rocketdyne
Deal Value: $4.7 billion
Date Agreed: December 19, 2022
Industry: Aerospace
The U.S. defense contractor market, already heavily weighted towards the biggest players, is set to become even more consolidated thanks to L3Harris Technologies' $4.7 billion acquisition of Aerojet Rocketdyne.
The transaction, which was announced in December, closes the curtain on a two-year back-and-forth between Aerojet Rocketdyne and a number of suitors, which included Lockheed Martin, General Electric, and others.
L3Harris believes the acquisition will bring two of the most innovative R&D teams in the industry together as well as deliver a range of operational cost savings.
2. Amgen acquisition of Horizon Therapeutics
Deal Value: $26.4 billion
Date Agreed: December 12, 2022
Industry: Biopharmaceuticals
The biggest biopharma transaction of the year was left right until the end, with Amgenâs proposed $26.4 billion acquisition of Horizon Therapeutics. Horizon Therapeutics focuses on treatments for rare, autoimmune diseases such as thyroid eye disease (TED), gout, and several inflammatory diseases.
The most well-known drug produced by Horizon Therapeutics is its best-seller, Tepezza, which treats eye bulging and double vision. The price of $116.50 offered to Horizonâs shareholders was a 48% premium to Horizonâs price of slightly under $79 when the deal was first announced in November.
The acquisition is Amgenâs third in rare diseases and seems to point to a strategy shift for the biopharma giant.
3. Thoma Bravo acquisition of Coupa Software
Deal Value: $8 billion
Date Closed: February 28, 2023
Industry: Software
The much-talked-about 2022 tech slump didnât dissuade Thoma Bravo from taking Coupa Software's price in an $8 billion all-cash transaction, which closed in February 2023, just two months after being announced..
Coupa is a cloud-based business software firm, whose shareholders before the deal closed included the Abu Dhabi Investment Authority (ADIA).The price of $81 per share in cash represented a 77% premium to the unaffected stock price.
In closing, the Coupa Software management team stated that they had weighed the options of continuing as a standalone business or accepting the Thoma Bravo offer, and accepting was the clear winner, giving the company access to the latterâs resources as well as âaccelerating the vision to transform the office of the CFO.â
4. Mars Confectionery acquisition of Hotel Chocolat
Deal Value: $660 million
Date Agreed: November 20, 2023
Industry: Food and Beverages
Mars confectionary, more known for its mass market food and beverages brands, made a push into the premium segment in November 2023 with its acquisition of Hotel Chocolat, a UK company that produces and distributes chocolate and other cocoa-based products.
Although this may be the smallest deal on this list in dollar value, it tells us a lot about the confectionary industry in general. Changing consumer tastes and government pressure are forcing the sectorâs major players to move away from low-cost high-sugar foods. A push towards sustainably sourced cocoa is also believed to be one of the drivers of the deal.
Until the acquisition, Mars was the only one of the big chocolate producers not present in the premium segment. This acquisition may be the first of several in the space in the coming years.
5. Japan Industrial Partners Inc., Suzuki Motor Corp., and ROHM Co. Ltd. acquisition of Toshiba Corporation
Deal Value: $16.23 billion
Date Closed: September 20, 2023
Industry: Technology (diversified)
A drawn out deal for the financially stricken Toshiba Corporation concluded in September 2023 after more than a year of negotiations. The acquirers were a conglomerate that included Japan Industrial Partners (JIP) Â and Suzuki Motor Corporation, and distances Toshiba from years of wrangling with foreign activist investors.
Toshibaâs businesses include everything from nuclear power to defense technology and microchip manufacturing. Any potential acquisition would be another nail in the coffin of the famed keiretsu, the group of Japanese conglomerates that once looked set to take over the world one business at a time.
6. Broadcom acquisition of VMWare
Deal Value: $61 billion
Date Closed: November 22, 2023
Industry: Semiconductor
Broadcomâs proposed acquisition of VMWare, first announced in May 2022, received clearance from regulators in the last of its major markets - China - in November 2023, allowing the deal to close.
