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AMERICAS
Centivo, a digital health plan aimed at self-funded employers looking to provide employees with care, agreed to acquire Eden Health, a primary care and insurance navigation company for employers. Financial terms were not disclosed.
"We are witnessing primary care access problems unlike anything we've experienced in our lifetimes. Our system is plagued by chronic shortages in primary care access due to decades of under-investment and misaligned incentives. Our partnership with Eden Health – and its cutting-edge, technology-centered capabilities in primary care, mental health and urgent care – aligns seamlessly with Centivo's mission to achieve radical affordability and enhanced patient access for American workers," Ashok Subramanian, Centivo Founder and CEO.
Centivo is advised by Lippes Mathias, Lowenstein Sandler and SolComms. Eden Health is advised by MTS Health Partners and Foley & Lardner.
West Coast Community Bancorp, the holding company for Santa Cruz County Bank, agreed to merge with 1st Capital Bancorp, the holding company for 1st Capital Bank, in a $63m deal.
"We are thrilled to announce this exciting merger with 1st Capital Bank, a strategic move that underscores our commitment to sustained growth and exceptional service. Our institutions have a rich history of serving our communities with dedication and passion, and this merger will only strengthen that commitment. 1st Capital Bank has built an impressive deposit market share, especially within Monterey County, and a solid reputation for expertise in business lending," Krista Snelling, West Coast Community Bancorp President and CEO.
West Coast Community Bancorp is advised by Keefe Bruyette & Woods and Gary Steven Findley & Associates. 1st Capital Bancorp is advised by Piper Sandler and Stuart Moore Staub.
InTandem Capital Partners, a healthcare services-focused private equity firm, completed the investment in Adams Clinical, a clinical trial site network with locations across the Northeast that conducts independent evaluations of drugs to treat psychiatric and neurologic illnesses. Financial terms were not disclosed.
"We are excited to have InTandem Capital’s help growing Adams. We value InTandem’s integrated investment and operating strategy, which is tailored for companies like ours at an inflection point. The InTandem team’s wealth of industry knowledge will enable us to develop a world-class site network that benefits both our pharmaceutical company customers and the patients who ultimately are prescribed drugs we tested," Nelson Rutrick, Adams Clinical CEO.
Adams Clinical was advised by Cantor Fitzgerald and Brown Rudnick. InTandem Capital Partners was advised by Edgemont Partners and Goodwin Procter.
MasterBrand, the largest manufacturer of residential cabinets in North America, agreed to acquire Supreme Cabinetry Brands, one of the largest manufacturers of residential cabinetry in America, from GHK Capital Partners, a middle-market private equity firm, for $520m.
"The addition of Supreme’s premium kitchen and bath cabinetry to our offering will enable MasterBrand to provide unmatched breadth and service to our customers and consumers, compelling opportunities for our combined teams, and value to our shareholders," Dave Banyard, MasterBrand President and CEO.
MasterBrand is advised by Rothschild & Co and Skadden Arps Slate Meagher & Flom. Debt financing is provided by JP Morgan.
Accel, an American venture capital firm, led a $1bn Series F round in Scale AI, the data foundry for AI, with participation from Y Combinator, Nat Friedman, Index Ventures, Founders Fund, Coatue, Thrive Capital, Spark Capital, NVIDIA, Tiger Global Management, Greenoaks, Wellington Management, Cisco Investments, DFJ Growth, Intel Capital, ServiceNow Ventures, AMD Ventures, WCM, Amazon, Elad Gil, and Meta.
"Data abundance is not the default; it’s a choice. It requires bringing together the best minds in engineering, operations, and AI. Our vision is one of data abundance, where we have the means of production to continue scaling frontier LLMs many more orders of magnitude. We should not be data-constrained in getting to GPT-10," Alexandr Wang, Scale AI CEO and Founder.
Scale AI was advised by Allen & Company and JP Morgan.
Accenture Federal Services, a US federal services company, completed the acquisition of Cognosante, a mission-driven provider of digital transformation and cloud modernization solutions for federal health, defense, intelligence, and civilian agencies. Financial terms were not disclosed.
