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FLASHWIRE US MONTHLY

September 2016
This Issue:

US M&A News and Trends

US Merger
Metrics

U.S. M&A deal activity increased in August, going up 3.0% with


1,002 announcements compared to 973 in July. However, aggregate
M&A spending decreased. In August, 24.3% less was spent on deals
compared to July.

U.S. private equity activity increased in August, up 11.8% from


July. There were 114 deals in August compared to 102 in July.
Aggregate transaction value also increased, up by 3.7% to $20.0
billion from July's $19.3 billion.

US Middle
Market Monitor

US Sector
Activity & Value

The top financial advisors for 2016 based on deal announcements,


are: JPMorgan Chase & Co, Morgan Stanley, Goldman Sachs & Co.,
Evercore Partners, Inc., and Barclays Plc. The top five financial
advisors, based on the aggregate transaction value of the deals
worked on, are: Goldman Sachs & Co., Morgan Stanley, Bank of
America Merrill Lynch, JPMorgan Chase & Co, and Credit Suisse.

US Strategic
Buyer Report

Over the past 3 months, the sectors that have seen the biggest
increases in M&A deal activity, relative to the same three month
period one year ago, have been: Non-Energy Minerals (72 vs. 57),
Utilities (74 vs. 65), Government (12 vs. 4), Consumer Durables (56
vs. 50), and Process Industries (132 vs. 127). Seven of the 21 sectors
tracked by FactSet Mergerstat posted relative gains in deal flow
over the last three months compared to the same three months
one year prior.

US Private Equity
Report

Top US Advisors

Top US Deals
Scoreboard

Over the past 3 months, the sectors that have seen the biggest
declines in M&A deal volume, relative to the same three month
period one year ago have been: Technology Services (442 vs. 574),
Finance (334 vs. 455), Commercial Services (425 vs. 536), Consumer
Services (231 vs. 310), and Health Services (146 vs. 209). Fourteen
of the 21 sectors tracked by FactSet Mergerstat posted negative
relative losses in deal flow over the last three months compared to
the same three months one year prior, for a combined loss of 706
deals.

The top legal advisors for 2016 based on deal announcements, are:
Kirkland & Ellis LLP, Jones Day LP, Latham & Watkins LLP, Skadden,
Arps, Slate, Meagher & Flom LLP, and Morgan, Lewis & Bockius LLP.
The top five legal advisors, based on the aggregate transaction
value of the deals worked on, are: Sullivan & Cromwell LLP,
Wachtell, Lipton, Rosen & Katz, Skadden, Arps, Slate, Meagher &
Flom LLP, Simpson Thacher & Bartlett LLP, and Cravath, Swaine &
Moore LLP.

Topping the list of the largest deals announced in August are:


Pfizer, Inc. agreeing to acquire Medivation, Inc. for $13.5 billion;
Apollo Global Management LLC's agreement to acquire Rackspace
Hosting, Inc. for $4 billion; A private group led by Platinum Equity
LLC and other co-investors agreeing to acquire Emerson Network
Power from Emerson Electric Co, $4 billion; Mid-America Apartment
Communities, Inc.'s deal to acquire Post Properties, Inc. for $3.9
billion; Alimentation Couche-Tard, Inc.'s agreement to acquire CST
Brands, Inc. for $3.7 billion.

The US Mergers & Acquisitions Market Index


$300.0

1,500
$253.3

$245.0
$250.0

$230.9
$213.2

1,250

$227.6

$206.5

$203.4

$200.0

$169.7

1,000

$172.3
$139.8

$150.0

$131.0
$95.6

750

$122.0

$111.1

$105.8
$91.0

$100.0

500

$50.0

250
1,015

1,252

1,290

1,089

1,148

1199

1,069

1,173

1,135

1,028

1,011

981

941

1,003

973

1002

May-15

Jun-15

Jul-15

Aug-15

Sep-15

Oct-15

Nov-15

Dec-15

Jan-16

Feb-16

Mar-16

Apr-16

May-16

Jun-16

Jul-16

Aug-16

$0.0

0
Deal Volume

FactSet.com

Aggregate Deal Value

Copyright 2016 FactSet Research Systems Inc. All rights reserved.

