Filing Flows › Nextpower (NXT) › Takeover & LBO
Is Nextpower (NXT) a takeover target?
A leveraged buyout at today's price plus 30% ($103.13 a share) would return about 3% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 2.0% of companies with its figures were bought within a year (0.4× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $103.13 | today's $79.33 plus 30% |
| × shares | 153.9 million | |
| = Equity value | $15.9B | |
| + Debt refinanced | $0 | |
| − Cash | $1.0B | |
| = Enterprise value | $14.8B | 19.3× EBITDA of $769M |
| Fees | $297M | 2% of the price |
| New debt | $4.2B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $10.9B | 72% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $4.1B | $831M | $324M | $323M | $3.9B |
| Year 2 | $4.4B | $887M | $299M | $388M | $3.5B |
| Year 3 | $4.7B | $936M | $269M | $452M | $3.1B |
| Year 4 | $4.9B | $975M | $235M | $514M | $2.6B |
| Year 5 | $5.0B | $1.0B | $195M | $573M | $2.0B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 14.5× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $14.6B | |
| − Debt left | $2.0B | |
| = Buyer's equity | $12.6B | |
| Money multiple | 1.16× | on $10.9B put in |
| Buyer's yearly return (IRR) | 3.0% |
Price against return
What the buyer makes at other premiums over today's $79.33.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $87.26 | 8.4% |
| 20% | $95.20 | 5.5% |
| 30% | $103.13 | 3.0% |
| 40% | $111.06 | 0.8% |
| 50% | $119.00 | −1.2% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $3.8B | |
| EBITDA, last 12 months | $769M | 20.1% of revenue |
| Depreciation and amortization | $41.1M | |
| Capital spending | $61.6M | |
| Debt | $0 | |
| Cash | $1.0B | |
| Share price | $79.33 | on Oct 30, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 8.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 19% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Nextpower would cost about $103.13 a share, $15.9B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $88.85 | $13.7B |
| Median | 30% | $103.13 | $15.9B |
| High end (a quarter paid more) | 31% | $103.92 | $16.0B |
The odds, from history
Historically 2.0% of companies with its figures were bought within a year (0.4× the average). Its figures put it in decile 1 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Nextpower's latest quarter
Nextpower, Q2 FY27: revenue $1.1B (+22% year over year), operating margin 18.7%, net earnings $165M, operating cash flow $158M. The chart follows the revenue to costs, profit and cash.
Questions
Is Nextpower being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Nextpower?
A leveraged buyout at today's price plus 30% ($103.13 a share) would return about 3% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Nextpower cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Nextpower would cost about $103.13 a share, $15.9B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.