Strategic appetite
A sign for Wall Street outside the New York Stock Exchange in Manhattan in New York City, New York, U.S., October 26, 2020. REUTERS/Mike Segar/

Strategic appetite

Happy Friday! I have just returned from Mallorca, where I spent 10 wonderful days. The island has everything one could possibly want in a summer destination and it is large enough to spend weeks exploring it without repeating a sight. I especially enjoyed the natural beaches positioned between the cliffs, or "calas," and the wide open countryside sprinkled with old stone houses -- a timeless landscape.

Now, I am trying to throw myself back into M&A chase, and it seems like there are quite a few things going on the in the market! Strategic M&A, at least an appetite for it, is heating up. Google has made several acquisition attempts (HubSpot, Wiz), and now GitLab is exploring options, according to our sources.

Cybersecurity continues to be top of mind, especially post Crowdstrike meltdown, which grounded flights and paused financial transactions. It will be interesting to see whether the exposed vulnerability of Crowdstrike will lead to further consolidation in the market.

In information services...

My colleagues and I reported that Dun & Bradstreet, a data and analytics provider with a market value of nearly $8 billion including debt, is exploring options including a potential sale, people familiar with the matter said on Friday.

Jacksonville, Florida-based Dun & Bradstreet is working with Bank of America to evaluate interest from potential buyers, which include private equity firms, the sources said.

The company listed its shares in New York in 2020, less than two years after an investor consortium led by CC Capital, Cannae and funds affiliated with Thomas H. Lee Partners took it private. Its shares have lost nearly 62% of their value since the company's initial public offering.

In fintech...

Earlier today, I reported that Flywire, a U.S. payments processor with a market value of $2.3 billion, is exploring a sale after attracting takeover interest, according to people familiar with the matter.

Boston, Massachusetts-based Flywire is working with investment bankers at Qatalyst Partners to evaluate interest from potential buyers, which include private equity firms, the sources said.

The talks are at an early stage and no deal is certain, the sources said, requesting anonymity because the matter is confidential.

Flywire's shares jumped more than 10% on the news on Friday.

In cyber...

This week, Bloomberg reported that cybersecurity firm Tenable Holdings is exploring options, including a potential sale after receiving takeover interest.

The report comes at a time when enterprise customers have been increasing their investments in cybersecurity by turning to firms that provide comprehensive solutions, reducing dependence on multiple security vendors.

Tenable has been on a PE radar for a while, however, in the past, Tenable's leadership was adamant about staying a public company, people familiar told me. Tenable has also reported its Q2 earnings earlier this week, and despite beating analysts' expectations, saw its share price slide 14 percent on Thursday morning, which analysts attributed to increased competition in the sector and tougher sales outlook.

Other news & commentary:

What else is going on? For any anonymous deal tips you can find me on Signal and Telegram. I am also available by email [email protected] and via cell.

Thanks for reading! Please share this newsletter with anyone you think might find it useful.

Have a great weekend!

Milana




Chris Taylor

Award-winning personal finance journalist

3 个月

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