M&A; Activity Around the Globe: BAC, Balboa, Securian, EBAY, ZONG, Carlyle Group, Energy Capital Partners
Friday, July 08, 2011 12:04 PM

As the US stocks move south after the disappointing US nonfarm payrolls report for June jolted investors, several M&A activities took place around the world. Some notable M&A activities are discussed here.

BofA to Sell Insurance Unit to Securian

Bank of America Corp. (NYSE: BAC) said late Thursday that it has agreed to sell its Balboa Life Insurance Co. unit to a privately-held Securian Dinancial Group Inc., an insurance and retirement planning company based in St. Paul Minnesota. No terms were disclosed for the deal, which involves Balboa Life Insurance Company and Balboa Life Insurance Company of New York. Bank of America had sold the home insurance unit of Balboa for $700 million to QBE Insurance in February, but retained the life insurance unit. Securian said it will combine the Balboa Life businesses into its St. Paul headquarters operations in 2012. The deal is expected to close on October 1, 2011. Shares of Bank of America were trading lower by 1.97 percent to $10.71 on Friday.

EBay to Acquire Mobile billing Company Zong for $240 Million

EBay Inc. (Nasdaq: EBAY) said, it has agreed to acquire Zong, a leading provider of payments through mobile carrier billing, for total consideration of approximately $240 million in cash. Zong leverages connections with more than 250 mobile network operators around the world, offering localized, secure and easy-to-use payments capabilities for digital goods and services in 21 languages and 45 countries. Combined with PayPal’s leading global payment platform serving 100 million active accounts worldwide, the company expects that Zong will add complementary technology and talent that help strengthen PayPal’s leadership position in mobile payments and digital goods. With this acquisition Zong will extend its services to PayPal’s more than 9 million merchants around the world. EBay does not expect the acquisition to have any material impact on its financial guidance. EBAY is down 0.60 percent to $33.13 on Friday.

Carlyle in Talks to Acquire Energy Capital Partners: Report

The Washington-based private equity firm Carlyle Group, which is preparing for an initial public offering, is in talks to buy energy focused peer Energy Capital partners, the New York Times reported, citing person with direct knowledge of the negotiations. The person said that the discussions began three-months ago and may not lead to a deal. Energy Capital Partners, which invests primarily in power generation, electric transmission, midstream gas and other energy markets has raised about $7 billion to invest in energy infrastructure assets including gas, electric and alternative power plants, according to its website. With the acquisition and a public offering, Carlyle is targeting to take advantage of more stable stock markets to join its rivals Blackstone Group LP and Apollo Global Management LLC.