Global M&A activity in 2021 easily surpassed the pre-pandemic level and nearly matched the peaks of 2015 and 2007. The number of announced M&A deals exceeded 62,000 globally in 2021, up an unprecedented 24% from 2020. The boom in the M&A sector has certainly continued into 2022 and according to Morgan Stanley´s M&A bankers, all the elements that drove 2021’s record activity remain in place.In this article, we’re looking over some of the biggest M&A deals in 2022 so far.
5. Take-Two Interactive pays $12.7 billion for FarmVille developer Zynga
Take-Two Interactive has announced the purchase of mobile gaming giant Zynga for $12.7 billion in cash and stock, the latest blockbuster acquisition in a succession of large mergers in the video game industry.
With $6.1 billion in pro-forma Net Bookings for the trailing twelve-month period ended September 30, 2021, this transformative combination unites two global leaders in the interactive entertainment business and establishes Take-Two as one of the largest and most diverse mobile game publishers in the industry.
Why not have a look at the biggest M&A deals in 2021 here!
4. TD Bank to acquire First Horizon FOR $13.4 billion
TD Bank Group and First Horizon Corporation announced that they have signed a definitive agreement for TD to acquire First Horizon. The acquisition will be completed in an all-cash deal valued at US$13.4 billion, or US$25.00 per First Horizon common share.
Bryan Jordan, President & CEO, First Horizon comments on the transaction “This partnership with TD Bank creates extraordinary value for our shareholders and provides our clients with a broader product set and advanced technology. We have long respected TD Bank as a leader in U.S. banking and are confident that their additional investments in our local markets will accelerate growth and enhance our long history of community support.”
3. Vista Equity Partners, Evergreen Coast Capital Acquire Citrix for $16.5 Billion
Vista Equity Partners and Evergreen Coast Capital Corporation have entered into a definitive agreement to acquire digital workplace solutions provider Citrix in an all-cash transaction valued at $16.5 billion.
Vista and Evergreen intend to combine Citrix and TIBCO Software, one of Vista’s portfolio companies. TIBCO delivers enterprise data management, assisting enterprises in connecting, unifying, and anticipating business outcomes. Citrix provides a secure digital workspace as well as an application delivery suite. To assist in navigating the hybrid workplace, TIBCO provides real-time intelligent data and analytics capabilities.
2. Elon Musk to acquire tech giant Twitter for $44 billion
After initially rejecting Elon Musk’s overtures, Twitter’s board of directors said on Monday 25th of April that it will accept Musk’s $44 billion offer for the firm, putting an end to a weeks-long dispute over whether the company would accept his unsolicited proposal.
However, Elon Musk recently tweeted saying that he is putting his bid to acquire Twitter on hold, weeks after agreeing to take the company private in a $44 billion deal.
Musk first proposed the $54.20-per-share transaction on April 14, sparking a frenzy of speculation among Twitter executives and Wall Street analysts about whether Musk was serious. He was, as it turns out, very serious: Musk revealed the money for the proposal, which totalled $46 billion in equity and loans arranged by Morgan Stanley.
The Tesla owner spoke on the transaction saying “Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated,” Musk said in a statement. “I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spambots, and authenticating all humans. Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it.”
1. Microsoft acquired Activation Blizzard for $68.7 billion
On January 18th 2022, Microsoft acquired Activision Blizzard for $95.00 per share, in an all-cash transaction valued at $68.7 billion, inclusive of Activision Blizzard’s net cash. This deal was a significant step toward Microsoft’s entry into the gaming market.
Microsoft became the world’s third-largest gaming company by revenue, behind Tencent and Sony.
The acquisition includes iconic franchises from the Activision, Blizzard and King studios such as “Warcraft,” “Diablo,” “Overwatch,” “Call of Duty” and “Candy Crush,” in addition to global eSports activities through Major League Gaming.
Bobby Kotick will remain CEO of Activision Blizzard, and he and his team will continue to lead efforts to develop the company’s culture and accelerate business growth. After the transaction is completed, the Activision Blizzard business will report to Phil Spencer, CEO of Microsoft Gaming.
To conclude, global M&A activity in 2021 saw record highs and many were sceptical as to whether this would continue into the following year. However, the boom in the M&A sector most certainly has continued. Looking at the biggest M&A deals of 2022 so far we can clearly see a strong majority of transactions in the gaming and tech sector, showcasing how eager companies are to adapt to the digital environment.
Did you find that interesting? Read our article on 2020´s biggest M&A deals here.