"The health market is a unique mission space in the US federal government. With the addition of Cognosante's industry-leading people and capabilities, and by continuing to draw upon Accenture's proven commercial innovation in health, life sciences, and insurance, Accenture Federal Services will accelerate impact for our clients and offer greater career growth opportunities for our people as a result of this acquisition," John Goodman, Accenture Federal Services CEO.
Accenture Federal Services was advised by Evercore. Cognosante was advised by JP Morgan.
Phillips 66, a diversified and integrated downstream energy provider, agreed to acquire Pinnacle Midstream, an independent midstream energy company, from Energy Spectrum Capital, a private equity firm, for $550m.
"We are growing our Midstream business in the Permian to further strengthen and expand our service offerings to customers while driving operational and commercial synergies. Pinnacle is a bolt-on asset that advances our wellhead-to-market strategy and complements our diversified and integrated asset portfolio. Further, this transaction aligns with our long-term objectives to build out our natural gas liquids value chain, be disciplined with our capital allocation and create sustainable value for our shareholders," Mark Lashier, Phillips 66 Chairman and CEO.
Pinnacle Midstream is advised by Jefferies & Company.
Blue Point Capital Partners, a private equity firm that partners with entrepreneurs and management teams investing in and growing lower middle-market companies, agreed to acquire National Safety Apparel, an apparel and fashion company specializing in protective apparel for industry workers. Financial terms were not disclosed.
"Blue Point's experience in our industry and alignment with our culture made them the right choice for NSA as we explore new avenues for expansion in the safety products market. Together, we will continue to scale the business while staying true to NSA's mission — to ensure the protection of workers and help them return home safely every day," Chuck Grossman, NSA Owner and CEO.
Blue Point Capital Partners is advised by MiddleM Creative (led by Jan Morris).
CyEx, a provider of cyber and data breach response solutions, completed the acquisition of Simpluris, a class action settlement administrator for legal, financial and corporate administration services. Financial terms were not disclosed.
"Simpluris is excited to join CyEx. We believe the synergies of CyEx's expertise in the cyber and data breach remediation space and our technology-driven approach to legal administration will enable us to enhance our opportunities to serve our clients and grow our business," Kevin Lee, Simpluris President and CEO.
UAE oil giant buys into NextDecade LNG in first US deal.
The United Arab Emirates' main oil company bought a stake in NextDecade's natural gas export project in Texas, in a first US acquisition that also gives it a 20-year supply deal, Bloomberg reported.
Abu Dhabi National Oil will take a 11.7% stake in phase 1 of the Rio Grande LNG project. The deal will also give Adnoc 1.9m tons a year of liquefied natural gas supply from the planned Train 4. NextDecade shares gained as much as 16% in New York trading.
Red Lobster files for bankruptcy with plan to sell business and reduce locations.
Red Lobster, the largest seafood restaurant chain in the US, filed for bankruptcy after failing to recover from dwindling traffic it suffered during the pandemic as menu prices crept higher. An unlimited shrimp deal also took a bite out of earnings, WSJ reported.
The chain plans to sell its business in the bankruptcy process, with lenders led by Fortress Credit designated as the bidder to beat. It also plans to reduce the number of restaurants it operates.
PowerSchool is drawing takeover interest from Warburg Pincus. (FS)
Education software provider PowerSchool Holdings has drawn takeover interest from private equity firms including Warburg Pincus, Bloomberg reported.
The Folsom, California-based company is engaging with buyout firms and has formed a special committee of its board of directors, which is working with an investment bank.
BofA seeks to grab share in mid-tier deals amid IPO wins. (FS)
Bank of America is looking to build out its equity capital markets franchise in Europe, and even as it works on some of the region’s largest IPOs this year, no deal is too small, Bloomberg reported.
The bank made a “conscious decision” last year to focus particularly on stake sales by large shareholders.
Peloton Interactive gets $1.4bn in fresh credit.
