Electronic Arts (EA) to be acquired by PIF-led consortium for $55 bln, or $210/share

• Electronic Arts (EA) is being acquired by a consortium of investors, including Saudi Arabia's Public Investment Fund (PIF), the private equity firm Silver Lake Partners, and Affinity Partners, an investment fund led by Jared Kushner. The group announced a $55 billion deal to take EA private. 
• EA, founded in 1982, has a broad portfolio of well-known hits, ranging from sports to first-person shooting games, including the eagerly awaited release of “Battlefield 6.”

  

 

 

Electronic Arts to be acquired by PIF-led consortium for $55 bln, or $210/share, in all-cash deal 

• EA announced that it has entered into a definitive agreement to be acquired by an investor consortium comprised of PIF, Silver Lake, and Affinity Partners in an all-cash transaction that values EA at an enterprise value of approximately $55 billion. The transaction positions EA to accelerate innovation and growth to build the future of entertainment.
• Under the terms of the agreement, the Consortium will acquire 100% of EA, with PIF rolling over its existing 9.9% stake in the Company. EA stockholders will receive $210 per share in cash. The per share purchase price represents a 25% premium to EA's unaffected share price of $168.32 at market close on September 25, 2025, the last fully unaffected trading day, and a premium to EA's unaffected all-time high of $179.01 at market close on August 14, 2025.
• The transaction was approved by EA's Board of Directors, is expected to close in Q1 FY27 and is subject to customary closing conditions, including receipt of required regulatory approvals and approval by EA stockholders. Following the close of the transaction, EA's common stock will no longer be listed on any public market.
• The transaction will be funded by a combination of cash from each of PIF, Silver Lake, and Affinity Partners as well as roll-over of PIF's existing stake in EA, constituting an equity investment of approximately $36 billion, and $20 billion of debt financing fully and solely committed by JPMorgan Chase Bank, N.A., $18 billion of which is expected to be funded at close. Each of PIF, Silver Lake, and Affinity Partners plan to fund the equity component of the financing entirely from capital under their respective control.
• Upon completion of the transaction, EA will remain headquartered in Redwood City, California and continue to be led by Andrew Wilson as CEO.
• As a result of this announcement, for its Q2 FY26 earnings release scheduled for October 28, 2025, EA will release financial and operational results through a press release and will not hold a conference call or webcast.
• EA must pay up to $1 bln (reduced to $540 mln in certain cases) if it backs out for a superior offer or fails to secure shareholder approval, while the buyer consortium must pay $1 bln if regulatory approvals fail, the deal times out, or it breaches the agreement.

==Zuora (ZUO) to be acquired by Silver Lake and GIC for $1.7 billion

(Reuters) - Billing software firm Zuora said on Thursday it has agreed to be acquired by buyout firm Silver Lake and Singaporean wealth fund GIC in a deal valued at $1.7 billion.

Silver Lake and GIC will acquire all outstanding shares of Zuora's common stock at $10 apiece in cash, which represents a premium of 6.2% to its last close.

The offer price is an 18% premium to the closing price on April 16, the last trading day before Reuters first reported Zuora was exploring options after it had received acquisition interest from potential suitors.

Zuora will become a privately held company after the transaction is closed, which is expected in the first quarter of 2025, it said.

The company, founded in 2007, offers billing software and other subscription management tools to enterprise customers, which include cloud computing firm Nutanix and Siemens Healthineers.

Zuora founder and CEO Tien Tzuo will continue to lead the company, which will maintain its headquarters in Redwood City.

Qatalyst Partners is serving as financial adviser to the company's special committee consisting of independent directors of the board and Foros is serving as Zuora's financial adviser.

Zuora had said earlier this year it planned to lay off about 8% of its workforce as part of a broader company-wide cost-cutting drive.

 

About Silver Lake

Silver Lake is a global technology investment firm, with more than $104 billion in combined assets under management and committed capital and a team of professionals based in North America, Europe and Asia. Silver Lake’s portfolio companies collectively generate nearly $243 billion of revenue annually and employ approximately 453,000 people globally.

About GIC

GIC is a leading global investment firm established in 1981 to secure Singapore’s financial future. As the manager of Singapore’s foreign reserves, GIC takes a long-term, disciplined approach to investing and is uniquely positioned across a wide range of asset classes and active strategies globally. These include equities, fixed income, real estate, private equity, venture capital, and infrastructure. Its long-term approach, multi-asset capabilities, and global connectivity enable it to be an investor of choice. GIC seeks to add meaningful value to its investments. Headquartered in Singapore, GIC has a global talent force of over 2,300 people in 11 key financial cities and has investments in over 40 countries. For more information, please visit www.gic.com.sg.

