Two-step mergers grow with Brazil deal

Author: Danielle Myles | Published: 9 Jan 2012

Brazil’s first mid-market investment into the US has used the increasingly popular top-up option to close the two-step merger.

IT service company Stefanini’s acquisition of TechTeam Global for $93.4 million illustrates the recent preference of cashed-up strategic buyers to minimise competitive bids by using the revitalised takeover structure.

"Tender offers achieve faster closing," said Diane Frankle, a DLA Piper partner who acted for the buyer. "If you’re doing a cash transaction this really is the structure of choice as it’s the fastest way to get from a signed agreement to a closing."

The Brazilian buyer achieved the quickest outcome possible, completing the deal 20 business days after its launch. The merger...