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Axcient Purchases DirectRestore: Amount Undisclosed

September 19, 2014 by Sabin Piso

Axcient has purchased DirectRestore, a Dover-based granular recovery technology solutions provider.

Axient

Axcient a Mountain View, California-based cloud backup and disaster recovery services company released reports on Tuesday regarding its acquisition of DirectRestore. The financial terms as well as the amount DirectRestore was purchased remains undisclosed. Axcient executives agree that this purchase increases its development team, thereby enhancing the delivery of its products to the market in a more efficient manner.

DirectRestore is one of the innovators in the market when it comes to the restoration of mainstream applications such as SQL Server and Microsoft Exchange database backups and replications. With this purchase, Axcient customers can take advantage of this technology for free.

direct restore

Axcient CEO Justine Moore mentioned in an exclusive interview by MSPmentor: “By switching to Axcient, channel partners can now provide their clients with not only system level replication and instant recovery and failover for laptops, desktops and servers, but also best-in-class granular application recovery — all from one vendor in one dashboard from one deduplicated copy of the data.”

Moore also added: “There’s no need to install or manage separate products for file and system protection and MS Exchange protection like other products, which means less setup and management time for channel partners and that in turn means higher margins.”

Moore mentioned how they were impressed by DirectRestore’s technology. Axcient was in the process of creating its own granular application recovery technology when it has decided to test DirectRestore’s technology. He recalled “We were blown away by how advanced it was and how seamless we could integrate it into our core solution and merge it with our code-base.”

“However, since controlling the technology and having a fully integrated solution has always been a part of our mission as it allows us to develop more rapidly control our roadmap and service our partners and customers better, we knew we had to acquire the company or continue building the product ourselves,” he said.

Moore also mentioned that Axcient was always open to opportunities that fit their company vision and strategy along with the teams that would integrate well with our company culture. He said. “It is hard to find the combination of the two and that’s the other thing that makes DirectRestore so exciting — not only was the technology an extremely natural fit for us, but also the team is a truly phenomenal team with strong leadership and a very strong company culture that matches ours.”

Axcient solution together with the combination of DirectRestore’s amazing technology will be able to provide customers with an even better product that will allow faster recovery, more granular recovery options and reduced storage concerns.

DirectRestore acquisition will expand Axcient’s research and development by 30 percent. With this number, granular application recovery will enhance Axcient’s RaaS platform to support broader recovery capabilities.

Axcient is creating a new process that will protect access and recover data, and applications through a solution that is easier, faster and definitely more efficient than any alternative in the market. Axcient platform has been developed using cloud formats and it goes beyond backup and mirrors an organization’s entire business in the cloud. Aside from data backup service includes emails, files, applications, operating systems and all interconnected elements of a network. All these will help secure any type of business no matter what demands of the industry may be,

A. L. Mijares

About Axcient

Axcient, Inc. provides cloud-based recovery solutions/cloud platforms that reduce data loss. Axcient solutions keep applications up and running, and ensure that information technology infrastructures are well maintained. It provides solutions for backup and disaster recovery, archival and compliance, business continuity, application protection, and platform support. Axcient serves a wide range of industries including managed services providers; financial services; legal practices; architecture, engineering, and construction; healthcare; manufacturing; education; retail; non-profit; and high-tech, hospitality, and other industries. The company was founded in 2006 and is based in Mountain View, California.

About Justin Moore

Mr. Justin Moore is an entrepreneur and authority on cloud computing, SMB market strategies and entrepreneurship. Moore is the driving force behind Axcient’s exponential growth as the #1 fastest growing Security & Data Protection company in the US. It was ranked by Inc. Magazine for three-year growth of 3,116%. It has a track record of improving the ranks of established markets. Moore was named one of the 2013 Silicon Valley’s 40 Under 40 by the Silicon Valley Business Journal.

About DirectRestore

DirectRestore is a company that provides a series of tools that enable granular recovery of files, objects, databases and applications. DirectRestore technology is used by tens of thousands of customers including several major original equipment manufacturers. The company works to restore individual items from applications such as SQL Server and Microsoft Exchange database backups and replications.

Filed Under: Noutati Sabin Piso Tagged With: acquisition, Axcient, DirectRestore, Justin Moore

BNP Paribas SA Will Purchase Rabobank for €1 Billion

September 18, 2014 by Sabin Piso

BNP Paribas will take over Rabobank Groep’s Dutch bank’s 98.5 percent stake in agricultural lender Bank Gospodarki Zywnosciowej SA, Utrecht. According to news, BNP is not wasting any time and said that the purchase will add to earnings per share right away.

BNP paribas

In a phone interview courtesy of Bloomberg, Pawel Kozub, an analyst at UniCredit SpA in Warsaw mentioned that “Both banks fit each other as BGZ has a strong presence in agribusiness and private banking, while BNP in Poland specializes in retail and corporate businesses.” The expert also mentioned that the impact will depend on “how deep the restructuring of the new entity will be.” This assessment was based on the reality that neither of the two banks has shown amazing performances in Poland so far.

BGZ, as Rabobank’s local unit had assets of 35.8 billion zloty at the end of September. Its nine-month net income on the other hand has increased from 73 percent to 134.3 million zloty from a year earlier. BNP’s Warsaw-based unit is the country’s 12th-largest bank and has over 21.1 billion zloty of assets.

Rabobank

BNP Paribas Chief Executive Officer Jean-Laurent Bonnafe mentioned in an official statement. “The acquisition of Bank BGZ constitutes a major step toward attaining a critical size in Poland,” The CEO added “The transaction will establish the BNP Paribas Group as a reference player in Poland’s banking sector.” This official statement also mentioned that this takeover will cut the Paris-based firm’s core Tier 1 capital ratio. This is a measure of a bank’s financial strength. The reduction will be about 15 basis points. Rabobank on the other hand has been selling assets which is the company’s way to meet its core Tier 1 ratio to at least 14 percent by 2016 from 12.9 percent on June 30.

Apparently, it’s not only BNP Paribas had eyes for Rabobank. Sources reveal that Italy’s UniCredit SpA and Santander SA said they were also bidding for Rabobank’s unit.

About BNP Paribas:

BNP Paribas is a financial institution that is known in over 80 countries with 190,000 employees, including 145,000 in Europe. It is very active in the following financial activities: Retail Banking, Investment Solutions and Corporate & Investment Banking. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the leader in consumer lending. Soon BNP Baribas plans to engage in retail banking across Mediterranean basin countries, in Turkey, in Eastern Europe and as well as a large network in the western part of the United States. In its Corporate & Investment Banking and Investment Solutions activities, is very stimulating in Europe, in the Americas and in the Asia-Pacific. BNP Paribas stock market evolution:

http://www.bloomberg.com/quote/BNP:FP

About Jean-Laurent Bonnafe:

Mr. Jean-Laurent Bonnafé has been the Chief Executive Officer at BNP Paribas SA at BNP Paribas India Holding Private Limited since December 1, 2011. Mr. Bonnafé has been a Director of BNP Paribas SA since May 12, 2010. He served as a Director of Banca Nazionale del Lavoro SPA since May 2009. An Engineering graduate of the École Polytechnique and École des Mines he seeks new efforts to reinvent and rejuvenate the already impeccable financial future of BNP Paribas in all regions of the world.

About Rabobank Group:

Rabobank Group is an international financial services provider operating on the basis of cooperative principles. It offers retail banking, private banking, wholesale banking, leasing and real estate services. Rabobank’s service provision focuses on treating customers fairly. Rabobank is market leader in the Netherlands and focuses internationally on strengthening its leading position as a food and agri bank. Rabobank Group has approximately 59,500 FTEs, who serves about 10 million customers in 42 countries worldwide. Rabobank stock market evolution:

http://www.nasdaq.com/quotes/institutional-portfolio/rabobank-nederland-fi-95180

About Bank BGŻ:

Bank BGŻ is a universal commercial bank in Poland. It offers services to retail and institutional clients, which includes business clients that are established in the food and agricultural sector. BGZ specializes in financing agriculture, the food industry and regional infrastructure. The focus of the Bank BGZ is the growth of its “effectiveness, strengthening its leading position in the food and agricultural sector and enriching its product offering.” The company currently has 400 branches. It also focuses in supporting small communities. It believes in supporting entities operating on the local market and offering long-term cooperation.

About UniCredit:

UniCredit is an Italian banking and financial services company. Its network spanning 50 markets in 20 countries, with more than 9,000 branches and over 148,000 employees. The company is headquartered in Rome and general management in Milan. UniCredit stock market evolution:

https://finance.yahoo.com/echarts?s=UCG.MI+Interactive

About Pawel Kozub:

Mr. Pawel Kozub is an equity analyst from UniCredit CAIB Poland.

Filed Under: Noutati Sabin Piso

Rakuten Inc. Plans to Purchase US Company Ebates for $1 Billion

September 17, 2014 by Sabin Piso

Japanese travel and shopping company Rakuten plans to buy Ebates a part of the company’s rapid expansion.

Rakuten

Rakuten Inc. has announced of its plans to purchase U.S. based cash-back site Ebates for $1 billion. This is Rakuten’s part of a series of acquisitions of international companies which is aimed at fulfilling the company’s long time goals and that is to create “world’s largest product line-up.”

Rakuten has a variety of goods ranging from fashion accessories, pet products, toys and home accessories. Rakuten is currently the top Internet retailer in Japan. Over the years it has made numerous overseas acquisitions and these includes Cyprus-based Internet phone application Viber Media. It has also led to a $100 million investment in online scrapbook site Pinterest.

California-based Ebates and Rakuten have membership-based online shopping platforms. The process usually goes this way: retailers pay Ebates to advertise their products and then the company provides rebates for eligible purchases online.

Rakuten plans to purchase Ebates for 32.852 million shares, paid through cash, bank loans, bonds and commercial paper.

Hiroshi Mikitani, Rakuten founder and president has developed his company through a rapid expansion in the past years. Mikitani calls this a “Rakuten eco-system” consisting of a variety of services from banking and credit cards to life insurance and telecommunications.

Recent announcements have mentioned that the company has outgrown its offices in Shinagawa, Tokyo which is considered the country’s high-tech zone. Plans of new offices have been mentioned and these will be in Futako-Tamagawa.

Aside from this latest purchase by the company, Rakuten Inc., Japan’s largest e-commerce company, has been considering a service similar to the website Airbnb. This will provide a hub to rent apartments and homes in the country for short-term guests.

This move is in line with the government’s promotion of tourism to boost the economy. Japan has set a target of 20 million visitors a year by 2020. This is the year Tokyo hosts the Olympics.

Current regulations on the other hand are defiant when it comes to servicing tourists for less than a month. In Japan, personal property to tourists could also be dangerous. In recent news, a British man was arrested because he does not have the right permits or papers to rent his place out. Reports also mention that the Japanese government is expected to ease these laws. These would help Rakuten in its future goals. This global phenomenon has turned Airbnb, a San Francisco-based privately owned company into a prosperous company now with a market value of $10 billion.

A.L. Mijares

About Rakuten

Rakuten is an electronic and Internet company that is based in Tokyo, Japan. Rakuten Shopping Mall started operations in May 1997. The Japanese word rakuten means optimism. In 2012 the company showed an increase in revenue with a total of US$4.6 billion with operating profits of about US$244 million. In June 2013 there are 10,351 employees all over the world.

In 2005, acquisitions and joint ventures of different international companies was the focus of Rakuten. The company has the following major acquisitions all over the years:Buy.com (now Rakuten.com Shopping in the US), Priceminister  in France, Ikeda now called Rakuten Brasil, Tradoria now called Rakuten, Play.com  in the UK, Wuaki.tv  in Spain, and Kobo Inc. in Canada. Pinterest, Ozon.ru, AHA Life, and Daily Grommet are companies where Rakuten is a major investor. Rakuten stock market evolution:

http://www.bloomberg.com/quote/4755:JP

About Hiroshi Mikitani

Mr. Hiroshi Mikitani has a Harvard MBA and is a former banker. He is listed by Forbes as Japan’s 4th richest person with an estimated wealth at $7.7 billion. Mikitani has encouraged a more global way of doing business, and this is why Rakuten has an official corporate language which is English, in a policy dubbed “Englishnization.”

About Ebates

Ebates

Ebates is known for online Cash Back Shopping. It was founded in 1998 by two Deputy District Attorneys in Silicon Valley that specializes in prosecuting online fraud & identity theft. Joining Ebates is always free. Members receive promos and cash backs using different payment modes including PayPal, check or money to the customer’s favorite charity. Ebates stock market evolution:

About Airbnb

Airbnb is a site that assists people in need of lodging. The company has over 500,000 listings in 33,000 cities and 192 countries. Airbnb was founded in August 2008. It is headquartered in San Francisco, California. The company is privately owned and operated by Airbnb, Inc.

As of July 2011, the company had raised $119.8 million in venture funding from Y Combinator, Greylock Partners, Sequoia Capital, Andreessen Horowitz, DST Global Solutions, General Catalyst Partners and undisclosed amounts from Youniversity Ventures’ partners, Jawed Karim, Keith Rabois, and Kevin Hartz. In April 2014, the company closed on an investment of $450 million by TPG Capital valued at $10 billion.

Filed Under: Noutati Sabin Piso Tagged With: Airbnb, Ebates, Hiroshi Mikitani, Rakuten

Business Products United Stationers to Purchase MEDCO Tools & Supplies

September 16, 2014 by Sabin Piso

United Stationers Supply Co. buys MEDCO for $130 million, transactions to be completed by the end of 2014

United Stationers

 

United Stationers, one of US’ largest and most popular distributors of business products in North America have recently announced that its wholly-owned subsidiary, United Stationers Supply Co., has agreed to purchase MEDCO. MEDCO is a United States wholesaler of automotive tools and supplies. This purchase also includes MEDCO affiliates including G2S Equipment de Fabrication et d’Entretien ULC (“G2S”) which is a Canadian wholesaler. The figures for the sale are $130 million and the sale is subject to closing deals and adjustments. There will also be an additional $10 million to be paid over three years based on performance.

MEDCO is North America’s largest combined Paint, Body and Equipment (PBE) and Tool & Equipment wholesaler with headquarters in Philadelphia, Pennsylvania. It has over 50,000 products from more than 350 manufacturers. MEDCO partners with traditional distributors, retailers and mobile tool dealers through its nine distribution centers found all over the US. MEDCO and G2S annual sales are approximately $240 million.

