ArdorComm Media Group

Contact Us
logo
Menu
logo
ArdorComm ArdorComm ArdorComm

Human Resource Community

India Leads Asia-Pacific Region’s M&A Deals in Q1 2024: S&P Global

Leave a Comment / By / Human Resource Community

India showed impressive numbers in merger and acquisition (M&A) deals in the Asia-Pacific region’s financial sector in the first quarter (Q1) of 2024, with 27 deals closed. This outpaced other countries in the region, such as Japan with 13 deals, Australia with 12, South Korea with 11, and Mainland China with nine, according to S&P Global Market Intelligence. The number of deals in India in Q1 2024 was one more than the previous year, while other countries saw a decline or stagnation in deal volumes. Overall, deal volumes in the region fell by 14% year-on-year, ending March 31, 2024, due to economic uncertainties, higher funding costs, and increased volatility from geopolitical risks. Leigh Howard, Chief Executive Officer of AsiaLink Business, highlighted India as a bright spot with a strong forecast and resilience, suggesting a reasonable expectation for continued robust deal-making. China experienced a significant drop in deal numbers, falling to nine in Q1 2024 from 24 the previous year. Australia saw a decrease to 12 deals from 26 a year ago. Four of the top 10 deals in value were closed in India, with a combined deal value of $845.79 million. The largest was Sumitomo Mitsui Financial Group’s (SMFG) acquisition of SMFG India Credit for $700 million. Other notable deals included Piramal’s acquisition of Annapurna Finance, Rajiv Rattan’s purchase of a stake from Lonestar Americas in RattanIndia Finance, and Muthoot Finance’s investment in Belstar Microfinance.

Crescent Finalises $2.1 Billion Acquisition of SilverBow Resources

Leave a Comment / By / Human Resource Community

US oil company Crescent Energy has completed its $2.1 billion acquisition of SilverBow Resources, becoming the second-largest operator in the Eagle Ford. After integration, the combined entity’s production capacity is expected to be around 250,000 barrels of oil equivalent per day (boepd). The cash and stock deal, announced in May this year, concluded ahead of schedule. This acquisition enhances Crescent’s status as a leading mid-cap exploration and production company with a diverse, high-quality asset portfolio. The merger is expected to yield substantial free cash flow and has been structured with a disciplined capital allocation framework. Crescent noted that this move will facilitate further growth through accretive, returns-driven mergers and acquisitions. Following the integration, the combined entity’s production capacity is estimated to reach around 250,000 boepd. SilverBow shareholders have received approximately $358 million in total cash consideration, with Crescent issuing around 52 million shares of Class A common stock to cover the non-cash portion of the transaction. Post-acquisition, former SilverBow shareholders now hold about 23% of the combined company on a fully diluted basis. Crescent CEO David Rockecharlie said, “Today is an exciting day for Crescent. We are well positioned to create value, and I am grateful for the trust from our original Crescent and new SilverBow shareholders, each of whom voted with an overwhelming majority to approve our merger and to take equity consideration and participate in the go-forward company.” “Through disciplined investing and operations, we have delivered profitable growth, tripling the size of our business over the last four years. We have created a premier growth through acquisition platform by executing on our cash flow and returns-oriented strategy. Today, we are focused on rapidly integrating our new assets and personnel and continuing to deliver on the significant synergies we’ve identified to strengthen returns.” Crescent has announced plans to provide pro forma guidance for the second half of 2024 to reflect the acquisition’s impact. Additionally, the company is set to issue its financial and operating results for the second quarter of 2024 after the market closes on August 5, 2024. Source: Offshore Technology

