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Apollo Global Acquires Direct ChassisLink & Blume Global

Zacks Equity Research

Funds affiliated with Apollo Global Management, LLC APO is set to acquire Direct ChassisLink, Inc. and Blume Global, Inc. from EQT Infrastructure. The acquisition deal is valued at $2.5 billion including debt, according to Reuters. Notably, EQT Infrastucture will retain a minority stake of 20% in Direct ChassisLink and Blume Global.

The transaction, subject to customary regulatory approvals, is expected to close in the second quarter of 2019.

Direct ChassisLink has grown to become one of the most dominant North American providers of inter-modal chassis. Lack of inter-modal chassis in North America will help the company’s core business to grow significantly. However, inter-modal volumes are highly exposed to international trade in the United States.

Blume Global has developed a broad digital supply-chain platform which provides an insight into the inter-modal supply chain and automated payment processing. This platform facilitates the company’s customers to track shipments and optimize their supply chains end-to-end.

Apollo Global is one of the leading global alternative investment managers. Its asset under management has grown nearly five times in 10 years to $280 billion as of Dec 31, 2018.

The company is determined to enhance its performance by undertaking several strategic initiatives. Recently, it announced a deal to acquire 13 local television stations and three radio stations from Cox Enterprises. Also, Apollo Global’s acquisition spree reflects the company’s strong grip on its capital position.

Shares of Apollo Global have gained 14.6% over the past three months compared to industry's rise of 9.4%.

Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Hamilton Lane Inc. HLNE, Zacks #2 Ranked stock, has appreciated 30.6% in three months’ time.

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