P. Cody Phipps, United Stationers’ president and chief executive officer mentioned in an interview “MEDCO and G2S advance a key pillar of our strategy, diversifying into higher growth and margin channels and categories.” Phipps also added “Both are leaders in the growing automotive aftermarket and will expand our reseller customer base. Additionally, these businesses complement our existing industrial platform with their deep product knowledge and exceptional customer service.” The CEO ended his interview with the words “I am pleased to welcome the MEDCO and G2S employees to our organization.”

Andrew Keim, MEDCO President also has positive thoughts about the sale. “We are excited to join United Stationers and be part of their strategic diversification initiative.” He said in an interview “Their scale, operational capabilities and financial strength will enable us to better support our existing customers while continuing to grow the business.”

The transaction is expected to be completed in during the fourth quarter of 2014 and is subject to regulatory approval and customary closing conditions. News sources also mention that United Stationers plans to go through with the acquisition of MEDCO through the use of its cash on hand as well as cash available under its revolving credit facility.  Sources also mention that the transaction is expected to increase in earnings within the first year.

A.L. Mijares

About United Stationers

United Stationers is a wholesale distributor of business products in North America. It is the biggest and the most established with sales in of nearly $5 billion. United Stationers ranked 484 in 2013 out of the Fortune 500 companies. The company has several divisions: United Stationers Supply Company which supplies business products, LagasseSweet which supplies janitorial and sanitation products, Azerty supplier of technology products, ORS Nasco supplier of industrial products, and MBS Dev, a software supplier. United Stationers maintains 70 warehouses supporting its different divisions. It is proud of its next morning delivery for almost 100,000 products that it supplies to every state in the continental United States. These are true for all orders entered as late as 5PM the previous evening. United Stationers’ headquarters is in Deerfield, Illinois, USA. United Stationers stock market evolution:

http://finance.yahoo.com/q?s=USTR

About Paul Cody Phipps

Mr. Paul Cody Phipps has been the Chief Executive Officer and President at United Stationers Inc. since his appointment in May 11, 2011. Mr. Phipps has been the Chief Operating Officer of United Stationers Inc. from September 1, 2010 to May 11, 2011, President of United Stationers Supply Co. from October 23, 2006 to September 1, 2010. He also served as Senior Vice President of Operations for United Stationers Inc. before he was appointed as CEO and President. Phipps is a revolutionary leader and has changed the lives of United Stationers employees and customers tor years. He is behind a lot of changes in United Stationers and this latest acquisition is another chance to show his expertise in his field.

About MEDCO

MEDCO is one of the biggest players in the general automotive repair and body shop tool and equipment distribution business, acting as a key provider in the Northeast and the rest of the country, with eight warehouses across the United States. Yet, MEDCO has never organized a tool show—until now.

MEDCO is one of the biggest players in the general automotive repair and body shop tool and equipment distribution business, acting as a key provider in the Northeast and the rest of the country, with eight warehouses across the United States. Yet, MEDCO has never organized a tool show—until now.MEDCO is one of the largest and most successful companies that cater to automotive companies and retailers. It is one of the top players in the general automotive repair and body shop tool and equipment distribution business. MEDCO is currently one of the key providers in the Northeast and the rest of the country. Its products have made a huge impact in the automotive repair industry. It currently has eight warehouses across the US. MEDCO is headquartered in Philadelphia, Pennsylvania, USA.

About Andrew Keim

Mr. Andrew Keim is the President of MEDCO, one of the most prominent companies in the general automotive repair and body shop industries. Keim is an innovator, leader and entrepreneur. He has nothing but positive thoughts about this acquisition.

Filed Under: Noutati Sabin Piso Tagged With: acquisition, Andrew Keim, MEDCO, Paul Cody Phipps, United Stationers

BlackBerry Acquires Mobile Virtual Identity Solutions Company Movirtu

September 15, 2014 by Sabin Piso

Mobile computing giant will lead mobile technology race with Movirtu, virtual SIM platform

Blackberry

Latest acquisition in the mobile universe is from BlackBerry. The mobile device giant has acquired Movirtu, a virtual identity solutions provider. Movirtu is behind the amazing technology that allows multiple numbers to be used on a single mobile device. By having this capability or feature in a phone or mobile device, expected improvements in bring-your-own device (BYOD) features. This also enhances the use of mobile handsets in a corporate owned personally enabled (COPE) environment.

The acquisition happened with the executives of BlackBerry and Movirtu present however the terms of the transaction were not disclosed yet.

Movirtu’s Virtual SIM platform is indeed an impressive feature that could benefit someone who maintains both a business number and a personal number. There is no need to carry two or more mobile devices since the two numbers may be used on a single mobile device. This of course takes into consideration customers using different mobile carriers for business and for personal use. There will be separate billing for voice, data and messaging usage on each number.

movirtu

This feature is deemed as very convenient users may be able to switch between business and personal profiles with just a tap of their screens without carrying multiple devices or SIM cards. And considering the BlackBerry Enterprise Service (BES) platform, enterprise customers are still able to apply IT policies to their business number and this is without affecting the usability of their devices for personal use.

John Chen, Executive Chairman and CEO, BlackBerry mentioned in an exclusive interview “In a BYOD and COPE world, there remain a number of efficiency and convenience challenges facing enterprises, employees and mobile operators alike.” He commented on the latest acquisition “The acquisition of Movirtu complements our core strategy of providing additional value added services, and it will leverage our key assets, including our BES platform, along with our existing global infrastructure which is connected to a large number of mobile operators around the world.”

On the other hand, Carsten Brinkschulte, CEO, Movirtu revealed in an interview “BlackBerry is the best partner to help us carry forward our vision of redefining the mobile experience by introducing virtual identities.” He also mentioned “We address the challenges of BYOD and COPE by providing our unique and innovative technology solution through BlackBerry’s existing relationships with mobile operators and customers around the world.”

BlackBerry’s Secure Work Space, BlackBerry Balance and other technologies are augmented with this latest acquisition. Employees are provided with the freedom and privacy they need which prioritizes their mobile personal use; this is of course maintaining the security and management ideal for business use. Some of other features that may be accessible to BlackBerry users with Movirtu are the ability to switch between profiles for calls, data and messages and the ease of use of mobile devices while connecting to a home network as well as using devices in roaming situations.

 

BlackBerry will now be able to offer Virtual SIM features through mobile operators for their customers as well as the provision of multiple identity based services. BlackBerry also supports the use of Movirtu technology on leading smartphone operating systems.

A.L. Mijares

About BlackBerry

BlackBerry Limited was formerly known as Research in Motion Limited is a Canadian telecommunication and wireless company. It is one of the most popular smartphone and tablet developer with the BlackBerry handset as the most successful. BlackBerry’s Mobile Device Management (MDM) is an industrial application that is used in various government agencies as well as industrial companies all around the world. It has headquarters in Waterloo, Ontario, Canada. BlackBerry stock market evolution:

http://www.marketwatch.com/investing/stock/bbry

About John Chen

John S. Chen is the CEO if BlackBerry Ltd. He was once chief executive officer and president of an independent software vendor for data management and analytics company Sybase.  Chen is also director of Walt Disney Company and Wells Fargo & Company. He is actively involved in international relations. He was appointed by US President George W. Bush as the President’s Export Council in 2005 as well as the co-chair of the Secure Borders and Open Doors Advisory Committee.

About Movirtu

Movirtu is the developer of the Virtual SIM platform which allows multiple numbers to be active in a single SIM card. With existing mobile network technology, Movirtu integrates mobile operators without losing the identity of each number. Movirtu WorkLife, ManyMe and Movirtu CloudPhone are some of the latest innovations of the company.

About Carsten Brinkschulte

Carsten Brinkschulte is the CEO of Movirtu. He is an entrepreneur with a deep technical experience in the IT industry. He has a unique passion for technology and business; he was appointed as CEO of Movirtu in 2013.

Filed Under: Noutati Sabin Piso Tagged With: acquisition, BlackBerry, Carsten Brinkschulte, John Chen, Movirtu, Virtual SIM

Alliance Data Systems Corporation will Purchase Conversant, Inc

September 15, 2014 by Sabin Piso

Alliance Data Systems Corporation and Conversant, Inc. have announced a definitive agreement with the purchase of Conversant.

Alliance Data Systems Corporation

The terms and agreement of the purchase was revealed and Alliance Data will acquire all outstanding shares of Conversant paid in a combination of cash and stock which is valued at approximately $2.3 billion. The transaction has been approved by all the members of the boards of directors Alliance Data and Conversant.

The purchase price, structured to be paid with approximately 48 percent cash and 52 percent ADS shares. The transaction is subject to regulatory approval and customary closing conditions. This transaction is expected to close by the end of 2014.

According to experts, Alliance Data’s acquisition of Conversant is a smart step for a marketing services company to empower its clients. This acquisition will also effectively market their products and services to its customers across all channels. Alliance Data has the following business segments: Epsilon, LoyaltyOne and Private Label.

On the other hand, the acquisition of Conversant is highly complementary to its business goals. Conversant is a company that provides not only enhanced services when it comes to data, but also cross-device. This means from desktop to tablet to mobile and cross-channel technology using Conversant’s Common ID.

Conversant

Ed Heffernan, Alliance Data’s chief executive officer has mentioned in an interview “The strategic and cultural fit of the two companies is ideal. Importantly, the acquisition “bulks up” Alliance Data in digital marketing, which is experiencing the fastest secular growth. I am also excited about leveraging Conversant’s digital capabilities across the entire Alliance Data organization. I believe this combination will boost demand for Conversant’s products and also potentially drive growth rates with existing clients at Epsilon and all other Alliance Data businesses.”

Hefferman also added “Another salient benefit is a more balanced and diversified Alliance Data. Once the acquisition is completed, 35 percent of consolidated revenue will be from Epsilon/Conversant, 25 percent from LoyaltyOne and 40 percent from Private Label.”

Meanwhile John Giuliani, Conversant chief executive officer mentioned in an interview “As Conversant continues down its path towards providing unique insights on its clients’ customers, we will distinguish ourselves from the more commodity-like aspects of the display space. Through the use of first-party transactional data, and the ability to use the insights gleaned to “personalize” campaigns, our model becomes more similar to Alliance Data’s successful model. Gaining access to the huge data-driven platforms at Alliance Data will allow the combined entity to offer clients an end-to-end solution across all channels.”

Alliance Data and Conversant will compete for their share of the $400 billion annual marketing spend in North America. This is $150 billion in traditional or general advertising; $150 billion in traditional direct marketing; and $100 billion in digital marketing. And under the terms of the transaction, Conversant shareholders will receive $35.00 per share, representing a 34% premium to the 30 day average closing price of Conversant’s stock. At the announcement, the offer comprises 52% stock and 48% cash, which is equal to $18.20 per share of Alliance Data stock which is based on a fixed exchange ratio of 0.07037 and $16.80 per share of cash to Conversant shareholders.

A.L. Mijares

About Alliance Data:

Alliance Data Systems Corporation is a provider of loyalty and marketing solutions, such as private label credit cards, loyalty programs, and direct marketing services. Services are from the capture and analysis of data derived from efficient data collection. Alliance Data has received the Operational Leadership Award for customer care from Ventana Research in 2011. Alliance Data serves USA and Canada customers with headquarters in Plano, Texas, USA. Alliance Data stock market evolution:

http://www.marketwatch.com/investing/stock/ads

About Ed Heffernan:

Mr. Edward J. Heffernan has been the Chief Executive Officer and President of Alliance Data Systems Corporation since 2009. He served as the Chief Financial Officer and Executive Vice President of Alliance Data Systems, Inc. in 2009. He was responsible for mergers and acquisitions for Alliance Data. Hefferman has nothing but positive thoughts about this latest acquisition with Conversant.

About Conversant:

Conversant is an online advertising company, which provides online advertising campaigns and advertising programs for advertisers and advertising agency customers. Their customers are mostly from the United States and from other countries. Their customers include advertisers, advertising agencies, and traffic distribution partners. Their headquarters are in Westlake Village, California. Conversant stock market evolution:

http://finance.yahoo.com/q?s=CNVR

About John Guiliani

John Giuliani serves as president and chief executive officer and is a member of the board of directors of Conversant. Mr. Giuliani joined the senior management team and board in August 2011 and is a seasoned executive with nearly 25 years of experience in growing successful organizations. His amazing ability to manage and to influence his team is evidenced from his past accomplishments. He also worked for Instant Coupon Machine, CPG sales and with Beecham Products and Frito-Lay, Inc.

Filed Under: Noutati Sabin Piso

Microsoft Rumored to Acquire Minecraft Master Mojang Soon

September 12, 2014 by Sabin Piso

Microsoft

Surprising deal between computer software giant Microsoft and gaming guru Mojang set to complete this week.

The news is out. Microsoft is set to purchase popular and insurmountable Minecraft maker, Mojang. Executives from both companies mention that this deal will benefit not just Microsoft but both companies and this deal could be worth over $2 billion.

The Wall Street Journal was the first to report about this much-awaited deal last Tuesday. Reports also say that the deal between Microsoft and Mojang is now in its final stages and could be completed as soon as this week.

And as the two companies continue to finish all the formal preparations for the sale, industry watchers have something interesting to say about this move. Experts note that the sale is quite surprising.

To remember that Markus Persson Mojang founder has evaded outside investors interested in is company. Persson was also known to be outspoken regarding other large an established companies and firms in the in the past. However for Microsoft, this is one great deal. The company can’t wait to have younger fans more interested in their Xbox gaming consoles as well as new games that will be upcoming next season. The success of Xbox is basically due to the amazing response of its young consumers. Minecraft is basically one of the most challenging build games in PC and the success of Minecraft is partly due to its young players as well.

According to the latest reports about the sale, a spokeswoman for Microsoft declined to provide any comment. Markus Persson on the other hand did not comment about the matter as well. In August 2014, Mojang was reported to hire experts and advisers to help them make up their mind about the sale. All that was revealed was that the deal will be finalized in the last week of September 2014.

It was in 2013 when Mojang marked its amazing market sales. The company has sold over 50 million copies of Minecraft in 2013. This is despite Minecraft being released in 2009. Reports also mention that profits of Mojang for last year alone were over $100 million.

Mojang has reached several licensing deals and the most notable are with Scholastic and Warner Bros. pictures.

