AMERICAS
Advanced Disposal Services, the fourth largest solid waste company in the US, announced that the company's stockholders voted to adopt the amended merger agreement pursuant to which the company would be acquired by an indirect, wholly-owned subsidiary of Waste Management, the provider of comprehensive waste management environmental services, for $30.3 per share in cash, representing a total enterprise value of $4.6bn.
67m shares voted at the special meeting were voted in favor of the proposal to adopt the amended merger agreement, representing over 74% of the outstanding shares of Advanced Disposal's common stock entitled to vote at the special meeting.
Advanced Disposal is advised by UBS, Mayer Brown and Shearman & Sterling. UBS is advised by Sullivan & Cromwell. Waste Management is advised by Centerview Partners, Simpson Thacher & Bartlett, Vedder Price and Joele Frank. CPPIB is advised by Debevoise & Plimpton.
Two United States banks CFBanc and Broadway Financial agreed to merge. City First common shareholders will receive 13.6k shares of Broadway common stock for each share of City First common stock they own, resulting in Broadway stockholders owning 52.5% and City First shareholders owning 47.5% of the combined institution.
“Given the compounding factors of a global pandemic, unprecedented unemployment and social unrest resulting from centuries of inequities, the work of CDFIs has never been more urgent and necessary. As part of this historic merger, we are demonstrating that thriving urban neighborhoods are viable markets that require a dedicated focus, long-term commitment and critical access to capital,” Brian E. Argrett, City First Ban President and CEO.
CFBanc is advised by Raymond James and Covington & Burling. Broadway is advised by Keefe Bruyette & Woods, Stifel, Arnold & Porter Kaye Scholer and KAH Consulting Group.
GI Partners, a private equity investment firm, completed an investment in Clinical Ink, a global clinical trial technology company. Existing investor NovaQuest will continue as a minority investor in the company. Financial terms were not disclosed.
"GI Partners’ acquisition is a powerful validation of our eSource vision for clinical trials and will add to our growing momentum in the marketplace. We are the undeniable leader in delivering eSource solutions across all phases and therapeutic areas. This transaction will help accelerate the adoption of our business model at a time when the weaknesses and frailties of the current clinical technology landscape are so starkly apparent. I’m excited to work with GI Partners as we launch our latest innovations later this year and expand into Asia-Pacific and Europe to support our customers’ global operations," Ed Seguine, Clinical Ink CEO.
Clinical Ink was advised by Robert W Baird, Wyrick Robbins Yates & Ponton, and SCORR Marketing. GI Partners was advised by Cain Brothers, Ropes & Gray, and Chris Tofalli.
KKR led a $300m investment in ReliaQuest, a cybersecurity managed service and intelligence platform for global enterprises. The investment round saw participation from Ten Eleven Ventures and ReliaQuest founder and CEO Brian Murphy.
"With its best-in-class technology, ReliaQuest is helping companies protect their digital footprint, which is more important than ever. As a ReliaQuest customer ourselves, we've experienced firsthand how seamless and effective their platform is, and are thrilled to have the opportunity to invest behind it," Stephen Shanley, KKR Director.
ReliaQuest was advised by RBC Capital Markets, Kirkland & Ellis, Latham & Watkins, and Mission North. KKR was advised by Sidley Austin.
ACADIA Pharmaceuticals, a biopharmaceutical company, completed the acquisition of CerSci Therapeutics, a clinical-stage biotechnology company with worldwide rights to a portfolio of novel compounds for neurological conditions, for $939m.
Under the terms of the agreement, ACADIA acquired all of the outstanding shares of CerSci for $52m, primarily in ACADIA stock. CerSci shareholders may also receive up to $887m in development, commercialization, and sales milestones in addition to tiered royalties in the mid-single digits based on annual net sales.
"There is an urgent need for new approaches to treat pain without causing addiction. We are excited by the potential clinical utility of this program across multiple pain modalities due to its novel non-opioid mechanism of action. By acquiring CerSci, ACADIA is further strengthening our development pipeline for long-term growth in central nervous system disorders," Steve Davis, ACADIA CEO.
CerSci was advised by Evercore and Skadden Arps Slate Meagher & Flom. ACADIA was advised by Bank of America Merrill Lynch and Paul Hastings.
