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Exit and Growth Strategies for Middle Market Businesses

M&A Quarterly News In The Financial Services Industry Sector

By David Sinyard | Oct 21, 2019

The report below gives a good overview of the fourth quarter M&A activity in the Financial Services Industry Sector. M&A activity for North American based target companies in the Finance sector for Q3 2019 included 247 closed deals, according to data published by industry data tracker FactSet.

One One of the notable middle market transactions in the sector closed in July when Colony Capital, Inc. acquired Digital Bridge Holdings LLC for US$325 million in cash, stock and contingent payout. Under the terms of transaction, Colony Capital would pay US$195 million in cash, US$97.5 million in stock and US$32.5 million in contingent payout as based on expiration of certain customary seller indemnification obligations, to Digital Bridge Holdings. The acquisition enhances Colony Capital’s portfolio of products and service offerings. The acquisition is in line with the growth strategies of Colony Capital to increase its digital world and infrastructure market. Digital Bridge Holdings engages in the acquisition, funding, and management of companies from the communications infrastructure sector.

Industry Indicators

  • The bank prime loan rate, a tool for financial planners and investment advisers was 5.25% as of the week of August 13, 2019, up from a rate of 5% the same week in 2018.
  • US personal income, which is a driver for financial planning and investment services, rose 4.9% in June 2019 compared to the same month in 2018.
  • Total US revenue for credit intermediation and related activities rose 9.5% in the first quarter of 2019 compared to the previous year.

Posted by David Sinyard.

Read the Entire Financial Services 4th Quarter Newsletter Here


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