A.L. MIjares

About Microsoft

Microsoft Corporation is a multinational corporation from the US. Microsoft headquarters are located in Redmond, Washington. The company is a household name and industry standard in computer software; it develops, manufactures, licenses and sells software for home and office use. It also develops consumer electronics and personal computing systems. Microsoft Corporation stock market evolution:

https://finance.yahoo.com/echarts?s=MSFT+Interactive

About Mojang

Mojang AB is a video game developer from Sweden. As an independent developer for games, it is known for the development, marketing and sales of the game Minecraft. Mojang is proud of its free-to-build sandbox game and at present, the company is developing another game called Scrolls whilst updating Minecraft for its ever growing population of Minecraft gamers. Mojang AB is headquartered in Stockholm.

Mojang

About Minecraft

Minecraft is an indie sandbox game developed by Markus “Notch” Persson and published by Mojang. This game was released for PC use on May 17, 2009 in alpha version and updates have been gradually created for it. An android version was released in October 7, 2011, a full release version on November 18, 2011 and an iOS version on November 17, 2011. Minecraft is available in Xbox 360, Xbox Live Arcade, PlayStation 3 and 4 and on Xbox One. Minecraft has also won a lot of awards and the latest is the Golden Joystick Award in the Best Downloadable Game category in June 25, 2014.

About Markus Persson

Markus Alexej “Notch” Persson is a Swedish video game developer, programmer and designer. He is the co-owner of Mojang and the founder of Minecraft. He has won a number of awards and has gained an advantageous position in the video gaming industry since he launched Minecraft.

About Scholastic

Scholastic Corporation is a US book publishing company. It is known for educational materials developed for schools, teaching staff, teachers, parents and also for children of different ages. Scholastic has a variety of ways of touching the lives of users; from reading clubs, book fairs and through Scholastic online stores. Scholastic is headquartered in New York City, New York, USA. Scholastic stock market evolution:

http://www.marketwatch.com/investing/stock/schl

About Warner Bros.

Warner Bros. Entertainment Inc. is an American fil, television and music producer. It is one of the major film companies in the world. It is a subsidiary of Time Warner and headquartered in Burbank, California and in New York. Warner Bros. is a Motion Picture Association of America (MPAA) member. Warner Bros. Entertainment Inc. Time Warner stock market evolution:

http://www.marketwatch.com/investing/stock/twx

Filed Under: Noutati Sabin Piso Tagged With: Markus Persson, Microsoft, Mojang, sale, Scholastic, Warner Bros

General Electric Sells GE Appliances Brand to Electrolux for $3.3 Billion

September 10, 2014 by Sabin Piso

Home appliance king Electrolux sets to buy GE Appliances from GE; General Electric secures increased profits by 2016

GE

A definitive agreement has been signed between General Electric and Electrolux. The transaction is regarding GE’s plan to sell its appliance brand to Electrolux for $3.3 billion. This is a long term agreement between the two appliance giants to continue GE’s legacy and technology. GE and Electrolux board of directors has approved the transaction and will wait for customary closing conditions as well as regulatory approvals. This partnership is set to close in 2015.

Jeff Immelt, General Electric Chairman and CEO has commented in an interview that this recent transaction with Electrolux is consistent with GE’s commitment to provide the best infrastructure and technology. He mentioned: “We are creating a new type of industrial company, one with a balanced, competitively positioned portfolio of infrastructure businesses with strong advantages in technology, growth markets, driving customer outcomes, and a culture of simplification.”

In 2014, General Electric has undergone massive changes in order to improve its portfolio. One of the most recent steps to reshape the company was taken in June when GE’s offer for Alstom’s Power and Grid was accepted by the board of directors of Alstrom. GE is known as a technology leader when it comes to power and water and is also known to have a higher growth margin when it comes to these industries.

This agreement between General Electric and Electrolux is a part of the company’s 2014 portfolio which highlights longer –term redeployment of GE’s capital from non-core assets like media, plastics and insurance to oil and gas, aviation, power and healthcare which are considered high-margin businesses. By strategizing their portfolio, it is estimated that General Electric will achieve 75% of its profits from its partner industrial businesses by the year 2016.

Immelt continued to comment on the latest sell out: “GE Appliances is a great business and we are proud of the role it has played in GE’s history.” He added “Electrolux is the right global business for our customers, consumers and employees. We have greatly strengthened this franchise in the past few years. GE Appliances’ people, valuable home appliances brand, products, distribution, and service capabilities make it a perfect fit with Electrolux and its goal of accelerating growth in the US. Like GE Appliances, Electrolux has nearly 100-year history in home appliances and they share the same principles of quality, innovation and customer value as GE. They are committed to supporting the growth of GE Appliances and value the GE Appliances team and its capabilities.”

On the other hand, Keith McLoughlin, President and CEO of Electrolux also complemented General Electric’s value as a consumer brand. “GE Appliances is a well-run operation with strong capabilities in key areas such as R&D, engineering, supply chain and consumer service.” He further added that Electrolux is looking forward to joining forces with General Electric and its team of talented and competent workers and employees.

The sale of GE Appliance to Electrolux will generate an approximate after tax gain of $0.05 to $0.07 per share at closing. It is estimated that the transaction values of GE Appliance is at 8.0 times the last 12 months of earnings and this is before interest, taxes, depreciation, and amortization. General Electric’s financial adviser is Goldman Sachs and Sidney Austin LLP is the company’s legal advisor.

Details of this sale will be provided by representatives of General Electric and AB Electrolux after formalities have been settled and the partnership closed next year.

A.L. Mijares

About General Electric

General Electric or GE is a multinational conglomerate corporation in the US with headquarters in Fairfield, Connecticut and incorporated in New York. GE is behind segments such as energy, technology infrastructure, capital finance and consumer and industrial. The company ranked 26th in the Fortune 500 list according to revenue and the 14th as the most profitable in 2011.

http://www.marketwatch.com/investing/stock/ge.

About Jeff Immelt

Jeffery Robert “Jeff” Immelt is an American business executive and current chairman of the board and chief executive officer of General Electric Company. He has held leadership seats in GE since 1982 and these include GE Plastics, Healthcare and Appliances.

About AB Electrolux

AB Electrolux is a leader in kitchen appliances, indoor and outdoor cleaning equipment and professional appliances for businesses. AB Electrolux is a Swedish multinational company with headquarters in Stockholm, Sweden. It is the second-largest manufacturer of appliances when it comes to units sold. Electrolux stock market evolution:

http://www.marketwatch.com/investing/stock/eluxy.

About Keith McLoughlin

Keith McLoughlin is the President and CEO of AB Electrolux since 2011. Keith is responsible for research and development, manufacturing and purchasing for Electrolux Major Appliances. Before he joined Electrolux, he held management positions in DuPont Corporation, Tyvek, Stainmaster and Corian.

Filed Under: Noutati Sabin Piso Tagged With: Alstom’s Power and Grid, definitive agreement, Electrolux, GE, General Electric Appliances, General Electric Corporation, Jeff Immelt, Keith McLoughlin, merger

Compuware SOLD to Thoma Bravo for $2.5 Billion

September 4, 2014 by Sabin Piso

CompuwareTuesday Morning, private, San Francisco-based Thoma Bravo, LLC bought Compuware Corp. for $2.5 billion. The deal, after approval by federal regulators and Compuware shareholders, will leave stockholders with $10.92 per share, a 17% bump up from the closing price of $9.35, Friday.

Thoma Bravo, LLC has been around for over 30 years and has built itself a reputation for being one of the most successful and experienced private equity firms in the United States. The company specializes in consolidating the application software, infrastructure software and technology enabled services sectors.

Thoma Bravo owns a variety of software companies including Attachmate, Deltek and Empirix.

Compuware Corp. is a technology performance company. They have occupied the application management arena for over 10 years. They are best known for their APM (Application Performance Management) software and services that make critical applications work better and faster for businesses.

According to sources, the deal is a longtime coming. The process began back in 2012 when activist hedge fund Elliot Management took stake in the company and offered $11 a share to acquire it. Elliot still owns 9.5% of Compuware and has agreed to vote in favor of the deal.

After Elliot took stake in Compuware, they underwent a series of cost-cutting measures, began paying a dividend and divested under-performing, noncore operations—like Covisint.

“We began with the I.P.O. of Covisint, initiated a robust dividend, divested noncore operations, and aggressively reduced corporate expenses,” Compuware’s chief executive, Bob Paul, said in a statement. “Compuware is now best suited to focus on its core mainframe and APM businesses as a private-equity backed company, where we can continue to serve our customers in a competitive environment with greater flexibility to take a long-term approach.”

Bob Paul says no layoffs planned in the sale of the company.

Filed Under: Noutati Sabin Piso Tagged With: application performance management, Compuware, Compuware buyout, Elliot Management, private equity firm, software companies, Thoma Bravo

Norwegian Cruise Line Holdings Acquires Luxury-Focused Prestige Cruises International for $3 Billion

September 2, 2014 by Sabin Piso

Dawn arrival of Norwegian Cruise Line Sun cruise ship into port of Buenos Aires, Argentina, South AmericaLeading global cruise line, Norwegian Cruise Line Holdings, bought privately held Prestige Cruises International for a little over $3 billion in cash and stock. The deal included the assumption of debt, to add higher-end trips to its fleet and offerings.

In addition, under the terms of the deal, Norwegian Cruise Line could pay up to $50 million to Prestige’s shareholders if the target company meets certain financial performance targets next year.
Kevin Sheehan, Norwegian Cruise Line’s Chief Executive Officer said, “Our complementary strengths and skillsets will pave the way for new cross-selling opportunities, cross-brand collaboration, cross-business support, as well as joint partnerships which, coupled with meaningful synergies that can be quickly implemented, will provide solid accretion to earnings per share and drive long-term shareholder value.”

Norwegian Cruise Line has been around for over 47 years. Breaking away from traditional cruising, the cruise line revolutionized the industry with Freestyle Cruising, giving guests more freedom and flexibility. With 13 Freestyle Cruising ships, guests enjoy resort-style cruises with the most contemporary and modern fleets to date.

The acquisition of Prestige Cruises International is a welcomed undertaking for Norwegian Cruise Line Holdings, as Prestige Cruises are known for offering a more high-end cruising experience with Upper Premium and Luxury segments. Prestige Cruise International is the parent company of Oceania and Regent Seven Seas Cruises, which have both built themselves a reputation for offering exemplary quality cruising. The cruise lines have a limited capacity per ship, ranging from 490 to 1,250 guests. This beats the standard 3,000 plus passengers per ship. The focus on luxury—with superior accommodations, high quality service and gourmet cuisine—has driven the company to lead the industry in Net Yields. This will bolster Norwegian Cruise Line Holding’s ability to compete and capitalize on the high-end cruise line market.

The deal is expected to close by the end of the year.

Filed Under: Noutati Sabin Piso Tagged With: cruises, luxury cruises, Norwegian Cruise Line Holdings, Norwegian Cruise Line Holdings acquires Prestige Cruises International, Oceania Cruises, Prestige Cruises International, Regent Seven Seas Cruises

U.S. Businesses Finding More Ways to Escape the Country’s Heavy Corporate Tax

September 2, 2014 by Sabin Piso

InversionsLikely to cost the government close to $20 billion over the next 10 years, the increasingly popular corporate inversion continues to serve as an easy out for businesses trying to escape the U.S.’s enormous 35% corporate tax.

One of the 50 largest companies in the world, pharmaceutical company AbbVie, joined the growing list of corporate escapees when they completed a $54 billion takeover of the Irish biopharmaceutical innovator, Shire, last month.

But, efforts to pull-the-plug on this major loophole have been slow, if not stagnant, amongst law-makers.

Both Republicans and Democrats have called for legislation to end inversions, but in the absence of a, much needed, corporate tax overhaul and reform.  While congress chooses to ignore the more important issue of reforming the U.S.’s corporate tax, businesses have created other avenues to circumvent taxes irrespective of whether or not legislation pulls-the-plug on inversions, solely.

Not to mention, the mere threat of new legislation to cut off the inversion outlet seems to be quickening the pace of offshore inversions. “Wall Street is whispering in the ears of all these corporate executives saying, ‘Congress might shut this down, you’ve got to do it now,’ ” said Rebecca J. Wilkins, senior counsel at the Institute on Taxation and Economic Policy.

Aside from corporate inversions, U.S corporate tax revenues continue to erode as the result of two additional loopholes being exploited. One of the loopholes is the master limited partnership, where companies pass all profits along to shareholders and are therefore exempt from paying corporate taxes.

The other loophole being exploited is, yet, another pass-through entity much like the aforementioned master limited partnership. The real estate investment trust has also been experiencing record popularity amongst corporate businesses. In the case of the real estate investment trusts, the trusts pass profits along to investors, exempting them from corporate taxes.

These flaws in the corporate tax system and the legislation (or lack thereof) attached to acquiring corporate taxes has created a tremendous stir over social media. The public opinion of Congress and their decision-making process and progress has been unfavorable at best. Many people making some very valid points in their social media posts, such as these:

PogoWasRight had this to say, “It seems to me that our culture has always believed that “fair is fair”. If that is the case, and the SCOTUS has declared that Corporations are people, why then cannot people be considered Corporations and move their assets and income offshore to avoid paying taxes?”

Mike from NYC said, “This is what we need to do to counter these tax inversions. Wake up Congress and tell them that what we need in our country are tax laws which DEEM all money earned by US corporations and their phony-baloney subsidiaries to be US Taxable Income regardless of where it’s earned and regardless of whether the US corporation ever brings that money home.

This is exactly how individual US citizens are treated under the same circumstances. As with individuals, the corporations would, of course, get dollar-for-dollar tax credits for foreign taxes paid on those same earnings.”

It looks like Congress better wakeup before tax revenues dwindle down to next-to-nothing, while businesses continue to search for more loopholes to avoid the corporate tax.

 

Filed Under: Noutati Sabin Piso Tagged With: corporate tax legislation, corporations avoiding U.S. corporate tax, decreasing U.S. tax revenues, Inversions, tax loopholes, U.S. corporate tax

Heineken divests Empaque to Crown Holdings

September 2, 2014 by Sabin Piso

HeinekenFor an enterprise value of $1.23 billion, the Dutch brewer, Heineken NV, agreed to divest its Mexican packaging operations, Empaque, to Crown Holdings Inc. As the world’s third-largest brewer, the divestment follows Heineken’s affirmation to focus and commit itself to being a chief beer producer in the country. The deal will provide the company with more financial flexibility for their Heineken, Amstel, Dos Equis and Sol beer brands. With headquarters in Philadelphia, PA, and global locations, Crown Holdings is the leader in metal packaging technology.