Phillips Pet Food & Supplies, premier pet food and pet supply distributor, and Animal Supply, which distributes pet products and supplies, have terminated the merger on August 25, 2020.
While Phillips and ASC believe in the merits of a potential transaction, the economic uncertainties caused by the Covid-19 pandemic have made it difficult to close on many business transactions in the United States, including this merger. Phillips and ASC remain committed to supporting their individual retailer customers and brand partners going forward.
Google, agreed to invest $110m in Amwell, a telehealth platform.
“We chose Google Cloud as our strategic partner because of their phenomenal people, superior products, and open approach to partnering. Together, we will be able to offer an incredible array of integrated capabilities and help millions of people around the world access better care. Our collaborative work could literally democratize healthcare,” Ido Schoenberg, Google Cloud MD, Chairman and CEO.
Amwell is advised by Davis Polk & Wardwell, Wachtell Lipton Rosen & Katz, and Innsena Communications.
Lil’ Drug Store Products, which distributes consumer healthcare products, completed the acquisition of Mechanical Servants, doing business as Convenience Valet, distributes consumer products. Financial terms were not disclosed.
“By combining our strengths, we can better reach the millions of consumers who look for immediate solutions for health and well-being at the point of need when traveling,” Steve Jungmann, Mechanical Servants President & CEO.
Mechanical Servants was advised by Cowen & Company. Lil’ Drug Store was advised by Sawaya Capital and Global Communications Works.
Arko Holdings and Empire Petroleum Partners have agreed to divest seven retail fuel assets in gasoline and diesel fuel markets across four states to settle Federal Trade Commission charges that Arko’s proposed acquisition of Empire would violate federal antitrust law.
Under the terms of the proposed consent order, GPM and Empire are required to divest fuel assets to an independent competitor in each local market no later than 20 days after their acquisition is final. The order requires GPM and Empire to provide transitional services as needed to the divestiture buyers for up to 15 months after divesting the assets.
Empire Petroleum is advised by Barclays and Wells Fargo Securities.
Columbia Care, a pharmaceutical company, announced that it will complete its acquisition of The Green Solution, a vertically integrated cannabis operator in Colorado, on September 1, 2020.
“Closing the acquisition of The Green Solution represents a major milestone for Columbia Care. This transaction aligned well with our national strategy to be the market leader in each of our key markets while adding a portfolio of brands and products to our suite of adult use offerings across the country. The acquisition of TGS is immediately accretive to Columbia Care’s Adj. EBITDA and accelerates our transition to generating positive Adj. EBITDA into 3Q," Nicholas Vita, Columbia Care CEO.
Columbia Care is advised by 5W Public Relations and LifeSci Public Relations.
Delta Galil, a manufacturer and marketer of branded and private label apparel products for men, women and children, agreed to acquire Bare Necessities, an American lingerie, swimwear, and loungewear online retailer. Financial terms were not disclosed.
"This transaction reflects our strategic growth objective to diversify our distribution channels. As the digital space currently represents the fastest growing segment in our industry, we are very pleased to acquire such an authority in online intimates. Bare Necessities can significantly enhance Delta Galil’s presence in the digital world, as we continue to pursue growth online. I look forward to partnering with the senior leadership of Bare Necessities to achieve strong, profitable growth," Isaac Dabah, Delta Galil CEO.
Delta Galil is advised by Skadden Arps Slate Meagher & Flom and Berns Communications Group.
Behrman Capital-backed kSARIA, a producer and supplier of mission-critical connectivity solutions, completed the acquisition of Compulink Cable Assemblies, a manufacturer of wire harnesses and custom molded cable assemblies. Financial terms were not disclosed.
"Acquiring Compulink further enhances our connectivity solutions offering, following our successful integration of CIA&D late last year. Compulink's formidable presence in battlefield and ground-based applications, as well as other defense and commercial applications, complements kSARIA's strength in aerospace and naval solutions. Together, we will have expanded production and engineering capabilities, as well as access to new end markets that enable exciting growth opportunities," Anthony J. Christopher, kSARIA President and Chief Executive Officer.
kSARIA was advised by Kekst CNC.