The deal was sold to these stakeholders on the basis of VMwareâs multi-cloud offerings and Broadcomâs diversified software portfolio, creating a sort of one-stop-shop for âthe incredibly complex IT landscapeâ (to use Broadcomâs words).
Whether it is a good strategy is anyoneâs guess, with tech showing over the past few years that, in the long-term, innovation is a far more powerful value adder than integration.
7. Advent acquisition of Maxar
Deal Value: $6.4 billion
Date Closed: May 3, 2023
Industry: Technology
2023 was the year in which the near $2 trillion of âdry powderâ that private equity firms had been sitting on finally began finding its way into public markets.
A good example of this could be seen in the news that Advent was acquiring Maxar, a space infrastructure and imagery company in an all-cash deal.At $53 a share, the price paid by Advent represented a 130% premium above where the stock had been trading.
In addition to providing excellent value to the Maxar shareholders, the executive team at the space infrastructure firm said that it would enable them to make vital investments in Legion seven and eight satellites and other technologies under development.
8. ExxonMobil acquisition of Pioneer
Deal Value: $59.5 billion
Date Announced: October 11, 2023
Industry: Energy
Just when you thought ExxonMobil couldnât control any more of the U.S. oil and gas industry, in Nit announces a $59.5 billion deal for Pioneer, in an all-stock deal. Exxon Mobilâs shares were valued at $253 when the deal was announced.
The acquisition will help ExxonMobil cement its status as the dominant force in the U.S. fracking industry, ensuring that Exxon has more places to drill than all of its main rivals. It also gives Exxon increased access to the Permian basin, which runs through parts of Texas and New Mexico, where Exxon will accelerate Pioneerâs net-zero Permian ambition to 2035.
On the announcement of the deal, ExxonMobilâs Chairman and CEO, Darren Woods, said:
The combined capabilities of our two companies will provide long-term value creation well in excess of what either company is capable of doing on a standalone basis,â
9. Krogers acquisition of Albertsons
Deal Value: $25 billion
Deal Agreed: October 14, 2022
Industry: Food retail.
Although this one hasnât yet closed, and was announced in October 2022, weâve included it here because of the impact it will have on North American retail, and because it should close sometime in early 2024.
As mentioned before, the economies of scale required in the food retail sector are undoubtedly the main driver for Krogersâ proposed acquisition of Albertsons. When closed, the deal would create Americaâs fifth biggest retailer, with 5,000 stores and 2,000 centers.
Before that can happen, Krogers and Albertsons need to overcome several obstacles. In addition to attracting antitrust attention, the deal is now subject to a lawsuit filed at the beginning of February by consumers from across four US states.
They claim, justifiably, that the deal will lead to higher prices, lower quality, less jobs, and less choice. 2024 is a pivotal year for the future of North American food retail.
10. United Health acquisition of LHC Group
Deal Value: $5.4 billion
Deal Agreed: February 22, 2023
Industry: Healthcare
The past two-three years have seen a rampup in acquisitions that cater to an ageing population. As 75 million Baby Boom generation Americans reach retirement before 2030, healthcare companies are looking to consolidate their service offering to reach this demographic.
That also appears to be the motive underpinning United Healthâs $5.4 billion acquisition of LHC Group, which offers value-based home care.Importantly for United Health, the $170-a-share offer accepted by the LHC Group only represented an 8% premium over the listed price, meaning that the transaction may deliver outstanding value for the acquirer over time. The transaction underwent significant investigation by the FTC before gaining the green light.
On closing the deal, United Health said that it would fold the LHC Group into its Optum subsidiary.
11. Amazonâs acquisition of One Medical
Deal Value: $3.9 billion
Deal Agreed: February 22, 2023
Industry: Healthcare
Amazon continues its forays into the world of pharmaceuticals and healthcare. The latest acquisition in an increasingly long line is One Medical. Altough the deal is still subject to regulatory approval, it should get the go-ahead given Amazonâs potential to build the logistical capabilities that could result in better delivery of healthcare the American public.
