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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.
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.
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 Amgen’s 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 Horizon’s shareholders was a 48% premium to Horizon’s price of slightly under $79 when the deal was first announced in November.
The acquisition is Amgen’s third in rare diseases and seems to point to a strategy shift for the biopharma giant.
Deal Value: $8 billion
Date Agreed: December 12, 2022
Industry: Software
The much-talked-about 2022 tech slump didn’t dissuade Thoma Bravo from taking Coupa Software's price in an $8 billion all-cash transaction in December. 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 latter’s resources as well as “accelerating the vision to transform the office of the CFO.”
Deal Value: $18.04 billion
Date Agreed: November 1, 2022
Industry: Pharmaceuticals
Johnson & Johnson, the world’s largest healthcare products company announced at the beginning of November that it was to acquire Abiomed, a world leader in heart, lung, and kidney support technologies.
The price of $380 per share agreed between the two firms represents a 50% premium over Abiomed’s trading price at the time the deal was announced. Johnson & Johnson pitched the deal as positioning it as an innovator in the cardiovascular space, what it described as one of healthcare’s largest unmet disease states: heart failure and recovery.
J&J’s stock price spiked by close to 8% on the deal’s announcement suggesting investors think this deal promises big things for the healthcare giant.
Deal Value: $16.23 billion
Date Agreed: Under discussion
Industry: Technology (diversified)
It may come as a surprise to many that Toshiba Corporation, the world-renowned Japanese diversified technology manufacturer is in financial dire straits. A conglomerate that includes Japan Industrial Partners (JIP) is currently in talks with banks and other finance providers to ensure that it has the resources to bring Toshiba private in 2023.
Toshiba’s 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.
Deal Value: $61 billion
Date Agreed: May 22, 2022
Industry: Semiconductor
The scale of Broadcom’s proposed acquisition of VMWare, first announced in May 2022, underlines why the deal is only projected to close in 2023. Broadcom has spent the second half of 2022, conducting due diligence and communicating the benefits of the deal to VMware’s customers and partners.
The deal was sold to these stakeholders on the basis of VMware’s multi-cloud offerings and Broadcom’s diversified software portfolio, creating a sort of one-stop-shop for “the incredibly complex IT landscape” (to use Broadcom’s words).
Whether is a good strategy is anyone’s guess, with tech showing over the past few years that, in the long-term, innovation is a far more powerful value adder than integration.
Deal Value: $6.4 billion
Date Agreed: December 16, 2022
Industry: Technology
The nearly $2 trillion of ‘dry powder’ that private equity firms have been sitting on for the past year or two is finally finding its way into public markets. A good example of this could be seen in December’s 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.
Deal Value: $863 million
Date Agreed: December 9, 2022
Industry: Food and beverages
Although the smallest transaction on this list at under a billion dollars, Keurig Dr. Pepper’s acquisition of Nutrabolt has been included as much because of what it tells us about the evolving food and beverages industry.
While traditional food firms like Kelloggs are moving away from sugary breakfast cereals, traditional soft drink makers are moving towards what were once niche beverages.
Nutrabolt makes C4 Energy, C4 Pre-Workout, and the Xtend brands. Although this wasn’t a full acquisition, Keurig Dr. Pepper will become Nutrabolt’s second-largest shareholder and gives Keurig Dr. Pepper an even larger footprint in the rapidly growing performance energy drink market.
Deal Value: $25 billion
Deal Agreed: October 14, 2022
Industry: Food retail..
The food retail industry is already well consolidated in North America. In retail as much as anywhere else, size is everything, with bigger retailers being able to squeeze suppliers for more favorable margins. That may have been the main driver for Krogers’ proposed acquisition of Albertson. When closed, the deal would create America’s 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. This transaction seems unlikely to close in 2023, and may not even make it past the finish line.
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 Health’s $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.
Deal Value: $3.9 billion
Deal Agreed: February 22, 2023
Industry: One Medical
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 Amazon’s 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 Amazon’s supply chain and purchasing power, this deal could be a powerful combination. Whether the benefits accrue to consumers remains to be seen.
Deal Value: $9.6 billion
Deal Agreed: November 22, 2022
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 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 Minerals’ 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 Brazil’s antimonopoly authority. It duly received this on February 6, 2023. At a 49.3% premium, however, BHP Billiton must be expecting a significant hike in mineral prices in the years ahead.
Deal Value: $5.8 billion.
Deal Agreed: August 25, 2022
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 UK’s Micro Focus by Canada’s 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: “a structured and disciplined approach to acquisitions.” (i.e., they conduct thorough due diligence).
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 transaction’s lifecycle.