They employ over 21,000 people in over 40 countries and had total revenues of $8.7 billion in 2013. With the Empaque acquisition, Crown Holdings looks to expand its billion dollar empire and position itself as a strong competitor to Rexam, the world’s largest beverage can producer. Heineken’s history with Empaque began in 2010 when Heineken acquired the packaging company as part of its acquisition deal with Fomento Económico Mexicano, S.A.B. de C.V., better known as Femsa.

The all share-transaction valued the company at about $7.6 billion. Amsterdam-based Heineken is expected to post a gain of million euros ($394 million) with the finalization of the deal. The chairman and Chief Executive Officer of Heineken, Jean-François van Boxmeer, had this to say in a statement: “We are confident that Empaque will flourish under its new ownership, and we look forward to our ongoing partnership.” Emaque is expected to post revenues of approximately $700 million and earnings before income tax, depreciation and amortization of about $150 million, according to Crown Holdings. The deal is subject to regulatory approval.

Markets in the United States are closed on Monday for the Labor Day holiday, but shares of Heineken rose slightly to €58.12, in Amsterdam’s morning trading. Crown Holdings closed up less than 1 percent, at $48.27, in trading in New York, the previous Friday.

Filed Under: Noutati Sabin Piso Tagged With: beer, Crown Holdings, Crown Holdings Inc., divestment, Dutch beer, Empaque, Heineken, Heineken divests, Heineken NV, Mexico, packaging company

Tyson Foods Seals a Huge Merger Deal with Hillshire Brands

September 1, 2014 by Sabin Piso

TysonTyson Foods Incorporated got the green light from the United States Antitrust when they approved the $8.5 billion sale of Hillshire Brands Company.

The Justice Department is requiring Tyson to sell its Heinold Hog Markets unit to earn the antitrust approval.

“Today’s proposed settlement will help ensure that hog breeders in the United States will continue to receive the benefits of vigorous competition when selling sows,” said Bill Baer, assistant attorney general for the Department of Justice’s antitrust division.

After share prices of both companies dropped sharply 10 minutes before the Justice Department announced the deal and there was a dramatic increase in stock and options volume, it appeared traders were bracing for bad news.

The Hillshire share trading volume hit 8.07 million shares. Of the total trading volume, 5.5 million shares came several minutes before and after the DOJ’s announcement.

With operations in Illinois, Iowa, Indiana, Michigan, Minnesota and Nebraska, and $270 million in revenue, Heinold Hog Markets buys sows from farmers and resells them to manufacturers. Hillshire buys them to make sausages for its Jimmy Dean and Hillshire Farm brands.

Arkansas-based Tyson, a massive seller of chicken, beef and pork competes with Hillshire in the business of buying sows when they are too old to breed, according to the Justice Department.

“Although the sale of sows constitutes a small percentage of overall revenues, farmers rely on this source of income as an important contribution to their earnings,” the Justice Department said in a competitive impact statement filed with the U.S. District Court for the District of Columbia.

Creating a lot of unrest amongst farmer, consumer and rural organizations, as well as lawmakers, they worried the deal would allow the larger Tyson to have enough power to push down the prices paid to hog farmers, thus driving up prices at the grocery store level.

According to Wenonah Hunter, executive director of Food and Water Watch, “Because Tyson can align its pork slaughter business with Hillshire’s branded processing business, Hillshire products will have a leg up on competitors, who will likely have to raise prices.”

The court must approve the proposed settlement filed by the Justice Department to help prevent future price inflation.

Filed Under: Noutati Sabin Piso Tagged With: Hillshire Brands Co., Tyson and Hillshire merger, Tyson Foods Inc., U.S. antitrust approval

Tendinte in piata de telecom din Romania in 2014-2015

August 28, 2014 by Sabin Piso

published by www.finantesiafaceri.eu

Sabin Piso (www.sabinpiso.com) Director Mergers and Acquisitions la Capital Partners si fost CEO la iLink Telecom (Cobalt IT), ne prezinta cateva trenduri cheie in piata de telecom din Romania si directia operatorilor in anii urmatori.

Sabin Piso este primul om de telecom din Romania care inca din anul 2011 a realizat importanta vitezei din punct de vedere al consumatorului si a fost prima firma de profil din Romania care a oferit servicii de Internet de 100 Mbps pentru abonatii rezidentiali, servicii care nu aveau limita de trafic nici la banda externa Internet si nici la banda metropolitana, venind in intampinarea cererii de viteza a pietei.  Pe scurt pentru 100 de ron pe luna, abonatii iLink puteau descarca cu o viteza de 100 Mbps orice fisier din afara sau din interiorul Romaniei.

Sabin Piso vede cateva directii ca trenduri si strategie de dezvoltare pe piata romaneasca de telco din urmatorii ani:

 

  • Integrarea SMAC (social media, mobility, analytics and cloud)    Viitorul va aduce SMAC in prim plan. Operatorii vor incerca sa introduca serviciile proprii intr-un mod cat mai legat de social media, pentru a putea analiza printr-un proces mult mai avansat comportamentul clientilor sai si cerintele acestora
  • Cross sale cu servicii Cloud     Cresterea cererii pe segmentul cloud a convins operatorii sa investeasca resurse financiare considerabile in acest domeniu.  Operatorii vor face in viitorul apropiat o serie de achizitii a unor firme specializate si vor incerca astfel sa obtina o cota de piata importanta pentru a-si tine abonatii de Internet „captivi”.  Practic, oferind servicii cloud, ei „leaga” abonatul, care de multe ori nu mai reziliaza contractul si nu isi mai porteaza numarul de telefon fiind legat de dependenta generata de aceste servicii aditionale
  • IoE, Internet on everything      Internetul pe orice echipament a inceput sa se dezvolte deja in ritm alert.  IoE arata posibilitatile de expansiune a serviciilor de Internet pentru ca IoE va integra aceste servicii de transfer de date in orice echipament existent in orice casa.  Cateva exemple ar fi: contoarele de apa, gaze, electricitate, sisteme automate pentru navigatie automobile si pilot automat, gps tracking, frigidere care iti vor trimite lista de cumparaturi in mod automat, lumina din casa reglabila de pe smart phone, aerul conditionat, jaluzelele, etc.  Operatorii telecom vor dezvolta astfel parteneriate cu producatori de astfel de device-uri controlabile prin Internet, pentru a creste din nou „nivelul de captivitate” al abonatului
  • Crestere masiva de trafic in retea, de 3 ori mai mare, care pana in anul 2018 va genera investitii masive in infrastructura     Traficul video va creste continuu in perioda urmatoare ajungand sa reprezinte in anul 2018 un procent de 79% din totalul traficului IP fata de 66% din anul 2013.  Aceste cresteri sunt datorate rezolutiilor si sistemelor nou introduse de tipul ULTRA HD (4K) si HD care au prins o cota de piata din ce in ce mai mare in ultima vreme (estimare CISCO).  Secventele Ultra HD vor ajunge sa reprezinte in 2018 11% din total IP traffic pornind de la 1%  in 2013 aratand un interes destul de important al clientului pentru acest nivel de calitate a imaginii.  In acelasi timp un lucru foarte important este viteza medie globala de Internet care a fost masurata in 2013 ca fiind 16 Mbps iar estimarile pentru 2018 arata ca se va tripla pana atunci la o medie de 42 Mbps.  In acelasi timp si tabletele au o crestere previzionata de 74%, Smartphone-urile 64%, televizoarele 18% si PC-urile 10%
  • Colaborarea interactiva    Incorporarea de servicii de colaborare profesionala interactiva online promite sa transforme modul in care intreprinderile si organizatiile vor lucra pe viitor.  Astfel corporatiile vor optimiza cheltuielile cu forta de munca, angajand forta de munca de oriunde din lume si obtinand eficienta prin sisteme de colaborare online.

Luand in calcul trendurile explicate mai sus, observam tendinta de convergenta mobil – fix care este deja bine stabilita pe multe piete pentru ca toate aceste sisteme converg asupra unui singur element foarte important: VITEZA de transfer.

In acest mediu concurential viitor, operatorii telecom care ofera atat servicii telecom fixe cat si mobile au un avantaj evident asupra rivalilor lor exclusiv de telefonie mobila.

Operatorii telecom pot creste veniturile prin stimularea de achizitie a clientilor si venitul mediu per utilizator. In plus pot realiza simultan economii substantiale prin reducerea costurilor in domenii cum ar fi costul de vanzare, achizitie client si a operatiunilor.

Intre timp, operatorii de telefonie mobila se confrunta cu propriile probleme de retea. Pana in prezent, operatorii de telefonie mobila s-au bazat pe operatorii de retea fixa pentru a asigura capacitatea de backhaul inchiriate, crescut in mediul rural, cu retele de microunde. Dar cresterea remarcabila in banda larga mobila in ultimii doi ani a fortat operatorii de telefonie mobila sa se confrunte cu o amenintare dubla, atat pe partea de retea cat si pe partea financiara.

Ca pura consecinta a celor explicate mai sus, operatorii de telefonie mobila se vor confrunta cu o provocare tot mai mare pentru a mentine nivelul de venituri si profitabilitate. Pierderea cotei de piata de telefonie mobila in avantajul pachetelor mai bogate de servicii vor eroda probabil veniturile lor curente si viitoarele oportunitati de venituri vor fi pierdute de asemenea pentru ca operatorii traditionali pe infrastructura fixa captureaza cea mai mare pondere de agregare a abonatilor.

Concluzia este ca in momentul de fata operatorii de servicii mobile se uita la achizitii de operatori pe infrastructura fixa, cu scopul de a-si proteja afacerea existenta si cota de piata si de a obtine o pondere viitoare cat mai mare, aceasta strategie fiind deja o obligativitate pentru a proteja compania impotriva distrugerii de valoare.

Sabin Piso vede in Romania un val de achizitii in felul urmator:

–        Akta (DCS) va fi preluata probabil de UPC Romania pentru ca UPC in momentul de fata este cu mult in urma concurentei, respectiv a RomTelecom si a RCS-RDS, ca numar de abonati si servicii dar de asemenea estimeaza ca in urma integrarii, acestia vor pierde undeva la 25-30% din abonatii preluati incat infrastructurile celor doua companii sunt diferite iar Akta a cumparat abonati de la retele de cartier doar pentru a-i revinde fara a oferi o valoare adaugata printr-o integrare intr-o infrastructura noua cu acelasi nivel de servicii in toate judetele in care au acoperire.  Pe scurt Akta cumpara un abonat de la o retea de cartier cu X euro si il vinde 4 luni mai tarziu cu X * 2,5 fara a investi in acestia.  Ramane de vazut daca cineva va accepta si va plati aceasta diferenta de bani fara sa primeasca o valoare adaugata prin integrare si upgrade.

–        UPC Romania va fi parte probabil in circa 8-12 luni dintr-un deal zonal pe Europa care va fi facut cu Vodafone, care la randul lor au fost destul de clari ca sunt interesati de infrastructura fixa in ultimul an, fapt vizibil de asemenea prin urmarirea achizitiilor si interesului acestora mentionat de presa in diverse randuri.

Pe piata locala  doar RCS-RDS a aratat cu adevarat putere de inovatie prin content, implementand un sistem de canale video proprii, prin sistemul FTTH G-Pon, prin infrastructura de telefonie mobila si ofertele net superioare competitorilor si prin faptul ca RomTelecom (Deutsche Telekom) a decis introducerea brandului T-Mobile si integrarea Cosmote pentru a le face fata acestora.

Concluzionand, piata este foarte agitata in acest moment si numai jucatorii care au curaj si care investesc masiv luand in considerare aceste trenduri noi vor castiga aceasta competitie.

 

Filed Under: Noutati Sabin Piso Tagged With: 100 mbps, akta, cobalt it, cosmote, dcs, ftth, g-pon, ilink, ioe, romanian telecom, Romtelecom, Sabin Piso, smac, T-Mobile, ultra hd, upc romania

Tendinte in piata de FMCG in 2014

August 28, 2014 by Sabin Piso

Piata de retail FMCG (fast moving consumer goods) din Romania a inceput deja sa se schimbe destul de rapid in ultimii ani, insa schimbarile majore in strategie vor aparea in 2014.

Am discutat in acest sens cu Sabin Piso – (www.sabinpiso.com) – Director Mergers and Acquisitions la Capital Partners, care a identificat ce se va intampla in acest sector in urmatoarele 12 luni in Romania, stabilind trenduri ce vor impacta producatorii si retailerii:

• Crestere in Multi-Format Cumparatorul are nevoie sa evolueze, astfel si oferta de pe piata trebuie sa tina pasul cu aceasta evolutie.  Retailerii care o sa aiba un mai mare succes in viitor sunt clar cei care vor dezvolta o retea mult mai complexa de vanzare care sa satisfaca orice nevoie. Astfel, retelele puternice se vor dezvolta pe toate nivelurile, respectiv vor deschide si „magazine de proximitate”, supermarketuri orientate numai pe zona de premium si vor merge si pe directia e-commerce (magazine online cu livrare la domiciliu.

• De la acoperire regionala la nationala Producatorii importanti sunt recunoscuti ca aleg ca parteneri lanturile de retail care au o rata de dezvoltare agresiva, o strategie pe termen lung de acoperire a intregii zone geografice a tarii si care sa fie si un jucator international. Acest trend impus de producatori isi spune cuvantul in strategia lanturilor de retail care au inceput sa se adapteze cererii. Producatorii prefera sistemul de retail modern (organized trade sau IKA, international key accounts), decat cel de retail traditional (magazine sau boutique-uri mici in diverse locatii, denumit traditional trade) datorita unor elemente cheie: management avansat al stocurilor, platile se fac in termeni clar stabiliti, siguranta ca firma respectiva isi pastreaza angajamentele, logistica optimizata deoarece retele de tipul organized trade cum ar fi Kaufland, Selgros, etc. au depozite centrale proprii si astfel distributia catre magazinele acestora din diverse localitati se va face intern, reducand costurile de transport ale producatorului fata de traditional trade unde logistica trebuie sa alimenteze fiecare magazin distinct cu produse in mod repetat.

