Recent Mergers and Acquisitions, Including the largest M&A Deals in previous years

This post was originally published on November 15th, 2023, and updated for relevance on August 02, 2024.

With the notable exception of a few industries, such as energy, M&A activity has been relatively subdued over the past few years. After hitting a recent peak of over 33,000 deals in 2021, M&As have been trending downward ever since. As of the first half of 2024, there have only been around 22,000 deals made.

But that doesn’t mean that deals have gone dormant. In fact, the past few years have still seen some exciting new acquisitions and mergers take place. Fueled by rising prices, the aforementioned energy companies have been on a buying spree as they try to position themselves for dominance over the next decade. Meanwhile, prominent healthcare and pharmaceutical companies have been making some strategic investments.

What’s all this mean for investors? One thing is for sure: it makes for an interesting landscape to look at over the last couple of years, as well as a one that is sure to continue changing as we move forward. With M&As on a downswing, it’s only a matter of time before pent-up demand kicks in and we see a surge of new investments. 

With all that in mind, let’s take a closer look at where we’ve been in order to understand where we might go.

_{Why not check out: Recent, upcoming, and largest M&A deals}

1. ExxonMobil acquisition of Pioneer 

• Date closed: May 3, 2024
• Value: $59.5 billion 
• Industry: Energy

In the largest deal, by far, of the year, ExxonMobil paid out nearly $60 billion in stock to acquire Pioneer, a hydrocarbon exploration company. This acquisition gives ExxonMobil increased access to the Midland and Permian Basins, more than doubling the company’s footprint.  

2. Home Depot acquisition of SRS Distribution

• Date closed: June 18, 2024
• Value: $18.25 billion
• Industry: Retail

The acquisition of SRS, a leading residential specialty trade distribution company, is widely seen as a smart one for Home Depot. Not only does it give the retailer additional capabilities across several verticals, it also increases its total addressable market to an astonishing $1 trillion.

3. Johnson & Johnson acquisition of Shockwave Medical

• Date closed: May 31, 2024
• Value: $13.1 billion
• Industry: Healthcare

In the largest healthcare deal of the year so far, Johnson & Johnson paid out over $13 billion – made up of a mix of cash on hand and debt – to take over medical device manufacturer Shockwave Medical. This purchase will expand Johnson & Johnson’s portfolio of coronary artery disease (CAD) and peripheral artery disease (PAD) treatments, two fast growing segments of the healthcare market. 

4. AbbVie acquisition of ImmunoGen

• Date closed: February 12, 2024
• Value: $10.1 billion
• Industry: Pharmaceutical

Pharmaceutical giant AbbVie made a move to further bolster its cancer care portfolio with its purchase of ImmunoGen, an antibody-drug conjugate specialist. Specifically, this deal gives AbbVie access to Elahere, an ovarian cancer treatment.

5. Roark Capital acquisition of Subway

• Date closed: April 30, 2024
• Value: $9.5 billion
• Industry: Food

Subway, along with its debt, was snatched up by private equity firm Roark Capital in this nearly $10 billion deal. But before this full price will be paid, Subway must first reach certain cash-flow milestones – otherwise, it will stand at nearly $1 billion less.

6. Realty Income Corporation merger with Spirit Realty Capital

• Date closed: January 22, 2024
• Value: $9.3 billion
• Industry: Real estate

Trading under the symbol “O” on the NYSE, Realty Income and Spirit Realty Capital’s new company will have a combined portfolio worth $3.8 billion to $4.5 billion in annualized contractual rent revenue. While huge, convenience stores look like they’ll remain the largest industry for the combined company.

7. Cedar Fair merger with Six Flags Entertainment Company

• Date closed: July 1, 2024
• Value: $8 billion
• Industry: Entertainment

Popular amusement park operator Six Flags has combined forces with Cedar Fair, another amusement park operator, to form the largest amusement park company in all of North America. The new company hopes the merger will give it increased flexibility to continue to make strategic investments in its parks.

8. Stonepeak acquisition of Textainer

• Date closed: March 17, 2024
• Value: $7.4 billion
• Industry: Shipping

Stonepeak, an investment firm that specializes in infrastructure assets, has taken over shipping container producer Textainer and turned it into a private company. Through this acquisition, Textainer hopes to gain additional access to investment capital in order to continue its growth.

