Lower Middle Market Weekly Outlook

Big news came in last night when AT&T announced it was acquiring DIRECTV for $48.5 billion.  The mega-deal is part of the recent merger mania for media giants and had quite a roster of advisers, including: Lazard, Sullivan & Cromwell, Goldman Sachs, Bank of America Merrill Lynch, and more…

The real question is whether regulators will allow the deal to actually happen.  As Dan Primack pointed out, AT&Ts last major takeover fell apart “under the weight of regulatory scrutiny,” costing AT&T $3bn in breakup fees. It appears AT&T has learned from that experience and, sources report, there is no regulatory break up fee for the DIRECTV deal.

Transactions:

• Stats LLC sold to Vista Equity Partners
• Audax to acquire MIRATECH
• Kentz buys Alegro
• Lionbridge acquires Darwin Zone
• NGP Energy Technology Partners backs Wellsite
• Sun Private Equities acquires Sustainable Refining
• Hortonworks acquires XA Secure
• Bayer sells unit to Boston Scientific for $415 million
• Spectrum Equity invests C$60m in Verafin
• American Industrial Partners acquires SERVA from Wexford
• Vista Equity backs DealerSocket
• CapStreet to merge two portfolio companies
• Aterian to buy Johnston Wire Technologies

Upcoming Events:

• Wednesday Roundtable in NYC: Debt Trends in the Middle Market

Opinions:

• New York’s public pensions make private equity change
• Lending at the highest level in six years
• SEC exam findinds are a “wake-up call” to LPs
• Private equity dominates 2013 restaurant M&A activity
• 3D printing revolution reshapes healthcare
• Deal professionals discuss the ‘hot’ health care mergers in 2014
• Pulled pork IPO shows China PE not yet ready for world stage
• Taking a ride on private equity
• Closed middle-market transactions are on the rise
• David Rubenstein says deals are getting ‘frothy’
• Oregon to examine private equity fees
• David Tepper is nervous about the market

Recently Joined Axial Members: