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Record-breaking – From Seed to Market Dominance, Dealmaking Reaches New Highs

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October 15, 2015

The superlatives are flying this week as analysts and companies describe the latest rush of deal activity and news. Here is a roundup of just five of the biggest, the largest, most audacious and record-breaking totals.

 

Biggest Year on Record for US M&A Market … and Highest Volume Year to Date Ever

 

ma100715A record number (45) of deals greater than ten billion dollars each were announced in the first nine of the year, according to Dealogic. It is the highest first nine months by volume and activity on record (USD 1.15 trillion). These large-sized deals also represent the highest proportion (market share) of M&A deals on record. By September of this year, the US market had already broken all annual records for M&A or record (USD 1.68 trillion). Payment in shares topped payment in cash. (See the trend graph from Dealogic)

 

Biggest M&A Deal in Tech

Dell, which is private equity backed, announced its intention to acquire EMC for more than USD 63 billion. If it goes through, it will be the largest technology sector deal on record, as the Statista graphic illustrates. The FT said that deal is one of the “most audacious” pieces of financial engineering that the technology sector has seen. It will leave Dell’s CEO with massive debts and control of at least three different companies, each with their own stock market listings. The deal is being backed by Silver Lake, a private equity firm, Temasek. Cash flows from EMC will help finance additional debt raised, said the FT.
Infographic: Dell-EMC Deal Dwarfs Other Tech Acquisitions | Statista

 

Biggest Angel Fund Ever

Angellist announced the raising of a new USD 400 million seed fund aimed to tap into ventures on its platform, called CSC Upshot. Dan Primack said in Fortune that the fund is believed to be the largest-ever investment vehicle dedicated to seed-stage investing in the US. Angellist said in a slideshare presentation that CSC Upshot is based in the US and is independent of AngelList. Its general partners, Huoy-Ming Yeh and Veronica Wu, are both engineers with degrees from MIT and Berkeley with tech and venture capital careers, including work at Tesla, Apple, SVB Venture Capital and PacRim Venture Partners.

 

The capital comes primarily from China Science & Merchants Investment Management Group, founded in 2000, and reportedly one of China’s three largest private equity firms, with USD 12 billion under management. The Wall Street Journal which got the original scoop on the announcement described the deal as “largest-ever single investment by a Chinese private-equity firm in a US fund”.

 

Angellist today is active in Silicon Valley and other US hotspots, but also in UK. It is seeking regulatory clearance in Canada, Australia, and to expand in Singapore and India, according to Tech Flash.

 

Largest Indian IPO in Three Years

 

Private equity-backed Coffee Day Enterprises, which operates a chain of coffee houses in India, announced pricing for its IPO this week valuing the company at USD 1.04 billion, according to Economic Times. It’s the largest IPO for India since December 2012. Coffee Day is backed by KKR and New Silk Route Capital.

 

Biggest Fintech IPO in the UK

 

Worldpay, a private equity-backed payments platform provider, floated in London this week with a valuation of more GBP 6 billion (USD 9.1 billion), which makes it the biggest fintech IPO in the UK ever, according to Finextra. Its backers are Advent International and Bain Capital. The Telegraph also said that the IPO was the largest floatation on the London stock exchange this year to date.

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