Mowery & Schoenfeld, a Chicago area accounting and consulting firm, agreed to merge with Xamin, which offers managed IT services to financial institutions. Financial terms were not disclosed.
“We are very excited to have the high-quality professional firm Xamin join forces with Mowery & Schoenfeld. In an ever-changing world, we will be able to help our clients find technology solutions and provide a high level of security for their operations,” Jeff Mowery, Mowery & Schoenfeld Co-Founder and Managing Partner.
Xamin is advised by William Mills.
WorldRemit, a global cross-border payments company, agreed to acquire Sendwave, an app-based remittance company, for $500m.
“Both WorldRemit and Sendwave share a common purpose: allowing customers to easily and cost effectively send financial support to families, friends and businesses in other countries. WorldRemit has one of the broadest and most accessible networks for money transfers globally. Combining it with Sendwave, which offers instant, no/low-fee and fully digital payments from North America and Europe to Ghana, Nigeria, Senegal and East Africa, addresses customer needs for fast and secure digital payments - especially given today’s travel restrictions and economic turmoil,” Breon Corcoran, WorldRemit CEO.
Private equity firm, Insight Partners led a $118m Series B funding round in MURAL, a digital workspace software and solutions provider. The round saw investments from Tiger Global, Slack Fund, World Innovation Lab, and existing investor Gradient Ventures. Numerous other investors participated in the funding, including Ryan Smith, CEO and co-founder of Qualtrics; Bill Veghte, CEO of AthenePartners, former Microsoft SVP and former HP COO; and Allison Pickens, former COO of Gainsight.
"MURAL has repeatedly supported massive implementations and met the exacting specifications of global enterprises. The company has shifted from a startup to a scaleup, not only growing revenue through rapid expansion within Fortune 500 companies, but also onboarding new enterprise customers and consulting partners at high velocity. Insight Partners looks forward to helping to accelerate market adoption of MURAL to support the future of team collaboration," Jeff Lieberman, Insight Partners Managing Director.
Addition, an investment firm. led a $110m Series D round in Lyra Health, a mental healthcare services provider. The round was joined by joined by Adams Street Partners and existing investors, including Howard Schultz, Casdin Capital, Glynn Capital, Greylock Partners, IVP, Meritech Capital Partners, Providence Ventures and Tenaya Capital.
“Whether you’re dealing with a preexisting mental health condition that has intensified or new symptoms that have arisen during the pandemic, these are challenging times for many people. We are proud to support employers that are prioritizing mental health and will use this new funding to help even more organizations support the mental health and well-being of their most important asset—their people,” said David Ebersman, Lyra Health Co-Founder and CEO.
Hologic, an innovative medical technology company primarily focused on improving women's health, completed the acquisition of Acessa Health, a women’s health innovator dedicated to advancing minimally invasive, uterine-sparing solutions for women with symptomatic fibroids, for $80m.
“Acquiring Acessa Health strengthens our leadership position in the GYN surgical space and broadens our fibroid treatment portfolio with a highly complementary new product. Together with the Acessa team, we can leverage our core women's health expertise, commercial infrastructure and physician relationships to accelerate our growth strategy and offer superior technology that translates into better clinical outcomes for women,” Essex Mitchell, Hologic’s Division President, GYN Surgical Solutions.
ConsenSys, a blockchain software company, agreed to acquire Quorum, an open-source blockchain platform, from JP Morgan. Financial terms were not disclosed.
“Even before the very first block on Ethereum was mined and ConsenSys was formed, we’ve collaborated with J.P. Morgan on Ethereum proofs of concept and production systems. We are enormously excited to onboard Quorum into the ConsenSys Enterprise Ethereum stack, and look forward to unifying our Hyperledger Besu-based Enterprise Ethereum client with Quorum, and supporting all of the Quorum installations globally," Joseph Lubin, ConsenSys Founder and CEO.
Spire Capital-backed Dynamic Quest, a managed service provider offering IT and cloud services to enterprises and businesses, completed the acquisition of Southern Data Solutions, a managed service provider for IT services to small to medium-sized businesses. Financial terms were not disclosed.