The deal has already received clearance in Oregon, among other states.One Medical will enable Amazon to add 188 medical clinics across 29 markets. The Orgeon-based company has is a membership-based, tech-integrated, consumer-focused primary care platform. It currently has over 800,000 members and works with at least 8,000 employers. With Amazonâs supply chain and purchasing power, this deal could be a powerful combination.
Whether the benefits accrue to consumers remains to be seen.
12. BHP Billitonâs acquisition of OZ Minerals
Deal Value: $9.6 billion
Deal Closed: May 2, 2023
Industry: Mining
BHP Billiton, author of some of the worldâs largest M&A transactions in the period leading up to the global financial crash, had been very quiet on the deal front until recently. Then, an opportunity arose to acquire OZ Minerals, a gold and copper producer.
The deal would be the largest to be closed by the Australian mining giant in over a decade, and would expand its already significant footprint in Brazil, where most of OZ Mineralsâ operates are based.
The motive behind this deal is likely to be a desire to capitalise on rising costs of the metals used in clean energy and electric cars. Because of the size of the assets in Brazil involved in the takeover, BHP Billiton had to receive regulatory clearance from Brazilâs antimonopoly authority. It duly received this in February 2023. At the time of writing, in January 2024, the share price has upticked by about 25% since the dealâs announcement.
13. Opentext acquisition of Micro Focus
Deal Value: $5.8 billion
Deal Closed: February 1, 2023
Industry: Technology
There was a time during the pandemic, when it looked like SAAS companies were going to hit values that put them among the most highly valued companies in the world. With a return to workplaces, valuations have cooled, but SAAS companies remain darlings of the tech world. The acquisition of the UKâs Micro Focus by Canadaâs Opentext is the latest in a long line of transactions that bring consolidation to the industry.
Opentext was spun out of the University of Waterloo in 1991, and provides an integrated management system for companies across the industry spectrum. The Micro Focus deal is the latest in a long line of transactions for the Canadian firm, having grown the business over the past three decades through acquisitions.
This has given them, what they call: âa structured and disciplined approach to acquisitions.â (i.e., they conduct thorough due diligence).
14. Bunge acquisition of Micro Focus
Deal Value: $30 billion
Deal Closed: Jun 13, 2023
Industry: Agribusiness
Like semiconductor manufacturers and pharmaceutical giants, deals involving global agribusiness and food companies are seldom far from the headlines these days. Bungeâs massive acquisition of Viterra LImited, a Canadian agribusiness company, was approved by Bungeâs shareholders on October 5, and completed shortly thereafter.
The deal was primarily composed of shares, with the Viterra shareholders receiving just $2 billion in cash. CPP Investments also acquired a 12% position in Bunge under the terms of the deal. It creas a premier diversified global agribusiness solutions company, accelerating Bungeâs strategy of connecting farmers directly to consumers.
Despite significantly increasing cash flows and resulting in a healthy balance sheet, it appears the markets are underwhelmed by the dealâs long-term potential. As of January 2024, Bungeâs share price on Nasdaq has fallen by around 10% since the deal was announced.
15. Newmont acquisition of Newcrest Mining
Deal Value: $16.8 billion
Deal Closed: November 6, 2023
Industry: Mining
The quantity of all-stock deals on this list suggests that the market is already getting frothy, with public companies looking to cash in on what they see as potentially over-valued share prices. To this list, we can add Newmontâs acquisition of Newcrest Mining, an all-stock transaction valued at approximately $16.8 billion.
The deal gives Nemont what is widely considered to be the best gold and copper portfolio in world mining, with a wide range of tier 1 assets and projects being held by the new company. It is notable that the dealâs clearance didnât take long to pass through antitrust, with most of the assets being exploited falling outside of North America.
Despite the positive statements around the time of the transaction from both parties, the deal has so far failed to convince the markets, with Newmont trading at around 5% below where it was at the dealâs announcement date.