US MergerMetrics

September 2016

Merger Stats
Number of Deals

Agg. Transaction Value ($Bil)

12 Months Ended
Deal Size

12 Months Ended

8/31/16

8/31/15

$1 Billion +

293

338

$500M to $999.9M

194

$250M to $499.9M

325

$100M to $249.9M

Average
P/E

8/31/16

8/31/15

-13.3%

$1,413.5

$1,676.4

-15.7%

33.3

239

-18.8%

136.1

167.9

-18.9%

31.7

331

-1.8%

116.5

115.6

0.8%

29.1

516

580

-11.0%

81.3

93.1

-12.7%

26.8

$50M to $99.9M

405

450

-10.0%

29.2

31.4

-7.0%

24.2

$25M to $49.9M

360

495

-27.3%

13.2

17.7

-25.3%

19.5

$10M to $24.9M

479

640

-25.2%

7.8

10.6

-26.4%

22.5

Under $10M

828

1,116

-25.8%

2.7

3.9

-29.7%

15.0

9,263

9,324

-0.7%

N/A

N/A

N/A

N/A

12,663

13,513

-6.3%

$1,800.3

$2,116.4

-14.9%

27.4

Undisclosed
Total

Change

Change

M&A at a Glance
MEDIAN P/E

MEDIAN PREMIUM
45.0%

30.0x

40.0%
25.0x
20.0x

39.9%

35.0%
23.6x

22.5x

21.4x

25.0%
15.0x

38.1%

30.0%
26.2%

20.0%
15.0%

10.0x

10.0%

5.0x

5.0%

0.0%

0.0x
3Q14

4Q14

1Q15

2Q15

3Q15

4Q15

1Q16

2Q16

L3M

3Q14

4Q14

1Q15

2Q15

3Q15

4Q15

1Q16

2Q16

L3M

US Middle Market Monitor


MEDIAN EV/EBITDA

MEDIAN PREMIUM

12.0x

60.0%

10.0x
8.0x

50.0%

9.5x

49.5%

9.7x

9.5x

40.0%
41.2%

6.0x

30.0%

4.0x

20.0%

2.0x

10.0%

30.1%

0.0x

0.0%
3Q14

4Q14

1Q15

2Q15

3Q15

4Q15

1Q16

2Q16

L3M

3Q14

4Q14

1Q15

2Q15

3Q15

4Q15

1Q16

2Q16

L3M

*Middle Market defined as deals valued between $1 million and $500 million, plus undisclosed deals.
Media: Media quotation with source attribution is encouraged. Reporters requesting additional information or editorial comment shou ld contact
media_request@factset.com. Mergerstat gathers its data from sources it considers reliable; however, it does not guarantee the accuracy or completeness o f the
information provided in this publication. Copyright 2016 FactSet Research Systems Inc. All rights reserved. It is illegal under federal copyright law to reproduce
or redistribute this publication or any portion of its contents without written authorization of the publisher.

FactSet.com

Copyright 2016 FactSet Research Systems Inc. All rights reserved.

US Sector Activity & Value

September 2016

SECTOR BY ACTIVITY
Target Sector
Non-Energy Minerals
Utilities
Government
Consumer Durables
Process Industries
Communications
Energy Minerals
Industrial Services
Retail Trade
Miscellaneous
Producer Manufacturing
Transportation
Consumer Non-Durables
Health Technology
Distribution Services
Electronic Technology
Health Services
Consumer Services
Commercial Services
Finance
Technology Services
Total

L3M 8/31/16
Deal Count
72
74
12
56
132
47
42
129
132
8
172
55
86
106
163
114
146
231
425
334
442
2,978

L3M 8/31/15
Deal Count
57
65
4
50
127
42
37
130
139
16
199
82
115
136
193
155
209
310
536
455
574
3,631

Difference
15
9
8
6
5
5
5
(1)
(7)
(8)
(27)
(27)
(29)
(30)
(30)
(41)
(63)
(79)
(111)
(121)
(132)
(653)

SECTOR BY VALUE
Target Sector
Technology Services
Consumer Non-Durables
Government
Producer Manufacturing
Consumer Durables
Communications
Miscellaneous
Transportation
Consumer Services
Distribution Services
Energy Minerals
Utilities
Electronic Technology
Retail Trade
Process Industries
Commercial Services
Industrial Services
Non-Energy Minerals
Health Technology
Finance
Health Services
Total

