By Davit Kirakosyan
Here is your Pro Recap of 4 head-turning deal dispatches you may have missed this past week: deals at Enbridge and Dominion Energy, WestRock and Smurfit Kappa, NextGen Healthcare and Thoma Bravo, and potential sale of Alteryx.
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Enbridge to pay $14 billion to Dominion Energy for 3 utilities
Enbridge (NYSE:ENB) agreed to acquire EOG, Questar, and PSNC from Dominion Energy (NYSE:D) at a combined value of $14 billion, which includes $9.4B cash and $4.6B of assumed debt, as reported in real time on InvestingPro.
The acquisitions will expand Enbridge's presence in the US utility sector, adding gas utility operations in Ohio, North Carolina, Utah, Idaho, and Wyoming. Post-acquisition, Enbridge’s gas utility business will become the largest in North America.
Following the announcement, Enbridge shares fell more than 5% in Wednesday's session.
WestRock and Smurfit Kappa confirm merger deal
Smurfit Kappa Group and WestRock (NYSE:WRK) confirmed reports of discussions about a possible merger to form "Smurfit WestRock." The new company would be incorporated and domiciled in Dublin, Ireland, with the Americas operations in Atlanta, Georgia.
Post-merger, Smurfit WestRock's ordinary shares will be listed on the NYSE, with a subsequent aim to seek US equity index inclusion. Smurfit Kappa's existing premium listing on the London Stock Exchange might be replaced by a standard listing, and a delisting from Euronext Dublin is also in the cards.
Credit Suisse said the proposed deal "would have significant strategic and operational merits."
Truist sees $44/share as potential acquisition price for Alteryx
Truist Securities reiterated its Buy rating and $40.00 price target on Alteryx (NYSE:AYX), following reports that the company is working with Qatalyst Partners to explore a potential sale.
According to the firm, Alteryx possesses valuable core technology assets in the self-service data preparation space. With the current industry focus on making data and analytics more accessible through AI, the firm believes that Alteryx's technology could remain relevant whether it continues as an independent entity or merges with another company in the evolving IT landscape.
According to Truist, any acquisition could happen at a valuation that implies a share price of about $44.
Shares closed the week with more than an 18% gain.
NextGen Healthcare to be taken private by Thoma Bravo
Nextgen Healthcare (NASDAQ:NXGN) agreed to be acquired by Thoma Bravo for $23.95 per share in cash. The transaction is anticipated to close in Q4/23, subject to customary closing conditions, including approval by NextGen Healthcare shareholders and required regulatory approvals.
Following the completion of this deal, NextGen Healthcare will transition into a privately held company.
NextGen shares closed the week with more than a 22% gain.
