Chevron to acquire Anadarko in £33bn deal

BY Fraser Tennant

In a deal which it sees as a strong strategic fit, integrated energy company Chevron Corporation has acquired Anadarko Petroleum Corporation, one of the world’s largest independent exploration and production companies, in a transaction valued at $33bn.

The acquisition, which significantly enhances Chevron’s already advantaged upstream portfolio and strengthens its leading positions in large, attractive shale, deepwater and natural gas resource basins, will provide Anadarko shareholders with 0.3869 shares of Chevron and $16.25 in cash for each Anadarko share.

One of the world's leading integrated energy companies, Chevron and its subsidiaries are involved in virtually every facet of the energy industry. The company explores for, produces and transports crude oil and natural gas, as well as refining, marketing and distributing transportation fuels and lubricants, and manufacturing and selling petrochemicals and additives.

The transaction has been approved by the boards of directors of both companies and is expected to close in the second half of 2019.

“This transaction builds strength on strength for Chevron,” said Michael Wirth, chairman and chief executive of Chevron. “The combination of Anadarko’s premier, high-quality assets with our advantaged portfolio strengthens our leading position in the Permian, builds on our deepwater Gulf of Mexico capabilities and will grow our liquefied natural gas (LNG) business. “This transaction will unlock significant value for shareholders, generating anticipated annual run-rate synergies of approximately $2bn and will be accretive to free cash flow and earnings one year after close.”

Upon closing, Chevron will continue be led by Mr Wirth and remain headquartered in San Ramon, California.

“The strategic combination of Chevron and Anadarko will form a stronger and better company with world-class assets, people and opportunities,” said Al Walker, chairman and chief executive of Anadarko. “I have tremendous respect for Chevron’s leadership team and believe its strategy, scale and operational capabilities will further accelerate the value of Anadarko’s assets.”

The acquisition is subject to Anadarko shareholder approval, regulatory approvals and other customary closing conditions. 

Mr Wirth concluded: “This transaction creates attractive growth opportunities in areas that play to Chevron’s operational strengths and underscores our commitment to short-cycle, higher-return investments.”

News: Chevron to buy Anadarko for $33 billion in shale, LNG push

Security analytics deal sees Rapid7 acquire NetFort

BY Fraser Tennant

In a deal which adds traffic-visibility analytics and security monitoring software to its cyber security repertoire, US data analytics company Rapid7 has acquired Irish tech firm NetFort.

The deal is expected to improve Rapid7’s ability to detect attacks, investigate incidents and gain increased visibility into devices that pose a risk to organisations.

The company plans to bring NetFort’s network monitoring, visibility and analytics capabilities into its Insight cloud – which processes billions of events and monitors millions of assets daily, collecting and analysing data from the endpoint to the cloud – to assist its 7800 customers to securely advance their organisations.

“We were immediately impressed by NetFort’s technology and the deep network protocol expertise inherent across the team,” said Lee Weiner, chief product officer at Rapid7. “By bringing NetFort’s network data and analytics to our own platform, we enhance security analysts’ capability to unearth risk, detect attacks and investigate incidents more effectively.”

Founded in 2000, Rapid7 helps security teams reduce vulnerabilities, monitor for malicious behaviour, investigate and shut down attacks, and automate routine tasks.

NetFort is Rapid7’s second Irish acquisition after previously buying Logentics in 2015.

“We are delighted to join Rapid7 and believe this is a testament to the capabilities of our people and our technology,” said John Brosnan, chief executive at NetFort. “Rapid7 will help us apply our network data insights across their cloud-based platform to improve the security posture of our customers.”

Founded in 2002 and based in Galway, NetFort provides network traffic and security monitoring software for virtual and physical networks. Its products provide powerful, deep-packet inspection technology which helps businesses have comprehensive visibility across their networks.

The financial terms of the deal were not released.

News: Galway tech firm NetFort acquired by Boston’s Rapid7

DSV and Panalpina agree $4.6bn merger

BY Richard Summerfield

Following months of speculation – and activist activity – the future of Swiss logistics company Panalpina has finally been sealed, with Danish rival DSV agreeing to acquire the company in a deal worth $4.6bn.

The merger, once completed, will create one of the world’s largest companies in logistics and freight forwarding – only DHL Logistics, Kuehne & Nagel and DB Schenker will be bigger.

The deal will see DSV acquire Panalpina with an all-share offer of 2.375 DSV shares for each Panalpina share held. The offer gives an implied price of 195.8 Swiss francs for each Panalpina share, compared with DSV’s cash offer of 180 francs per share made on 15 February – a 43 percent premium, and an initial cash and shares offer then worth 170 francs which was made in January. The agreement has the backing of investors holding 69.9 percent of registered shares, including the Ernst Goehner Foundation which owns 46 percent of Panalpina and had rebuffed a previous offer.

“In the course of the past weeks, Panalpina’s board of directors and management has been exploring different strategic initiatives and held discussions with DSV about a potential combination,” said Peter Ulber, chairman of Panalpina. “The board of director’s assessment is that the updated proposal of DSV is very attractive. It is recognising the quality of Panalpina’s employees, the company’s strong position as one of the world’s leading providers of supply chain solutions, and its special competencies and know-how in air and ocean freight. The board of directors recommends Panalpina’s shareholders to accept the offer. Talks with Agility have been discontinued. We are now looking forward to join forces with DSV and contribute to creating one of the world’s largest transport and logistics companies. Our customers will be able to benefit from a stronger network and service offering as well as new competencies and skills.”