Telecom M&A Activity Witnesses Surge: 514 Deals from 2019 to 2023

Leave a Comment / By / Human Resource Community

The communications service provider (CSP) sector has seen substantial consolidation over the past few years, with a total of 514 mergers and acquisitions (M&A) involving mobile and wireline companies globally between 2019 and 2023, according to Omdia’s latest research. M&A Deal Volume from 2019-2023 In this period, wireline M&A deals outnumbered mobile deals significantly, with 392 wireline and 122 mobile transactions. A notable mobile M&A deal includes the proposed merger between Vodafone and Three in the UK, which, pending approval by the Competition and Markets Authority, would result in the UK’s second-largest mobile operator by subscriptions. Recent Trends and Market Dynamics The number of M&A deals across all CSP sectors totaled 214 in 2023, a decrease from a peak of 316 in 2021. This decline can be attributed to high interest rates and a cyclical downturn in the technology industry. Despite these challenges, the telecom market’s dynamics indicate a persistent drive for further M&A activities among CSPs. Matthew Reed, Chief Analyst for Service Providers & Markets at Omdia, noted, “With revenues in the telecom sector growing at a low rate while markets are competitive and increasingly mature, many more CSPs will seek consolidation to cut costs by eliminating duplication and invest in network technologies such as fiber and 5G to propel growth in their connectivity business.” Strategic Benefits of M&A Merging provides operators with economies of scale, increased competitiveness against major players, opportunities for cross-selling, and greater procurement power. Beyond consolidation, telecom operators are using M&A to implement delayering and diversification strategies. Delayering and Diversification Strategies Delayering involves CSPs selling infrastructure assets, such as telecom towers, to raise funds for debt reduction or investment in other business areas. For example, in July, Telecom Italia (TIM) sold its fixed-line business in Italy to investment group KKR, enabling TIM to focus on growth through new beyond-connectivity consumer services and enterprise ICT services. CSPs are also acquiring companies in high-growth technology sectors to diversify their offerings. Both Orange and Telefonica have expanded significantly into the cybersecurity sector through strategic acquisitions. Matthew Reed added, “For telecom operators that want to become technology services providers, one way to make that transition is to buy companies that already have the capabilities and customer base in the target sectors.”

Deel Buys Device Management Startup Hofy in a ‘Win-Win’ Acquisition

Leave a Comment / By / Human Resource Community

The HR tech sector is currently booming, with investment rounds and mergers and acquisitions (M&A) continuing at a brisk pace. The latest news comes from Deel, which has made its third acquisition this year. Read on to find out more about Deel’s purchase of Hofy and what it means for both companies’ existing HR customers. The HR tech market remains robust and resilient despite challenging macroeconomic conditions. Investments into the sector continued unabated, as do HR tech mergers and acquisitions (M&As). The latest M&A news comes from global HR company Deel – it has acquired Hofy, a London-based device management startup. Hofy enables its 700 customers across the world (including Canva, Veeva, and Fujitsu) to equip their teams with work devices in just one click. Hofy also manages the entire lifecycle of the company device. The Hofy acquisition is Deel’s third acquisition in 2024 – back in the spring, Deel bought German performance management company Zavvy and Africa-based payroll giant PaySpace. The latest news with Hofy is a full circle moment for its Co-Founder and CPO Michael Ginzo – he was an early employee at Deel and left in 2020 to start Hofy. A Bright Future for Deel and Hofy? Founded in 2019, Deel has seen impressive growth over the past five years – it now employs 4,000 people in 100 countries, has raised $630 million, has reached a $12 billion valuation, and has $500 million in annual recurring revenue. Deel helps 35,000 companies look after their teams – standout customers include Nike, BCG, Shopify, and Calvin Klein. UNLEASH was keen to find out why purchasing Hofy was the right next move for Deel and its customers. Speaking exclusively to UNLEASH, Deel’s Co-Founder and CEO Alex Bouaziz shares: “By bringing Hofy’s best-in-class services and device lifecycle management in-house, we hope to simplify global business complexities for our customers with a unified platform that handles everything from device delivery and management to software provisioning and app access. Now we’ll be able to handle this in 120+ countries – it’s going to radically simplify device management and IT support for global teams.” For Bouaziz, Deel’s purchase of Hofy is “another way we’re building a simpler, more consolidated infrastructure for global companies and their teams.” Hofy’s Ginzo also spoke to UNLEASH – he adds: “Hofy and Deel share a vision of simplifying hybrid work – including facilitating remote workforces with a hassle-free onboarding experience. I saw a massive opportunity in the global hiring movement when I was working at Deel on the product team. Hofy has helped meet this demand by delivering and managing devices in 120+ countries around the world. We’ve seen huge growth, and now it’s time to take that to the next level. With Hofy joining Deel, customers will be able to enjoy all the benefits of our device management platform, alongside Deel’s compliance, payroll, HRIS, immigration, and people management products. It’s a win-win, and we couldn’t be happier to combine forces.”  

FTC Requests More Information on $6.4B IBM Planned Acquisition of HashiCorp

Leave a Comment / By / Human Resource Community

The Federal Trade Commission (FTC) has made a “second request” for additional information around IBM’s (IBM) plan to acquire cloud software company HashiCorp (HCP) for $6.4 billion. HashiCorp said Monday that it received the request last week, and the companies plan to “promptly respond to the Second Request and to continue working cooperatively with the FTC.” IBM and HashiCorp still expect the acquisition to be completed by the end of 2024, according to a filing with the Securities and Exchange Commission (SEC). FTC Assessing Competitive Impacts of Deal The FTC defines a “second request” as part of the deal monitoring process that “typically asks for business documents and data that will inform the agency about the company’s products or services, market conditions where the company does business, and the likely competitive effects of the merger.” HashiCorp did not disclose what information or documents the agency requested, but the review suggests the FTC could have concerns about whether the acquisition would be harmful to competition in the cloud computing space. The deal was originally announced in April, with the sides also stating at the time that it was expected to close by the end of 2024. IBM said in announcing the deal that it was the next step in the company’s “deep focus and investment in hybrid cloud and AI.” Latest in String of FTC Investigative Moves Under the Biden administration, the FTC has stepped up its enforcement efforts, taking a more stringent approach to antitrust policy under Chair Lina Khan. Energy giants Marathon Oil (MRO) and ConocoPhillips (COP) said Friday that they had recently received a second request from the FTC over a deal announced in May that would see ConocoPhillips pay $22.5 billion to acquire Marathon. IBM shares were up less than 1% at $184.35 as of about 11:45 a.m. ET Monday. HashiCorp stock was down less than 1% at $33.44.