9. Sunoco acquisition of NuStar Energy

• Date closed: May 1, 2024
• Value: $7.3 billion
• Industry: Energy

By taking over NuStar Energy, a fuels storage and pipeline operator, Sunoco is making a strategic move to diversify its business beyond just fuel distribution. The deal will give Sunoco access to NuStar's extensive transportation and storage facilities, which includes almost 10,000 miles of pipelines.

10. Honeywell acquisition of Carrier Global

• Date closed: June 3, 2024
• Value: $4.9 billion
• Industry: Manufacturing

Manufacturing conglomerate Honeywell paid nearly $5 billion in cash to acquire Carrier Global, a provider of heating, refrigeration, ventilation, and fire solutions, among many other products. Specifically, this deal gives Honeywell access to Carrier’s Global Access Solutions security business, helping to expand its security products portfolio.

1. ConocoPhillips acquisition of Marathon Oil

• Projected Date: Q4 2024
• Value: $22.5 billion
• Industry: Energy

This all-stock deal is by far the largest remaining of the year, as well as further evidence that the past few years have been good ones for the oil industry. Flush with cash from months of elevated oil prices, ConocoPhillips is following in the footsteps of ExxonMobil and Chevron, all of which are making moves to grab as much as they can in the Permian Basin.

2. Swisscom acquisition of Vodafone Italia

• Projected Date: Q1 2025
• Value: $8.6 billion
• Industry: Telecommunications

Announced this past March, Swisscom plans to not only purchase Vodafone Italia but also merge it with its Italian subsidiary Fastweb – the latest consolidation to hit Europe’s telecom market. This would create Italy’s second-largest broadband operator, although expect this deal to run into further scrutiny before it is through.

3. Permira acquisition of Squarespace

• Projected Date: Q4 2024
• Value: $6.9 billion
• Industry: Tech

Squarespace, a prominent platform that entrepreneurs have been using the past several years to build their online brands, is set to go private in this all-cash deal. If this takeover from Permira goes through, it should give Squarespace the flexibility and resources to continue making competitive investments.

4. CPP Investments & GIP acquisition of Allete

• Projected Date: Q2 2025
• Value: $6.2 billion
• Industry: Energy

The Canada Pension Plan Investment Board (CPP Investments) and Global Infrastructure Partners (GIP) announced at the end of 2023 that they would take US-based energy company Allete private. As is the case with Squarespace, the hope for this deal is that it will give Allete the capital it needs to continue innovating.

5. T-Mobile acquisition of US Cellular

• Projected Date: Q2 2025
• Value: $4.4 billion
• Industry: Telecommunications

In this significant telecom deal, T-Mobile is set to acquire about 30 percent of US Cellular’s wireless spectrum. This acquisition will be made through cash, as well as up to $2 billion of US Cellular’s debt.

6. KPS Capital Partners acquisition of Innomotics GmbH

• Projected Date: Q4 2024
• Value: $3.8 billion
• Industry: Manufacturing

Investment firm KPS is set to take over Innomotics, a leading global supplier of electric motor and large-drive systems, from technology conglomerate Siemens. Known for its investments in manufacturing and industrial companies, KPS plans to work closely with Innomotics management to increase its profits.

7. Nationwide Building Society's acquisition of Virgin Money

• Projected Date: Q4 2024
• Value: $3.75 billion
• Industry: Finance

By acquiring its smaller rival, Nationwide Building Society is setting itself up to become the UK’s second-largest mortgage lender. While job cuts are likely as a result of this deal, Virgin Money’s largest investor, Sir Richard Branson, is set to receive upwards of $900 million.

8. Energy Transfer acquisition of WTG Midstream

• Projected Date: Q3 2024
• Value: $3.5 billion
• Industry: Energy

In yet another energy acquisition aimed at increasing oil holdings, Energy Transfer has agreed to pay out $2.45 billion in cash and 50.8 million in shares to take over WTG Midstream. This will give Energy Transfer access to WTG’s assets, including its 6,000-mile pipeline network along the Midland Basin.

9. Alcoa acquisition of Alumina Limited

• Projected Date: Q3 2024
• Value: $2.2 billion
• Industry: Mining

Already finalized, this deal gives Alcoa, one of the world’s largest aluminum producers, control over the Australian-based Alumina. The goal of this acquisition is to make Alcoa less reliant on other suppliers, as well as help it handle projected increases in demand.

10. SAP acquisition of WalkMe

• Projected Date: Q3 2024
• Value: $1.5 billion
• Industry: Tech

Software giant SAP is set to take over WalkMe, a digital adoption platform, in this all-cash deal. Not only will this help strengthen SAP’s business portfolio, but it will also help provide WalkMe with additional resources (and a larger customer base) to continue meeting its growth goals.