"Dynamic Quest continues to grow organically and is strategically acquiring businesses to add greater breadth to our services portfolio and geographic reach to better serve our clients and partners. The team at SDS has done a fantastic job building up a great company that provides its customers with dependable, critical IT services. This marks our second acquisition in Georgia in Q3 2020 and we are very excited to welcome the SDS team to the Dynamic Quest family," Javier Gomez, Dynamic Quest CEO.
Cognizant, a professional services provider, agreed to acquire Tin Roof Software, a custom software developer. Financial terms were not disclosed.
"Delivering strategic, innovative solutions that drive tangible business outcomes is at the heart of our success. We look forward to our software product engineering experts joining Cognizant Softvision and connecting to Cognizant's global delivery model, complementing Cognizant's deep expertise in artificial intelligence, data, Internet of Things, cloud, and interactive experience," Daniel Gore, Tin Roof Software President and CEO.
Chemonics International, an employee-owned international development consulting firm, completed the acquisition of Government Services Business unit of Nexant, a sought-after advisor to governments and multilateral organizations in energy sector planning, policy, reform, and investment. Financial terms were not disclosed.
"The addition of Nexant Government Services enhances Chemonics' multidisciplinary offering in energy and our ability to help address the global challenge of providing affordable, reliable, and sustainable energy for the 1.2bn people around the world who lack reliable access," Jamey Butcher, Chemonics' President and CEO.
Desktop Metal to go public through blank check company at $2.5bn valuation.
Desktop Metal said it has agreed to go public through a reverse merger with blank-check company Trine Acquisition, in a deal that values the metal 3D printing technology provider at $2.5bn, Reuters reported.
It is the latest example of a technology company opting to go public through a so-called special-purpose acquisition companies merger, following the likes of space tourism start-up Virgin Galactic and electric vehicle maker Nikola.
The $575m proceeds from the merger with Trine, including $275m in the form of a private investment in public equity from institutional investors like Chamath Palihapitiya and Baron Capital Group, will be used to fund acquisitions in the 3D printing industry and fuel internal growth.
Bill Gates invests $78m in Kymeta.
Billionaire Bill Gates is leading satellite antenna firm Kymeta’s latest funding round with a $78m investment, Reuters reported.
Redmond, Washington-based Kymeta, which sells pizza box-sized antennas for installation on cars, trains and boats, secured $85m in capital. It plans to launch a monthly subscription service for satellite-based internet to government customers later this year.
Ex-Goldman Sachs president and Trump adviser launches blank cheque company.
Gary Cohn, the former president of Goldman Sachs, has launched a $600m blank cheque company, making him the latest high-profile Wall Street executive to enter the Spac craze that is sweeping the US financial sector, FN reported.
Cohn, who quit the US banking giant in 2017 to join President Donald Trump's administration as an economic adviser, has unveiled a so-called "special purpose acquisition vehicle".
CSN hires banks for IPO of mining unit.
Brazilian steelmaker Companhia Siderurgica Nacional has hired banks to manage the initial public offering of its mining unit, CSN Mineracao, Reuters reported.
Bank of America Merryl Lynch, XP, Banco BTG Pactual and Morgan Stanley will manage an offering that may raise $1.81bn.
Since the beginning of this year, CSN’s executives have been saying they planned to revive the IPO of CSN Mineracao, which includes the iron ore mine Casa de Pedra.
Palantir files for direct listing.
Palantir Technologies, the data-mining company backed by tech billionaire Peter Thiel, broke years of suspense by filing to go public through a direct listing.
The Denver-based company applied to list on the New York Stock Exchange under the ticker PLTR, according to its filing with the US Securities and Exchange Commission.
Palantir will not raise any proceeds in the listing and does not have traditional underwriters. In contrast with previous direct listings, though, investors will face restrictions on how much of their shares they can sell initially.
TPG is planning two blank-check IPOs.
Private equity firm TPG is preparing to raise around $700m via two blank-check companies that would add to this year’s already record tally for such deals, Bloomberg reported.
TPG is planning for one of the special purpose acquisition companies, or SPACs, to focus on the technology sector, while the other will seek out a target that operates in the environmental, social and governance, or ESG, industry.
The firm is aiming to take both blank-check firms public this quarter, although its plans could change.
TPG is among several firms with a lengthy track record for SPACs before this year’s boom. One of its partners, Karl Peterson, leads its SPAC business.
