M&A · Tech · Services-Computer Programming, Data Processing, Etc.
DigitalBridge Investment Management and IFM to acquire Switch, Inc.
Announced May 11, 2022 · Closed Dec 6, 2022
Deal value$11.00BEV $11.00B
Premium—To unaffected price
EV / Adj. EBITDA40.7x17.6x EV / Revenue
ConsiderationAll cash$34.25 per share
Transaction
- Acquirer
- DigitalBridge Investment Management and IFM
- Target
- Switch, Inc.
- Buyer type
- Private equity
- Offer price per share
- $34.25
- Enterprise value
- $11.00B
- Status
- Closed Dec 6, 2022
Deal protections
- Break fee (target pays)
- $260M · 2.4%
- Reverse fee (buyer pays)
- $693M · 6.3%
- Go-shop
- No-shop
- Financing
- Committed · RBC Capital Markets, Société Générale
Advisors
- To the acquirer
- RBC Capital Markets, TD Cowen
- To the target
- Goldman Sachs, Morgan Stanley
Sector context · Tech
- Comparable deals
- 69 in the prior 24 months
- Premium
- Sector median 32.5%
- EV / Adj. EBITDA
- 40.7x vs. 17.8x sector median
- Break fee
- 2.4% vs. 3.0% sector median
Timeline
- AnnouncedMay 11, 2022
- Proxy filedJun 16, 2022
- Definitive proxyJun 27, 2022
- Shareholder voteAug 4, 2022
- ClosedDec 6, 2022
Valuation · fairness opinions
Future share price$23.99$35.32
Future share price$24.29$34.25
Discounted cash flow$24.44$37.78
Precedent transactions$26.54$31.09
52-week trading range$27.92$33.38
Offer $34.25
Implied value per Switch, Inc. share by analysis, from Goldman Sachs · DCF discount rate 7%–8%.