• Vanzarile on-line (e-commerce) Acest canal este inca experimental pentru retaileri si nu reprezinta un procent mare din vanzarile acestora dar totusi trendul este pozitiv iar estimarile spun ca acest canal va avea o crestere enorma in anii urmatori. Retailerii se concentreaza inca la incurajarea clientilor pentru a face cumparaturi mai mari online fata de alegerea stricta bazata pe preturi mici si produse putine in functie de promotiile oferite de website.

• Cumparatorul roman va fi din ce in ce mai complex Cumparatorul roman incepe sa isi schimbe comportamentul. Acesta cumpara utilizand mai multe canale de achizitie, urmarind mai mult promotiile. Cum accesul online la informatie e din ce in ce mai facil, aplicatiile pentru smartphone din ce in ce mai bune si mai multe, cumparatorul comunica cu foarte mare usurinta acum si transmite foarte usor si prietenilor sai aceste obiceiuri.

Cumparatorii pot sa compare mult mai usor preturile produselor si chiar sa plateasca folosind telefonul mobil. Acest acces la mediul online ii ofera cumparatorului libertatea de a fi mult mai critic si mai atent.  Astfel toate lanturile de retail vor lucra in urmatorii ani impreuna cu producatorii pentru a structura o strategie de crestere comuna pentru a intelege comportamentul acestor cumparatori.

Aceste posibilitati de crestere vor genera consolidari de piata in randul producatorilor prin fuziuni sau achizitii, consolidari ce vor permite producatorilor sa aiba un cuvant mai greu de spus in fata lanturilor de organized trade (IKA), sa aiba margini de profit mai mari prin sinergiile obtinute din integrare si sa be-neficieze total de cresterea viitoare a pietei prin aceste canale noi.

Astfel, ne asteptam ca in 2014 sa existe minimum 2 tranzactii in domeniul snack-uri unde piata este foarte fragmentata si unde o astfel de consolidare ar fi foarte benefica.

published by www.finantesiafaceri.eu

Filed Under: Noutati Sabin Piso Tagged With: Capital Partners, cobalt it, fmcg, ika, ilink, M&A, piata fmcg, tendinte fmcg

ABB Finishing Off a Series of Divestments with the Sale of Its Full Service Business Unit to Nordic Capital

August 21, 2014 by Sabin Piso

ABBPrivate equity company, Nordic Capital, bought Swiss engineering company ABB’s Full Service business unit on Wednesday, August 20, 2014 for an undisclosed amount.  This is the latest in a string of divestments of its non-core operations.

This is what Spiesshofer had to say about the divestments, “With the agreed sale of our Full Service activities we now have found a new home for five businesses in eleven months that have no substantial synergies with the rest of our portfolio, raising about $1 billion.”

Subjected to regulatory approval, ABB’s new Chief Executive Officer, Ulrich Spiesshofer said he expects the sale to close in the fourth quarter.

ABB is a multinational corporation that operates mainly in robotics and the power and automation technology business. It is one of the largest engineering companies in the world. It has operations in approximately 100 countries.

ABB’s “power and productivity for a better world” slogan is so aptly reflective in their methodical divestment ventures. In August, 2007, ABB sold ABB Lummus Global business to Chicago Bridge & Iron Company for $950 million. In 2008 the company sold its 50% stake in the shares of ABB Powertech Transformers to Powertech at a gain of $11 million. In 2013, they sold all assets of Baldor’s generator-set business to Generic Holdings, Inc.

Then in February of this year, ABB sought out to divest several more units to raise more than $1 billion in total proceeds. In May, the company completed the sale of Thomas & Betts’ heating, ventilation and air conditioning business (under the Reznor brand) to Nortek, Inc. The deal closed for $260 million in an all-cash transaction. In June they completed the sale of Power-One’s Power Solutions business to Bel Fuse Inc. for approximately $117 million. Then, just a couple days ago, ABB completed the sale of Thomas Betts’ Meyer Steel Structures business to Trinity Industries. The deal closed for $600 million in an all-cash transaction.

Filed Under: Noutati Sabin Piso Tagged With: ABB, ABB divestment, Abb full service, ABB Full Service business unit, ABB Lummus, ABB powertech transformers, Baldor, Bel Fuse, Chicago Bridge Iron Company, Generic Holdings, Meyer Steel Structures, Nordic Capital, Nortek, Power-One, powertech, Reznor, swiss engineering company, Thomas & Betts, Trinity Industries, Ulrich Spiesshofer

PetSmart Considering LBO after Sales Drop Last Quarter

August 20, 2014 by Sabin Piso

PetSmartFounded in 1986, PetSmart, Inc. is the largest retail chain operating in the U.S., Canada, and Puerto Rico. The company not only offers a broad range of pet products, it also offers in-store services including boarding, pet adoption, grooming and training.
While PetSmart is one of the leading online providers of pet supplies and pet care information, same-store sales for the $6.8 billion pet-care company fell last quarter for the first time in about a decade as competition with Amazon.com Inc. and other retailers increase.

A declining share price and the same-store sales fall can appear as early warning signs to activist investors who target undervalued companies to shake them up. Jana Partners LLC and Longview Asset Management LLC own almost 20% of PetSmart and are calling for a sale.

According to John Tomlinson, a New York-based analyst at ITG Investment Research, “PetSmart has gone from a retail darling to where it is now. This company is far from being in any sort of dire straits, but it’s just that the change happened relatively quickly and people are worried that if they don’t get more aggressive, the business could deteriorate further. There’s probably a lot of discussion going on about what the best alternatives for the company would be.”
Still, PetSmart has a lot going for them as they consider possibilities as a result of the company’s recent decline in sales. Their high free-cash flow yield and low debt relative to earnings open up several ways to boost returns, according to shareholder Olstein Funds.
Aside from the leverage buyout (LBO) option, PetSmart may also consider a merger with Petco. A merger with Petco, as either the buyer or seller, can boost the stock into the $80 range, while an LBO could take place in the mid to high $70s, said Daniel Johnson, of River Road Asset Management LLC. (River Road Asset Managment oversees about $10 billion and owns PetSmart shares.)
As of Tuesday, PetSmart has stated it would explore a potential sale of the company, caving to pressure from several shareholders.

 

Filed Under: Noutati Sabin Piso Tagged With: activist investors target PetSmart, Daniel Johnson, Inc., ITG Investment Research, Jana Partners, John Tomlinson, LBO, Leveraged Buyout, Longview Asset Management, Petco, PetSmart, Possible PetSmart Petco merger, River Road Asset Management

Another Healthcare Conglomerate Emerges from Genesis and Skilled HealthCare Group merger

August 20, 2014 by Sabin Piso

M&A 23 - GenesisFor $5.5 billion, Skilled HealthCare Group and Genesis Healthcare Group merged in an all-stock deal to create one of the largest U.S. operators of long-term care facilities.

Skilled Healthcare shareholders will own 25.75% of the equity in the combined company. Genesis shareholders will own the other 74.25%.

Under the Genesis HealthCare name, the combined company will have approximately 95,000 employees and operate more than 500 nursing homes, assisted-living facilities and rehab centers in 34 states.

As a result of President Barack Obama’s Affordable Care Act tying payments to improved patient outcomes and cuts in Medicare insurance reimbursement rates, hospitals and healthcare providers are being driven to consolidate. 

George V. Hager Jr., CEO of Genesis, and who will be the CEO of the combined company, said the merge evolved as a result from the challenges in the post-acute health care industry created by a, “constantly changing health care environment.” The deal will allow Genesis, a privately held company, enter the public domain and enter new markets with its sub-acute, long-term care facilities and rehabilitation services.

Skilled Healthcare CEO, Robert Fish, who happens to be the former CEO for Genesis said he believes “scale and the ability to drive efficiencies will be critical to future growth,” stressing the need for consolidation.

“The combination will expand our core business lines, significantly diversify our markets, provide opportunities for increased efficiency and enhance our collective ability to provide the highest quality patient care,” Fish said.

The deal is expected to close in early 2015 after it passes regulatory approval.

A filing with the Securities and Exchange Commission denotes, Genesis obtained $1.15 billion in debt financing commitments to cover the costs of the merger with Skilled Healthcare Group, which includes paying Skilled Healthcare Group’s debt.

Filed Under: Noutati Sabin Piso Tagged With: Genesis HealthCare and Skilled Healthcare merger, Genesis HealthCare System, George V. Hager, Healthcare conglomerate, healthcare mergers, medicare, Robert Fish, Skilled Healthcare Group

Steve Madden Acquired Dolce Vita Holdings for $60 Million

August 20, 2014 by Sabin Piso

Steve MaddenSteve Madden shoes have adorned the shelves of many a closet wall since the monster company was founded in 1990. Now the mogul of the shoe industry has walked themselves into a $60 million deal with privately held Dolce Vita Holdings, Inc.

Steve Madden has established itself in the design industry as fashion-forward in the design of footwear and accessories for women, men and children. The company not only markets products under its own brand, it is the licensee of various brands. Steve Madden, Ltd. also designs and sources products under private label brand names for various retailers.

Founded in 2001, Dolce Vita Holdings, Inc. is a company specializing in the design, sourcing and sale of branded and private label footwear. The company sells its fashion-forward footwear to wholesale customers, including department stores, boutiques, and online on their website. Last year Dolce Vita had net sales of around $111 million.

Edward Rosenfeld, Chairman and Chief Executive Officer of Steve Madden commented, “We are very pleased to complete the acquisition of Dolce Vita, a brand that is known for its chic, modern styles and strong following among trend-conscious consumers. We see significant opportunity to expand the business by combining Dolce Vita’s strengths – which include an outstanding brand and superior design – with our proven business model and infrastructure. We are particularly pleased that the founders Van and Nick will remain with Dolce Vita and continue to lead the business into its next phase of growth.”

Van Lamprou and Nick Lucio, Founders of Dolce Vita, shared similar sentiments, “We are excited to be joining the Steve Madden family. We are very proud of what we have built at Dolce Vita over the last 13 years, and we believe that Steve Madden is the perfect partner to help the brand reach its full potential. We look forward to working with the Steve Madden team to take Dolce Vita to new heights in the coming years.”

 

Filed Under: Noutati Sabin Piso Tagged With: Dolce Vita, Dolce Vita Holdings, Edward Rosenfeld, Inc., Ltd., Nick Lucio, Steve Madden, Steve Madden acquires Dolce Vita, Steve Madden shoes, Van Lamprou

SmartThings Acquired by Samsung for $200 Million

August 17, 2014 by Sabin Piso

SmartThingsHome startup SmartThings, backed by PayPal co-founder Max Levich, was acquired by Samsung for $200 million last week. Samsung won the deal over several other prospects. Chief Executive Officer for SmartThings, Alex Hawkinson, says SmartThings “will operate as an independent company within Samsung’s Open Innovation Center group.”

The platform for SmartThings enables the consumer to control their appliances, electronics and such, like lights and garage doors, over the internet and through a phone application.

SmartThings, which is owned by the Physical Graph Corporation, raised over $15 million in venture capital from Greylock and Russian investor Yuri Milner, to name a couple.

“SmartThings has created a remarkable universe of partners and developers and now has the most engagement of any smart home platform in the world,” according to David Eun, Head of the OIC. “Connected devices have long been strategically important to Samsung and, like Alex and his team, we want to improve the convenience and services in people’s lives by giving their devices and appliances a voice so they can interact more easily with them. We are committed to maintaining SmartThings’ open platform, fostering more explosive growth, and becoming its newest strategic partner.”

SmartThings has received criticism for the buyout. Many folks expressed concerns like whether or not SmartThings’ new parent company might shut down any iOS development. Another concern was whether or not SmartThings would drop its free service and elect to start charging monthly fees.

All of these concerns were met with a resounding, “no,” from founder of SmartThings, Alex Hawkinson, over social media.

According to David Eun, “With Samsung behind us, we will be able attract more device makers and developers to unlock the limitless possibilities of the consumer Internet of Things. We are thrilled to become part of the Samsung family and continue our goal in making every home a smart home.”

Filed Under: Noutati Sabin Piso Tagged With: Alex Hawkinson, Greylock, Max Levich, OIC, paypal, phone app, Samsung, Samsung acquires SmartThings, Samsung Electronics, Samsung’s Open Innovation Center, SmartThings, start-up business, Yuri Milner

Coca-Cola Takes a 16.7% Stake in Monster Beverage Corporation for $2.15 Billion

August 17, 2014 by Sabin Piso

CokeQuenching its thirst for the energy-drink market, Coca-Cola Company agreed to a 16.7% stake in Monster Beverage Corp. for $2.15 Billion. By the close of the New York stock exchange, Monster rose 30% and Coca-Cola gained 1.7%.

Coke’s attempts to tap into the energy-drink market have fallen flat compared to its counterpart. Coke energy brands earned $330 million last year while Monster raked in a whopping $2 billion. The deal included the transfer of Coca-Cola’s lack luster energy drinks Full Throttle, NOS, Play, Mother and Burn to Monster. In turn, Monster will transfer its Hansen’s natural sodas and juices, Peace tea and Hubert’s lemonade to Coca-Cola.

Both companies will share marketing, production and distribution. Coca-Cola will expand its distribution of Monster globally to give the brand more exposure around the world. In effect, Coke could be transferring approximately another $1 billion on value to Monster.

80% of Monster’s sales come from the U.S. This leaves Coca-Cola with the opportunity to take advantage of an untapped market, internationally.  Analyst, Bonnie Herzog, had this to say about Coke’s potential with the energy-drink, “Monster is relatively underpenetrated internationally… The partnership will significantly accelerate Monster’s international market share.”

In addition, Coca-Cola can increase its stake in Monster to 25 percent, but is prohibited from increasing its stake beyond that point for four years without Monster’s approval.

This isn’t Coke’s first deal this year. Back in January, Coke acquired 10% stake in coffee company, Keurig Green Mountain for approximately $1.25 billion and later increased its stake to 16%. According to John Sicher, editor of Beverage Digest, “What Coke is doing is both carefully and dramatically beginning to use deals to enhance its growth. It’s a smart and conservative way to branch out into these areas.”