1. ExxonMobil acquisition of Pioneer

• Date: October 11, 2023
• Value: $59.5 billion
• Industry: Energy

Just when you thought ExxonMobil couldn’t control any more of the U.S. oil and gas industry, the company announced a $59.5 billion all-stock deal for Pioneer. Exxon Mobil’s shares were valued at $253 at the time.

On the announcement of the deal, ExxonMobil’s 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,”

Although it took until May 2024 for this acquisition to be finalized, analysts have already noted how it will help ExxonMobil cement its status as the dominant force in the U.S. fracking industry, ensuring that it 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 Pioneer’s net-zero Permian ambition to 2035.

2. Hess Corporation acquired by Chevron

• Date: October 23, 2023
• Value: $53 billion
• Industry: Energy

It says something about 2023’s energy industry when Chevron’s $53 billion bid to buy Hess, an American oil and natural gas company, was only the second largest of the year. That said, this deal was still a strategic move by Chevron to acquire several major and highly sought after properties.

Specifically, Chevron was interested in moving into oil fields in Guyana, a country in South America poised to become the world’s fourth-largest offshore oil producer, and the shale properties located in the Bakken Formation in North Dakota. With prices of crude oil and natural gas rising, as well as the wars in Ukraine and Israel threatening to cut off supplies, Chevron figured it was time to make its play.

Although this merger had been scheduled to close by the first half of 2024, regulatory hurdles have so far prevented this from taking place. So far, the timeline remains uncertain as the arbitration process advances. However, if this deal does go through, it is sure to be pivotal.

3. Pfizer acquisition of Seagen

• Date: December 14, 2023
• Value: $43 billion
• Industry: Biotechnology

Pfizer acquired Seagen, a global biotechnology company that specializes in discovering, developing, and commercializing transformative cancer medicines, for $229 in cash per share – making this the biggest pharmaceutical deal of the year.

The combination with Seagen was expected to help Pfizer better leverage its protein engineering and medicinal chemistry capabilities. It was also considered a smart way for them to make significant progress in the field of oncology, an expected growth area for pharmaceutical companies owing to the aging population. 

While too little time has passed to judge how large of an impact this deal has had on the biotech market, one thing is for sure: Pfizer’s profits grew by 11 percent in the first quarter following the acquisition.

4. Bunge acquisition of Micro Focus

• Date: Jun 13, 2023
• Value: $30 billion
• Industry: Agribusiness

Like semiconductor manufacturers and pharmaceutical giants, deals involving global agribusiness and food companies are seldom far from the headlines these days. Bunge’s massive acquisition of Viterra Limited, a Canadian agribusiness company, was approved by Bunge’s shareholders on October 5, 2023, 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 percent position in Bunge under the terms of the deal. It created a premier diversified global agribusiness solutions company, accelerating Bunge’s strategy of connecting farmers directly to consumers.

Although the markets initially looked underwhelmed by the deal’s long-term potential, plunging Bunge’s share price on Nasdaq by as much as 10 percent in the first few months following the deal, it has since recovered, making this one to watch.

5. Cisco acquisition of Splunk

• Date: September 21, 2023
• Value: $28 billion
• Industry: Technology

Cisco’s massive $28 billion acquisition of Splunk, announced in September 2023, caught the technology community by surprise. The all-cash deal was Cisco’s largest ever transaction and reflected 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: “We can do a lot together.” Unfortunately, it seems like the markets are still waiting. As of July 2024, Cisco’s shares are trading down around 15% since the deal was announced.

6. Amgen Acquisition of Horizon Therapeutics

• Date: October 6, 2023
• Value: $30 billion
• Industry: Healthcare

Although not the largest pharmaceutical deal of the year, Amgen’s $30 billion acquisition of Horizon Therapeutics was still a significant one, not to mention the largest (in dollar terms) of Amgen’s history.

Known primarily for its pioneering use of living cells to create biologic medicines, Amgen was established in the 1980s and has since become one of the world’s leading biotechnology companies. Its move to acquire Horizon was aimed at strengthening Amgen’s roster of anti-inflammatory treatments, particularly through drugs like Horizon’s Tepezza , Krystexxa, and Uplizna.

While the FTC initially raised eyebrows around this acquisition, it ultimately allowed it to go through on the condition that Amgen does not bundle its medicines to gain an unfair advantage. As a result, Amgen stock has risen over 40 percent since the deal was first announced.

