Joanna Nolasco February 22, 2016
Multibillion-dollar exits of PE portfolio companies have continued to pervade the headlines just two months into 2016. IBM (NYSE: IBM) announced Thursday its plans to buy Truven Health Analytics from Veritas Capital in a $2.6 billion transaction. Earlier this month, Stryker (NYSE: SYK) announced back-to-back agreements to buy healthcare product companies from Madison Dearborn Partners and Bain Capital for $2.78 billion and $1.28 billion, respectively.
More so than secondary buyouts and IPOs, corporate acquisitions have consistently dominated PE-backed exits in recent years. This perhaps comes as no surprise as strategic buyers are willing to pay a premium for acquisitive growth in order to maintain market share and mitigate lackluster revenue growth.
According to our newest PE Exits and Company Inventory Report, corporate acquisitions amounted to over 54% of all 2015 PE-backed exits across North America and Europe, closing 1,263 purchases for a total value of $360 billion.
Here is a select list of corporations that have actively purchased PE portfolio companies since 2010, along with their deal counts:
1. AMETEK (NYSE: AME) – 18
2. Capita Group (LON: CPI) – 14
3. Roper Technologies (NYSE: ROP) – 12
4. Pearson (LON: PSON, NYSE: PSO) – 9
5. IBM (NYSE: IBM) – 8