Filed Under: Noutati Sabin Piso Tagged With: Beverage Digest, Burn, Coca-Cola, Coca-Cola acquires Monster, Coke, energy drink, Full Throttle, Hansen’s natural sodas and juices, Hubert’s lemonade, Keurig Green Mountain, Monster, Monster Beverage Corp, NOS, Peace tea, Play

Chiquita Forgoes Curtale and Safa’s Bid to Merge with Fyeffes

August 17, 2014 by Sabin Piso

Chiquita BananaLooks like the saucy icon, Carmen Miranda, will have to up her charisma as tensions rise over Chiquita Brands International Inc.’s rejection of the Curtrale and Safra Group’s joint takeover bid .

“Cutrale-Safra is disappointed that the Chiquita Board simply rejected the Cutrale-Safra proposal without making any effort to reach out to the representatives of the Cutrale Group or the Safra Group to explore the Cutrale-Safra proposal.”

Now, Cutrale and Safra are trying to convince shareholders to reject Chiquita’s planned takeover of the Ireland-based company, Fyffes.  Chiquita countered and contends that the Fyffes deal was the best course for shareholders.

Combining the tropical fruit company (Fyffes) and Chiquita has the potential to produce $4.6 billion in annual revenue and ship approximately 160 million boxes of bananas each year, jumping ahead of its competitor, Dole Food Company.

Not to mention the money that could be saved by moving Chiquita’s headquarters to Ireland. This is known as an inversion and many companies have resorted to buying out companies abroad for the expressed purpose of saving huge sums of money in taxes. However, Chiquita insists the merge of the companies is not tax-driven and that they will continue to be a U.S. taxpayer with their U.S. operations still subject to U.S. taxes.

Chiquita is firm on their plans to forgo the Cutrale and Safra deal to pursue the $1.07 billion all-stock deal with Fyffes. The Fyffe’s deal would create the world’s largest banana company and they would be aptly renamed ChiquitaFyffes.

The combined company will also look to expand to Asia and the Middle East where banana consumption is low.

Wall Street Journal’s MoneyBeat reporter, Paul Vigna asks, “Why this deal? Why now?” To which Peter Evans, reporter from London, explains, “Demand for bananas is going up, fueled by improvements in shipping and technologies, so bananas can be stored and transported to market in 20 days now, whereas previously it was around 45. That is facilitating this demand. But, also, as you’d expect with something like this, an emerging market demand where previously bananas couldn’t be shipped is driving that market. It makes sense for the two companies,  which have quite a diverse spread of joker fees between them, to do this deal right now and ride that wave of expanding banana demand.”

Filed Under: Noutati Sabin Piso Tagged With: Bananas, Carmen Miranda, Chiquita, Chiquita Brands International Inc., ChiquitaFyffes, Curtrale, Cutrale, Fyffes, Safra, Safra Group

Electrolux Looking to Acquire General Electric’s Appliance Division

August 15, 2014 by Sabin Piso

GEYou may have heard of Electrolux, the company sells under brands such as Frigidaire, AEG and Zanussi as well as its own name. It is one of the world’s largest manufacturers of household appliances and is looking to acquire its conglomerate counterpart in the appliance business, General Electric.

A Swedish company, Electrolux, sells about 50 million products per year. Based in Stockholm, they sell home appliances in 150 markets. Approximately half their sales are from the United States, Brazil and the Americas. Acquiring General Electric would seem the most natural move for the thriving corporation and one that would benefit both parties considering the direction G.E. is headed.

Sales for Electrolux reached $15 billion, last year. The company also posted better quarterly profits than expected. To compare, G.E.’s revenue for 2013 in their appliance and lighting departments was $8.3 billion.

While G.E. and Electrolux are in talks, no deal is being levied at this juncture. G.E. was noted to have stated they are “evaluating a wide range of strategic options for our Appliances business, including discussions with Electrolux and other interested parities.” Those other interested parties being Quirky, who was reported by Bloomberg News to have said they would team up with private equity firms to acquire a majority stake in the company.

While General Electric became recognized for its appliances and became a household name for many in the U.S., in recent years the company has shifted focus to its core industrial businesses. A strategy sought after by G.E.’s Chief Executive Officer, Jeffrey R. Immelt, post the 2008 financial crisis that rocked the company hard.

The company’s most notable sales for their perimeter businesses include the NBCUniversal to Comcast for close to $30 billion. Then in June, they sold their Scandinavian consumer finance business to Spanish lender Banco Santander for $935.6 million.

Filed Under: Noutati Sabin Piso Tagged With: AEG, Banco Santander, Electrolux, Frigidaire, G.E., G.E. Appliance business, General Electric, Jeffrey R. Immelt, Quirky, Zanussi

Phaidon Acquires Online Artspace.com

August 15, 2014 by Sabin Piso

ArtspaceThe Internet startup, Artspace.com that sells works by contemporary artists, was acquired by Phaidon today for an undisclosed sum. Phaidon is a publisher of art and design books and has an online presence of its own, but has been looking to expand.
Artspace.com is renowned as the premier marketplace for contemporary art. The Wall Street Journal has boasted, “Artspace…offers a more populist approach to collecting…by leveraging an extensive network of partnerships with galleries, museums, & foundations…”
Another benefit to Artspace is their coveted mailing list which includes 244,000 email addresses. “Companies can make money online by expanding their customer base or by offering more exclusive and expensive artworks,” said Clayton Press, art professor for New York University. And Artspace has that customer base as Catherine Levene co-founder of Artspace pointed out, “Artspace has the base: its mailing list includes 150,000 active art collectors. […] There’s purchasing power behind the lists.” NYU’s Press estimates there are 150,000 to 200,000 collectors globally who spend more than $50,000 year on contemporary art.

The owner of Phadion, Leon Black, is a noted art collector as well and joins the flock in the latest gust of mergers that have been shaking up the internet art market.

Just last week, Demand Media Inc. paid out $17 million in cash and stock for Saatchi Art, which offers works by 45,000 artists online. Sotheby’s, an online auction and private sales of fine art is said to be forming a partnership with Ebay Inc. to expand their customer base. In 2013, Amazon Art began selling art from international galleries.

In an interview with Levene regarding the acquisition she sounded enthusiastic and positive, “It’s the perfect home for Artspace,”. The company’s mission “has always been to make great art accessible to a wider audience. It’s exciting to have a partner who shares our vision.”

While Levene will remain CEO for Artspace, her co-founder, Christopher Vroom will pursue other interest after the transition.

Filed Under: Noutati Sabin Piso Tagged With: Amazon Art, art collectors, art dealers, Artspace, artspace.com, Christopher Vroom, Demand Media, ebay, internet art merger, Leon Black, Phaidon, Sotheby

Steve Ballmer Clips Donald Sterling of the Famed N.B.A Team the L.A. Clippers for $2 Billion

August 14, 2014 by Sabin Piso

MLA Clippersonths ago, Donald Sterling achieved infamy and national attention after making disparaging comments to his girlfriend about blacks—all recorded on tape. The, now former, Clippers owner earned himself a lifetime ban from the league and was fined $2.5 million for his uncouth and defiant behavior.

The N.B.A.’s Commissioner, Adam Silver, gave Donald’s wife Rochelle permission to sell the team before Donald was officially removed by vote. That’s when former chief executive of Microsoft, Steve Ballmer, stepped in.

Finalizing the deal for a whopping $2 billion, outbidding his opponents by $400 million, Ballmer became owner of the L.A. Clippers. Clippers fans and the team are thrilled about the transition. Head coach for the team, Doc Rivers, had this to say about Ballmer, “This is an amazing new day in Clippers history. I couldn’t be more excited to work together with Steve as we continue to build a first-class, championship organization.”

Ballmer shares a passion for basketball and for winning, two things not seen in Sterling. Sterling had a penchant for ruining teams. With Sterling came the ominous sign of bad things to come, even with the fortune of having some of the most reputable players in the league such as Blake Griffin and Chris Paul. Ballmer’s sheer presence will give the team the positive push they’ve been lacking all this time.

The optimism for the Clippers’ new owner was palpable at a news conference last month to introduce Lakers Coach Byron Scott when Magic Johnson said, “You’re talking about a guy who wants to win, who loves basketball. He’s going to do everything he can to put them in a championship situation because he wants to win so bad.”

In the meantime, Sterling continues to hangs on like dead weight with his $1 billion antitrust suit against the league and Silver, to which the N.B.A filed a counterclaim to recover damages from the “incalculable harm” Sterling’s recorded remarks caused the league.

Filed Under: Noutati Sabin Piso Tagged With: Adam Silver, Byron Scott, Clippers, Doc Rivers, Donald Sterling, Magic Johnson, Rochelle Sterling, Steve Ballmer, Steve Ballmer buys Clippers

Agent Provocateur Owner Seeking the Right Price to “Strip” Him of His High-End Lingerie Company

August 14, 2014 by Sabin Piso

Sexy and classy high-end lingerie company, Agent Provocateur, could fetch close to $337 million for 3i group, which owns a majority stake in the company. 3i has asked Goldsachs to open theAgent provocateur kimono and run a potential sale of the chain.

Last year, Neiman Marcus and Saks were sold in multibillion dollar transactions. Agent Provocateur is looking to add to this short list of luxury retailers ready to sale their companies to investors. Investors are clamoring for the opportunity to take advantage of the sales, as wealthy customers are still willing to spend despite economic setbacks.

 

Agent Provocateur was birthed in London’s Soho neighborhood. The company soon established itself as both a novelty and undergarment store and sells both sexy and saucy items. The owners unabashedly create alluring, but scantly clad advertisements that have been banned from television from time-to-time—only adding to the company’s enticing reputation and mystique.

 

Now operating in 31 countries, from Hong Kong to Milan, the retailer earned itself over $6.3 million during its last fiscal year. That’s more than double its earnings from the year prior.

 

As they look to continue their global expansion in locales that include San Francisco, Los Angeles, Toronto and Calgary, Agent Provocateur collaborated with A-list celebrities Penelope and Monica Cruz for their 2013 lingerie line. The July, 2013 launch of the collaborative efforts proved to be an enormous success, according to the directors of the esteemed company. The momentum from the 2013 lingerie line success carried the company into 2014.

Attesting to the company’s continued success and appeal, to potential buyers, the directors of Agent Provocateur had this to say, “While the global economic outlook still remains unsettled, particularly in Europe, the directors are satisfied that the business is in a very robust position to move forward.”

Filed Under: Noutati Sabin Piso Tagged With: 3i group, Agent Provocateur, Agent Provocateur for sale, Goldsachs opens the kimono, high-end lingerie, lingerie line, Neiman Marcus, Penelope Cruz, Saks, Sexy and classy high-end lingerie

Huge Wave of Hospital Mergers Could Drive Up Healthcare Costs

August 11, 2014 by Sabin Piso

Hospital MergersThe potential for rising healthcare costs has only grown over the last four years due to a sudden, yet persistent influx of hospital mergers and acquisitions.

In 2012, the number of deals had nearly doubled since 2009. The last time the market has seen a surge in hospital mergers of this magnitude was in the ‘90s.

The driving force behind the consolidations, among other things but most of all, is Obama’s Affordable Care Act. Experts say the law is transforming the economics of healthcare, pushing hospitals to join forces in a strategy to increase their size, thus ramping up their negotiating pull with insurers. In addition, the mergers reduce costs and in turn can prevent compromised care.

Managing director for BMO Capital Markets, David Johnson—a company responsible for advising nonprofit health systems—had this to say, “There’s immense logic for them to become large super-regional systems, even some national systems.” Consulting firm, Booz & Company echoes Johnson’s sentiments, predicting 1000 of the nation’s 5000 or so hospitals are likely to seek out mergers within the next five to seven years.

Hospital executives say the changes to the health care industry under the ACA have created a struggle for many hospitals. For starters, patient admissions are declining and payments from the federal government are lowered. Exacerbating matters, hospitals are experiencing principal changes in how they are paid under the ACA and private insurers.

Instead of being paid according to the number of admits (the more the better) and the number of tests and procedures accrued, hospitals bear some responsibility in the total cost of patients’ care.

But, with the growing number of mergers there’s concern the lack of competition will lead to another rise in healthcare costs. This has gone largely unchallenged by federal regulators.

Last year alone, 98 hospital and health system conglomerates formed. 70 of which the buyer was a nonprofit acquiring a nonprofit, 17 were for-profits acquiring nonprofits, and the remaining 11 were for-profits acquiring for-profits. And the marathon of mergers and acquisitions continues…

Filed Under: Noutati Sabin Piso Tagged With: Affordable Care Act, BMO Capital Markets, Booz & Company, David Johnson, health system acquisitions, health system mergers, hospital acquistions, hospital conglomerates, hospital mergers

Square Acquires Caviar for $90 million

August 10, 2014 by Sabin Piso

SquareSquare acquires Caviar, how’s that for a deal? The names are as attractive and clever as the businesses themselves. The entire Caviar team will join Square in a $90 million, all-stock acquisition is the perfect accompaniment to Square Inc.’s expansive and comprehensive business. The entire Caviar team will join Square.

Square offers a wide range of services including, but not limited to, Square Reader, a reader application for internet accessible devices allowing businesses to use them to accept credit cards for purchases; Square Cash, offers a convenient way to send and receive money; Square Market, enables users to easily access and shop online; and Square Order, an application allowing people to place online orders at their favorite restaurant or grocer for pick-up at a predetermined time with an 8% transaction fee.

Caviar is the perfect adjunct to Square Order (and vise versa) and will prove to be very lucrative as both companies already have a strong customer base in this niche market.

Caviar, a San Francisco, CA based company, is a food delivery service business. The rapidly growing company delivers for local restaurants that don’t otherwise offer delivery to their customers. The company has grown by over 500% year after year and has an 80% return customer rate.

Now that Square has acquired the delivery service, Square will be able to offer their customers the convenience of a one-stop-shop for both purchasing and receiving food from their favorite restaurants—giving Square an edge over their competitors DoorDash, Munchery, Sprig, Postmates and Spoonrocket. Combining the key elements of the two businesses will prove to be the perfect solution for people and businesses looking for a quick and easy way to have a a delicious lunch or dinner.

The co-founder of Caviar, Jason Wang, says the sale will help Caviar’s scale rise.