Peloton Interactive said May 20 it had refinanced its debt, gaining access to nearly $1.4bn in credit, WSJ reported.
The exercise-bike maker plans to offer $275m in convertible senior notes due 2029 in a private offering. The company will also enter a $1bn five-year term loan facility and a $100m five-year revolving credit facility.
Blackstone gives Press Ganey rare flexibility in $1bn. (FS)
Blackstone led a roughly $1bn preferred-equity investment backing Press Ganey’s debt refinancing that includes rare concessions that make it easier for the company's owners to sell a stake or list the business over the coming months, Bloomberg reported.
The deal’s call provision allows the health-care survey provider and consultant to pay back the obligation with proceeds from an IPO or minority equity investment at 101.5 cents on the dollar for as long as 18 months. Such flexible terms are unusual - most preferred investments typically can’t be repaid so soon with fresh equity, a safeguard meant to ensure holders will have a minimum number of years to profit from the investment.
Tempus AI files for US IPO touting ‘intelligent diagnostics’.
Tempus AI, a technology platform company using artificial intelligence to process medical data, filed for an IPO, joining a rush of companies going public while touting their AI credentials, Bloomberg reported.
The company said in its filing May 20 with the US SEC that it’s creating “intelligent diagnostics” for precision medicine. Tempus AI didn’t give details of the IPO such as the offer price, which will be included in future filings.
Top dealmaker set to leave law firm Skadden as talent war escalates. (People)
Skadden is set to lose another of its top lawyers, as rivals continue to raid the New York corporate law firm’s lucrative practice of advising the world’s largest banks, asset managers and insurers, FT reported.
David Hepp, co-head of Skadden’s financial institutions group, is reportedly leaving for crosstown rival Paul Weiss after 24 years at the firm.
Grant Thornton laying off 350 US employees as it prepares to close private-equity sale. (People)
Grant Thornton is laying off about 350 US employees as the accounting firm moves closer to selling a stake of its US unit to a private-equity firm, WSJ reported.
The Chicago-based firm is in the process of notifying the workers this week. The cuts, equating to 3.5% of the US workforce, span advisory, audit and tax up to the level of managing director.
EMEA
Investment companies Warburg Pincus and Temasek agreed to acquire Specialist Risk Group, a specialist insurance intermediary, from HGGC, a private equity firm. Financial terms were not disclosed.
"We've been following SRG's progression over the past few years with keen interest and are delighted to partner with the business and its very talented team on their next stage of growth. As active and experienced investors into insurance businesses globally, we believe SRG has all the right ingredients – talent, capabilities, and culture – to build on its position as a true standout amongst European and international intermediaries. We look forward to working with the team and Temasek to help realise that potential," James O'Gara, Warburg Pincus Managing Director.
Specialist Risk Group is advised by Evercore, Liberty Corporate Finance, Eversheds Sutherland and Kirkland & Ellis. Warburg Pincus is advised by Macquarie Group and Freshfields Bruckhaus Deringer.
Assura, a company that designs, builds, invests in and manages GP surgery buildings and primary care premises, and Universities Superannuation Scheme, the largest private pension fund in the UK, formed a joint venture in a £250m ($318m) deal.
"We are delighted to announce this exciting transaction with a high-quality and long-term capital partner in USS. This important transaction highlights the attractive investment characteristics in the healthcare sector and specifically the long term resilient cash flows generated by our assets. As well as demonstrating our ability to re-deploy capital into our pipeline of opportunities in broader healthcare markets, we have sourced new capital that will fund investment in healthcare infrastructure that is so badly needed to enable better health outcomes," Jonathan Murphy, Assura CEO.
Owners representing at least 12% of the stock in Karnov Group have publicly rejected a takeover approach for the Swedish legal and accounting company, saying an offer of $7.86 per share is too low, Bloomberg reported.
UK-based Blackmoor Investment Partners, owning about 1% of the shares in Karnov, said that the valuation offer of $840m is far from reflecting the firm's true potential.
Karnov Group is advised by Carnegie Investment Bank and Gernandt & Danielsson.
