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Business Insights From Conway MacKenzie
May 11, 2015

Market Machinations: What’s New in M&A

The mergers and acquisitions marketplace continued its torrid pace in the first quarter of 2015. According to Financier Worldwide, over $900 billion in worldwide M&A activity was announced in the first three months of the year, the highest first quarter total in eight years. United States targeted deals totaled $415 billion. Healthcare and pharmaceutical deals led the way in terms of deal value, and real estate was also very active.

We are seeing more of the same in the second quarter, as buyers look to M&A to grow marketshare, enter new markets, and boost share-price performance. The past week saw some interesting headlines about M&A activity, and we’ve highlighted a few of them for you:

Microsoft Looks to the Cloud?: According to Bloomberg and other media outlets, Microsoft Corp. is evaluating a bid for cloud software provider Salesforce.com Inc. A second potential buyer is reportedly also in the mix. Given its market value of nearly $50 billion, any deal for Salesforce.com will require a buyer with very deep pockets.

Extra! Extra! Boston Globe is for Sale (and on Sale): The New York Times Co. put the Boston Globe up for sale in February. Bids for the journalistic icon will reportedly be in the $100 million range, a far cry from the $1.1 billion that the New York Times Co. paid for the paper 20 years ago.

Pharma Continues M&A Frenzy: In another mega-deal in the pharmaceutical sector, Alexion Pharmaceuticals announced that it would by Synageva BioPharma for $8.4 billion. According to CNBC.com, the deal values Synageva at $225.92 per share, which is more than double Synageva’s closing share price the day the deal was announced.

At Conway MacKenzie, we remain at the forefront – across industries and across the country – of trends affecting the M&A marketplace. Contact a member of our Transaction Services team and visit us regularly on Twitter, LinkedIn and Facebook, for more insights into the catalysts that are driving deals in your industry.