KKR promotes Suzanne Donohoe for growth role and hires Pimco’s managing director. (People)
KKR promoted Suzanne Donohoe to a new position as head of strategic growth and hired Pacific Investment Management’s Eric Mogelof to succeed her as chief of the client and partner group, Bloomberg reported.
Donohoe, 49, will be responsible for building new businesses and growing its longstanding strategic investor partnerships, the firm said in a statement.
Mogelof, who worked at Pimco for almost two decades, will oversee fundraising and client relationships at the $222bn alternative asset manager. Both appointments take effect October 19.
EMEA
The Competition and Markets Authority expressed concerns that Breedon's $235m acquisition of parts of Cemex UK could result in higher prices for building materials in the east of Scotland and 15 other areas of the UK.
Breedon and Cemex have been given five days to address the CMA's concerns, failing which the merger will be referred for an in-depth Phase 2 investigation.
"These products are widely used in a range of building projects across the UK, and account for a material part of the construction costs faced by businesses and public bodies. As the majority of these materials are sourced locally, it's vital to ensure that enough competition will remain at the local level so there's enough choice and prices remain fair. While sufficient competition will remain in most areas, we are concerned that the deal could result in high prices and lower quality products in some areas where Breedon wouldn't face sufficient competition." Colin Raftery, CMA Senior Director.
Breedon Group is advised by Cenkos Securities, Numis Securities, Moelis & Co, and Teneo. CEMEX is advised by HSBC and Slaughter & May.
Italian billionaire Leonardo Del Vecchio completed the acquisition of a stake of 7% in Italian investment house Mediobanca through his holding company Delfin for $686m.
The investor is expected to get the green light from the European Central Bank this week. The ECB considers the stake as a financial investment and not part of any plan to control the bank.
Leonardo Del Vecchio is advised by Community Group.
Cellcom Israel, a communications group, completed the acquisition of Golan Telecom, an Israeli mobile telecommunications provider, for $171m.
Pelephone is Israel’s third-largest mobile phone operator. Its bid is the latest in a likely trend of consolidation in the mobile phone sector, as revenue has plunged and companies are barely profitable in the wake of intense competition.
Cellcom Israel was advised by GK Investor.
Triton Partners, an investment firm, offered to acquire HiQ International, an IT consultancy firm, for $445m.
“HiQ has the opportunity to develop into a Northern European leader by building on its unique platforms... as well as its industry leading innovation, industrial and technology expertise,” Thomas Hofvenstam, Triton’s Head of Nordics.
Providence Strategic Growth, private equity firm, completed the acquisition of Sympa, a provider of cloud-based human capital management software. Financial terms were not disclosed.
"We chose to partner with Sympa because we believe it is an outstanding business that will spearhead consolidation in Europe’s HCM software segment. The market is growing rapidly, and companies now demand sophisticated digital HR management tools, which presents a compelling growth opportunity for Sympa. We look forward to working with Keijo and his team to unlock the company’s full potential and accelerate its international expansion,” Edward Hughes, PSG Managing Director.
Italy clears KKR acquisition of a minority stake in Telecom Italia network. (FS)
The Italian government has given approval to KKR to acquire a minority stake in Telecom Italia’s secondary grid, the last-mile, copper and fibre network linking to customers’ homes, Reuters reported.
The move could be significant because it could pave the way to an Italian treasury-sponsored plan to create a single network champion in the country.
TIM previously postponed a decision over selling 37.5% of its secondary grid to KKR after the government requested time to negotiate a merger of its network assets with smaller rival Open Fiber to create a single fast broadband network.
Credit Suisse to merge NAB business in a streamlining push.
Credit Suisse said that it plans to merge the business of its subsidiary Neue Aargauer Bank with that of Credit Suisse in Switzerland’s Canton Aargau, establishing a single brand there, FN reported.
The Swiss bank said that the move was part of measures aimed at generating gross cost savings of around $109.7m a year from 2022 onward, in a push to streamline operations as the coronavirus pandemic accelerated a shift to online and mobile banking.
CK Hutchison’s Three is eyeing mobile deals again. (FS)
CK Hutchison's British phone company Three UK is back on the lookout for deals as the hurdles that foiled a previous merger attempt have fallen away.
