AMERICAS
Fidelity National Financial, a provider of title insurance and transaction services to the real estate and mortgage industries, received all regulatory approvals for its $3.2bn acquisition of FGL Holdings, a provider of fixed indexed annuities and life insurance.
The expected closing date for the transaction is June 1, 2020, if FGL Holdings shareholders support the merger and related proposals at the F&G extraordinary general meeting.
FGL Holding is advised by Credit Suisse, Houlihan Lokey, Kirkland & Ellis, Skadden Arps Slate Meagher & Flom and Joele Frank. Legal advice to financial advisors is provided by Cleary Gottlieb Steen & Hamilton and Cravath Swaine & Moore. Fidelity National is advised by Bank of America Merrill Lynch, Trasimene Capital, Weil Gotshal and Manges and Willkie Farr & Gallagher.
AdaptHealth, a full-service home medical equipment company, agreed to acquire ActivStyle, a distributor of consumable medical supplies, from The Riverside Company for $62m, and to buy Solara Medical Supplies, a provider of medical devices, from Linden Capital Partners for $425m.
AdaptHealth received commitments for equity investments of $190m from One Equity Partners (in the form of common stock and non-voting stock) and $35m from funds managed by Deerfield Management.
“As AdaptHealth seeks to provide more value to patients, healthcare professionals, and insurance payors managing chronic conditions in the home, we believe offering a more comprehensive solution for diabetes, including CGMs, is an important addition to our expanding suite of products. The acquisition of Solara allows AdaptHealth to add scale in CGM and other diabetes management supplies and offer enhanced care for our patients with co-morbidities like obstructive sleep apnea. We believe that Solara and ActivStyle will further AdaptHealth’s vision of becoming a leading provider of connected health solutions and care in the home,” Luke McGee, AdaptHealth CEO.
AdaptHealth is advised by Deutsche Bank, RBC Capital Markets, K&L Gates, Polsinelli PC and Willkie Farr & Gallagher. Solara Medical Supplies is advised by Robert W. Baird & Co and Kirkland & Ellis. The Riverside Company is advised by Cain Brothers.
Texas Capital Bancshares and Independent Bank Group mutually agreed to scrap their merger of equals due to the coronavirus impact on the market environment.
“Due to the unprecedented impact of the Covid-19 pandemic, both companies’ boards of directors believe it is in the best interests of our employees, clients and all of our shareholders to focus on managing our business during this time,” Larry Helm, Texas Capital Bancshares Chairman.
Nordstar Capital, a private equity firm, is set to acquire Torstar, a media publishing agency, from private equity firm Fairfax for $51m. Under the terms of the transaction, NordStar will acquire all of the issued and outstanding Class A shares and Class B non-voting shares of Torstar for $0.63 in cash per share, representing a 66.67% premium to the 20-day volume-weighted average trading price of the Class B non-voting shares on the Toronto Stock Exchange as at May 25, 2020.
"While we have loved the company and are immensely proud of it, the time has come to pass the torch. We hope the sale will benefit Torstar in the years ahead and believe that this is the beginning of an exciting new chapter for the company. We are delighted to know that the new owners have pledged to build on Torstar's legacy of quality journalism and to promote the Atkinson Principles at the Toronto Star," John Honderich, Torstar Chairman of the Board.
Torstar is advised by Blair Franklin Capital Partners, Marckenz Group Capital Partners, and Blake Cassels & Graydon. NordStar is advised by Navigator Capital, PointNorth Capital, RBC Capital Markets, and Norton Rose Fulbright. Fairfax is advised by Torys.
Gilead Sciences, an American biopharmaceutical company, agreed to invest $200m in Arcus Biosciences, an oncology-focused biopharmaceutical company, as part of a 10-year partnership to co-develop and co-commercialize current and future therapeutic product candidates in Arcus’s pipeline.
