Altice and DST Systems Lead List of Companies Targeted for Acquisition

Of the six notable mergers and acquisition (M&A) transactions highlighted this week, the spin off of Altice USA from its European parent and the acquisition of Midwest-based DST Systems were the largest transactions. 

• Shareholders of Altice USA (NYSE: ATUS) will spin the company off from its European parent by acquiring a 67.2% interest in the US unit. The Company announced January 8th that Altice USA will spin off, while the parent company will be renamed Altice Europe. Following the transaction, the companies will be led by separate management teams, though founder Patrick Drahi will retain control of both companies.

 

• Connecticut-based SS&C Technologies (NASDAQ: SSNC) announced Thursday that it would acquire Kansas City-based DST Systems (NYSE: DST) for approximately $5.4 billion. The price tag represents a multiple of 8.2 times earnings before interest and taxes (EBITDA). DST provides data processing, fund accounting, pharmacy benefits claims processing, and other services, as well as operates data centers. Both companies’ clients are largely in the financial services industry, though DST has clients in the healthcare industry.

 

• Allscripts Healthcare Solutions (NASDAQ: MDRX) acquired Practice Fusion for $100 million in cash. Practice Fusion offers a cloud-based electronic health record platform that is primarily used by independent physicians. Approximately 30,000 ambulatory sites, serving roughly five million patients each month, utilize Practice Fusion technology.

 

• Applied Industrial Technologies (NYSE: AIT) announced it has reached an agreement to acquire FCX Performance (FCX), a leading distributor of specialty process flow control products and services. Worth approximately $768 million, the deal is expected to close in the next 30 days. FCX distributes highly engineered valves, instruments, pumps, and lifecycle services to MRO and OEM customers.

 

• Crane Co. (NYSE: CR), a diversified manufacturer of highly engineered products, announced it has completed the acquisition of Crane Currency. Crane Currency has produced currency products, including currencies with advanced micro-optic security elements, for more than 200 years and services more than 50 central banks.

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• Ferrero International is reportedly putting together a $2.8 billion offer for the confectionery unit of Nestlé. Nestlé produces notable brands such as Butterfinger, Baby Ruth, and Crunch. The confectionery unit reported sales of approximately $900 million in 2016.