Filed Under: Noutati Sabin Piso Tagged With: Caviar, DoorDash, food delivery business, food delivery service, Jason Wang, Munchery, Postmates, Spoonrocket, Sprig, Square, Square acquisition, Square Inc., Square Market, Square Order, Square Reader

T-Mobile Rejects French Company’s $15 Billion Offer

August 7, 2014 by Sabin Piso

T Mobile T homeBrrring…Brrring…Brrring… “Hello, this is T-Mobile. No, we won’t be accepting your $15 billion bid to acquire our company, Iliad.”
Billionaire Xavier Navier, owner of the French telecommunications company Iliad, made an all-cash offer last Friday to acquire 56.6% of T-Mobile US for $15 billion. T-Mobile rejected the offer, and is standing firm, holding out for a potentially greater payout through Sprint who’s also expressed interest (June of this year) in acquiring the company to the tune of $32 billion.

Iliad has developed and maintained enormous success in the French ISP market. When Iliad branched out into the mobile services arena, the company went from no customer base to having over 8.5 million subscribers in just 2 years. They accomplished this by offering affordable non-contractual packages which is something customers clamor for.

Niel has reportedly been attempting to tap into the US market for some time now. He’s also been credited with starting a pricing war in France by undercutting his competition with Iliad’s affordable and quality service. Many consumers welcome the idea of Iliad making its way over the pond.

Still, it’s a no go for T-Mobile whose sights are set on Sprint, as Sprint acquiring the company would turn them into a serious and leading competitor to AT&T and Verizon Wireless.

Two months ago, in a tentative deal between Sprint and T-Mobile, Sprint would pay around $40 per share for T-Mobile, valuing the company at $32 billion. They would also assume T-Mobile’s net debt of close to $9 billion. The deal continues to going through some legal wrangling before a deal is solidified.

In 2013, Verizon Wireless led the industry with 119 subscribers and AT&T was a close second with 109 million. Combining Sprint’s 54 million subscribers with T-Mobile’s 45 million would make a sizable presence within the industry.

Filed Under: Noutati Sabin Piso Tagged With: AT&T, French ISP, Iliad, Sprint, T-Mobile, T-Mobile rejects deal, T-Mobile US, telecom business, Verizon Wireless, Xavier Navier

Walgreens Bucks Trendy Corporate Inversion Strategy

August 7, 2014 by Sabin Piso

WalgreensAfter acquiring 55 percent of the European pharmacy retailer and wholesaler Alliance Boots for $15 billion, Walgreens stood to save a projected $4 billion in corporate taxes by changing their corporate domicile. However, due to some harsh criticism, Walgreens has decided against emigrating corporate headquarters abroad.

The number of corporate inversions has grown exponentially over the past decade. By changing their corporate domicile, through an acquisition abroad, U.S. corporations save 75 to 50 percent in corporate taxes. The idea seemed all too enticing for Walgreens’ CEO Greg Wasson to pass up. Yet, after more careful thought and analysis, Wasson decided the backlash would not be worth the potential savings.

In a recent statement, Wasson determined an inversion would likely “put the company in a significantly worse position than if we had not inverted at all, such as a protracted controversy with the IRS” and “litigation which could go on for three to 10 years.”

More important to their consideration was the risk of “consumer backlash and political ramifications including the risk to our government book of business;” (Walgreens receives millions of dollars in revenue from federal Medical and Medicaid programs.)

One of Walgreens’ staunchest critics of the tax inversion consideration was Senator Dick Durbin, D-Ill. In a letter to Wasson, Durbin urged him to reconsider an inversion warning him that the company would lose a significant customer based and support if Walgreens was “to turn its back on the United States.”

When the Senator heard of Walgreens’ decision to keep corporate headquarters in Illinois, he was thrilled. On the other hand, Walgreens experienced a 14 percent drop in stocks by the close of the Dow, Wednesday, due to that decision. The stock drop reflects a significant reduction in projected earnings as well as shareholders’ doubts the Wallgreens-Boots Alliance strategy is good for long-term, sustainable growth.

Filed Under: Noutati Sabin Piso Tagged With: Alliance Boots, corporate business taxes, Dick Durbin, Greg Wasson, pharmacy retailer and wholesaler, pharmacy retailer business, the Dow, Walgreens, Walgreens stays in U.S., Walgreens' stock drops

CIT and OneWest Banks Set to Make Big Bucks in Merge

August 4, 2014 by Sabin Piso

CITThe subprime mortgage crisis of 2007 sent several U.S. banks—and citizens—into financial ruins. However, the few financial institutions left standing are prospering more than ever since 2007. Two of those institutions are CIT and OneWest banks

Two weeks ago the lender group CIT reached a deal to buy its parent company OneWest for $3.4 billion. The deal is expected to double the size of its commercial bank to $28 billion in deposits and $67 billion in assets.

OneWest was formed by a group of investors who sought to salvage the remnants of the failed lender IndyMac, and it’s paid off. When the investors formed OneWest Bank in 2009 with $1.55 billion of their combined dollars, they didn’t anticipate looking at earning close to $2 billion in dividends in such a relatively short amount of time.

CIT’s CEO, John A. Thain, has experienced a complete turn around since recent years and beyond. During the banking crisis, Thain sold Meryll Lynch and was ousted from the bank. CIT was proving to take a similar downturn when the company filed for bankruptcy in 2009. Now, CIT has grown to the higher rankings of importance within the industry.

Another OneWest hedge fund investor, John A. Paulson, is reaping a significant financial comeback. Mr. Paulson was responsible for collecting close to $4 billion by betting against failing home mortgages and contributed to the 2007 financial crisis. He’s since invested $400 million for 24.9 percent stake in the company and will receive a notable return.

Interestingly (or not), the public’s perception of the (now) fledgling banking institution is not met with a congratulatory “attaboy” and support. Instead, many share the same and similar sentiments to these found over social media after hearing word of CIT’s acquisition of One West:

“Great idea. John Thain bankrupts Merrill Lynch and is fired by Ken Lewis CEO of Bank of America and now Thain is getting back into the Banking Business with another virtually Bankrupt Company CIT. If it were not for taxpayers neither of these companies would still be in existence. So now they are out buying a hedge-fund run OneWest Bank. This is how things are done on Wall Street! What a joke!”—Sherry
“I’m so happy to hear that the Corporate Persons who crashed the economy “have moved on, and even prospered.”

Too bad about you human persons. You don’t count in our new feudalism.”—masaccio

 

“The banks, the bankers, the brokers and the wheeler-dealers did fine on the backs of the taxpayer and those ordinary citizens who were prudent, didn’t use their homes as ATMs and didn’t buy more than they could afford are still taking it in the neck.”—Ronald

It appears “winning” is only half the battle. CIT and OneWest have a long way to go before they gain public support and a positive and, more importantly, trusting public opinion.

Filed Under: Noutati Sabin Piso Tagged With: CIT, CIT acquisition, CIT and OneWest merge, CIT onewest business, George Soros, IndyMac, John A. Thain, John Paulson, John Thain, Merrill Lynch, OneWest, OneWest Bank

Dollar Tree Earns the Ultimate Bargain Acquiring Family Dollar for $8.5 Billion

July 28, 2014 by Sabin Piso

Dollar treeStretching out the Dollar…Tree to a respectable $8.5 billion is spending wisely for Dollar Tree’s Chief Executive Officer, Bob Sasser. In a deal officiated today, July 28, 2014, Dollar Tree acquired larger company and rival Family Dollar for $74.50 a share.

Sasser is calling the deal a, “transformational opportunity with the acquisition of Family Dollar, stores [Dollar Tree] will become the leading discount retailer in North America with over 13,000 stores in 48 states and 5 Canadian provinces.”
Family Dollar stockholders will own around 13 percent and around 15 percent of Dollar Tree’s outstanding common shares. This morning, shares spiked more than 24 percent and are headed for a record high.

Considering the two chains have over 13,000 stores combined as well as combined revenue of $18 billion per year, the acquisition may very well be a bargain.

Unlike Dollar Tree, Family Dollar had items for over $1 while Dollar Tree’s merchandise never exceeds $1.
Like many discount retailers, Family Dollar suffered a hard blow due to the recession and has struggled since, even after attempting to boost sales by lowering their all ready low prices. Family Dollar went on to cut out some jobs and shut down poor performing stores with little return.

Family Dollar began receiving push from prominent Wall Street investors in the company as early as 2011. Nelson Peltz, with his 7.9 percent stake in the company, was one of the first to try and persuade Dollar Tree’s CEO, Howard Levine, to pursue a deal. Levine resisted.

Levine changed his mind after investor Carl Icahn, with his 9.4 percent stake in the company, wrote to Levine in early June, 2014. In the letter Icahn urged him to put the company up for sale immediately and demanded that three of his representatives be added to Family Dollar’s board. Levine finally agreed.

According to the deal, Levine will join Dollar Tree’s board and continue running Family Dollar stores and report back to Sasser.

Family Dollar is a chain of stores, having around 8000 locations in US.  They have 1300 employees and the variety store chain is the ins largest retailer in this business sector.

Dollar Tree  is a chain of discount stores that sell things for a one dollar maximum price.  They own around 4880 stores in Canada and US.  They operate under the following names : Dollar Tree, Dollar Bills and Deal$.  It’s target is low-end market.

 

Filed Under: Noutati Sabin Piso Tagged With: Bob Sasser, Carl Icahn, Deals$, Dollar Bills, Dollar Tree, Dollar Tree acquisition, Dollar Tree and Family Dollar merge, Family Dollar, Family Dollar and Dollar Tree, Howard Levine, Nelson Peltz

Hospira and Danone: The “Spinversion” of an Inversion

July 28, 2014 by Sabin Piso

HospiraThe latest Senate hearing on the exponential growth of corporate inversions was proven unsuccessful as Congress couldn’t agree on new legislation to curb the phenomenon. Thus, companies continue in search for tax breaks by migrating overseas in droves. Added to the list of possible inversions is the Hospira pharmaceutical company acquisition of Danone’s medical nutrition business for about $5 billion.

Danone is a French consumer group with four business lines: fresh dairy products, early life nutrition, waters, and medical nutrition. Since Hospira is only looking to acquire a division of the business, if the deal were to go through, it would be considered a spinversion.

A spinversion is when a foreign company spins off a portion of their business to allow it to be inverted.

Other examples of American to foreign spinversions are Salix Pharmaceuticals’ merge with the Irish unit of Cosmo Pharmaceuticals of Italy. Another spinversion is Mylan Pharmaceuticals’ acquisition of a division of Abbott Laboratories.
Danone has been interested in selling its medical nutrition business for some time and has had talks with Nestle and the German healthcare group Fresenius. Yet, it is uncertain if Danone is in talks with any other companies besides Hospira at this time.

Acquiring Danone’s medical nutrition business would be idyllic for Hospira on a couple fronts. For starters, Hospira is a pharmaceutical company known for selling injectable and generic medications as well as medical equipment. Adding Danone’s current medical nutrition business would broaden Hospira’s scope as the medical nutrition business is a comparable discipline.

Another advantage to an inversion between Hospira and Danone would be a tax break for Hospira—which is significantly lower in France than the U.S. where corporate tax is 35%.
For Danone, selling the medical nutrition division of their company would allow them to focus on their food and consumer brands the company is more widely known for.

The possible deal looks promising as it would serve as a tremendous benefit to both parties.

Filed Under: Noutati Sabin Piso Tagged With: Abbott Laboratories, Cosmo Pahrmaceuticals, Danone, Fresenius, Hospira, Hospira and Danone, medical nutrition business, Mylan Pharmaceuticals, Nestle, pharmaceutical, Salix Pharmaceuticals, spinversion

Deluxe Equinox Fitness Turns Super Deluxe in a $110 Million Millennium Partners Acquisition

July 28, 2014 by Sabin Piso

equinox-gym-table-small-28332History seems to have repeated itself for Equinox and Millennium Partners when Equinox negotiated its second-biggest acquisition deal for the remaining Sports Club/LA gyms and Reebok Sports Clubs/gyms for $110 million. Ironically, Equinox’s biggest acquisition deal was 3 years ago when they acquired many more of Millennium Partner’s high-end fitness clubs to the tune of $130 million.

Equinox has paved and pioneered its way through the luxury fitness club business. They’ve established and acquired some of the poshest clubs in the industry. Most notable are The Sports Club/LA clubs in Los Angeles; Beverly Hills, CA; Irvine, CA; and New York City’s Rockefeller Center. The same year they bought the former Millennium Partners clubs, they bought SoulCycle, a trendy and popular indoor cycling studio with clients that included Brooke Shields and Chelsea Clinton. Now Equinox will be adding to their treasure chest of red-carpet fitness centers The Sports Club/LA gyms in New York and four other cities, as well as the Reebok Sports Club/NY gym on the Upper West Side of Manhattan.

Since 2011, Equinox is operating 29 SoulCycle gyms, and started an inexpensive Blink Fitness brand. Both businesses are as strong as ever according to Equinox’s Chief Executive Officer, Harvey Spevak. The current plan is for Equinox to continue focusing on advanced technologies for their high-end gyms and to offer the highest quality, luxury experience for their members. Many of the clubs offer a beauty bar as well as cafes offered healthy, yet delicious, snacks breakfasts, lunches and dinners.

It seems to go without saying, Equinox has positioned itself as the caviar of fitness clubs as Harvey Spevak proudly boasts of a gym experience that is “…much more sophisticated than anyone else in our industry.” And there is still so much more to come from this thriving company.

Filed Under: Noutati Sabin Piso Tagged With: Blink Fitness, Equinox, Equinox acquisition, Harvey Spevak, Millennium Partners, Reebok Sports Club/NY, Reebok Sports Clubs, Soulcycle, SoulCycle gyms, The Sports Club/LA in New York

Allergan Fending Off a Hostile Takeover From Valeant Pharmaceuticals

July 26, 2014 by Sabin Piso

JuvedermAllergan, the maker of Botox and Juvederm, is holding its own in Valeant Pharmaceuticals’ hostile $53 billion takeover. In an effort to dissuade shareholders from selling to Valeant, Allergan contends Valeant has an unsustainable business model and has proven itself to be a poor supervisor of the companies it acquires.

In a complaint filed with the Security and Exchange Committee (SEC) in the United States and Canada, Valeant Pharmaceuticals alleges Allergan was making false statements about its business to drive down its stocks, while Allergan’s top shareholder, Capital Research and Management Company, dumped its shares.

Valeant is upset because they claim Allergan stated, “Valeant continues to cherry pick data that fails to provide analysts and investors with the financial information necessary to truly evaluate Bausch & Lomb’s performance. Valeant’s latest attempt to hide the ball appears to involve focusing investors on growth from medical device products rather than on pharmaceutical products that continue to stagnate or decline.”

