Image
Image
And the award for the biggest, most complicated SPAC deal goes to.Credit.Ian West/Press Association, via Associated Press
A SPAC deal like no other
Bill Ackman’s jumbo-sized SPAC has finally found its big deal: It is closing in on an agreement to buy a 10 percent stake in Universal Music Group, the home of artists like Taylor Swift, at a $42 billion valuation. If completed, the transaction would be the biggest involving a SPAC to date and it would certainly be among the most complex.
Here’s how it would work buckle up, because this is complicated:
Global mergers and acquisition (M&A) activity hit a record high for the third straight month in May, driven mainly by low interest rates, soaring equities and higher dealmaking interest in sectors that have received a boost from the Covid-19 pandemic.
According to Refinitiv data, the total value of pending and completed deals announced from the January-May period touched $2.4 trillion, an all-time record. Last month, $532.9 billion worth of deals were recorded, the highest for the month of May.
During the five months, 428 deals worth over $1 billion were struck, compared to 131 during the same period last year.
The surge in deals comes as more companies look to deploy massive war-chests as they focus on expanding their businesses, and as major economies across the world are resuming normal business after ramping up vaccination efforts.
Proofpoint’s top executives and directors could earn as much as a combined $154.6 million in stock, option, and severance payments in the proposed acquisition by Thoma Bravo goes through.