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Apollo (APO)-Athene (ATH) Merger to Create $29 Billion Firm
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Apollo Global Management (APO - Free Report) has announced an all-stock deal worth $11 billion to merge with Athene Holding . The transaction is expected to close in January 2022, subject to necessary approvals.
The merger of the alternative asset manager and the life insurance company is expected to create a company with market capitalization of about $29 billion, with significant increase in the scale and breadth of franchise. Also, the deal faces low execution risk on the back of their complementary businesses and management teams.
Per terms of the transaction, each outstanding Class A common share of Athene will be exchanged for 1.149 shares of Apollo common stock. Upon completion, existing shareholders of Apollo will own nearly 76% of the combined company, while Athene shareholders will own 24%.
Notably, Apollo expects the transaction to bolster earnings of the combined company and result in more than double of what the former had reported in 2020. Also, an annual dividend of $1.60 is expected to be distributed, following closing of the acquisition, with increase based on growth of the business.
The combined company will be led by incoming Apollo CEO Marc Rowan. Also, Apollo’s business will continue to be led by co-presidents Scott Kleinman and James Zelter.
Apollo founder and chairman Leon Black said, “The Apollo Athene combination is all about alignment, turbo charging growth initiatives and dramatically enhancing shareholder value.”
Athene chairman and CEO Jim Belardi said, “After carefully reviewing Athene’s options to unlock value for shareholders, Athene and Apollo determined that the potential of a fully aligned business would be significantly greater than a sum-of-the-parts. Coming together in this merger is a logical and exciting next step that will simplify our relationship while driving significant strategic and financial benefits in both the immediate and long-term future.”
Over the past year, Apollo’s shares have rallied 4.7%, underperforming the industry’s growth of 30%.
Of late, consolidation within the finance sector has been on the rise.
Last month, M&T Bank Corporation (MTB - Free Report) agreed to acquire People’s United Financial Inc. in an all-stock merger deal worth $7.6 billion. Also, recently, Morgan Stanley completed the stock-cash deal to acquire Eaton Vance.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Apollo (APO)-Athene (ATH) Merger to Create $29 Billion Firm
Apollo Global Management (APO - Free Report) has announced an all-stock deal worth $11 billion to merge with Athene Holding . The transaction is expected to close in January 2022, subject to necessary approvals.
The merger of the alternative asset manager and the life insurance company is expected to create a company with market capitalization of about $29 billion, with significant increase in the scale and breadth of franchise. Also, the deal faces low execution risk on the back of their complementary businesses and management teams.
Per terms of the transaction, each outstanding Class A common share of Athene will be exchanged for 1.149 shares of Apollo common stock. Upon completion, existing shareholders of Apollo will own nearly 76% of the combined company, while Athene shareholders will own 24%.
Notably, Apollo expects the transaction to bolster earnings of the combined company and result in more than double of what the former had reported in 2020. Also, an annual dividend of $1.60 is expected to be distributed, following closing of the acquisition, with increase based on growth of the business.
The combined company will be led by incoming Apollo CEO Marc Rowan. Also, Apollo’s business will continue to be led by co-presidents Scott Kleinman and James Zelter.
Apollo founder and chairman Leon Black said, “The Apollo Athene combination is all about alignment, turbo charging growth initiatives and dramatically enhancing shareholder value.”
Athene chairman and CEO Jim Belardi said, “After carefully reviewing Athene’s options to unlock value for shareholders, Athene and Apollo determined that the potential of a fully aligned business would be significantly greater than a sum-of-the-parts. Coming together in this merger is a logical and exciting next step that will simplify our relationship while driving significant strategic and financial benefits in both the immediate and long-term future.”
Over the past year, Apollo’s shares have rallied 4.7%, underperforming the industry’s growth of 30%.
Currently, Apollo carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Of late, consolidation within the finance sector has been on the rise.
Last month, M&T Bank Corporation (MTB - Free Report) agreed to acquire People’s United Financial Inc. in an all-stock merger deal worth $7.6 billion. Also, recently, Morgan Stanley completed the stock-cash deal to acquire Eaton Vance.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>