The fourth quarter is off to a slow start on large transactions after one M&A deal of more than $10 billion in value was announced in October.
An investor group plans to acquire Nord Anglia Education Ltd. in a deal with a $14.5 billion transaction value, according to S&P Global Market Intelligence data. The investor group comprises Canada Pension Plan Investment Board, EQT Private Capital Asia, Neuberger Berman Group LLC and Baring Private Equity Asia Fund VIII. The deal ranks among the 20 largest deals since October 2023, with 30 $10 billion-plus M&A transactions during that time, according to S&P Global Market Intelligence.
The October deal
Nord Anglia Education is a London-based network of 80 schools operating in 33 countries, including schools in China, the Middle East, North America and Southeast Asia, according to EQT Private Capital's deal announcement.
Some of the investors had a prior relationship with Nord Anglia Education and invested in the company prior to the deal announcement. EQT Private Capital first invested in 2008 and increased its stake in 2017 and brought on Canada Pension Plan Investment Board as a partner, according to EQT Private Capital's deal announcement.
EQT Private Capital's investment is a part of its BPEA Private Equity Fund VIII, and the Canada Pension Plan Investment Board is reinvesting a portion of its stake to support the acquisition, according to the announcement. Neuberger Berman is a new addition to the investor mix.
Goldman Sachs Group Inc., J.P. Morgan Securities LLC and Morgan Stanley are working as lead financial advisers and Lazard & Co. Ltd. is serving as private capital adviser to Nord Anglia Education. Deutsche Bank AG and HSBC Holdings PLC are also serving as financial advisers to Nord Anglia Education Ltd.
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Big deal outlook
The subdued number of large deal announcements in October comes at a time when geopolitical tensions — including continuing conflicts in Europe and the Middle East — and the US presidential election has weighed on dealmaking. However, investment banking executives have become increasingly optimistic about the outlook for M&A and expect greater activity in 2025. The US presidential election outcome has the potential to improve the backdrop for dealmaking as the completion of the process removes some uncertainty, and the elected Republican administration is expected to ease regulations, which could spur large M&A deals in the US.
