The boom in the Global M&A activity that started in 2021 has indeed 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 the biggest M&A deals in 2022.
Global M&A activity in 2021 saw record highs, and many were sceptical about whether this would continue into the following year. However, the boom in the M&A sector most definitely has continued. Looking at the most important M&A deals of 2022, we can see a substantial majority of transactions in the gaming and tech sector, showcasing how eager companies are to adapt to the digital environment.
The biggest M&A deals of 2022:
5. Prologis´ $26 billion merger with Duke Realty
Prologis and Duke Realty, two of the largest global logistics real estate companies, signed a comprehensive merger agreement on June 13th, 2022.
The transaction was valued at $26 billion including debt, and was paid for using Prologis´ equity, therefore firmly establishing Prologis position as the world´s largest logistics real estate operator.
On closing the acquisition, the new firm will have an outstanding portfolio of logistics property, including 153 million square feet of property across 18 US regions, 11 million square feet of development in progress, accounting for over $1.5 billion in investment, and 1,228 acres of land owned and under option.
Duke Realty Chairman and CEO Jim Connor commented that “Together, we will be able to accelerate the potential of our business and better serve tenants and partners.”
Why not have a look at the biggest M&A deals in 2021 here!
4. Oracle’s acquisition of Cerner for $28.3 billion
In June 2022, Cerner, a supplier of health information technology services and hardware, was acquired by Oracle, the second-largest software company in the world.
Oracle aims to revolutionize health care by expanding Cerner’s digital capabilities, integrating telecommunications with data storage to create a personalized portal for patients and doctors, and even changing the entire health care records system.
The acquisition now holds the record as the biggest completed deal in the digital health sector, and could change how health is manages by providers, patients and payers.
3. Elon Musk’s acquisition of Twitter for $44 billion
After initially rejecting Elon Musk’s overtures, Twitter’s board of directors accepted Musk´s $44 billion offer for the firm on the 25th of April.
However, weeks after, Musk tweeted that he was putting his bid on hold due to alleged “false and misleading” statements during negotiations regarding the prevalence of fake or spam accounts on Twitter.
Consequently, Twitter sued Musk for attempting to abandon the deal, which led Musk to countersue Twitter. A trial date had been set, and to make matters worse, Twitter´s former security executive, Peiter Zatko´s, whistle-blower complain stated that the company misled the public about its security practices and how it fights hackers and spam.
However, in a turn of events, Musk U-turned, with his lawyers releasing a statement that he “intend[s] to proceed to closing of the transaction contemplated by the April 25, 2022 Merger Agreement… provided that the Delaware Chancery Court adjourn the trial and all other proceedings”
Twitter has now confirmed that Elon Musk has completed his $44 billion acquisition of Twitter putting the world’s richest man in charge of one of the world’s most influential social media platform.
However, Musk’s takeover now creates a new cloud of uncertainty for the future of the social media platform, with Musk firing CEO Parag Agrawal, CFO Neg Segal and policy head Vijaya Gadde all within the first few days of his takeover.
The situation is ever changing, and we look forward to hearing how this monumental acquisition unravels.
2. Broadcom acquisition of VMware for $61 billion
On May 26th 2022, the chip giant Broadcom acquired the software firm VMware in a cash and stock deal worth $61 billion.
However, concerns over perceived culture differences at both companies have sparked backlash in the market, with Broadcom stock falling almost 20% in the month following the deal, and talented VMware personnel leaving due to hints remote work coming to an end and overall uncertainty.
VMware´s CEO Raghu Raghuram has been eager to highlight the benefits of the deal, noting that the synergies between VMWare´s software and Broadcom´s overall infrastructure could be significant.
1. Microsoft acquisition of 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 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.
Did you find that interesting? Read our article on 2020´s biggest M&A deals here.
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