AMERICAS
Alstom, a French multinational company operating worldwide in rail transport markets, is set to gain EU antitrust approval to acquire the rail business of Bombardier, a global rail transportation company. The deal will make Alstom the world's second-largest rail maker behind Chinese leader CRRC.
The concessions came after the European Commission voiced concerns about Alstom's greater market share after the deal.
Alstom subsequently improved the concession on access to the Canadian company's train control systems and signalling units but did not have to sell more assets following feedback to the Commission from rivals and customers.
Bombardier is advised by Citigroup, National Bank Financial, Rockefeller Capital Management, UBS, Jones Day, Norton Rose Fulbright and Joele Frank. CDDPQ is advised by HSBC, Freshfields Bruckhaus Deringer and McCarthy Tetrault. Alstom is advised by Mazars Corporate Finance, Rothschild & Co, Societe Generale, Cleary Gottlieb Steen & Hamilton and Davies Ward Phillips & Vineberg. Debt financing is provided by Credit Agricole, HSBC and Societe Generale.
Two private equity firms, TA Associates and Francisco Partners agreed to invest in Edifecs, a global health information technology solutions company. Financial terms were not disclosed.
"The investment from TA Associates and Francisco Partners will help Edifecs catalyze this transformation, innovate faster and bring technology to market quicker to meet the demands of our customers. We are pleased to welcome TA Associates and Francisco Partners as investors in Edifecs. Together, they bring more than 60 years of experience in the healthcare and technology industries, and both have demonstrated a strong record of helping thriving companies such as ours accelerate growth. I am confident that TA and Francisco Partners will be valuable partners during this journey," Sunny Singh, Edifecs Founder and CEO.
Edifecs is advised by TripleTree, DLA Piper and Karr Tuttle Campbell. TA Associates and Francisco Partners are advised by Deutsche Bank, Kirkland & Ellis, Zeno Group and BackBay Communications.
KLX Energy Services, a US onshore provider of mission-critical oilfield services, completed the merger with Quintana Energy Services, a provider of diversified oilfield services to leading onshore oil and natural gas exploration and production companies. QES shareholders received 0.4844 shares of KLXE common stock for each share of QES common stock. KLXE and QES shareholders now own approximately 59% and 41% of the equity of the combined company on a fully diluted basis.
"QES will add directional drilling, snubbing and well control services to KLXE's already broad range of product and service lines. We will be rationalizing two of the largest fleets of coiled tubing and wireline assets, which will dramatically reduce future capital spending requirements and which will facilitate the pull-through of KLXE's asset-light products and services. As QES has previously announced the idling of its capital-intensive frac business, we intend to repurpose the vast majority of the pressure pumping equipment to support what will become the largest fleet of large diameter coiled tubing assets in North America. Additionally, we will repurpose some of the pressure pumping equipment to support the wireline fleet, which will also be one of the largest in the US and one of the largest independent providers of directional drilling services," Tom McCaffrey, KLXE President and CEO.
Quintana Energy Services was advised by Tudor Pickering Holt, Skadden Arps Slate Meagher & Flom and Dennard Lascar. KLX was advised by Goldman Sachs and Freshfields Bruckhaus Deringer. Goldman Sachs was advised by Sullivan & Cromwell.
Zebra Technologies, a provider of enterprise-level data capture and automatic identification solutions, agreed to acquire Reflexis Systems, a privately-held provider of intelligent workforce management, execution, and communication solutions, from private equity firms Great Hill Partners and Sageview Capital for $575m.
"The acquisition of Reflexis Systems fits squarely within our Enterprise Asset Intelligence vision of making every worker and asset at the edge connected, visible and fully optimized. Combining Reflexis' market-leading platform with our complimentary software offerings provides us the unique opportunity to unify the store associate experience and empower every front-line worker to execute the best next action. We are excited to welcome the Reflexis team to the Zebra family," Anders Gustafsson, Zebra Technologies CEO.
