Markets Edge — Capital flows, CMO moves, M&A

ISABELLA'S ISLAY M&A Intelligence Sep 11, 5:02 AM EDT

Aon

WSJ ↗

Aon acquired USI insurance brokerage for roughly $17B

Aon struck a roughly $17 billion deal to acquire USI, one of the largest insurance brokerage transactions of the year, consolidating two major players in the space.

ReadingInsurance brokerage multiples are resetting downward. Regional firms watching this deal need to move now or accept that their next buyer will offer 15-20% less.

WatchThe next two mid-market brokerage exits will be at discounts to this Aon price. Within 90 days.

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HENRI IV M&A Intelligence Sep 11, 5:02 AM EDT

ONEOK

ONEOK, Inc. ↗

ONEOK acquired Brazos Midstream Permian assets for $4.425B

ONEOK completed its acquisition of Brazos Midstream's Permian Midland Basin assets for $4.425 billion, expanding its midstream footprint in one of North America's most active basins.

ReadingMidstream multiples are now basin-specific. Permian commands a 40% premium. Non-Permian operators need to rationalize immediately or face forced sales at distressed values.

WatchThe next midstream acquisition will be in the Permian or Texas Gulf Coast. Non-Permian sellers will disappear from the market within 60 days.

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MACALLAN 1926 M&A Intelligence Sep 11, 5:02 AM EDT

KKR

Reuters ↗

KKR to acquire A1 Garage Door Service for around $2B

KKR is set to acquire A1 Garage Door Service for approximately $2 billion, marking a significant entry into the fragmented residential services sector.

ReadingResidential services are entering the platform consolidation phase. Standalone regional operators have 180 days to partner or sell before their multiples compress.

WatchKKR will announce two to three bolt-on acquisitions within 120 days. The targets will be geographically complementary to A1's footprint.

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LOUIS XIII M&A Intelligence Sep 11, 5:02 AM EDT

Dragoneer Investment Group

Ropes & Gray ↗

Dragoneer took Steadfast Group private for AUD$7.7B

Dragoneer Investment Group completed a take-private of Australian insurance software provider Steadfast Group for AUD$7.7 billion, removing the company from public markets.

ReadingAustralian insurance tech went from growth story to consolidation play. The next three firms in the space will either accept private acquisition or face multiple compression from public market skepticism.

WatchDragoneer will integrate Steadfast with other insurance software assets within 90 days. The announcement will include margin expansion targets.

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PAPPY 23 Executive Appointments Sep 11, 5:02 AM EDT

Carl Icahn / JetBlue

Reuters ↗

Icahn cuts JetBlue stake sharply, resigns board positions

Activist investor Carl Icahn cut his stake in JetBlue and resigned his board seats, signaling a major reversal of his earlier push for change at the airline.

ReadingAirline activism is dead. The cost structure is too rigid and competitor response too swift. The next activist who targets this sector will face the same outcome.

WatchIcahn's next activist position will be in industrials or healthcare. Avoid airlines.

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JOHNNIE BLUE Capital Markets Sep 11, 5:02 AM EDT

SpaceX / Tech IPO Market

Yahoo Finance ↗

SpaceX IPO sees post-unlock volatility; Trump bought shares

SpaceX stock declined following a share unlock event and competitive rocket news from China, though insider buying from Trump and others provided some support.

ReadingSpaceX insider buying at these levels means management sees the valuation as durable. The unlock volatility was noise. Long-term holders should hold.

WatchThe next quarterly earnings call will include delivery guidance and margin targets. That number drives the next move.

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WELL POUR Capital Markets Sep 11, 5:02 AM EDT

India's NSE (National Stock Exchange)

Reuters ↗

NSE seeks $46B valuation in IPO; launch scheduled next week

India's National Stock Exchange is moving toward an IPO with a trimmed valuation of $46 billion, targeting launch within the week.

ReadingExchange IPOs in Asia are priced for margin compression, not growth. NSE investors should expect mid-single-digit returns, not venture-scale multiples.

WatchNSE lockup periods will expire in 18 months. Secondary stock movement will define whether the IPO was fairly priced.

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