M&A; Activity Around The Globe: UTX, GR, QuoteMedia, Stock Group, Sage Group, Vista Equity Partners
Thursday, September 22, 2021 12:21 PM

As the US stocks trade sharply lower on Thursday after the Federal Reserve indicated the U.S. economic slump could last for years, several M&A activities took place around the world. Some notable M&A activities are discussed here.

United Technologies to Acquire Goodrich Corp. for $18.5 Billion

As we reported on Monday, that United Technologies Corp. (NYSE: UTX) is in talks to acquire Goodrich Corporation (NYSE: GR). United Technologies said late Wednesday, that it has reached agreement to purchase Goodrich Corporation for $127.50 per share in cash. This equates to a total enterprise value of $18.4 billion, including $1.9 billion in net debt assumed. United Technologies expects to finance the transaction through a combination of debt and equity issuance.  The equity component is expected to approximate 25 percent of the total.  The closing is subject to customary closing conditions, including regulatory and Goodrich shareholder approvals.  Following completion of the transaction, United Technologies is expected to have worldwide sales of approximately $66 billion based on projected 2011 results. The combined company's increased scale, financial strength and complementary products will strengthen United Technologies' position in the aerospace and defense industry. Under the terms of the deal, United Technologies is forming an aerospace business unit that will be based in Charlotte and led by Goodrich Chairman, President and CEO Marshall Larsen. UTX is trading lower by 6.08 percent to $70.32, and GR is trading higher by 9.97 percent to $120.41 on Thursday.

QuoteMedia to Acquire Stock Group’s Mobile Platform

QuoteMedia Inc., a leading provider of market data, corporate research information and financial applications, announced today an agreement with Stockgroup Media Inc., to acquire and convert all users of its Stockstream Mobile platform to Quotestream Wireless, QuoteMedia’s leading edge wireless portfolio management software. Pursuant to the agreement, Stockgroup will immediately commence transitioning its clients to QuoteMedia, and will completely discontinue its mobile operations in October, 2011. Quotestream Wireless is a comprehensive, feature-rich wireless market data application for mobile phones. It features streaming real-time market data, multiple streaming portfolios, detailed stock quotes, intraday and historical charts, corporate news and events, audio and vibration alerts, level 2 market depth, time and sales, market indices and more.

Sage to Sell Healthcare Unit to Vista Equity Partners

Sage Group plc has agreed to sell its healthcare unit to Vista Equity Partners for $320 million, enabling the British software firm to focus on its core U.S. customer base and to return the proceeds to shareholders. The sale of Sage Software Healthcare, which offers practice management and electronic health-record offerings, is expected to be completed in November, the U.K. company said in a statement. Sage will make a loss of up to 70 million pounds ($108.4 million) through the sale and redistribute cash proceeds of $320 million to shareholders by buying back shares. Sage Healthcare's revenue for the year ended 30 September, 2010 was 157 million pounds. Gross assets were 393 million pounds and the overall loss on the disposal is expected to be between 60 million and 70 million pounds.