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Carlyle (CG) to Acquire ManTech for $4.2B in an All-Cash Deal

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Carlyle Group (CG - Free Report) has inked a definitive agreement to acquire ManTech International Corporation (MANT - Free Report) , which provides innovative technologies and solutions for mission-critical national security programs. The all-cash deal is valued at approximately $4.2 billion.

The transaction is expected to close in the second half of 2022 and is subject to ManTech shareholders’ approval, receipt of regulatory approvals and other customary closing conditions.

Per Carlyle’s management, this acquisition will be beneficial for the company as it will help the company leverage ManTech’s sector expertise and resources to accelerate growth and innovation, driving greater value for Carlyle’s customers and employees.

The deal is also valuable for ManTech as it is beneficial for the company’s shareholders and provides them with a value-maximization outcome by offering liquidity at a significant premium. As per the terms of the transaction, shareholders of MANT will receive $96 per share in cash. This reflects a 17% premium to the closing stock price of $81.97 as on May 13, 2022, which was a day prior to the announcement.

ManTech’s board of directors has unanimously approved the transaction and expects the company’s shareholders to vote in favor of the deal. MANT’s shareholders, who represent 49.2% of the current outstanding voting power, have agreed to vote in favor of the motion subject to certain conditions.

Carlyle has been increasing its asset base over the years through inorganic growth. Last week, the company inked a definitive agreement to buy NSM Insurance Group from White Mountains Insurance Group, Ltd for $1.775 billion. In March 2022, the company agreed to acquire a portfolio of assets from CBAM Partners. The transaction is expected to bolster Carlyle’s already strong collateralized loan obligations business. Further, in February, Carlyle’s Global Credit segment agreed to acquire iStar Inc.’s net lease business for approximately $3 billion to ace its growth in real estate credit. Such acquisitions are expected to boost the company’s bottom line in the near future.

Over the past month, shares of the company have lost 12.6%, wider than the 8.9% fall recorded by the industry.

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Currently, Carlyle carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Inorganic Moves by Other Companies

With a view to help its clients build long-term financial wellness, Truist Financial Corporation (TFC - Free Report) acquired the award-winning gamified finance mobile app, Long Game. Long Game changes the way people engage with their banks. The finance mobile app uses prize-linked savings and casual gaming to motivate smart financial behavior.

Truist Financial is expected to use Long Game’s innovative technology to inspire and build better lives and communities.

Itaú Unibanco Holding S.A (ITUB - Free Report) announced on Apr 29, 2022, the completion of its acquisition of 11.36% equity interest in the total capital of XP Inc. for a deal value of R$ 8 billion.

The acquisition of XP is not expected to have any material impact on Itaú Unibanco’s current fiscal year results. Further, there will be no change in the corporate governance of XP as a result of the acquisition. ITUB had received approval from Central Bank of Brazil to acquire the minority interest in XP Inc. in November 2021.