XIO Group to acquire Israel's Meitav Dash for $387m
XIO Group, a PE firm founded by several Asia-based investment professionals with a view to buying companies in North America and Europe and helping them tap emerging market opportunities, has agreed to acquire Israeli investment firm Meitav Dash for ILS1.48 billion ($387 million).
This is XIO's fourth disclosed investment and second in Israel, following the $510 million privatization of NASDAQ-listed medical device manufacturer Lumenis, which was completed in October 2015.
The private equity firm will pay ILS22 per share, a 61% premium to the previous closing price, for all outstanding shares in Meitav Dash, according to a filing. Shareholders can take the full consideration in cash or opt to receive an immediate cash payment of ILS13.70 per share and receive a further ILS13.70 per share in the form of a three-year bond with a 2% coupon.
Meitav Dash's largest shareholders, BRM Group and company chairman Zvi Stepak, who own 28.5% and 27.3%, respectively, have both agreed to vote in favor of XIO's offer. Senior management will remain in place after the acquisition.
Formed in 2013 through the merger of Meitav Investment House and Meitav Dash Securities & Investments, and the acquisition of Camalia Capital Market, the company has ILS122 billion in assets under management and employs 850 people. Services include private and institutional portfolio management, mutual and provident fund management, and retail brokerage and investment banking.
Meitav Dash generated ILS736 million in revenue for the year ended December 2015, down from ILS781 million in 2014. Net income rose to ILS91 million from ILS78 million over the same period.
XIO was set up in 2014 and is led by chairwoman Athene Li, previously of Olympus Capital, and CEO Joseph Pacini, formerly head of the Asia Pacific alternative investments strategy group at BlackRock. It claims to have more than $5 billion in committed capital and targets deals in agribusiness, industrial manufacturing, consumer and healthcare, automotive, environmental services, technology, media and telecom, and financial services.
Earlier this year, XIO acquired market research business J.D. Power from McGraw Hill for $1.1 billion.
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