7. JIP acquisition of Toshiba Corporation

Value: $16.23 billion

Date: 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) and Suzuki Motor Corporation. 

Toshiba’s businesses include everything from nuclear power to defense technology and microchip manufacturing. However, since at least 2015, the company has dealt with a series of crises, including accounting and corporate governance scandals, heavy financial losses, and potential delistment. As a result, foreign activist investors had been hounding the company, a problem Toshiba could finally distance itself from after this deal went through.

Since going private, Toshiba still seems to be finding its footing. The company reportedly cut over 4,000 jobs, or around 6 percent of its workforce, so that it could meet its target profit goals. As it continues to restructure, it will be interesting to see if it can solve some of the problems that led to its acquisition in the first place.

8. Silver Lake Acquisition of Qualtrics

• Date: June 28, 2023
• Value: $12.5 billion
• 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 Qualtrics at $12.5B.

Under the terms of the agreement, Qualtrics’ shareholders, who included German enterprise software giant, SAP, received $18.50 per share in cash. Qualtrics is a cloud-native software provider that helps companies 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 continue to grow in volume over the coming years as the new technology becomes embedded in our everyday lives.

9. BHP Billiton’s acquisition of OZ Minerals

• Date: May 2, 2023
• Value: $9.6 billion
• Industry: Mining

BHP Billiton, author of some of the world’s largest M&A transactions in the period leading up to the global financial crash, had been very quiet on the deal front in 2023. Then, an opportunity arose to acquire OZ Minerals, a gold and copper producer.

The deal is the largest closed by the Australian mining giant in over a decade, and helps expand its already significant footprint in Brazil, where most of OZ Minerals’ operations are based.

The motive behind this deal was likely a desire to capitalize on the 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 Brazil’s anti-monopoly authority, which it received in February 2023. So far, BHP’s stock hasn’t moved significantly since this deal got approved, so we’ll have to wait to see what happens next.

10. Tapestry’s acquisition of Capri Holdings

• Date: December 14, 2023
• Value: $8.5 billion
• Industry: Fashion

Tapestry Inc, the parent company of the Coach and Kate Spade 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 brought together six brands with global reach, underpinned by Tapestry’s in-house data-rich customer engagement platform, and a diversified direct-to-consumer operating model. Analysts expected the deal to generate revenues in excess of $12 billion in 2024, with sales in over 150 different countries.

Unfortunately, Tapestry’s first step into the luxury fashion segment will have to wait. In April of 2024, the Federal Trade Commission issued a lawsuit blocking the acquisition on the grounds that it was anticompetitive. The trial is set to start in September.

Biggest M&A Deals of 2022

1. Microsoft acquisition of Activision Blizzard
2. Broadcom acquisition of VMWare
3. Oracle acquisition of Cerner
4. AMD acquisition of Xilinx
5. Prologis merger with Duke Realty
6. Orange merger with Grupo MásMóvil
7. DSM merger with Firmenich
8. Microsoft acquisition of Nuance
9. Vista Equity Partners acquisition of Citrix
10. TDBank acquisition of First Horizon

1. Microsoft acquisition of Activision Blizzard

• Date: January 18 2022
• Value: $68.7 billion
• Industry: Gaming

When predicting the future of consumer software, looking at Microsoft’s acquisitions is rarely a bad place to start. In January of 2022, it acquired the world’s largest video game maker for $95 per share, in an all-cash transaction valued at $68.7 billion, suggesting to many at the time that this was the beginning of a new phase for the gaming industry.

With the acquisition, Microsoft added a series of globally renowned franchises to its portfolio including Warcraft, Diablo, Call of Duty, Overwatch, and Candy Crush. Significantly, the deal also meant that Microsoft jumped into the world’s third-largest gaming company by revenue slot, just behind Tencent and Sony.

Unfortunately, regulatory hurdles hobbled this deal for over a year, delaying the acquisition until October 2023. By that time, the optimism that had colored the gaming industry since the pandemic had begun to cool down some. Consoles weren’t selling as much and consumers were tempering their new purchases. As a result, Microsoft made the decision to lay off close to 2,000 people — dealing a potential blow to the gaming industry.

But this strategy may just be paying off. Microsoft is still the third largest gaming company by revenue, and has a rapidly growing library of games that may help it further close this gap. The potential is definitely here for them to become number one.

