Question

1) Walk through a recent merger or acquisition and highlight the following information:

• Background information on the buyer and seller • Deal rationale • Premium paid • Deal multiples • Your opinion

2). Walk through a recent IPO and highlight the following information:

• Background information on the company • Deal rationale • Valuation & pricing • Your opinion

Answer 1

1. Cigna and Express Script Merger

Cigna is an American worldwide health services organization. Its insurance subsidiaries are major providers of medical, dental, disability, life and accident insurance and related products and services.

Express Scripts Holding Company is an American Fortune 100 company. As of 2018, the company is the 25th-largest in the United States by total revenue as well as the largest pharmacy benefit management (PBM) organization in the United States.

The merger closed on 20/12/2018 for $54 billion

Cigna acquire Express script at a premium of 30%

Shareholding:-

• Cigna = 64%
• Express Script = 36%

The merger will result in better health care services to consumers at lower costs.

2. pager Duty IPO

PagerDuty is a cloud-based platform that allows businesses to improve the constant interplay between software developers and operators—so called DevOps—within their organization and lets them use real-time data to address incidents that occur.

• IPO date: April 12, 2019.
• IPO price: $24
• IPO valuation: $1.8 billion

Pager Duty is a rapidly growing company. Sales of $118 million for its last fiscal year were up nearly 50%. However a price of $24 per share appears to be a little overpriced.