Summit Partners, a global growth equity investor, agreed to invest $72m in OneStock, a provider of order management systems.
"With the proliferation of online and offline sales channels and consumers' ever-increasing expectations for instant product availability and fulfillment, we believe a modern OMS has become a critical part of the retail supply chain. In our view, OneStock has developed the most intuitive, scalable and differentiated cloud-native OMS solutions, purpose-built to help brands and retailers to plan better, grow faster, sell more and waste less," Steffan Peyer, Summit Partners Managing Director.
Applications Software Technology, a specialist in systems integration of Oracle applications and technologies, agreed to acquire Symatrix, a specialist cloud HCM and ERP managed service provider, offering an alternative to Oracle and outsourced payroll. Financial terms were not disclosed.
"The capabilities of Symatrix complement and broaden AST's core services and allow us to reach new global markets. Working together we will be able to offer enhanced services to our combined customer base. We'll continue to deliver high-value solutions that provide measurable value and outcomes for our customers at a global scale," Justin Winter AST CEO.
Exxon, Shell are said to weigh bids for Galp Namibia stake.
Exxon Mobil and Shell are among energy giants evaluating bids for a stake in Galp Energia major oil field offshore Namibia, Bloomberg reported.
TotalEnergies and Equinor are also among those considering acquiring the 40% stake Galp is seeking to sell in the Mopane discovery. Based on Galp's recent "in place" estimates for 10bn barrels of oil equivalent in the Mopane complex, the entire discovery could be worth around $20bn, or potentially more.
Activist Cevian doubles down on Swiss finance with Baloise stake. (FS)
Activist fund Cevian Capital became a major shareholder in Baloise Holding, marking its second big investment in the Swiss finance industry after recently taking a stake in UBS Group, Bloomberg reported.
The move comes less than a month after the Swiss insurer changed its bylaws to become more attractive to investors.
Spain's top financial holding company to boost Telefonica stake. (FS)
CriteriaCaixa, Spain's biggest financial holding company, is seeking to increase its stake in Telefonica to 10%, matching the Spanish government's position, Bloomberg reported.
Criteria is seeking to raise its stake from its current 5% as part of newly appointed CEO Angel Simon's strategy to expand industrial holdings.
Emtel plans Mauritius’ first telecom IPO.
Emtel plans to float 25% of its shares in an IPO on the Stock Exchange of Mauritius, becoming the country's first telecommunications company to go public, Bloomberg reported.
Currimjee Jeewanjee and Co. — a family-owned business with four generations of presence in Mauritius — holds 75% of Emtel and the rest belongs to private equity firm Indian Continent Investment. The IPO involves 113.85m shares, or a quarter of the existing ordinary stock, and proceeds will go to the selling shareholders.
Portugal's CTT is looking for acquisitions of logistics companies in Spain.
CTT-Correios de Portugal is looking for potential acquisition targets in Spain as Portugal's biggest postal services company tries to take advantage of a boom in online transactions that's setting records for its express and parcels business on the Iberian peninsula, Bloomberg reported.
"We're looking for consolidation opportunities," Joao Bento, CTT CEO said. "It's not guaranteed that we'll be successful, but we're active."
Portugal's national airline boss urges state to keep stake after sell-off.
The chief executive of Portugal's national airline TAP has called on the government to maintain a stake in the flag carrier as he expects its planned sell-off to start in earnest within months, FT reported.
Luís Rodrigues also wants to bring in non-aviation investors to ease competition concerns amid growing unease in Brussels over the prospect of an industry dominated by a handful of the region's big airline groups.
WH Ireland in talks with Zeus to sell capital markets unit.
Financial adviser WH Ireland Group is in talks to sell its capital markets division to British investment bank Zeus Capital, Bloomberg reported.
The discussions are at an advanced stage and there's no certainty they will lead to a transaction. A deal could be announced as soon as this week.
Ceva Santé Animale said to mull fundraising at €7bn value.
French animal health firm Ceva Santé Animale is in the preliminary stages of working with advisers on a new fundraising round, Bloomberg reported.