"We believe Gilead is an ideal partner for Arcus with its focus on thoughtful and purposeful science, vision to provide transformational therapies in the oncology setting and deeply experienced scientific leadership. This collaboration will allow us to act as one team to maximize the clinical and commercial potential of Arcus’s therapeutic development candidates, greatly amplifying and expediting the opportunities in our pipeline and discovery programs. At the same time, this partnership structure facilitates Arcus’s path to becoming an independent, fully integrated biopharmaceutical company," Terry Rosen, Arcus CEO.
Arcus is advised by Citigroup and Cooley. Gilead is advised by Cowen & Company, Morgan Stanley, Morgan Stanley, Skadden Arps Slate Meagher & Flom, and Venable.
Andreessen Horowitz and investors including GV, Two Sigma Ventures, Third Rock Ventures, Foresite Capital Management, Arch Venture Partners, Wuxi AppTec, HOF Capital, Casdin Capital, BlackRock, T. Rowe Price Group, and Canada Pension Plan Investment Board, participated in the $143m Series B round for insitro, a machine-learning driven drug discovery and development company.
"With this financing, as well as milestones we have achieved through our strategic partnership with Gilead, we are in a strong position to continue executing on our vision,” Daphne Koller, insitro Founder and CEO.
insitro is advised by 1AB.
Ankura, a global business advisory and expert services firm, completed the acquisition of Managed Detection and Response business from UnitedLex, a technology and legal services company. Financial terms were not disclosed.
"This addition enables Ankura to deliver enhanced expert cybersecurity support and response services at a time when there is an increased demand for managed services designed to mitigate risk. As the global Covid-19 pandemic has shown us, the volume and velocity of cyber-attacks rise when the economy is disrupted and relationships with trusted, financially secure partners are key to managing risk in today's evolving cybersecurity landscape," Jessica Block, Ankura Senior Managing Director.
Coinbase, a cryptocurrency exchange company, is set to acquire Tagomi, an advanced cryptocurrency brokerage platform specifically targeted at professionals and institutional investors. Financial terms were not disclosed.
"We are going to be integrating the Tagomi platform into our product suite and it will form the foundation for the future of our institutional trading business. Tagomi will continue to operate for the near future. We’re still thinking through long-term options," Shan Aggarwal, Coinbase Head of corporate development.
Thoma Bravo eyes $16.5bn for next flagship fund. (FS)
Tech-focused private equity major Thoma Bravo set the target to raise $16.5bn for its 14th flagship fund. If Thoma Bravo hits that target, it will mark another significant fundraising step-up in a relatively short amount of time. The firm closed its previous flagship fund on $12.6bn in January 2019, less than two-and-a-half years after that vehicle's predecessor closed on $7.6bn.
Previous reports indicated Thoma Bravo is also currently raising its third middle-market fund with a $3bn goal, as well as a debut small-cap vehicle seeking $1bn.
Amazon eyes acquisition of Zoox.
Amazon is in talks to acquire self-driving car startup Zoox. The deal, which is supposedly in “advanced” talk stage, is in sync with the e-commerce giant’s aggressive efforts to strengthen presence in the autonomous driving space.
The companies are discussing a deal that would value Zoox at less than the $3.2bn it achieved in a funding round in 2018. An agreement may be weeks away and the discussions could still fall apart.
Harrison Street buys US district energy system from BlackRock. (FS)
Harrison Street’s social infrastructure fund acquired a US district energy system from BlackRock, an American global investment management corporation. The manager’s Social Infrastructure Fund paid an undisclosed sum to buy BlackRock’s Global Energy & Power Infrastructure Fund’s interest in The Fort Detrick Energy Production Facility at US Army Garrison in Maryland.
The facility supplies steam, chilled water, electricity conditioning services and emergency backup power to US government facilities located at Fort Detrick under a 30-year fixed payment contract that expires in March 2049.
SoftBank’s Vision Fund to explore sale of OSIsoft stake. (FS)
SoftBank Group is exploring a sale of a minority stake in OSIsoft that could be worth more than $1.5bn, Bloomberg reported.
SoftBank is working with a financial adviser to sell the stake in the industrial software company, which is held by its Vision Fund. The move is part of SoftBank’s new focus on raising cash.