FactSet.com

L3M 8/31/16
Value
$78,925.3
30,105.5
0.0
21,983.4
2,728.8
2,574.5
7.1
1,330.1
17,942.9
5,173.3
9,979.9
16,583.2
29,133.3
16,970.6
10,303.3
13,521.7
10,534.3
6,625.0
25,727.8
55,183.9
12,299.9
$367,633.9

L3M 8/31/15
Value
$36,855.8
22,894.2
187.2
22,590.4
3,911.6
4,153.8
2,884.7
5,466.2
24,281.5
11,992.7
16,862.8
23,941.4
37,754.4
27,791.0
24,905.9
28,364.4
29,007.5
39,022.1
71,680.7
132,136.2
106,374.1
$673,058.7

Copyright 2016 FactSet Research Systems Inc. All rights reserved.

Difference
$42,069.6
7,211.3
(187.2)
(607.0)
(1,182.8)
(1,579.3)
(2,877.6)
(4,136.1)
(6,338.6)
(6,819.5)
(6,882.9)
(7,358.2)
(8,621.1)
(10,820.4)
(14,602.6)
(14,842.7)
(18,473.2)
(32,397.2)
(45,952.9)
(76,952.3)
(94,074.3)
($305,424.7)

US Strategic Buyer Report

September 2016

Merger Stats
Number of Deals

Agg. Transaction Value ($Bil)

12 Months Ended
Deal Size

12 Months Ended

Average
P/E

8/31/16

8/31/15

Change

8/31/16

8/31/15

$1 Billion +

159

183

-13.1%

$806.3

$913.4

-11.7%

35.7

$500M to $999.9M

119

128

-7.0%

83.7

89.8

-6.8%

32.6

$250M to $499.9M

199

194

2.6%

71.7

66.8

7.4%

26.5

$100M to $249.9M
$50M to $99.9M

329

386

-14.8%

52.2

61.5

-15.0%

26.4

282
264

343
372

-17.8%
-29.0%

20.2
9.7

23.9
13.3

-15.2%
-26.9%

21.5
19.9

Under $10M

363
575

501
833

-27.5%
-31.0%

5.9
2.1

8.3
2.9

-29.4%
-28.0%

24.2
12.1

Undisclosed

7,260

7,565

-4.0%

N/A

N/A

N/A

N/A

Total

9,550

10,505

-9.1%

$1051.8

$1179.8

-10.9%

27.5

$25M to $49.9M
$10M to $24.9M

Change

PUBLIC BUYER INDEX LTM 8/31/16


$140

400

$128.3

$120

350

$105.3

$100

$83.7

$94.5

$93.5

300
$76.5

$70.5

$80

250

$53.8

$60

$46.1

$40.7

200
$51.6

$36.2

$40

150
100

$20

284

358

327

311

275

302

256

292

265

259

258

254

Sep-15

Oct-15

Nov-15

Dec-15

Jan-16

Feb-16

Mar-16

Apr-16

May-16

Jun-16

Jul-16

Aug-16

$0

50
0

US Private Equity Report


Indices

Top Private Equity Fundraisings: YTD 2016

PE BUYER INDEX: LTM 8/31/16


$40
$35
$30
$25
$20
$15
$10
$5
$0

Open Date
150

$35.7

120
$21.6
$16.7

$20.1

$20.2

$21.5

$16.9

$15.1

$17.8

$19.3

$27.1

123

112

135

116

107

108

120

118

106

102

114

$100

14
$78.8

12

$80
$60

8
$30.6

28-Jan-2016

7,600.0

Thoma Bravo Fund XII

10-May-2016

6,000.0

Lone Star Fund X

21-Mar-2016

6,000.0

Starwood Opportunity Fund XI

26-Apr-2016

5,000.0

Starwood Capital Group Global LLC


Vintage VII Fund

25-May-2016

4,500.0

Platinum Equity Capital Partners IV LP

1-Jul-2016

2,500.0

Platinum Equity LLC


Carlyle Global Infrastructure Opportunities I
Fund
The Carlyle Group LP (Real Assets)