The equity raise could give the company an enterprise value of as much as €7bn ($7.6bn) including debt. The process could lead to some existing holders selling stakes, but it is currently in the early stages. The fundraising is expected to launch late this year at the earliest.
Orange, Vodacom are in talks on African network deals.
Vodacom Group is in discussions with France's Orange about a strategic partnership in Africa to explore infrastructure deals to help keep down costs on the continent, Bloomberg reported.
The telecommunications companies are looking at agreements in overlapping markets including Egypt and the Democratic Republic of Congo, and reviewing where there are other opportunities to work together.
First Abu Dhabi Bank's talks with Turkish lender hit snag on valuation.
First Abu Dhabi Bank has held preliminary talks to buy a controlling stake in Turkey's Yapi Ve Kredi Bankasi, though the discussions have been hamstrung by disagreements over price, Bloomberg reported.
FAB has balked at Yapi Kredi's valuation. The Turkish lender's majority owner - KOC Holding - is seeking a higher price than FAB is currently willing to offer.
APAC
Advanced Energy, a provider of highly engineered, precision power conversion, measurement, and control solutions, offered to acquire XP Power, a manufacturer and supplier of critical power control systems, for £571m ($725m).
"We believe that the proposed offer for XP Power provides compelling value for both Advanced Energy's and XP Power's shareholders. By expanding our portfolio of products and technologies, and combining our technical capabilities, we believe we will be better able to meet the growing needs of our customers," Steve Kelley, Advanced Energy President and CEO.
SHI International, a global provider of innovative technology solutions, agreed to acquire Locuz Enterprise Solutions, an Indian cybersecurity and digital transformation services company. Financial terms were not disclosed.
"SHI’s acquisition of Locuz is more than a strategic expansion; it is a direct investment in our customers’ success. The addition of Locuz will be a key component of our mission to deliver comprehensive solutions that address the complex needs of our customers globally. Customers can expect to benefit materially from our combined advanced service capabilities," Thai Lee, SHI President and CEO.
ByteDance, a Chinese multinational internet technology company, completed the acquisition of Oladance, a business that creates top-notch audio goods, for $50m.
It is the latest step toward developing wearable devices that could become the next home for its tech after smartphones. TikTok's Chinese owner has finalized the deal and dispatched staff to work with the Shenzhen-based startup founded five years ago. The acquisition brings on board a team of seasoned former Bose engineers.
Malaysia Airports shareholder expresses doubt on takeover bid.
Northcape Capital said a bid by major shareholders to take Malaysia Airports private may face opposition due to the low valuation offered. There is a risk that the stakeholders won't get the 90% threshold needed to delist the company, Bloomberg reported.
"They might need to revise the offer. This offer was opportunistic," Ross Cameron, Northcape Portfolio Manager. The private equity company owns a 1.7% stake in the airport group.
Singapore's Income Insurance considering partnerships or stake sale to help expand in APAC.
Singapore's Income Insurance is exploring options as it looks to expand across the Asia Pacific region, including possibly tying up with a partner or selling a stake, Bloomberg reported.
While Income Insurance has received interest from industry peers, considerations are preliminary and may not lead to a transaction.
Carlyle raises $2.8bn for largest Japan buyout fund. (FS)
Carlyle Group raised JPY430bn ($2.8bn) for its fifth Japan buyout fund, adding to signs of investor interest in the country despite a gloomy fundraising climate for private equity firms globally, Bloomberg reported.
It's the largest Japan-focused buyout fund ever raised and about 70% bigger than the previous one it pulled together in 2021. Carlyle Japan is seeking to add nine investment professionals this year in anticipation of increased deal flow, and has filled about half the positions.
Trafigura M&A head is latest top executive to retire from trader. (People)
Trafigura Group head of mergers and acquisitions Jesus Fernandez is leaving, in the latest senior departure from the commodity trading giant, Bloomberg reported.
Fernandez will retire after around 20 years at the firm. He will be succeeded by Patrick Burke, another longtime Trafigura dealmaker.
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