16. Pfizer acquisition of Seagen
Deal Value: $43 billion
Deal Closed: December 14, 2023
Industry: Biotechnology.
What âdeals of the yearâ list would be complete without a megadeal involving big pharma? In 2023, year, the honor fell to Pfizer, who acquired Seagen for $229 in cash per share.
Seagen is a global biotechnology company that specializes in discovering, developing, and commercializing transformative cancer medicines.
The acquisition will enable to make significant progress in the field of oncology, an expected growth area for pharmaceuticals companies owing to the ageing population. The combination with Seagen enables it to better leverage its protein engineering and medicinal chemistry capabilities to advance the development of novel combinations.
The scale of the acquisition is expected to have a large impact on the biotech market, leading to speculation about how Pfizerâs resources and structure may influence Seagenâs existing operations and the broader biotech landscape.
17. Tapestryâs acquisition of Capri Holdings
Deal Value: $8.5 billion
Deal Closed: December 14, 2023
Industry: Fashion
Tapestry Inc, the parent company of the Coach and Kate Spades brands, announced in August 2023 that it would acquire Capri Holdings, the parent company of brands like Michael Kors, Jimmy Choo, and Versace.
The deal was an all-cash transaction worth $8.5 billion. The deal brings together six brands with global reach, underpinned by Tapestryâs in-house data-rich customer engagement platform, and a diversified direct-to-consumer operating model. It is expected to generate revenues in excess of $12 billion in 2024, with sales in over 150 different countries.
For Tapestry, it represents the first step into the luxury fashion segment, and Capri should benefit from the new parent companyâs better ability to tap into e-commerce sales.
18. Databrick acquisition of Mosaic ML
Deal Value: $1.3 billion
Deal Closed: December 14, 2023
Industry: Technology
The scramble to acquire artificial intelligence and machine learning specialists is already well underway. The deal involving Databrick and Mosaic ML brings together two such companies, whose combined AI capabilities should mean that they are well positioned to power the next wave of enterprise data applications.
This deal may turn out to be a major landmark in the history of artificial intelligence, with many observers noting that the integration of MosaicML's expertise and pipeline of generative AI models with Databricks' capabilities could create new opportunities for innovation and growth in the field of AI.In an exciting development, the combined companies planned to make generative AI accessible to any size organization, enabling them to build, own, and secure generative AI models with their data.
19. Thales acquisition of Imperva
Deal Value: $3.6 billion
Deal Closed: December 4, 2023
Industry: Technology
Thales, a global leader in the cybersecurity industry, completed an all-cash transaction worth $3.6 billion for Imperva, a prominent US-based data and application cybersecurity company, in December 2023.
Thales had been an open admirer of Imperva for some time. Imperva known for its innovative application and data security offerings, differentiated itself in the competitive cybersecurity market through accelerated growth and a string of successfully executed bolt-on strategic acquisitions.
Anybody who has read Nicole Perlrothâs award-winning, âThis is How They Tell Me the World Endsâ will be glad that the cyber-industry is powering up to defend the world against zero day attacks. As of January 2024, Thalesâ share price remains largely unchanged since the announcement of the transaction.
20. Clearlake Capital acquisition of Alteryx
Deal Value: $4.4 billion.
Deal Closed: December 18, 2023
Industry: Technology
In another sign that private equity companies were finally beginning to use their âdry powderâ, in December Clearlake Capital and a few others announced that they were bringing Alteryx private.
Alteryx is a leading data science and analytics software company.At $48.25 for each Alteryx share, the deal represented a premium of 59% on the outstanding share price. The price reflects confidence at Clearlake and their consortium partner Insight that the deal represents a valuable step ahead in data science and analytics, an area expected to see double digit growth for the foreseeable future. Mark Anderson, CEO of Alteryx, said of the deal:
âTogether [with its new private equity owners], we will make investments that matter most to our customers and accelerate our mission of harnessing the power of analytics to enable customers all over the world to transform data into a breakthrough.â
21. IBM acquisition of Apptio
Deal Value: $4.6 billion
Deal Closed: August 10, 2023
Industry: Technology
Another mega deal in the artificial intelligence space, this time involving IBM. In June, IBM announced an all-cash deal for Apptio, an AI-powered provider of financial and operational insights across enterprise IT.
