More public companies are going private as traders look to use the capital they have built up to buy targets that have become more attractive amid recent stock market declines. The Wall Street Journal reports.
A handful of deals announced or completed this year, including for social media company Twitter Inc. and software company Citrix Systems Inc., appear to be setting the stage for another busy year in which public companies are acquired by third-party companies. private capital or majority shareholder and excluded from the stock exchanges.
At the end of last year, the number of these private transactions increased as PE firms and investors had access to cash and debt and interest rates remained low. There were 47 such deals made last year, up from 33 in 2020 and the highest total since 2010, according to financial data firm Dealogic. This year, that count is 26, compared to 17 during the same period last year. The value of these deals has also increased, topping $121 billion so far this year, the highest since 2007. Read the full story.