9-May-2016

2,000.0

KKR Real Estate Partners Americas Fund II

12-Jul-2016

2,000.0

Kohlberg Investors VIII Fund

Virtual Reality Venture Capital Alliance


Vista Equity Partners Management LLC

Goldman Sachs Private Equity Group

6
$16.5

$30
$20
$10

Vista Equity Partners Fund VI

10

$70

$40

8,000.0

Lone Star Americas Acquisitions LLC

GOING PRIVATE INDEX: LTM 8/31/16

$50

18-Feb-2016

0
Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16

$90

$3.4
4

$0.8
3

$2.2
7

$8.1

$7.6

$5.9
13

$13.4
8

$4.3
8

$7.8
6

$0

Kohlberg Kravis Roberts & Co. LP

2
0

Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16

FactSet.com

Virtual Reality Venture Capital Alliance Fund

Thoma Bravo LLC


30

120

Fund (Private Equity Sponsor)

$12,000.0

90
60

$7.2

Value ($Mil)

1-Apr-2016

Copyright 2016 FactSet Research Systems Inc. All rights reserved.

Kohlberg & Co. LLC

Top US Advisors

September 2016

BASED ON US ANNOUNCED DEALS RANKED BY TRANSACTION VALUE: YTD 2016


Transaction
Value ($Mil)*

Financial Advisor

Total
Deals**

Legal Advisor

Transaction
Value ($Mil)*

Total
Deals**

1.

Goldman Sachs & Co.

$342,882.4

107

1.

Sullivan & Cromwell LLP

2.

Bank of America Merrill Lynch

263,348.0

77

2.

Wachtell, Lipton, Rosen & Katz

266,306.2

52

3.

Morgan Stanley

232,643.7

86

3.

Skadden, Arps, Slate, Meagher & Flom LLP

202,036.1

123

4.

JPMorgan Chase & Co

220,020.9

121

4.

Simpson Thacher & Bartlett LLP

184,785.5

76

5.

Credit Suisse

198,784.5

72

5.

Cravath, Swaine & Moore LLP

157,825.0

43

6.

Barclays Plc

177,696.8

79

6.

Gibson, Dunn & Crutcher LLP

147,535.2

73

7.

Evercore Partners, Inc.

153,342.4

82

7.

Davis Polk & Wardwell LLP

142,042.3

75

8.

Citigroup

137,901.0

62

8.

Weil, Gotshal & Manges LLP

139,108.4

97

9.

Lazard

102,535.4

69

9.

Kirkland & Ellis LLP

132,929.8

197

10.

Deutsche Bank AG

90,316.3

44

10.

Cleary Gottlieb Steen & Hamilton LLP

123,391.0

42

11.

RBC Capital Markets

84,870.7

57

11.

Wilson Sonsini Goodrich & Rosati

115,667.8

82

12.

Rothschild & Co.

82,157.8

40

12.

Stikeman Elliott LLP

113,693.3

50

13.

Wells Fargo & Co.

76,861.7

47

13.

Jones Day LP

101,561.5

178

14.

Guggenheim Capital LLC

76,855.1

13

14.

Latham & Watkins LLP

100,259.1

157

15.

UBS Group AG

73,860.4

47

15.

Debevoise & Plimpton LLP

94,044.2

31

16.

Centerview Partners LLC

73,002.7

24

16.

Allen & Overy LLP

92,429.8

38

17.

Ducera Partners LLC

64,005.4

17.

Morrison & Foerster LLP

89,480.3

40

18.

Qatalyst Group LP

53,523.3

18.

Shearman & Sterling LLP

74,695.2

60

19.

Scotiabank

35,323.7

11

19.

Fried, Frank, Harris, Shriver & Jacobson LLP

70,421.0

38

20.

Jefferies LLC

35,290.0

66

20.

Morris, Nichols, Arsht & Tunnell LLP

67,180.4

19

21.

Moelis & Co.

34,441.1

48

21.

Paul, Weiss, Rifkind, Wharton & Garrison LLP

56,874.3

70

22.

Allen & Co., Inc.

32,510.9

22.

AZB & Partners

37,483.0

18

23.

Sandler O'Neill & Partners

27,098.7

45

23.

Cooley LLP

37,109.2

20

24.

Mizuho Financial Group, Inc.

