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THE HEADLINES
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WICKED BAD DEAL
State Street, the Boston-based custodian bank, is acquiring investment data manager Charles River Systems for $2.6B.
State Street, which provides core operational, administrative, and accounting services for 86 of the world’s 100 largest money managers hopes the purchase will fend off slumping revenues. It will also help the financial backer of the “Fearless Girl” statue compete with Bloomberg and BlackRock’s Aladdin in the data, analytics, and trading tools space.
Investors, however, weren’t on board with the acquisition that was criticized as overpriced and forced the suspension of $950M in share repurchases (which will be used to finance the deal). Shares were down nearly 7.5% on the news.
Water Cooler Talking Point: “What’s more “Boston” than Nomar Garciaparra and Donnie Wahlberg discussing “The Departed” at a Dunkin’ Donuts in the Prudential Building? That’s right, this deal.”
YOU’RE INVITED
The event management and ticketing website best known for its borderline-price-gouging “service charges,” Eventbrite, has filed for a confidential IPO with the SEC indicating its intention to go public.
Confidential IPOs are the new black. They were introduced as part of the JOBS Act in 2012. The process allows companies to review and prepare their financials privately before introducing them to the public 15 days ahead of the scheduled offering
The “Ticketmaster for frat formals” has raised upwards of $350M and is valued north of $1B. Goldman Sachs and JPMorgan will lead the offering.
Water Cooler Talking Point: “Confidential IPO’s are like the pre-nup of the public market. If things don’t seem as well as you thought, you can back out with only your ego taking a hit.”
SWITCHING GEARS
Fiat Chrysler is making a change after CEO Sergio Marchionne stepped down this week due to a rapid deterioration of his health. Marchionne was the former head of Fiat’s Jeep and Ram brands and helped save both the Fiat and Chrysler lines for the company.
Mike Manley will replace Marchionne immediately. “Magic” Mike has spearheaded the Jeep brand’s global expansion over the last few years all while perfecting his Jeep Wave. Manley has been the head of Jeep since 2009 and will be tasked with doubling Jeep’s sales by 2020. No pressure.
Marchionne initially planned to retire in 2019, but complications after the 66-year-old’s shoulder surgery will not allow him to return to work.
Water Cooler Talking Point: “As someone who lives in a major metropolis, the amount of Fiat’s I’ve seen, and the ease they provide for parallel parking, bodes well for the future of the brand.”
IN OTHER NEWS
- Donny Politics is ready and willing to up the ante in the trade war with China, ratcheting up tariffs to the tune of $500B worth of Chinese goods (roughly the total amount of Chinese goods imported to the US).
- Trump attacked the Fed for the second time in a week, claiming “Tightening now hurts all that we have done,” hinting the Fed’s plan to increase interest rates two more times this year.
- Comcast and Charter have bigger fish to fry apparently. The telecoms will exit their stakes in the New York Mets. The companies begrudgingly took minority stakes in the team as part of an investment in SNY.
- It’s been a tough few weeks for pizza pariah, “Papa” John Schnatter. The board of Papa John’s has OK’ed a “poison pill,” which will prevent the Papa from taking control of the board.