With the improvement in employment and the increase in income, an increase in family spending on goods and services is expected.
He Ministry of Economy has announced an upward adjustment in economic growth expectations for this year, raising the projection to 3.1%, supported by the marked increase in exports, investment and private consumption.
After experiencing a 0.6% contraction last year due to the recession, the Peruvian economy is showing signs of a solid recovery.
In this context, the private sector plays a crucial role, with a forecast growth of 2.4% in investment. This momentum is supported by the recovery in both the mining and non-mining sectors, which show favorable prospects.
Exports are also a key driver of growth, estimated at a rate of 5%. This sector has overcome previous challenges, such as the negative impact of El Niño phenomenon in blueberry exporters.
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An increase in shipments of copper, fishmeal and other non-traditional agricultural products is anticipated, which will contribute to economic revitalization.
Private consumption is also seen as an important factor in economic recovery. With the improvement in employment and the increase in income, an increase in family spending on goods and services is expected, thus promoting the expansion of the domestic market.
Tech Consultant Perficient Inc. Acquired by Private Equity Firm EQT AB for $3 Billion
Tech Firm Perficient Acquired by EQT for $3 Billion
In a surprising move, tech consultant Perficient Inc. has been acquired by private equity firm EQT AB for $3 billion. The acquisition sees an affiliate of BPEA Private Equity Fund VIII (EQT Asia), which is part of EQT AB, agreeing to acquire Perficient at $76 per share in cash.
The price represents a 58% premium to Friday’s close and a 76% premium to April 29, before a Bloomberg report that Perficient was evaluating a potential sale. This indicates that the interest in acquiring the company has been ongoing for some time, possibly preceding this year’s developments and challenges caused by COVID-19.
Maximizing Value
The statement from Jeffrey Davis, Chairman of the Board of Perficient expressed how the acquisition was the result of board review aimed at maximizing value for both shareholders and the company itself. However, there may be more factors contributing to this significant purchase decision.
Perficient had been scheduled to report Q1 results on Monday but released them on Sunday alongside news of its acquisition. This could imply that these results were not as positive as hoped or expected when compared with previous quarters or industry standards.
A Strategic Acquisition?
BofA Securities is serving as lead financial advisor alongside Wells Fargo as financial advisor in connection with the discussion between these two parties. Meanwhile, Kirkland & Ellis LLP serves as legal advisors to Perficient with J.P Morgan and TD Securities providing financial advice for EQT.
Simpson Thacher & Bartlett LLP are also acting as legal advisors on behalf of EQT which suggests they intend more than just simple ownership over Perficient. Acquiring another company through no less than three different advisory teams implies a great deal of strategic planning, with EQT possibly intending to use Perficient’s skillset in advance of a large-scale project or expansion.
A Move to Combat the Economic Fallout of the COVID-19 Pandemic
Could this decision also be attributed to EQT’s desire to bolster its position during COVID-19? With businesses around the world struggling and consumer confidence shaken, an acquisition like this could carry benefits for their future.
Developments in technology have gained momentum as many companies seek ways to address issues such as remote working and digitalization within their business process. As they become more reliant on these technologies, companies are opening themselves up for acquisitions by those that possess those skills markets deem necessary.
The End Game
This acquisition by EQT is expected to close soon but its impact on the long-term future of both companies is yet unknown. However, at $3 billion, one can only wonder what kind of project(s) or expansion(s) could necessitate such a significant investment.
- What advantages does Perficient stand to gain?
- Will we see further interest from investors searching for similar skills in light of recent events?
- If so, who will be next?
The influence this acquisition holds over the global tech industry remains unknown but it goes without saying that all eyes will be on how these two entities function together going forward.
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Tech Consultant Perficient Inc. Acquired by Private Equity Firm EQT AB for $3 Billion
Financial Supervisory Service Discovers Illegal Short Selling Worth 211.2 Billion Won in Global Investment Banks
The Financial Supervisory Service, which launched a comprehensive investigation into global investment banks and IBs, discovered illegal short selling worth 211.2 billion won in 9 companies.
The Financial Supervisory Service announced that it had carried out a comprehensive investigation into the illegal short selling of the top 14 global IBs in short selling from May 2021 to the end of last year and confirmed related holdings in 164 stocks from 9 companies.
The Financial Supervisory Service previously announced that it had detected illegal short selling worth 55.6 billion won in global IBs BNP Paribas and HSBC in October last year, and 54 billion won in two additional companies in January this year.
The Financial Supervisory Service explained that the results of this investigation are interim results, and that the extent and details of the offense may change as additional investigations proceed.
According to an investigation by the Financial Supervisory Service, global IBs were found to have executed unused short sales due to practical errors in the balance management system and a lack of understanding of Korean short selling laws.
The Financial Supervisory Service completed the fines and prosecution of BNP Paribas and HSBC, which were the first to detect illegal short selling.
In addition, the Financial Supervisory Service announced that it intends to implement swift sanctions against IBs that are currently subject to additional investigations.
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