Oaktree Capital Management back in fundraising market for Fund XI. (FS)
American private equity firm Oaktree Capital Management is back in the fundraising market, with its sights on its eleventh flagship fund. The firm is yet to register any capital for the new fund and there is no indication on how much it hopes to raise, according to the latest US Securities and Exchange Commission filing.
Oaktree Capital issued three separate fillings for its eleventh fund, with two of them looking to be supporting capital raises. None of the documents have any indication of funding targets.
Spectrum closes Fund IX on $1.5bn hard cap. (FS)
Spectrum Equity, a growth equity firm, announced the closing of Spectrum Equity IX at a hard cap of $1.5bn. In addition, Spectrum closed its second Discretionary Overage Program at $150m, enabling the firm to pursue larger transactions or follow on investments opportunistically.
The firm focuses exclusively on investments in internet-enabled software and information services companies. Similar to Spectrum's prior funds, Fund IX will provide capital to companies with proven, scalable business models and which exhibit high growth with persistent customer relationships.
EMEA
Supermarket Income REIT, a real estate investment trust company, and British Airways Pension Trustees, a company established to hold the assets of the Airways Pension Scheme, are set to form a 50:50 joint venture.
The joint venture investment will give the Supermarket Income REIT an interest in a large freehold high-quality portfolio of predominantly omnichannel supermarkets with strong property fundamentals.
Supermarket Income REIT is advised by Stifel, Tavistock Communications, Macfarlanes, and Atrato Capital.
M&G, an investment manager, is set to acquire Ascentric, a digital wrap and wealth management platform, from Royal London, a mutual life insurance service provider. Financial terms were not disclosed.
"This is a compelling transaction for Ascentric. It is very clear that M&G is aligned with our values and ethos and represents a good home for our advisers, strategic partners and staff. M&G is well-placed to take us on the next stage of our journey leveraging its scale to grow the business. We look forward to working with M&G to support our clients and customers going forward as well as through the transition from Royal London's ownership," Rob Regan, Ascentric CEO.
SoftBank-backed Ola Electric, an electric vehicle services provider, agreed to acquire Etergo, an innovative electric scooter OEM. Financial terms were not disclosed.
“Ola is one of the world’s most admired mobility companies and has led the way for many innovations in the space, including its bold ambition for electric mobility. We are looking forward to joining Ola Electric and together, reimagining electric mobility to transform the way the world moves!” Bart Jacobsz Rosier, Etergo Co-Founder and CEO.
Virgin Atlantic suitors narrow with rescue deadline approaching. (FS)
Virgin Atlantic Airways’ lineup of potential backers narrowed as Richard Branson’s airline races the clock to secure a bailout, Bloomberg reported. The bidders for Virgin Atlantic include Cyrus Capital, US private equity fund Bain Capital, Melbourne-based outfit BGH Capital and the American ultra-low cost airline specialist Indigo Partners.
Chief Executive Officer Shai Weiss made follow-up presentations to four remaining interested parties over the weekend. Virgin Atlantic pitched its plans for surviving the coronavirus crisis to a dozen firms earlier this month.
The airline is seeking to pin down emergency funding in the next two to three weeks, with restructuring specialist Alvarez & Marsal continuing to work on a so-called pre-packaged administration should it fail to secure support.
Saint-Gobain Group completes sale of Sika shares for $2.6bn.
Saint-Gobain, a French multinational corporation, announced the successful completion of the sale by its subsidiary Schenker-Winkler Holding of approximately 15.2m Sika shares, representing its full stake of 10.75% of Sika's share capital, for a total of $2.6bn. The shares were placed via a private placement to qualified institutional investors by way of an accelerated book-building process.
As a result of this disposal, Saint-Gobain has generated gross gains of $1.7bn since May 2018.
PharmaSGP plans Germany’s biggest IPO this year. (FS)
PharmaSGP, which develops chemical-free over-the-counter drugs, is planning an initial public offering that could value the company at as much as $549m, Bloomberg reported.
