Key Takeaways
- • Partners Group has agreed to acquire a majority stake in AVK Power Solutions, a Maidenhead-based power systems provider serving data centers and AI infrastructure.
- • Apollo and EasyJet have agreed on a £5.7 billion takeover, signaling continued appetite for "bear hugs" and unsolicited take-private bids in the UK market.
- • The rise in bear hugs reflects strategic buyer interest in undervalued UK public companies, particularly those in infrastructure and technology sectors benefiting from AI and data center demand.
Summary
The UK take-private market is experiencing a notable uptick in "bear hugs"—unsolicited acquisition approaches that test whether public company boards will engage with potential buyers. Two significant transactions illustrate this trend: Partners Group's acquisition of a majority stake in AVK Power Solutions, a Maidenhead-based provider of critical power systems for data centers and AI infrastructure, and Apollo's £5.7 billion takeover agreement with EasyJet.
AVK Power Solutions' transaction reflects growing investor focus on companies positioned to benefit from the accelerating buildout of data center and artificial intelligence infrastructure. Power systems for these facilities represent a critical but often overlooked segment within the broader AI infrastructure boom, making AVK an attractive acquisition target for large alternative asset managers like Partners Group seeking exposure to structural growth drivers.
The EasyJet agreement represents a more notable shift in acquisition strategy. The £5.7 billion valuation suggests that alternative asset managers are now willing to deploy significant capital against mature, cash-generative businesses in the travel sector, potentially signaling confidence in post-pandemic normalization and operational improvements. Apollo's approach underscores how bear hug offers have become a standard negotiating tactic in UK take-privates, with institutional buyers increasingly willing to make unsolicited advances rather than await board-initiated processes.
The broader pattern indicates that UK-listed companies continue to attract significant private capital inflows, particularly where valuations appear disconnected from underlying business quality or growth prospects. This dynamic—combining elevated private capital availability, relatively modest UK equity valuations, and strategic rationales spanning infrastructure and traditional cyclical sectors—suggests the frequency of bear hugs and take-private activity will likely remain elevated throughout 2026.
AVK Power Solutions' transaction reflects growing investor focus on companies positioned to benefit from the accelerating buildout of data center and artificial intelligence infrastructure. Power systems for these facilities represent a critical but often overlooked segment within the broader AI infrastructure boom, making AVK an attractive acquisition target for large alternative asset managers like Partners Group seeking exposure to structural growth drivers.
The EasyJet agreement represents a more notable shift in acquisition strategy. The £5.7 billion valuation suggests that alternative asset managers are now willing to deploy significant capital against mature, cash-generative businesses in the travel sector, potentially signaling confidence in post-pandemic normalization and operational improvements. Apollo's approach underscores how bear hug offers have become a standard negotiating tactic in UK take-privates, with institutional buyers increasingly willing to make unsolicited advances rather than await board-initiated processes.
The broader pattern indicates that UK-listed companies continue to attract significant private capital inflows, particularly where valuations appear disconnected from underlying business quality or growth prospects. This dynamic—combining elevated private capital availability, relatively modest UK equity valuations, and strategic rationales spanning infrastructure and traditional cyclical sectors—suggests the frequency of bear hugs and take-private activity will likely remain elevated throughout 2026.
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