=GE spins off digital assets to form internet of things company

General Electric announced plans Thursday spin off its GE Digital business and establish an independent Internet of Things company, built around several GE Digital technologies.

GE is simultaneously selling a majority stake in Service Max to private equity shop Silver Lake, the company announced. Service Max is a software business GE Digital acquired for $915 million in November 2016.

"As an independently operated company, our digital business will be best positioned to advance our strategy to focus on our core verticals to deliver greater value for our customers and generate new value for shareholders," GE chairman and CEO Larry Culp said in a statement.

The spin off comes as GE also announced that GE Digital CEO Bill Ruh left the company. GE said it will "conduct an internal and external search to identify the CEO for this new independent company."

GE says more detail about the new internet of things company will be announced in the first quarter of next year. GE says the company will have its a new brand, as well its own equity structure and independent board of directors.

GE shares jumped 10 percent in premarket trading to $7.41 from Wednesday's close of $6.71 a share. The jump came after longtime bearish analyst Stephen Tusa of J.P. Morgan upgraded GE shares to neutral from underweight, saying the embattled industrial giant now has a more "balanced risk reward at current levels."

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General Electric announces plans to establish a new, independent company focused on building a comprehensive Industrial Internet of Things software portfolio

The company will start with $1.2 billion in annual software revenue and an existing global industrial customer base. The company is intended to be a GE wholly-owned, independently run business with a new brand and identity, its own equity structure, and its own Board of Directors.

• GE Digital CEO, Bill Ruh, has decided to depart GE to pursue other opportunities. The company intends to conduct an internal and external search to identify the CEO for this new independent company. Further details on GE's new IIoT software company will be announced in Q1 2019. This plan is subject to customary regulatory approvals, including information and consultation with employee representatives where required.

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J.P. Morgan upgraded shares of GE to neutral from underweight. Stephen Tusa, the firm's lead analyst on the stock, says the embattled industrial giant now has a more "balanced risk reward at current levels."

Tusa put out a bearish note on GE in May 2016 when the stock was above $30 that questioned the conglomerate's earnings and cash flow outlook.

=Blackhawk Network (HAWK) to be acquired by Silver Lake and P2 Capital Partners for $45.25/share

• A pair of private equity firms are set to acquire fintech business Blackhawk Network Holdings in a deal worth $3.5bn.
• California-based Blackhawk is a physical/digital gift card and prepaid payments network. A selection of gift cards, cash-based payment products, prepaid debit cards and rebate cards are available on the platform.

Blackhawk Network to be acquired by Silver Lake and P2 Capital Partners for $45.25/share in cash, or approximately $3.5 bln 
The definitive agreement has fully committed debt and equity financing, including an approximately $1.7 billion equity commitment from Silver Lake. P2 Capital Partners, which beneficially owns approximately 5.4% of Blackhawk's outstanding common stock, has committed to vote in favor of the proposed transaction. The transaction, which is expected to close mid-2018, is subject to customary closing conditions, including receipt of stockholder and regulatory approvals

SolarWinds (NYSE:SWI) agrees to be acquired in $4.5B deal

Update: In September 2018, SolarWinds filed for a public offering again, after three years of being owned by private equity firms. SolarWinds completed their public offering on October 19, 2018.

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• Austin software developer SolarWinds Inc. agreed to be bought by investment firms Thoma Bravo and Silver Lake Partners in a deal worth about $4.5 billion.
• The stock jumped 13% Oct. 9 when SolarWinds announced that it was reviewing strategic alternatives.
• California-based Silver Lake Partners also teamed with Michael Dell in a $24.9 billion leverage buyout of Dell Inc. in late 2013.

       

EMC Corp. (EMC) to be acquired by Silver Lake Partners for $33.15

• EMC; 10/12/15 : Dell Inc. and private-equity firm Silver Lake will buy EMC Corp. for roughly $67 billion in cash and stock, marking one of the largest technology-industry takeovers ever.  The $33.15 a share price tag represents a 19% premium over previous day’s closing price for EMC.
• The merger is expected to end by October 2016, pending negotiations and regulatory approvals. 

  

(Chart the day before, Fri. Oct. 9)