The Hong Kong-based conglomerate’s plan to buy Telefonica’s British carrier O2 was vetoed by the European Union in 2016. Regulators cited risks to competition, services and prices. But that decision was dramatically overturned in May by the bloc’s General Court.
The shift to home working during the coronavirus pandemic has also made governments more concerned about the quality rather than the absolute number of competing networks, said Three Chief Executive Officer Robert Finnegan. So a deal similar to the scuppered Three-O2 takeover could get a green light in future.
Barclays hires new European equity capital markets chief from JP Morgan. (People)
Barclays has hired a veteran JP Morgan dealmaker to lead its equity capital markets business in continental Europe, the latest senior hire at the UK lender as it continues to bolster the top ranks of its investment bank, FN reported.
Manuel Esteve, who spent over 18 years at JP Morgan latterly as head of equity solutions for Europe, the Middle East and Africa, has joined Barclays as head of ECM for continental Europe.
APAC
KKR led a $150m Series E1 financing round in Huohua Siwei, a Chinese edtech firm. The round saw participation with existing backers GGV, GSR Ventures, Longfor Capital, Sequoia China, and IDG Capital.
BlueCity, the owner of China’s biggest gay men dating app Blued, agreed to acquire LESDO, a Chinese lesbian dating app. Financial terms were not disclosed.
One of the main focuses with the acquisition would be to win back customers who had left LESDO for other lesbian apps, adding that BlueCity would offer marketing guidance, financing, and algorithm support to boost LESDO’s performance and image, Ma Baoli, BlueCity’s Founder and Chief Executive.
Ant Group files for dual IPO.
Billionaire Jack Ma’s payment and financial technology company Ant Group has filed for an initial public offering in Hong Kong and Shanghai, marking the first steps toward the behemoth’s blockbuster share sales, FN reported.
The IPO is expected to be the world’s largest offering, beating that of Saudi Aramco last year.
The company said in the filing that the sale would be used to “further pursue [their] vision to digitalise the service industry” as well as bolster cross-border payments and boost its research and development capabilities, including recruiting and retaining talent. It did not specify a share price range or the amount to be raised in the highly-anticipated IPO.
MetLife, AMMB to weigh sale of AmMetLife Insurance.
The owners of AmMetLife Insurance are exploring options for their Malaysian life insurance business, which could fetch as much as $600m in a sale, Bloomberg reported.
US insurer MetLife and Kuala Lumpur-listed AMMB are working with an adviser for the potential divestment of the jointly-owned business, according to the people. A formal sale process could start as soon as this year.
The asset could draw interest from other insurers in Malaysia. MetLife continues to invest in its business in Asia where demand for insurance continues to be strong. Deliberations are still preliminary and the companies could decide not to proceed with a disposal.
Xpeng is said to guide US IPO at above marketed range.
Chinese electric-car startup Xpeng is set to raise $1.28bn after guiding its US initial public offering above a marketed range, Bloomberg reported.
The company is telling prospective investors that it’s planning to price the shares at $15 each. The EV maker was offering 85m shares at $11 to $13 apiece.
Jack Ma-backed Brii Biosciences considers Hong Kong IPO. (FS)
Brii Biosciences, which focuses on treatments for diseases such as Covid-19 and HIV, is considering an initial public offering in Hong Kong as soon as the first quarter of next year, Bloomberg reported.
The biotech firm is working with investment banks on the potential listing, which could raise about $200m to $400m. Brii is also seeking about $100m via a pre-IPO funding round from private investors.
An offering could come amid a frenzy of share sales in Hong Kong led by Chinese technology and health care companies. Investor interest surged as the coronavirus pandemic shone a spotlight on demand for these sectors in the world’s second largest economy.
Evergreen Assets Management eyes to raise $73m for Indochina expansion. (FS)
Evergreen Assets Management, a private equity firm, is considering raising $73m, a five-year, closed-end fund to finance the expansion of its business in Indochina and Singapore.
Using the proceeds, Evergreen plans to start expanding in Cambodia through a micro-financing business. Although the fund will focus on Cambodia initially, Evergreen has a pipeline of investments for Myanmar and Vietnam as well.
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