26,638.0

24.

A&L Goodbody

31,168.0

25.

Canadian Imperial Bank of Commerce

25,179.0

25.

Morgan, Lewis & Bockius LLP

30,838.6

112

26.

BNP Paribas SA

20,908.1

18

26.

Vinson & Elkins LLP

29,919.8

30

27.

KeyCorp

20,800.0

15

27.

Ropes & Gray LLP

29,407.9

36

28.

Crdit Agricole SA

20,177.3

28.

Arthur Cox & Co. (UK)

28,984.6

29.

PJT Partners, Inc.

19,740.8

14

29.

DLA Piper Group

27,152.6

48

30.

Mitsubishi UFJ Financial Group, Inc.

18,400.0

30.

Sidley Austin LLP

26,685.3

34

31.

Sumitomo Mitsui Financial Group, Inc.

18,400.0

31.

Hogan Lovells

25,934.3

33

32.

U.S. Bancorp

18,400.0

32.

Cadwalader, Wickersham & Taft LLP

24,385.1

33.

PricewaterhouseCoopers

15,036.8

54

33.

Blake, Cassels & Graydon LLP

23,894.7

24

34.

Bank of Montreal

13,621.0

27

34.

White & Case LLP

23,036.8

20

35.

The Raine Group LLC

12,843.3

35.

King & Wood Mallesons Ltd.

23,006.4

20

36.

LionTree LLC

12,168.2

36.

Mayer Brown LLP

22,889.6

25

37.

Greenhill & Co., Inc.

11,076.6

14

37.

Willkie Farr & Gallagher LLP

20,295.6

48

38.

Stifel, Nicolaus & Co., Inc.

10,701.6

56

38.

Baker Botts LLP

20,022.3

21

39.

Macquarie Group

10,543.9

25

39.

Covington & Burling LLP

19,469.7

25

40.

Houlihan Lokey, Inc.

10,432.1

79

40.

Fenwick & West LLP

19,030.0

36

41.

Perella Weinberg Partners Group LP

9,889.1

41.

Chadbourne & Parke LLP

18,400.0

42.

HSBC Holdings Plc

9,659.2

42.

Bennett Jones LLP

18,270.7

43.

William Blair & Co. LLC

8,795.5

36

43.

Arnold & Porter LLP

18,070.0

18

44.

Ernst & Young Global Ltd.

8,774.7

44

44.

Freshfields Bruckhaus Deringer LLP

17,722.3

16

45.

Grant Samuel & Associates Pty Ltd.

7,703.1

45.

Alston & Bird LLP

17,406.4

36

46.

Deloitte LLP

6,382.5

25

46.

Wilmer Cutler Pickering Hale & Dorr LLP

17,040.3

47.

M. Klein & Co. LLC

6,357.2

47.

Clifford Chance LLP

16,851.3

40

48.

China International Capital Corp. Ltd.

6,256.2

48.

Herbert Smith Freehills LLP

16,689.9

25

49.

National Bank of Canada

6,250.8

49.

Davies Ward Phillips & Vineberg LLP

16,581.6

50.

Bravia Capital Hong Kong Ltd.

6,066.1

50.

Bracewell LLP

16,366.4

10

* Transaction Value is the aggregate base equity plus the targets net debt, where applicable.

$275,457.3

70

** Total Deals includes deals that reported a deal value as well as those that did not.

If you would like to participate in our league table rankings or have questions about league table criteria, please contact advisors@factset.com.

FactSet.com

Copyright 2016 FactSet Research Systems Inc. All rights reserved.

Top US Deals Scoreboard

September 2016

Seller (Unit Sold)


Financial Advisor
Legal Advisor

Buyer
Financial Advisor
Legal Advisor

Monsanto Co.
Ducera Partners LLC
Morgan Stanley
Cravath, Swaine & Moore LLP
Debevoise & Plimpton LLP
Morrison & Foerster LLP
Wachtell, Lipton, Rosen & Katz

Bayer AG
Bank of America Merrill Lynch
Credit Suisse
Rothschild
Allen & Overy LLP
Stikeman Elliott LLP
Sullivan & Cromwell LLP

$62,005.4

Process Industries

St. Jude Medical, Inc.


