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Regional Overview

Data Brief US Q1 2019

Written by Philip Segal Senior Analyst

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Data analysis

The first quarter of 2019 saw US private equity activity increase by value from US Private Equity Activity the previous quarter, with significantly fewer deals. California and Texas led 2014—Q1 2019 the 50 states in the number of , with 56 and 38 deals announced, respectively.

225 1500 Key Data Points [Overview]: Overall, the US saw 277 buyout transactions worth USD 49.3bn announced during the first quarter of 2019 - an increase of 23% by value from the previous 40.1 quarter (346 deals worth a combined USD 40bn in 4Q18). 180 38.4 1200 Exits rebounded by value in the US following a soft 4Q18 (after a steep decline from 3Q18), but similarly fell by deal count. PE exits saw the highest activity by value since 2Q14, with 240 deals announced in 1Q19 worth USD 84.2bn 38.5 47.7 (compared to 282 exits worth a combined USD 86.3bn announced in 2Q14). 46.2 48.8 135 900

45.0 Deal Count Key Data Points [Sector]: Buyouts in the Technology sector rose by value, with over USD 21bn in buyouts 51.5 announced in the first quarter, despite deal count falling from the same 42.2 66.0 period last year. There were 87 deals in 1Q18 compared to 67 deals in 1Q19. 90 600

Deal Value (USD bn) (USD Value Deal 41.5 The acquisition of Ultimate Software Group by a consortium led by Hellman & 72.6 Friedman and Blackstone for USD 11.8bn drove activity in the sector.

US-based exits skyrocketed by value in 1Q19, with 240 deals announced worth 37.6 48.5 a combined USD 84.2bn, up 67% by value compared to the same period last 32.3 year (305 exits worth a combined USD 50.3bn). Business Services led the 45 300 way by value, skewed by KKR’s partial exit from First Data Corporation for USD 60.7 49.3 38.5bn. 39.3 39.9 31.1 33.1

0 0 Key Data Points [Activity]: 2014 2015 2016 2017 2018 Q1 2019 Inbound private equity activity declined in 1Q19 in the US, with 25 buyouts announced worth a combined USD 4.3bn. US targets attracted Canadian Q1 Q2 Q3 Q4 sponsors with six buyouts announced, led by institutional investors Canada Pension Plan Investment Board (CPPIB) and Caisse de Depot et Placement du Quebec. The largest inbound buyout was CPPIB’s 35% stake acquisition of both Utica East Ohio Midstream and Ohio Valley Midstream System for USD 1.3bn. mergermarket.com Mergermarket US Private Equity 3

Data analysis

While outbound buyouts declined overall by count, activity was up by value, US Private Equity Exit Activity driven by deals in the Technology and Telecommunications sectors, including 2014—Q1 2019 the USD 6.4bn buyout of Germany-based Scout24 Holding and UK-based Inmarsat for USD 5.5bn. Overall, there were 75 buyouts announced by US private equity companies investing outside the country. The largest cross-border exit - GTCR’s repurchase of AssuredPartners for USD 300 1200 5.1bn - was also the quarter’s largest secondary buyout. UK-based exited the company after acquiring it from GTCR in July 2015 for an undisclosed 270 value. AssuredPartners continued an aggressive buy-and-build strategy under 58.6 the stewardship of Apax, making 25 acquisitions to expand its footprint in the US -related Financial Services sector. Since 2011, the company has 240 78.0 completed over 50 acquisitions. 50.3 900 55.6 63.5 210 74.1

180

75.6 Deal Count 59.4 69.9 69.7 150 600

120 86.3 Deal Value (USD bn) (USD Value Deal

81.8 63.7 90 58.4 71.1 300 60

74.1 84.2 30 59.3 61.2 45.9 47.5

0 0 2014 2015 2016 2017 2018 Q1 2019

Q1 Q2 Q3 Q4 Inbound Value Deal Count

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Top buyouts

Deal Details Advisor details

Value (USDm) Announcement Target Bidder FA to sell-side LA to sell-side FA to buy-side LA to buy-side date 11,790 4-Feb-19 Ultimate Software Hellman & Friedman Goldman Sachs & Co Stroock & Stroock & Lavan Qatalyst Group Dechert; Goodwin Procter; Group Inc - Blackstone LLP; Advising FA: Sullivan & Kirkland & Ellis; Simpson consortium Cromwell Thacher & Bartlett; Weil Gotshal & Manges