“A combination of DSV and Panalpina further strengthens our position as a leading global freight forwarding company,” said Kurt Larsen, chairman of DSV. “Together, we can present a strong global network and enhanced service offering to our clients, further solidifying our competitive edge in the industry. It’s a great match on all parameters. Panalpina is a great company and we’re very excited by this possibility to join forces and to welcome Panalpina’s talented staff.”

The DSV/Panalpina merger comes a few months after DSV abandoned its pursuit of Ceva Logistics AG, after its offer worth $1.7bn was rejected. DSV said at the time it would pursue other targets.

News: Denmark’s DSV to buy logistics company Panalpina in $4.6 billion deal

Uber takes Careem

BY Richard Summerfield

Ride-hailing giant Uber has agreed to acquire its biggest Middle Eastern rival Careem for $3.1bn.

Uber will finance the transaction using $1.4bn in cash and $1.7bn in convertible notes, bringing to an end a nine-month period of negotiation. The notes, according to Uber’s statement announcing the deal,  will be convertible into Uber shares at a price equal to $55 apiece, roughly a 13 percent increase over Uber’s share price in its last financing round, which was undertaken more than a year ago. The transaction is expected to close in the first quarter of 2020 once it has received regulatory approval across several jurisdictions.

“This is an important moment for Uber as we continue to expand the strength of our platform around the world,” said Uber chief executive Dara Khosrowshahi. “With a proven ability to develop innovative local solutions, Careem has played a key role in shaping the future of urban mobility across the Middle East, becoming one of the most successful startups in the region. Working closely with Careem’s founders, I’m confident we will deliver exceptional outcomes for riders, drivers, and cities, in this fast-moving part of the world.”

“Joining forces with Uber will help us accelerate Careem’s purpose of simplifying and improving the lives of people, and building an awesome organisation that inspires,” explained Mudassir Sheikha, Careem’s chief executive and co-founder. “The mobility and broader internet opportunity in the region is massive and untapped, and has the potential to leapfrog our region into the digital future. We could not have found a better partner than Uber under Dara’s leadership to realise this opportunity. This is a milestone moment for us and the region, and will serve as a catalyst for the region’s technology ecosystem by increasing the availability of resources for budding entrepreneurs from local and global investors.”

Careem will continue to operate independently under the leadership of Mr Sheikha. The Dubai-based company operates in over 120 cities stretching from Morocco to Pakistan. After raising an additional $200m in funding last year, Careem launched a delivery service in Dubai and Jeddah,Saudi Arabia in December. Uber, meanwhile, has struggled to keep up with its regional rival despite eclipsing it in terms of revenue.

News: Uber buys rival Careem in $3.1 billion deal to dominate ride-hailing in Middle East

Fidelity to pay $35bn for Worldpay

BY Richard Summerfield

US FinTech Fidelity National Information Services Inc (FIS) has agreed to acquire payment processor Worldpay for about $35bn.

The deal will see Worldpay shareholders receive 0.9287 FIS shares and $11.00 in cash for each share of Worldpay held - a premium of about 14 percent based on the last day of trading before the deal was announced. Upon closing of the transaction, FIS shareholders will own approximately 53 percent and Worldpay shareholders will own approximately 47 percent of the combined company.

The deal values Worldpay at around $43bn, inclusive of debt. FIS and Worldpay combined will have annual revenues of about $12bn and adjusted core earnings of around $5bn.

The merger is the biggest deal announced in the electronic payments industry to date. It comes as more consumers utilise digital payments, rather than cash. Worldpay, the companies noted in a press release, processes over 40 billion transactions annually, supporting more than 300 payment types across more than 120 currencies.

“Scale matters in our rapidly changing industry,” stated Gary Norcross, chairman, president and chief executive of FIS. “Upon closing later this year, our two powerhouse organisations will combine forces to offer a customer-driven combination of scale, global presence and the industry’s broadest range of global financial solutions. As a combined organization, we will bring the most modern solutions targeted at the highest growth markets. The long-term value we will create for clients and for shareholders will set the bar in our industry and will create a range of new career opportunities for our employees. I have never been more excited about the future of FIS.”

“At Worldpay, our focus has always been on delivering more value to our clients and partners and making decisions that achieve our growth and performance objectives. Combining with FIS helps us accelerate the achievement of that, now benefitting from new scale and capabilities that will truly differentiate the company globally,” said Charles Drucker, executive chairman and chief executive of Worldpay. “We are proud to become part of one of the financial services industry’s most respected and consistently performing companies, and I am excited about the new opportunities this brings both for the business and our colleagues worldwide.”

The deal is expected to generate an organic revenue growth outlook of 6 to 9 percent through 2021, and $700m of total core earnings savings over the next three years. Furthermore, the companies expect to generate $500m of revenue savings and aim to deliver nearly $4.5bn of free cash flow in three years.

News: U.S. firm FIS buys Worldpay for $35 billion in payments deal bonanza