Guggenheim Capital LLC
Gibson, Dunn & Crutcher LLP

Abbott Laboratories
Bank of America Merrill Lynch
Evercore Partners, Inc.
Cleary Gottlieb Steen & Hamilton LLP
Wachtell, Lipton, Rosen & Katz
Wilson Sonsini Goodrich & Rosati PC

$29,840.8

Health Technology

Tyco International Plc


Citigroup
Goldman Sachs & Co.
Lazard
Arthur Cox & Co. (UK)
Simpson Thacher & Bartlett LLP
Skadden, Arps, Slate, Meagher & Flom LLP

$28,984.6

Producer Manufacturing

Johnson Controls, Inc.


Barclays Plc
Centerview Partners LLC
A&L Goodbody
Cleary Gottlieb Steen & Hamilton LLP
Sullivan & Cromwell LLP
Wachtell, Lipton, Rosen & Katz

Microsoft Corp.
Morgan Stanley
Cadwalader, Wickersham & Taft LLP
Latham & Watkins LLP
Simpson Thacher & Bartlett LLP

$24,385.1

Technology Services

LinkedIn Corp.
Allen & Co., Inc.
Qatalyst Partners LP
Davis Polk & Wardwell LLP
Gibson, Dunn & Crutcher LLP
Weil, Gotshal & Manges LLP
Wilson Sonsini Goodrich & Rosati PC
Texas Energy Future Holdings LP (Energy Future Holdings Corp.)
Barclays Plc
Evercore Partners, Inc.
Cravath, Swaine & Moore LLP
Jones Day LP
Kirkland & Ellis LLP

NextEra Energy, Inc.


Bank of America Merrill Lynch
Credit Suisse
Deutsche Bank AG
JPMorgan Chase & Co.
UBS Group AG
Wells Fargo & Co.
Chadbourne & Parke LLP

$18,400.0

Finance

Pfizer Inc.
Centerview Partners LLC
Guggenheim Capital LLC
Ropes & Gray LLP

$13,226.3

Health Technology

Medivation, Inc.
Evercore Partners, Inc.
JPMorgan Chase & Co.
Cooley LLP
Davis Polk & Wardwell LLP
Fried, Frank, Harris, Shriver & Jacobson LLP
Wachtell, Lipton, Rosen & Katz
Linear Technology Corp.
Qatalyst Group LP
Jones Day LP
Wilson Sonsini Goodrich & Rosati PC

Analog Devices, Inc.


Credit Suisse
Wachtell, Lipton, Rosen & Katz
Wilmer Cutler Pickering Hale & Dorr LLP

$12,942.4

Electronic Technology

IMS Health Holdings, Inc.


Goldman Sachs & Co.
Cleary Gottlieb Steen & Hamilton LLP
Morris, Nichols, Arsht & Tunnell LLP
Sullivan & Cromwell LLP
Weil, Gotshal & Manges LLP

Quintiles Transnational Holdings, Inc.


Barclays Plc
Bryan Cave LLP
Morgan, Lewis & Bockius LLP
Shearman & Sterling LLP
Simpson Thacher & Bartlett LLP
Smith, Anderson, Blount, Dorsett, Mitchell &
Jernigan LLP

$12,912.1

Technology Services

Hatteras Financial Corp.


Goldman Sachs & Co.
DLA Piper Group
Hogan Lovells US LLP
Sullivan & Cromwell LLP

Annaly Capital Management, Inc.


Sandler O'Neill & Partners
Wells Fargo & Co.
Wachtell, Lipton, Rosen & Katz

$12,853.7

Finance

The ADT Corp.


Bank of America Merrill Lynch
Goldman Sachs & Co.
Morris, Nichols, Arsht & Tunnell LLP
Shearman & Sterling LLP
Simpson Thacher & Bartlett LLP
Sullivan & Cromwell LLP

Apollo Global Management LLC


Barclays Plc
Citigroup
Deutsche Bank AG
RBC Capital Market
Paul, Weiss, Rifkind, Wharton & Garrison LLP
Stikeman Elliott LLP

$12,269.4

Commercial Services

Rank

10

Seller Sector

$229,549.9

**Total Market Value of Top 10 Deals YTD

FactSet.com

Transaction
Value**
($Mil)

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