5,100 21-Feb-19 AssuredPartners Inc GTCR LLC Bank of America; Barclays; Kirkland & Ellis Morgan Stanley Katten Muchin Rosenman; Harris Williams Latham & Watkins; Simpson Thacher & Bartlett

3,277 12-Feb-19 Ellie Mae Inc Thoma Bravo LLC JPMorgan Cooley LLP; Advising FA: Jefferies Kirkland & Ellis Skadden Arps Slate Meagher & Flom

3,213 31-Jan-19 Tallgrass Equity LLC; Blackstone Group Baker Botts Citi; Mediobanca; Rothschild Sidley Austin; Vinson & Elkins and Tallgrass Energy LP; Enagas SA; and & Co Holdings LLC GIC Private Limited

2,526 25-Feb-19 Multi-Color Platinum Equity LLC Goldman Sachs & Co; William Keating Muething & Klekamp; Cahill Gordon & Reindel Corporation Blair & Company Sidley Austin; Sullivan & (Advising Bank of America Cromwell (Advising Goldman Corporation;Deutsche Bank Sachs & Co. LLC); Jenner & AG); Jones Day; Latham & Block; Willkie Farr & Gallagher Watkins

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Top exits

Deal Details Advisor details

Value (USDm) Announcement Target Bidder Seller FA to sell-side LA to sell-side FA to buy-side LA to buy-side date 38,448 16-Jan-19 First Data Fiserv Inc Kohlberg Kravis Bank of America Merrill Latham & Watkins; JPMorgan Sullivan & Cromwell; Advising Corporation Roberts & Co LP Lynch; Evercore Inc; Citi Simpson Thacher & FA: Cleary Gottlieb Steen Bartlett; Kirkland & & Hamilton; Davis Polk & Ellis; Advising FA: Fried Wardwell Frank Harris Shriver & Jacobson

5,100 21-Feb-19 AssuredPartners Inc GTCR LLC Apax Partners LLP Bank of America Merrill Kirkland & Ellis Morgan Stanley Katten Muchin Rosenman; Lynch; Barclays; Harris Latham & Watkins; Simpson Williams Thacher & Bartlett

4,229 14-Jan-19 Clarivate Analytics Churchill Capital Onex Corporation; Credit Suisse; JPMorgan Latham & Watkins; Citi; Klein and Blank Rome; Paul Weiss Rifkind (US) LLC Corp Baring Private Equity Ropes & Gray Company Wharton & Garrison Asia

3,400 13-Feb-19 Auris Health Inc Ethicon Inc Highland Capital Centerview Partners Orrick Herrington & JPMorgan Cravath Swaine & Moore Partners LLC; Lux Sutcliffe; Wachtell Capital; NaviMed Lipton Rosen & Katz Capital Advisors LLC

3,213 31-Jan-19 Tallgrass Equity LLC; Blackstone Group Kelso & Company; Baker Botts Citi; Mediobanca Sidley Austin; Vinson & Elkins Tallgrass Energy LP; Enagas SA; GIC The Energy & SpA; Rothschild & Co Holdings LLC Private Limited Minerals Group

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Criteria Contacts

All data is based on transactions valued Production Commercial Deal Submissions Senior Analyst Americas Americas over USD 5m and is based on the Philip Segal Kurt Viehl Jason Loria [email protected] [email protected] [email protected] Mergermarket’s M&A deals database. +1 212 574 7877 +1 212 390 7812 +1 646 378 3122

Deals with undisclosed deal values Research Editor - Americas Asia Asia are included where the target’s turnover Elizabeth Lim Simon Anam John Capulong [email protected] [email protected] [email protected] exceeds USD 10m. Deals where the effective +1 212 686 3016 +852 2158 9370 +852 2158 9723 EMEA EMEA stake acquired is less than 30% will only be Ben Rumble Michael Richards included if the value is greater than USD 100m. [email protected] [email protected] +44 20 3741 1007 +44 20 3741 1423 Click here for the full deal criteria.

Press Relations

M&A trend: Based on the dominant geography Americas of the target company being US. Excludes lapsed and withdrawn bids. Chrissy Carney [email protected] Cross-border M&A: Based on a transaction +1 646 378 3118 involving at least two different countries between target and bidder. Asia

Top deals: Based on the dominant geography Candy Tam of the target company being US. Excludes [email protected] lapsed and withdrawn bids. +852 2158 9706 EMEA

All values are in USD. Ioiana Luncheon Data correct as of 03-Apr-2019. [email protected] +44 20 3741 1391

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