In what is likely to be Germany’s biggest listing so far this year, the Munich-based company is preparing to issue an intention to float on the Frankfurt Stock Exchange after a successful pre-marketing exercise.
APAC
Asset management firms Exacta Capital and Aura Group, along with Inspire Brands, a recreational facilities holding company, agreed to acquire the Asian unit of Anytime Fitness, a provider of fitness services. Financial terms were not disclosed.
"Completing the deal in this black swan backdrop involved assessing the brand's capacity to withstand enforced closures, and a long-term outlook on the industry. Anytime Fitness Asia is proven and capitalizes on its smaller footprint in accessible community locations and lower cost of entry and maintenance, which ensures that gyms will reopen safely and grow post-Covid-19," Charles Wong, Aura Group Executive Director.
Aura Group is advised by Ernst & Young and R&T. Debt financing is provided by RISA Partners.
The Barry Callebaut Group, a manufacturer of chocolate and cocoa products, agreed to acquire the Australian unit of GKC Foods, a producer of chocolate, coatings and fillings, serving many consumer chocolate brands in Australia and New Zealand. Financial terms were not disclosed.
The transaction is subject to regulatory approval and other closing conditions. Expected completion is before the end of this calendar year.
"I am very proud of the great chocolate business we have built from scratch over the past 35 years. Our agreement with Barry Callebaut will ensure the successful future of GKC Foods and our team as part of a large, international, group. We really appreciate the business principles and the team spirit on which Barry Callebaut is based," John Borell, GKC Foods Managing Director.
Ambani prepares Facebook backed-Jio Platform for overseas IPO. (FS)
Reliance Industries is working with banks on early preparations for an overseas listing of its digital and wireless business, after the unit attracted more than $10bn of investment in a month.
The conglomerate backed by Mukesh Ambani, Asia’s richest man, is preparing Jio Platforms for an initial public offering outside of India. The offering could happen in the next 12 to 24 months and the company hasn’t decided on a listing venue. There’s also no final decision on timeline and size.
Airtel promoter sells 2.75% stake to Societe Generale consortium for $1.2bn. (FS)
Bharti Telecom, the promoter of Bharti Airtel, sold a 2.75% stake in the telecom operator for a total of $1.2bn, to foreign institutional investors and some domestic mutual funds, DealStreetAsia reported.
The FIIs that took part include Societe Generale, Blackrock, Norges Bank and Fidelity Investments, while domestic mutual funds that participated included Axis Mutual Fund, HDFC Mutual Fund, SBI Mutual Fund and ICICI Prudential Mutual Fund.
Temasek unit in rescue talks with struggling Pacific International. (FS)
Heliconia Capital Management, the investment firm owned by Temasek Holdings, is leading a consortium of investors that is trying to rescue struggling Singaporean container shipping firm Pacific International Lines.
PIL, which is struggling to stay current on its charter payments and has been divesting assets to shore up cash, it is in exclusive talks with Heliconia for a potential investment.
Negotiations are at a preliminary stage, so the parties have yet to decide on how much cash to inject into PIL, and whether the funds will be raised by the issuance of equity, debt, convertible bonds, or a mix.
Volkswagen in final talks to seal biggest M&A deals in China’s EV sector.
Volkswagen is in final talks to seal its largest investment deals with Chinese electric vehicle firms, as the German automaker accelerates its push into the world’s largest market for environmentally friendlier cars.
The firm is poised to buy 50% of Anhui Jianghuai Automobile, the parent of EV partner JAC Motors, for at least $491m.
Ruipeng seeks new funds at $3bn valuation. (FS)
New Ruipeng Pet Healthcare Group is seeking to raise funds at a valuation of about $3bn ahead of its planned initial public offering, Bloomberg reported.
The Hillhouse Capital-backed pet clinic operator is working with an adviser to raise about $300m in the pre-IPO round. New Ruipeng, based in Shenzhen, has approached potential investors including Tencent Holdings, which could invest about $50m.
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