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.
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.
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 Amgen’s 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 Horizon’s shareholders was a 48% premium to Horizon’s price of slightly under $79 when the deal was first announced in November.
The acquisition is Amgen’s third in rare diseases and seems to point to a strategy shift for the biopharma giant.
Deal Value: $8 billion
Date Agreed: December 12, 2022
Industry: Software
The much-talked-about 2022 tech slump didn’t dissuade Thoma Bravo from taking Coupa Software's price in an $8 billion all-cash transaction in December. 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 latter’s resources as well as “accelerating the vision to transform the office of the CFO.”
Deal Value: $18.04 billion
Date Agreed: November 1, 2022
Industry: Pharmaceuticals
Johnson & Johnson, the world’s largest healthcare products company announced at the beginning of November that it was to acquire Abiomed, a world leader in heart, lung, and kidney support technologies.
The price of $380 per share agreed between the two firms represents a 50% premium over Abiomed’s trading price at the time the deal was announced. Johnson & Johnson pitched the deal as positioning it as an innovator in the cardiovascular space, what it described as one of healthcare’s largest unmet disease states: heart failure and recovery.
J&J’s stock price spiked by close to 8% on the deal’s announcement suggesting investors think this deal promises big things for the healthcare giant.
Deal Value: $16.23 billion
Date Agreed: Under discussion
Industry: Technology (diversified)
It may come as a surprise to many that Toshiba Corporation, the world-renowned Japanese diversified technology manufacturer is in financial dire straits. A conglomerate that includes Japan Industrial Partners (JIP) is currently in talks with banks and other finance providers to ensure that it has the resources to bring Toshiba private in 2023.
Toshiba’s 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.
Deal Value: $61 billion
Date Agreed: May 22, 2022
Industry: Semiconductor
The scale of Broadcom’s proposed acquisition of VMWare, first announced in May 2022, underlines why the deal is only projected to close in 2023. Broadcom has spent the second half of 2022, conducting due diligence and communicating the benefits of the deal to VMware’s customers and partners.
The deal was sold to these stakeholders on the basis of VMware’s multi-cloud offerings and Broadcom’s diversified software portfolio, creating a sort of one-stop-shop for “the incredibly complex IT landscape” (to use Broadcom’s words).
Whether is a good strategy is anyone’s guess, with tech showing over the past few years that, in the long-term, innovation is a far more powerful value adder than integration.
Deal Value: $6.4 billion
Date Agreed: December 16, 2022
Industry: Technology
The nearly $2 trillion of ‘dry powder’ that private equity firms have been sitting on for the past year or two is finally finding its way into public markets. A good example of this could be seen in December’s 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.
Deal Value: $863 million
Date Agreed: December 9, 2022
Industry: Food and beverages
Although the smallest transaction on this list at under a billion dollars, Keurig Dr. Pepper’s acquisition of Nutrabolt has been included as much because of what it tells us about the evolving food and beverages industry.
While traditional food firms like Kelloggs are moving away from sugary breakfast cereals, traditional soft drink makers are moving towards what were once niche beverages.
Nutrabolt makes C4 Energy, C4 Pre-Workout, and the Xtend brands. Although this wasn’t a full acquisition, Keurig Dr. Pepper will become Nutrabolt’s second-largest shareholder and gives Keurig Dr. Pepper an even larger footprint in the rapidly growing performance energy drink market.
Deal Value: $25 billion
Deal Agreed: October 14, 2022
Industry: Food retail..
The food retail industry is already well consolidated in North America. In retail as much as anywhere else, size is everything, with bigger retailers being able to squeeze suppliers for more favorable margins. That may have been the main driver for Krogers’ proposed acquisition of Albertson. When closed, the deal would create America’s 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. This transaction seems unlikely to close in 2023, and may not even make it past the finish line.
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 Health’s $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.
Deal Value: $3.9 billion
Deal Agreed: February 22, 2023
Industry: One Medical
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 Amazon’s 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 Amazon’s supply chain and purchasing power, this deal could be a powerful combination. Whether the benefits accrue to consumers remains to be seen.
Deal Value: $9.6 billion
Deal Agreed: November 22, 2022
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 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 Minerals’ 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 Brazil’s antimonopoly authority. It duly received this on February 6, 2023. At a 49.3% premium, however, BHP Billiton must be expecting a significant hike in mineral prices in the years ahead.
Deal Value: $5.8 billion.
Deal Agreed: August 25, 2022
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 UK’s Micro Focus by Canada’s 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: “a structured and disciplined approach to acquisitions.” (i.e., they conduct thorough due diligence).
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 transaction’s 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 transaction’s life.
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