The Blackstone Group LP
) reached an agreement to acquire Intertrust - a trust and
corporate management company - from Holland-based Waterland
Private Equity Investments. The deal is anticipated to close in
the upcoming months after receiving regulatory approvals.
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The financial details of the transaction were undisclosed.
However, according to market rumors, Blackstone paid roughly €675
million ($884 million) for the deal. The amount is approximately
nine times more than Intertrust's gross operating profit.
In November this year, Reuters reported that Blackstone was in
the midst of discussions to acquire Intertrust from its parent
company, Waterland Private Equity Investments. Blackstone, Cinven
- a U.K. based private equity firm - as well as Pamplona Capital
Management - a Spanish private equity firm - had submitted second
round bids for Intertrust during the same month.
The Carlyle Group LP
) and Goldman Sachs Private Equity, a unit of
The Goldman Sachs Group, Inc.
), were also in the queue to buy this management company.
Finally, Blackstone won the race and grabbed the opportunity.
Netherlands' bilateral tax agreements with other countries make
it an attractive location for foreign countries to set up holding
companies. Due to these lenient taxation laws the companies
operating in the country do not fall under double taxation.
Blackstone's Other Acquisitions
Blackstone has completed a string of purchases over the past few
months. In November, Blackstone Capital Partners V, L.P − a
private equity fund managed by Blackstone - announced the
completion of the acquisition of GCA Services Group from Nautic
Partners, L.L.C. and other minority shareholders.
Later that month, it also closed the acquisition of Vivint Inc, a
security provider, offering home automation and technology
services. The total value of the acquisition was more than $2
Blackstone's recent acquisitions reflect its strong liquidity.
Additionally, these acquisitions have the capacity to fuel the
company's overall growth in the future.
Blackstone currently retains a Zacks #2 Rank, which translates
into a short-term Buy rating. We believe that the company's
diversified revenue mix, footprints along with steady growth in
assets under management (AUM) will supplement its future growth
as well. However, the sluggish economic recovery and regulatory
changes will dent its financials to some extent.