Tim Mueller’s Transaction Analysis: New IT M&A Deals Nov. 22

Presidio Reportedly Close to Filing IPO

Financial Information*

Enterprise Value: $3 billion

Transaction Facts

IT Solution Provider Presidio Holdings is reportedly considering an upcoming IPO filing, which may occur as early as later this week.

The IPO would value Presidio at approximately $3 billion, according to a report in the Wall Street Journal citing a person familiar with the proposed deal.

Presidio, which earlier this year was reported to be interviewing bankers, is now said to have hired JP Morgan Chase and Citigroup to lead the offering.

The transaction would take place next year.

A Rare Light in a Dark Sky

Few and Far Between: 2016 has been a slow year for US IPOs. According to Dealogic, 104 companies have raised $22 billion on a year-to-date basis. This is the lowest dollar amount in any similar period dating to 2003.

PE IPOs Not Immune to Trend: Presidio is owned by Apollo Global Management, which has used its resources to fund several supplemental acquisitions such as that of Netech earlier this year. This has not been a year of big public exits. Private-equity backed companies sold $34.2 billion of stock in US IPOs in 2015 — a record — but only $9.7 billion in 2016.

A Warmer Reception to Come?: Though this has been a tight year for IPOs, multiple signs indicate a warming climate, particularly in the technology space. IT Services provider peers are up, and the tech companies that did go public in 2016 enjoyed an average 30 percent day-one rise in share price.

*Though no formal IPO filing has been announced, a media report appeared in the Wall Street Journal citing “a person familiar with the matter.”

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