The Apptio acquisition fits neatly into IBMâs portfolio of automated software solutions, and brings together the industry-leading solutions of Apptio's FinOps offerings, including ApptioOne, Cloudability and Targetprocess, and IBM's automation portfolio of Turbonomic, AIOps and Instana to give clients a "virtual command center." Rob Thomas, Senior Vice President, Software and Chief Commercial Officer at IBM said of the deal:
âThe combination of Apptio products and IBM's IT automation portfolio will give businesses a 360-degree technology management platform they can use to optimize and automate decisions across their IT landscapes.â
22. Silver Lake Acquisition of Qualtrics
Deal Value: $12.5 billion
Deal Closed: June 28, 2023
Industry: Technology
In March 2023, Silver Lake Capital announced that it was teaming up with the Canadian Pension Plan Investment Board (CPP Investments) in an all-cash transaction that valued Qulatrics at $12.5B.
Under the terms of the agreement, Qualtricsâ shareholders, who included German enterprise software giant, SAP, received $18.50 per share in cash. Qualtrics is a cloud-native software provider that helps to use advanced AI and data to make decisions based on human sentiment, thereby enabling organizations to retain their best customers and employees.
The deal is yet another in a string of AI-related transactions, which should grow in volume over the coming years as the new technology becomes embedded in our everyday lives.
23. Cisco acquisition of Splunk
Deal Value: $28 billion
Deal Announced: September 21, 2023
Industry: Technology
Ciscoâs massive $28 billion acquisition of Splunk, announced in September 2023, caught the technology community by surprise. The all-cash deal is Ciscoâs largest ever transaction and reflects its strategic refocusing on cybersecurity and observability in technology.
Yet again, this deal has an artificial intelligence element, with Splunk possessing one of the most powerful AI-driven cybersecurity offerings.
It should enable Cisco to offer a more robust and integrated suite of solutions to its enterprise customers. Notably, the Splunk CEO Gary Steele said of the deal: âWe can do a lot together.âAs of January 2024, Ciscoâs shares are trading down around 15% since the deal was announced.
24. MIP acquisition of Iberdola Gas Power Portfolio
Deal Value: $6 billion
Deal Closed: June 28, 2023
Industry: Energy.
In June, Spanish energy giant Iberdola sold 55% of its Mexican business to Mexican Infrastructure Partners (MIP). The portfolio did contain some wind assets but was primarily composed of gas assets.
Taken together with the Exxon deal for Pioneer, this deal illustrates the dichotomy that exists between the North American and European energy sectors. In the latter, there is now a much stronger push towards renewable energy, as European energy players seek to satisfy ever more stringent EU regulations around carbon emissions.
The valuation of the deal is likely to have hinged almost completely on the power purchase agreement that existed between the gas portfolio and the Federal Electricity Commission (FCE) in Mexico. In January 2024, Iberdolaâs shares are trending only slightly above where they were at the time the deal was announced.
Summary
The growing number of deals that fail to make it over the line suggests that at least one of the deals on this list may end up being scrapped in 2023. Check out an extended list of the largest M&A deals in 2023 here.
A combination of economic conditions, shareholder unease with transactions, and inevitably, due diligence, puts a halt to many deals. Talk to DealRoom today about how our due diligence software can ensure that you understand your acquisition targets well before reaching the final stretch of the transactionâs lifecycle.
DealRoom's M&A lifecycle management software has been adopted by world-class organizations to play a host to hundreds of M&A deals.
Talk to us today about how our due diligence software can ensure that you understand your acquisition targets well before reaching the final stretch of the transactionâs life.