Slideshow: M&A, IPOs Slump in Summer Slowdown

The summer slowdown continues in M&A while the IPO market turned in its worst week since January.

There were only seven new IPOs this week, totally $547.8 million, Thomson Reuters said. That’s the lowest since the week of January 22nd when six IPOs raised $224.7 million, TR said.

Global M&A produced one of its most lethargic weeks this year. There were 397 global announced transactions, valued at $27.3 billion. This compares to 678 transactions last week, totaling about $44.7 billion, TR said. The number of deals is the lowest all year, while deal value, which was bad, wasn’t the worst this year (that honor goes to the first week of 2012 when 588 deals totaled $14.9 billion), according to the data.

The biggest M&A deal comes from Russia where OAO Sberbank, the biggest lender in Eastern Europe, which acquired Denizbank, a Turkey bank for 6.47 billion liras ($3.54 billion). The seller was Dexia.

The private equity side was a curious mix. The number of deals was low but some large transactions helped boost deal value to its best since April. There were 38 announced transactions this week, valued at $6.4 billion. This compares to 60 deals, totaling $4.1 billion.

Here’s the top 5 PE deals.


[slide title=”5. AOD Software”]

Primus Capital announced yesterday it made a growth investment in AOD Software, which provides software for the long-term care industry.

Financial terms weren’t announced but Thomson Reuters is valuing the deal at $80 million.

Primus is a Cleveland PE firm.

[slide title=”4. Future Capital Holdings”]

This week, Warburg Pincus agreed to buy a controlling stake in Future Capital Holdings for nearly $100 million.

Future Capital Holdings, of Mumbai, provides consumer and mortgage loans.

[slide title=”3. FiberGate”]

The Zayo Group, which is backed by GTCR, is buying FiberGate. Financial terms weren’t announced but Thomson Reuters is valuing the deal at $117 million.

FiberGate is a Washington D.C. metro area provider of Dark Fiber services.

GTCR, in March, agreed to invest in Zayo to help finance the PE firm’s buy of AboveNet.

[slide title=”2. Party City”]

This week, Thomas H. Lee Partners inked a deal to buy Party City for $2.69 billion. The sellers, Advent International Corp, Berkshire Partners LLC and Weston Presidio, will retain a minority stake, Reuters said.

[slide title=”1. Chesapeake Midstream Partners”]

Today, Chesapeake Energy Corp. announced plans to sell its pipeline and related assets to Global Infrastructure Partners for more than $4 billion, Reuters said. Chesapeake is selling its limited partner units and general partner interests in Chesapeake Midstream Partners LP to infrastructure fund GIP for $2 billion.

The company also entered into an agreement with Chesapeake Midstream Partners to sell certain Mid-Continent gathering and processing assets. It has a letter agreement with Global Infrastructure Partners for the sale of its interests in wholly owned subsidiary Chesapeake Midstream Development LP. Chesapeake expects to raise more than $2 billion from the latter two transactions, Reuters said.