2. Broadcom acquisition of VMware

• Date: May 26 2022
• Value: $61 billion
• Industry: Information Technology

In May of 2022, the diversified semiconductor (and increasingly cloud-focused) manufacturer Broadcom acquired VMware in a cash and stock deal worth $61 billion. Not for the first time after one of Broadcom’s major acquisitions, the market reacted negatively, with Broadcom stock falling almost 20% in the month after the deal.

One of the reasons for concern was the perceived different cultures at each of the companies. Broadcom has developed an ‘acquire-and-axe’ reputation in the software industry, acquiring firms before large staff layoffs and divestments of unwanted divisions. By contrast, VMware has long been seen as a company that adopts more of a ‘fail often, fail well’ mentality.

For the time being, these anxieties look like they may have been well founded. Since its purchase, Broadcom has made a number of moves that have not sat well with VMware enthusiasts. These include doing away with VMware’s perpetual licensing model and replacing it with a subscription model, as well as consolidating and phasing out many existing tools. Although the jury is still out on whether these changes will pay off in the long run, many long-term customers are already looking for their exit.

3. Oracle acquisition of Cerner

• Date: June 7
• Value: $28.3 billion
• Industry: Health Tech

Oracle’s acquisition of Cerner is big tech’s latest foray into the healthcare system, promising better outcomes. In its news release for the acquisition of Cerner, Oracle outlined some worthy goals for the acquisition, including building cloud software systems that enable doctors to spend less time on admin and more with patients.

This was the biggest deal that Oracle has ever closed. And to re-emphasize, it was not in an area which was a key strength. But the synergies were thought to be huge: Healthcare depends on data like few other industries, and where better to look after data than on the cloud? And it was argued that there are few better to provide the tools for that than Oracle.

Unfortunately, the realities of this merger hit Oracle hard. First, immediately after the acquisition, Oracle lost at least a dozen of Cerner’s large clients. After looking to recover from this by implementing some ambitious product ideas, Oracle instead had to focus on updating Cerner’s legacy systems, something even Oracle’s engineers have found to be a complicated task. Ever since, sales have remained stagnant, prompting Oracle to lay off thousands of employees. 

While work is still underway to change this course, this acquisition is not looking good.

4. AMD acquisition of Xilinx

• Date: February 14
• Value: $28.3 billion
• Industry: Microprocessors

AMD’s acquisition of Xilinx in February of 2022 in an all-stock deal, usually considered the best way of generating value from an M&A transaction. However, a little over six months after the transaction was announced, AMD’s stock price on Nasdaq was trading at close to $75, nearly half of where it was at the time the deal was announced.

In theory, this was a sensible play. In addition to being a stock only deal which was projected to be cash flow accretive in the first year, it gave AMD access to a portfolio of high leadership computing, graphics, and adaptive SoC products. It also significantly expanded AMD’s IP portfolio. What was not to be optimistic about?

So far, the answer to that has been quite a bit. Citing “declining run-rate and suppliers sustainability reasons,” AMD has decided to discontinue Xilinx’s core line of FPGA (Field-Programmable Gate Array) products. This has come as a surprise for many analysts, who originally saw AMD’s acquisition as a strategic expansion into FPGA. However, this may be less of a sign of this specific acquisition and more of a macro trend related to the larger semiconductor industry. As always, time will have to tell.

5. Prologis merger with Duke Realty

• Date: June 13 2022
• Value: $26 billion
• Industry: Real Estate

The June merger between Prologis and Duke Realty in June of 2022 brought together two of the world’s major logistics real estate companies. The transaction was valued at $26 billion including debt, and was paid for using Prologis’ equity. It cemented Prologis as the world’s largest logistics real estate operator.

On closing the acquisition, Prologis gained an astonishing portfolio of logistics property. This includes: 153 million square feet of property across 18 US regions, as well as 11 million square feet of development in progress, together accounting for over $1.5 billion in investment and 1,228 acres of land owned and under option.

The rationale here seemed to be ‘buy land; they’re not making it anymore.’ And by all outward signs, it has seemed to pay off. Since this merger went through, Prologis has positioned itself as a powerhouse in commercial real estate. Fueled by high lease rates and rising rents, the company has ramped up its acquisitions. Notable purchases include the former training facility of the Oakland Raiders and a 16-acre undeveloped parcel in Brooklyn. As a further sign of good results for the company, they’ve recently announced that they plan to increase acquisitions from $1B a year to $1.5 billion.

6. Orange merger with Grupo MásMóvil

• Date: July 23, 2022
• Value: $21.3 billion
• Industry: Telecommunications

The merger between Orange and Grupo MásMóvil created a new leader in Spain’s cellular telephone market. Each of the companies got equal governance rights in the new company (now called JV) and synergies from the deal have been estimated at €450m per annum after a four-year post integration period.