The complaint is aimed at the latter part of the statement, “…pharmaceutical products that continue to stagnate or decline”, as Valeant claims Allergan was informed Bausch & Lomb’s sales had improved by 12 percent over the previous year.

Bank of Montreal Capital Markets analysts say, “As for news today that Valeant has complained to regulators regarding alleged statements about parts of Valeant’s business, we believe it will have no impact on Allergan’s defense as these types of complaints often occur from hostile bidders.”

Thwarting Valent’s takeover plans further, Allergan’s sales rose by 16 percent (to $1.8 billion) on Monday, July 22. In an effort to streamline, Allergan’s plans to cut about 13 percent of its workforce, 1,500 jobs, which resulted in a 2 percent stock increase for the company.
Should Valeant succeed in the takeover they would become the largest company in all of Canada.

Filed Under: Noutati Sabin Piso Tagged With: AGN, Allergan, Botox, Valeant hostile takeover, Valeant Pharmaceuticals, Valeant SEC complaint, VRX

Restoring Corporate Tax Revenue: U.S. Lawmakers Looking to Plug the Inversion Loophole

July 26, 2014 by Sabin Piso

Inversion DecadeOn Tuesday, July 22 the Senate Finance Committee held a hearing with regard to the problem of American companies relocating their headquarters abroad. With a 35 percent corporate income tax in the U.S., it is no wonder there are currently 8 corporate inversions pending in the U.S.

Harvard Business School Professor, Mihir Desai, says to prevent corporate kingpins from changing their domiciles, “First, our rate has to be brought in line with what the rest of the world is. Second, in conjunction with that we have to move away from this worldwide tax regime that we have. Those are the underlying drivers of these inversion transactions and those are the underlying drivers of why firms are undertaking transactions that are probably not efficient so we need to think about those two changes…”

At the senate hearing, Senator Ron Wyden, Democrat of Oregon called for retroactive legislation to extinguish tax benefits to the companies that have inverted over the past year. This would affect companies who have finalized their deals including AbbVie and Medtronic’s plan to acquire Covidien. The U.S. Department of Treasury estimates such legislation would save the U.S. economy from losing $17 billion over the next decade.

Still, while neither Republicans nor Democrats approve of company inversions and what they do for the economy, Congress has yet to meet a consensus on what should be done. Most legislative proposals have been punitive in nature. In the meantime, corporate inversions keep multiplying and gnawing away at the U.S. economy.

Between 2012 to present, there have been a total of 20 inversions and pending inversions, which is unprecedented. To compare numbers, between 2005 and 2011, there were a combined total of 6 corporate inversions. Rounding out the current list of pending inversions are the AbbVie, Mylan, Salix, Auilium, Medtronic, Chiquita Brands, Horizon Pharma, and Applied Material takeovers.

Filed Under: Noutati Sabin Piso Tagged With: changing corporate domiciles, Inversions, Senate Finance Committee hearing

The BSkyB Acquisition Lines the Pockets of 21st Century Fox’s Rupert Murdoch with a Cool £5Billion

July 26, 2014 by Sabin Piso

SKYAdding to Murdoch’s collection of riches, to possibly take another stab at a Time Warner takeover, is another £5Billion ($8.3 billion) from BSkyB. The London-based pay TV company has pitched in to acquire its sister companies Sky Italia and majority share of Sky Deutschland, creating a newly formed Sky Europe.

The BSkyB takeover is broken down as such: BSkyB will pay £2.5 billion for Sky Italia and £2.9 billion for its stake in Sky Deutschland. 21st Century Fox would receive payments for the combined totals of the payouts and BSkyB would also transfer its 21% stake in the National Geographic Channel. The company would also offer Sky Deutschland’s minority shareholders a €6.8 ($9) per share (↑1.4%).

In total, BSkyB will have earned itself ~20 million customers and dominate Europe’s four biggest pay TV markets.

BSkyB’s CEO, Jeremy Darroch, had this to say about his acquiring its two sister companies, “The three Sky businesses are leaders in their home markets and will be even stronger together. By creating the new Sky, we will be able to use our collective strengths and expertise to serve customers better, grow faster and enhance returns.”

James Murdoch, Rupert Murdoch’s potential successor as CEO for Fox, was BSkyB’s CEO at one time and mirrored Darroch’s sentiments in a statement made back in May of this year. He felt the company needed to resolve its European pay-TV strategy, and having three separate firms is not optimal.

Bottom line, Murdoch has his sights set on Time Warner and is looking for revenue to make that deal happen. In addition, the expectation is that the pay TV channels will be more profitable run as one company as well as potentially saving £200 million by the end of the second financial deal.

Filed Under: Noutati Sabin Piso Tagged With: £5 billion BSkyB takeover, 21st Century Fox, BSkyB, BSkyB takeover, Sky Deutschland, Sky Italia

Time Warner Rejects Twenty-First Century Fox’s Acquisition Bid

July 22, 2014 by Sabin Piso

On July 8, 2014, CEO Jeff Bewkes of Time Warner rejected Fox CEO, Rupert Murdoch’s $80 billion and $85/per share bid to acquire Time Warner Inc. Merging the two media goTime Warner 1liaths would serve as the biggest media deal in more than a decade.

Fox, with its impressive resume of networks including Fox News and National Geographic Channels is as recognizable a media mainstay as Time Warner with its highly lucrative cable channels HBO, TNT and TBS. That said, $80 billion doesn’t come close to a figure favorable enough to see Bewkes negotiate a deal.

The take over attempt comes at a time when other media proprietors in the content distributor sector are expanding through their own acquisitions and moguls like Murdoch see an emerging opportunity for content providers.

One of the greatest advantages for Fox in acquiring Time Warner would be in controlling the more highly valued sports programs Time Warner has rights to; most notably are the men’s NCAA basketball tournaments and MLB baseball games. This would add to Fox’s repertoire of sporting events they telecast—which includes the NFL regular season and playoff games, baseball’s World Series and college football.

In effect, Time Warner’s move to monopolize such a large part of the content provider realm has caused quite the buzz in comments over social media, as this is likely only the beginning of future bids in Fox’s attempt to establish themselves as the media giant of giants. Many over social media feel the acquisition would only prove beneficial for media conglomerates and a costly setback for consumers who desire diversification in a Free Press society.

Filed Under: Noutati Sabin Piso Tagged With: $80 billion takeover, Fox CEO, Jeff Bewkes, Rupert Murdoch, Tags: Time Warner, Time Warner CEO, Twenty-First Century Fox

Merging Through the Loophole: Corporate Inversions for Tax Relief

July 22, 2014 by Sabin Piso

1

Pharmaceutical research and development company AbbVie Inc. (ABBV) acquired Ireland-based Shire Plc. (SHP)—a pharmaceutical company specializing in treatments for rare diseases—to the tune of $53 billion last Friday (July 18, 2014). Shire holders will get cash and stock valued at 52.48 pounds (89.52 dollars) a share.

The acquisition foreshadows the latest trend for companies, particularly in the pharmaceutical industry, to shift their corporate domiciles abroad to enjoy U.S. tax relief. Naturally, this has caused congressional unrest for the hit they will receive, now that their tax revenue from AbbVie has, literally, set sail.

The higher corporate tax rate in the states is pushing companies overseas, as AbbVie’s Chief Executive Officer Richard Gonzalez duly noted, “Today we’re at a disadvantage compared to our foreign competitors, and that’s the debate we should be having around inversions and our tax code.” By 2016, AbbVie’s acquisition deal and change of legal residency will have lowered their tax rate from 22 percent to 13 percent.

The favorable tax climate in Europe has U.S. lawmakers anxious to close the tax break loophole by making inversions difficult, if not impossible, in the future. Until then, U.S. companies will be rushing to set sails and sales offshore.

Filed Under: Noutati Sabin Piso Tagged With: AbbVie Inc. (ABBV), Chief Executive Officer Richard Gonzalez, Shire Plc. (SHP)

The former Microsoft CEO, Steve Ballmer buys LA Clippers (NBA) for $2 billion from Donald Sterling

May 31, 2014 by Sabin Piso

LA Clippers sold to Steve BallmerThe acquisition still needs to be approved by the NBA’s Board of Governors  but still Ballmer says that he will be honoured to have his name submitted to this Board as he “loves basketball”!

The bid for the team was formed by 2 groups : a group of LA investors that offered 1.2 billion $ and a group led by Davod Geffen (media) that offered 1.6 billion $ and that included Oprah Winfrey and Larry Ellison from Oracle

Merrill Lynch was the financial advisor in the deal.

Apparently a lot of billionaires want to buy NBA teams but the offer is very limited and this is a key driver for this huge price.
Sterling paid around 12 million $ in 1981 for the team that was located then in San Diego.

 

Filed Under: Noutati Sabin Piso Tagged With: Donald Sterling, LA Clippers, microsoft ceo, NBA, Steve Ballmer

Forstmann Little announces the completion of 24 Hour Fitness sale to a group of investors led by AEA Investors LP and Ontario Teachers’ Pension Plan

May 31, 2014 by Sabin Piso

24 hour fitnessForstmann Little & Co (New York) announced the sale completion of 24 Hour Fitness, worldwide company, to a investment group led by Ontario Teacher’s Pension Plan and AEA.

24 Hour Fitness is a leading fitness chain, with 4 million subscribers and around 20 000 employees. They run around 400 clubs in the United States.  Ted Forstmann, the founder of Forstmann Little died in November 2011 and 24 Hour Fitness was the last big ownership that his company controlled.  Forstman Little bought 24 Hour Fitness back in 2005 and the fitness chain was led by Elizabeth Blair, an ex Yahoo exec that became the CEO in September 2013.

Headquartered in San Ramon, CA, 24 Hour Fitness is a leading health club industry pioneer, serving nearly four million members and employing 21,000 fitness professionals in more than 400 clubs across the United States. The company was acquired in 2005 by Forstmann Little, the private equity firm founded and led by Theodore Forstmann. 24 Hour Fitness is the last significant portfolio company controlled by the firm following the death of Ted Forstmann in November 2011.

During its final year under Forstmann Little’s ownership, 24 Hour Fitness was led by former Yahoo! executive Elizabeth Blair. Ms. Blair joined 24 Hour Fitness in February 2013 and was named Chief Executive Officer in September 2013. Ms. Blair announced that she will not be remaining with the company following today’s sale.

A source told Club Industry that the total debt put on 24 Hour Fitness will be $1.35 billion (including an $850 million term loan and $500 million in bonds). Ontario Teachers and AEA Investors are investing $585 million—30.2 percent—in equity, adds the source. The sale is a 7.75 times EBITDA (earnings before interest, taxes, depreciation and amortization) multiple transaction based on $250 million in EBITDA generated by 24 Hour Fitness.

Filed Under: Noutati Sabin Piso Tagged With: 24 hour fitness, AEA, forstmann little, Ontario Teacher's Pension

ProtoGeo sells fitness app Moves to Facebook

April 25, 2014 by Sabin Piso

Facebook buys Moves appMoves fitness app was sold to Facebook.  This app lets user monitor their physical activity, calories burned, etc with the help of a smartphone.

Moves app is able to identify and record what you do, for example : cycling, running, walking.  The app lets you see the distance, duration, number of stept and even calories burned.  The app works 24/7 in the background of your phone and it identifies your status if you keep the phone in your pocket, bag, hand.

This app was developed by ProtoGeo Oy, starting with Jan 2012 from Finland, more specifically Helsinki.  Their investors : Profounders, AJP Holding, Lifeline Ventures, Jyri Engestrom, Juha Lindfors, Tekes.

The big advantage of this app is that it only uses a state of the art activity recognition formulas so no bracelets or any other kind of additional devices are necessary and right now because of the iPhone 5S new processor called M7, the app is using very little power.  The M7 processor constantly measures and tracks motion data, keeping the information accessible to any apps that may need it. That means fitness and lifestyle apps no longer need to be active or running in the background to track user movements throughout the day.

Facebook and ProtoGeo kept the transaction price confidential.

 

Filed Under: Noutati Sabin Piso

Titan Aerospace finally bought by Google, not Facebook!

April 15, 2014 by Sabin Piso

Titan Aerospace bought by Google, not FacebookTitan Aerospace was finally bought by Google, not Facebook … what a surprise.  Google confirmed the transaction but did not mention the value.  This is an effort to connect some areas from some countries that do not have Internet access at this point.  Of course, these new areas will be a very good engine for growth in the following years.

Some models produced by Titan are able to fly continuously for up to five years without landing.  Initial reports were indicating that Facebook will buy this company but in the end they had to settle for another drone maker, Ascenta.

This is a race that is trying to connect around 2 thirds of the world population, population that is not currently connected to the internet in any way.

Filed Under: Noutati Sabin Piso Tagged With: Facebook, Google, titan, Titan Aerospace

Gnip sold to Twitter

April 15, 2014 by Sabin Piso

gnip twitter

 

Twitter just bought Gnip, an important provider of social data that was already in a long business relationship with them.

 

 

About Gnip

  • Founded in 2008
  • Twitter’s first data partner
  • First with access to complete archive of Twitter Data
  • First data partner for Tumblr, WordPress, Foursquare, Disqus, IntenseDebate, StockTwits, and GetGlue

Gnip mentioned that until now it processed about 2.3 trillion tweets.  This acquisition will bring more value to Twitter shareholders and also a lot of synergies. By getting access to resources and infrastructure to be able to go to the next level, also Gnip will most probably be able to offer higher quality services to Tumblr, WordPress and other clients.

Also, GNIP CEO believes that this acquisition will send a clear signal that social data investments are solid.

Filed Under: Noutati Sabin Piso Tagged With: gnip, twitter

It seems that Mt. Gox has some interested buyers …

April 11, 2014 by Sabin Piso

Bitcoin Mt GoxThe offer is actually the only offer that Mt. Gox has ever received since the bankruptcy procedure started.

The buyers were not available to comment.  Company name is Sunlot Holding and the investors behind it are Brock Pierce and William Quigley.

Most probably they want to buy the company for 100$ and then turn it around.In the paperwork, the investors mentioned they were in discussions with Mt. Gox since Jan 2013.

Filed Under: Noutati Sabin Piso Tagged With: Brock Pierce, Mt Gox, Sunlot Holding, William Quigley

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