Relativity Acquisition Corp Signs Letter of Intent for $500 Million Merger with Mazaii Corp Ltd.

Leave a Comment / By / Human Resource Community

Relativity Acquisition Corp., a special purpose acquisition company (“Relativity”), announced that it has entered a letter of intent (“LOI”) for a proposed business combination that will result in Relativity acquiring 100% of the outstanding equity and equity equivalents of Mazaii Corp Ltd. (“Mazaii” or the “Company”). The Transaction values the Company at an initial enterprise value of U.S. $500 million. Mazaii Corp Ltd. Mazaii Corp Ltd. is a Montreal-based innovator in the iGaming industry, specializing in the creation and distribution of cutting-edge online casino games and betting solutions. The company supplies its advanced gaming content and technology to prominent brands within the sector, enhancing their platforms and player experiences. Through strategic acquisitions, Mazaii Corp expands its market reach and strengthens its product offerings across key regions, including Europe, North America, Latin America, and Asia. Tarek Tabsh, Chief Executive Officer and Chairman of Relativity Acquisition Corp., commented, “The iGaming industry is experiencing rapid growth, with increasing acceptance and legalization in various regions. Growing consumer demand, driven by the increasing penetration of smartphones and internet access, further fuels this expansion. The Mazaii international platform provides a significant opportunity for scalability and revenue growth. This transaction will enhance Mazaii’s competitive advantage and market positioning.” Eli Baazov, Mazaii’s Chief Executive Officer, stated, “We are thrilled to share the transformative journey of Mazaii in revolutionizing the online gambling arena. We have fortified our position, expanded our market reach, and enhanced our innovative service offerings. With our in-house intellectual property and continuous organic growth, we are confident in our ability to disrupt the gaming landscape and achieve highly favorable results for our shareholders beyond 2024. This is just the beginning of our journey, and we are excited to shape the gaming industry’s future.” The completion of the transaction is contingent upon several factors, including due diligence, negotiation of a definitive agreement, regulatory approvals, and approval by the board and stockholders of both companies. Additional details will be disclosed upon reaching a definitive agreement. The transaction is anticipated to be finalized in the second half of this year, subject to unforeseen circumstances. About Relativity Acquisition Corp. Relativity Acquisition Corp. is a blank check company sponsored by Relativity Acquisition Sponsor LLC, a Delaware limited liability company, formed to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. About Mazaii Corp Ltd. Mazaii Corp Ltd. is a Montreal-based innovator in the iGaming industry, specializing in the creation and distribution of cutting-edge online casino games and betting solutions. The company supplies its advanced gaming content and technology to prominent brands within the sector, enhancing their platforms and player experiences. Through strategic acquisitions, Mazaii Corp expands its market reach and strengthens its product offerings across key regions, including Europe, North America, Latin America, and Asia. Forward-Looking Statements This press release may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements regarding possible business combinations, financing thereof, and related matters, as well as all other statements other than statements of historical fact included in this press release, are forward-looking statements. These statements are based on management’s beliefs and assumptions and information currently available to them. Actual results could differ materially from those contemplated by the forward-looking statements due to certain factors detailed in the Company’s filings with the Securities and Exchange Commission (“SEC”). The Company undertakes no obligation to update these statements after the date of this release, except as required by law.

