As 2018 fast approaches, we can’t help but look back on the past 12 months, a year that was a whirlwind politically, socially, culturally, and economically.
While the U.S. dealt with everything from natural disasters and gun violence to protests about racial inequality and the sexual harassment reckoning, the stock market reached extraordinary highs.
The market hit 62 daily all-time highs in 2017, notes CNBC, and the S&P 500 has returned almost 20% so far. And, the top performing sector, technology, which is up around 38% year-to-date, surpassed the worst-performing sectors (energy and telecom) by over 43 percentage points.
Even with this overall positive economic sentiment, which has gotten a big boost from the new tax bill, merger and acquisition activity in 2017 has been relatively quiet; deals were down 35% year-to-date through mid-November.
The deals that were announced this year, though, were major, and revolved around some of the biggest consumer and technology names. Here are 15 of the best mergers and acquisitions of 2017.
1. Amazon Buys Whole Foods
Earlier this summer, e-commerce giant Amazon (AMZN - Free Report) announced that it would be buying high-end organic grocery chain Whole Foods for $13.7 billion; the deal officially closed at the end of August. While the acquisition has been off to a rocky start, it gives Amazon hundreds of physical stores and provides the company a strong entryway into the competitive grocery and food industry.
2. Intel Acquires Mobileye
Intel INTC said in August that it had completed its tender offer for the outstanding shares of Mobileye, a company that develops sensors and cameras for Advanced Driver Assisted Systems (ADAS); the Israel-based company is also known for its computer vision and machine learning technology. The $15.3 billion deal gives Intel a huge advantage in the growing self-driving car industry, a market they estimate will grow to $70 billion annually by 2030.
3. United Technologies Buys Rockwell Collins
In a major industry deal, United Technologies (UTX - Free Report) agreed to buy Rockwell Collins for roughly $23 billion. This is one of the biggest moves in aviation history, and gives rise to an aerospace giant that will focus on the manufacturing of aircraft parts like touchscreen cockpit displays and jet engines, among many other things. United plans to combine its aerospace business with Rockwell Collins, creating a new unit named Collins Aerospace Systems.
4. Disney To Buy Some of 21st Century Fox’s Assets
Just a few weeks ago, Disney (DIS - Free Report) and 21st Century Fox FOXA announced a historic $52.4 billion deal that would see Mickey Mouse’s parent scoop up a good chunk of the media conglomerate’s assets, including the film studio 20th Century Fox, the company’s TV production arm 20th Century Fox Television, Fox-owned cable networks (including FX and National Geographic), and FOXA’s stakes in international networks like Star TV and Sky; Disney will also gain majority control of streaming service Hulu. The deal, however, will likely face intense regulatory scrutiny.
5. JAB Holdings Acquires Panera
For $7.5 billion, European investment firm JAB reached a deal to buy bakery-café chain Panera Bread earlier this year, creating a formidable food-focused portfolio that includes Keurig Green Mountain, Krispy Kreme Doughnuts, Peet’s Coffee & Tea, and Caribou Coffee Company. Additionally, Panera is a restaurant that has managed to post steady comparable sales growth and rising revenue at a time when many chains are hurting.
6. Michael Kors Acquires Jimmy Choo
“Affordable” luxury retailer Michael Kors KORS agreed to buy footwear brand Jimmy Choo, a popular name in the fashion world known for its towering stilettos, for about $1.2 billion in July. The purchase had been a long-rumored one, and Kors plans on using its own massive global infrastructure to expand Jimmy Choo’s footprint. This likely won’t be Kors’ last acquisition either, as the company is now focused on forming a new, “luxury group.”
7. Coach Buys Kate Spade
Coach, now Tapestry Inc. TPR, shook up the fashion industry back in May when the company announced that it would be purchasing its smaller rival, Kate Spade, for $2.4 billion. The deal is both an effort to reach younger consumers—it recently signed a deal with millennial and Instagram icon Selena Gomez—and to rebrand itself as a broader “lifestyle assortment company.”
8. CVS Buys Aetna
After weeks of rumors and speculation, drugstore chain CVS CVS announced that it would acquire insurance provider Aetna for $69 billion. The two companies said this blockbuster deal would rein in health care costs and transform CVS’s 9,700 pharmacy storefronts into community medical hubs for primary care and basic procedures. It’s expected to close in the second half of 2018, and is subject to shareholder and regulatory approval.
9. Gilead Acquires Kite Pharma
In October, Gilead Sciences (GILD - Free Report) shelled out $11.9 billion for Kite Pharma, marking its biggest acquisition ever. The deal gives the biopharmaceutical company access to a promising cancer therapy, and hopefully makes it less reliant on antiviral treatments like its Hepatitis C drug Sovaldi. In particular, the cancer therapy is a CAR-T drug, which many in the industry believe will transform the cancer treatment market.
10. Cisco Acquires BroadSoft
In a move that will grow its software footprint, Cisco (CSCO - Free Report) paid nearly $2 billion for BroadSoft , a company that sells cloud-based call control software, a product that is often re-labeled and sold by traditional telephone companies to their customers. This acquisition is what IT vendors dub “the future of work,” as it uses technology meant to make it easier for workgroups to communicate with each other.
11. Apple Buys Shazam
Recently, iPhone maker Apple (AAPL - Free Report) confirmed that it has acquired Shazam for $400 million, a company that lets users identify songs, movies, TV shows, and commercials from short audio clips. The tech giant will be able to use Shazam to boost Apple Music. It also hopes to integrate Shazam more deeply into iOS, and utilize the app’s augmented reality technology to improve its ARKit efforts.
12. Arby’s Roark Buys Buffalo Wild Wings
Just last month, Arby’s owner Roark Capital Group announced that it would be acquiring chicken wing chain Buffalo Wild Wings BWLD for $2.4 billion. Arby’s has successfully executed a turnaround strategy by specifically emphasizing its unique fast-food menu selection; the firm hopes to apply this similar formula to Buffalo Wild Wings. Arby’s will also assume the debt of BWLD.
13. Meredith Corp. Buys Time Inc.
The Meredith Corporation MDP closed a $2.8 billion deal in November to buy Time TIME that would create a publishing giant. The Des Moines–based Meredith publishes the magazines Better Homes and Gardens, Family Circle, and Shape, among others, while Time owns Time, People, Sports Illustrated, Fortune, Entertainment Weekly, and many other print and digital media properties, and has been in business since 1922.
14. Discovery Acquires Scripps Networks Interactive
In November, Discovery’s (DISCA - Free Report) $14.6 billion acquisition of Scripps Networks Interactive received overwhelming shareholder support. The merger would unite two cable programming giants; Discovery owns the Discovery Channel, Investigation Discovery, OWN and TLC, while Scripp’s portfolio includes the Food Network, HGTV and Travel Channel.
15. Google Buys Part of HTC Smartphone Team
This fall, Alphabet’s (GOOGL - Free Report) Google division confirmed that it plans to acquire part of HTC’s mobile division team for $1.1 billion as it grows its smartphone hardware business. Google has become very serious about its hardware development with the debut of its Pixel line of smartphones, and scooping up a chunk of HTC’s team means that the tech giant can better directly challenge Android partners like Samsung, LG, and Huawei.
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