Although neither of the two partners in the merger would say, this appears like a play for scale that allows the new company to make inroads in neighbouring markets like France. Before that can happen, the new company can use the combined financial muscle of both companies to make much-needed investments in 5G and fiber. 

Time will tell if this strategy proves successful. First announced all the way back in 2022, the deal only just went through two years later after navigating the European Commision’s protracted regulatory approval process.

7. DSM merger with Firmenich

• Date: May 31 2022
• Value: $21 billion
• Industry: Food and Beverage

Dutch Chemical Company Royal DSM announced in the second half of 2021 that it was moving away from petrochemicals and materials to focus on sustainable food and health products, and was selling its materials division as a result. Its transition has been speedy: In less than nine months, it had merged with Swiss flavours company Firmenich to create DSM-Firmenich.

The merger was the final step in DSM’s 20-year strategy shift away from petrochemicals and materials – a remarkable turnaround. The newly formed company combined DSM’s ingredients business with Firmenich’s taste business, creating an exciting new proposition for a high-growth segment of the food and beverage industry.

While it may still be too early to tell – the merger was only finalized in 2023 – early signs point to success. Driven by low vitamin prices, the new company has seen solid sales performance. Meanwhile, other strategic decisions, such as separating its under-performing Animal and Nutrition Health unit, are widely considered smart moves toward further profitability.

8. Microsoft acquisition of Nuance

• Date: April 1
• Value: $19.7 billion
• Industry: Tech

Microsoft’s acquisition of Nuance was seen as a play in both AI and health. Founded in 1992, Nuance was one of the pioneers of AI. It also built the backend for Apple’s Siri. But it was probably Nuance’s healthcare capabilities that most interested Microsoft. After all, the Total Addressable Market (TAM) for health technology at the time was an estimated half-trillion dollars – a figure Microsoft wanted to grab as much of as possible.

And there was every reason to believe this acquisition would help push Microsoft in that direction. Nuance’s technology uses speech recognition to help speed up healthcare administrative tasks, making it extremely relevant. The two companies had even been working together since 2019 various collaborative health-tech projects, giving them ample opportunity to see if there was a cultural fit.

So how has it worked out so far? Although Microsoft’s investment in OpenAI (creators of the generative text tool ChatGPT) has garnered the most headlines, Nuance is further proof that the tech giant has cemented its lead in the burgeoning AI arms race. By all accounts, this was a savvy acquisition that will continue to pay off.

9. Vista Equity Partners acquisition of Citrix

• Date: January 31 2022
• Value: $16.5 billion
• Industry: Information Technology

The transaction that brought Citrix into the Vista Equity Partners portfolio of companies (in partnership with Evergreen Partners) valued the company at $105 per share – a 30 percent premium. In a year where technology firms have taken a hit, that suggested that Vista Equity Partners could see something in the enterprise software maker that nobody else could.

Well, that’s part of the story. In truth, Citrix’s share price had fallen by close to 50 percent over the previous two years. By bringing it into its portfolio of companies (Vista Equity Partners is solely focused on technology acquisitions), analysts saw plenty of opportunity for synergies between the two companies, as well as a focused restructuring over the next year or two to extract value from the acquisition.

As it has turned out, these analysts were right. After merging with TIBCO, a Vista portfolio company, to form Cloud Software Group, Citrix had the backing it needed to expand within the cloud computing and virtualization markets. More recent investments from Microsoft have helped it bolster its AI capabilities, helping to ensure growth for the foreseeable future.

10. TDBank acquisition of First Horizon

• Date: February 28 2022
• Value: $13.4 billion
• Industry: Banking

TD Bank’s acquisition of First Horizon was backed by solid rationale. TD Bank’s major markets were in the northeast, while First Horizon was focused on the southeast. By bringing the two together, TD Bank wanted to become a behemoth in commercial banking on the eastern coast of the United States.

TD Bank also wanted to achieve scale that it otherwise would have had to wait years for: Assets of $614 billion, deposits of $469 billion, 10.7 million customers, and around 1,500 branches. Best of all, the acquisition would enable TD Bank to scale its market-leading retail banking products, which has proved attractive to the growing number of high-net wealth individuals in the southeast.

At least, that’s how it was intended to turn out. Unfortunately for TD Bank, regulatory hurdles proved too hard to overcome. This acquisition was called off entirely in April 2024.

‍