From 7 February 2021 to 13 February 2021, the banking industry saw another steady increase in merges and acquisitions for a third week.
There were 26 deals this week, when compared to the 25 deals the previous week. Amongst the 26 deals were 18 acquisitions, 4 mergers and 4 asset transactions.
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Most notably this week, was the acquisition by technology service provider – WEX – of HSA Assets from Healthcare Bank, a division of Bell Bank, for $200m in the United States on 11 February 2021.
Under the terms of the agreement, WEX will pay an initial cash consideration of $200m with 2 additional deferred cash payments of $25m in July 2023 and January 2024. The transaction agreement also includes potential additional consideration based on any future increases in the Federal Funds rate.
Robert Deshaies, president of WEX’s health division, commented: “This asset purchase expands WEX’s role in the attractive consumer-directed healthcare ecosystem and aligns with our growth strategy. We are excited to provide a more streamlined relationship experience, one that positions us to better leverage our investments to provide market-leading HSA solutions.”
The transaction is expected to close in the second quarter of 2021, subject to regulatory approvals and other customary closing conditions.
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By GlobalDataFor almost half the value, Tokai Tokyo Financial Holdings acquired a common stock in Ace Securities for $108.57m in Japan on 12 February 2021.
At a board of directors meeting, the financial holdings firm adopted a resolution to acquire the stock of ACE Securities through a tender offer in which Tokai Tokyo set the minimum number of 1,869,000 shares to be purchased.
If Tokai Tokyo fails to acquire all shares of the target stock through the tender offer, after successful completion of the tender offer, it plans to take respective procedures to make the ACE Securities its wholly owned subsidiary.
Elsewhere in the Asia-Pacific region, Tyson International Holding Company acquired a 49% stake in Dindings Supreme – a Malaysia-based investment holding company – for $100.8m in Malaysia on 10 February 2021. Tyson will acquire the stake from Malayan Flour Mills Berhad.
Finally, Luxxfolio Holdings acquired 100% of WestBlock Capital for $4.41m in Canada on 10 February 2021. The consideration payable in the transaction consisted of 16 million common shares and 2.5 million share purchase warrants of Luxxfolio.
Luxxfolio Holdings Inc, a Canada-based provider of financial services, entered into a binding term sheet to acquire all of the issued and outstanding shares of WestBlock Capital, an integrated digital asset company.
As a part of transaction, the president of WestBlock will join Luxxfolio’s business team upon closing of the transaction. Around half of WestBlock management’s shares will be subject to a 6-month escrow period and the remaining 50% will be escrowed for a 12-month period.