India Inc Registers 501 Deals Valued at $21.4 Billion in Q2 2024: Report

Leave a Comment / By / Human Resource Community

India Inc has recorded a total of 501 deals valued at USD 21.4 billion in Q2 2024, according to Grant Thornton Bharat Dealtracker. As per the consultancy firm, Q2 2024 witnessed the highest quarterly volumes in two years, while values declined due to the absence of big-ticket M&A transactions. The merger and acquisition (M&A) and private equity (PE) deals taken together stood at 467, valued at USD 14.9 billion, reflecting a 9 percent increase in volumes but a 28 percent decrease in value, primarily due to the previous quarter’s USD 8.5 billion Reliance-Disney mega-merger, Grant Thornton said. The just-ended quarter featured a one-billion-dollar deal and 30 high-value deals (over USD 100 million), which translates to a 58 percent increase in high-value deals compared to the previous quarter. “Indian corporates are increasingly investing domestically, reflecting strong confidence in the local investment climate,” Grant Thornton said in a release. Despite declining cross-border deals due to geopolitical instability, traditional sectors grew in volumes over the previous quarter. “With recent election results and anticipated policy clarity from the upcoming budget, political stability is expected to boost investor confidence and drive deal activity in the next six months,” it said. Shanthi Vijetha, Partner, Growth at Grant Thornton Bharat, noted that the quarter witnessed robust private equity activity and large domestic deals. “Despite a decline in cross-border deals due to geopolitical uncertainties, domestic investment remained strong. Traditional sectors like pharma and manufacturing also saw strong deal flows, collectively contributing nearly half of the deal values,” Vijetha said. According to Vijetha, the industry anticipates policy continuity, which should positively drive the deal activity.

Employee Associations Urge Merger of RRBs with Sponsor Banks for Enhanced Efficiency

Leave a Comment / By / Human Resource Community

Bank employee associations have called on Union Finance Minister Nirmala Sitharaman to merge Regional Rural Banks (RRBs) with their respective sponsor banks. This move aims to ensure overall efficiency and viability in the banking sector. A joint statement from the All India Bank Officers’ Confederation and the All India Bank Employees Association, representing over 6 lakh bank employees, emphasized the need for this merger. “Competition among Public Sector Banks and RRBs is leading to the wastage of scarce financial resources by offering the same types of services,” the statement read. The associations argue that despite this competition, a significant portion of the rural population is not benefiting from modern, technology-driven banking products. RRBs were established under the RRB Act of 1976 with the capital provided by the Government of India, state governments, and sponsored banks. Currently, there are 43 RRBs sponsored by 12 scheduled commercial banks, operating around 22,000 branches, 30 crore deposit accounts, and 3 crore loan accounts across 702 districts. Ninety-two percent of RRB branches are located in rural and semi-urban areas, highlighting their importance in the rural banking ecosystem. The associations believe that merging RRBs with sponsor banks would ensure uniformity in the product range offered to customers, thus accelerating the growth of the rural economy and prioritizing sector lending. “Such integration will update the skills of RRB employees to modern banking practices and effectively address staff shortages in both RRBs and sponsor banks,” they added. Additionally, they noted that the salary structures and benefits of RRB employees are broadly similar to those in sponsor banks, which would facilitate a seamless integration. “The proactive step of merging RRBs with their respective sponsor banks will facilitate enhanced supervision, governance, and accountability, ensuring greater sustainability of the entire banking sector,” the statement concluded.

Saudi Arabia Leads Middle East M&A Activity in Chemicals Sector with $500 Million Deals

Leave a Comment / By / Human Resource Community

In the first quarter (Q1) of 2024, Saudi Arabia has emerged as the leader in mergers and acquisitions (M&A) in the Middle East’s chemicals sector, according to recent data from financial markets platform Dealogic. The Kingdom recorded $500 million worth of deals in the chemicals sector, highlighting its significant role in the region’s M&A landscape. Dealogic’s figures revealed that Saudi Arabia’s total M&A deal volume for Q1 2024 reached $955 million, with the chemicals sector accounting for a substantial 52.4 percent of this total. Notably, Saudi Arabia was the only country in the Middle East to exhibit activity in the chemicals sector during this period. A report from management consulting firm Kearney earlier this month indicated that chemical industry executives expect increased M&A activity, particularly driven by strategic investors such as national oil companies. “Recent deals by major players like Aramco and ADNOC underscore the region’s commitment to leveraging M&A as a key growth lever, setting the stage for a dynamic and transformative period ahead,” stated Jose Alberich, partner for the Middle East and Africa at Kearney. Beyond the chemicals sector, Dealogic’s data highlighted other targeted sectors in Saudi Arabia. The professional services sector was the second most targeted, with deals worth $160 million, accounting for 16.8 percent of the Kingdom’s total M&A volume. The technology sector followed closely with $138 million in deal value, capturing a 14.5 percent share. Additionally, the retail and insurance sectors represented 7 percent and 4.1 percent of the total, respectively. The broader Middle East M&A landscape saw a targeted deal volume of $6.21 billion in the first three months of the year. The technology sector led with 42 deals worth $1.56 billion, underscoring its growing prominence in the region. However, on a global scale, M&A activity experienced a significant decline during the same period. The number of transactions fell by 31 percent to 7,162, marking one of the quietest quarters for dealmakers in nearly two decades. This global slowdown was largely attributed to high capital costs, with Switzerland being the only major economy to cut interest rates in 2024.