Year Ender 2021: Important Mergers & Acquisitions that became newsmakers in M&A segment
In a recent report by Bain & Company, CEOs face dual pressures of growth and disruption, both at historic levels. In spite of the challenges posed by the pandemic, investors are expecting companies to grow earnings by 27% over the next three years, as per the report. This has resulted in India's M&A reaching a new high, driven by first-time buyers.
Here are important Mergers & Acquisitions that hogged the limelight in the year 2021:-
ZEEL-SPNI: Merger
On December 22, 2021, ZEEL announced their merger with and into SPNI. Sony will have a stake of 50.86 per cent in the merged entity, and the founders of Zeel, the Essel Group, will own a 3.99 per cent stake. Punit Goenka will head the company as CEO and the MD. (Pic: https://twitter.com/ZEECorporate, https://www.sonypicturesnetworks.com/)
Air India - Tata Group: Acquisition
Tata Sons signed a share purchase agreement for buying Air India for Rs 18,000 crore. The sale of Air India was a part of GoI's strategic disinvestment plan. (Pic: https://www.airindia.in/, https://www.tata.com/)
Tata Digital-Big Basket: Acquisition
On May 28, 2021, Tata Digital announced that they had acquired a majority stake in online grocery seller BigBasket. (Pic: https://www.tata.com/tatadigital, https://www.bigbasket.com/)
Aakash Educational Services-BYJU's: Partnership
On April 5, 2021, BYJU'S, India's leading ed-tech company, announced its strategic partnership with Aakash Educational Services Limited (AESL), a leader in test-prep services. The deal was pegged close to $1 billion, according to a person familiar with the transaction, as per IANS. (Pic: https://www.aakash.ac.in/)
Wipro-Capco: Acquisition
On March 4, 2021, Wipro Ltd announced that they are buying British consultancy Capco for $1.45 billion in cash, as the Indian software giant looks to boost its offerings for the financial services industry that generates the bulk of its revenue, as per Reuters. (Pic: https://www.wipro.com/, https://www.capco.com/)
Tata Digital-1MG: Acquisition
On June 10, 2021, Tata Digital Ltd purchased a majority stake in the online pharma startup 1MG at an undisclosed amount. Tata Digital earlier invested in similar startups like CureFit and BigBasket. (Pic: https://www.tata.com/tatadigital, https://www.1mg.com/)
HDFC Life-Exide Life Insurance: Acquisition
On September 3, 2021, HDFC Life acquired a 100% stake in Exide Life Insurance from Exide Industries via issuance of 8,70,22,222 shares at an issue price of Rs. 685 per share and a cash payout of Rs. 726 crores, aggregating to Rs. 6,687 crores. (Pic: https://onlineinsurance.hdfclife.com/, https://www.exidelife.in/)
Amazon acquires Perpule: Acquisition
On March 31, 2021, Amazon Technologies paid $14.7 million(about Rs 107.5 crore) to acquire Perpule in an all-cash deal. The company is likely to spend an additional $5 million (Rs 36.5 crore) or so to compensate Purple, as per IANS report. (Pic: https://www.amazon.in/, https://twitter.com/perpuleindia)