Reflexis is advised by Goodwin Procter. Zebra Technologies is advised by Kirkland & Ellis.
AOC Materials, a global supplier of resins and speciality materials, agreed to acquire the maleic anhydride business of Ashland, an American chemical company, for $100m.
"Today's announcement furthers Ashland's strategic focus to streamline our portfolio and to focus on speciality ingredients and improved margins. The Maleic business and its respective employees have made important contributions to Ashland, and AOC will take a strategic view of the business to drive growth and continue their success," Guillermo Novo, Ashland Chairman and CEO.
Ashland is advised by Citigroup and Squire Patton Boggs.
Cognizant, an American multinational corporation that provides IT services, agreed to acquire New Signature, a Microsoft public cloud transformation specialists, from Columbia Capital, a private equity firm. Financial terms were not disclosed.
"New Signature's success is built upon helping clients create and accelerate their business transformation through the adoption of Microsoft cloud technologies. In joining Cognizant, we will have access to Cognizant's deep industry expertise and global scale, and together, provide best-in-class cloud solutions for the intelligent workplace, applied innovation, and managed services. We share a passion for innovation and look forward to our future at the heart of Cognizant's new Microsoft Business Group," Jeff Tench, New Signature CEO.
New Signature is advised by Arma Partners.
AES, a Fortune 500 company that generates and distributes electrical power, agreed to acquire an 18.51% stake in AES Tiete Energia, a power generation company, from BNDES, a Brazilian state bank, Reuters reported.
AES offered to buy 65% of BNDES' stake in AES Tiete for $3.33 per share, fully in cash. The sale will reduce BNDES' stake in the company to 9.9% from 28.41%.
Gemspring Capital, a middle-market private equity firm, agreed to invest in Cforia Software, a provider of order-to-cash automation software. Financial terms were not disclosed.
"We are confident that Gemspring's expertise, resources and capital will help Cforia accelerate growth and take the next step in its evolution. We look forward to leveraging these resources to expand our marketing and sales strategies and to continue developing and deploying product enhancements that serve our growing global customer base," Chris Caparon, Cforia CEO.
Out There First, a toy manufacturer, agreed to acquire Alex Brands, a toy company. Financial terms were not disclosed.
"We are very excited to be joining the 'Out There First' family of companies. For decades, our iconic portfolio of brands has created a fun, learning environment for children of all ages. There is a strong cultural fit between our two companies, we are excited to leverage our world-class talent with the buying power and operational efficiencies of 'Out There First' to drive strong revenue and profitable growth across all SBUs," Keith Gammon, Alex Global Products Managing Director.
Private equity firm General Catalyst led a $200m Series C round in Ro, a telehealth company, with significant participation from investors FirstMark Capital, Torch, SignalFire, TQ Ventures, Initialized Capital, 3L, The Chernin Group and BoxGroup.
Ro will use the newly raised capital to build out technology to address healthcare access and affordability challenges faced by patients.
Dechra completed the acquisition of the Osurnia product portfolio from Elanco for $135m.
Dechra, an England-based business involved in the development and marketing of veterinary products, completed the acquisition of the Osurnia dermatology product portfolio from Elanco Animal Health, a global animal health company, for $135m.
"We are delighted to complete the acquisition of the worldwide rights to Osurnia. The addition of Osurnia will allow us to offer an extended range of solutions for veterinarians to manage otitis externa and offer the best treatment for the pet taking into consideration the veterinarian's clinical preference and the owners' lifestyle," Ian Page, Dechra CEO.
Dechra was advised by Investec Bank and TooleyStreet Communications
WEC Energy Group to acquire 85% stake in Tatanka Ridge Wind Farm.
WEC Energy Group, a provider of electricity and natural gas, agreed to acquire an 85% ownership interest in Tatanka Ridge Wind Farm, which is under construction in Deuel County, South Dakota, for $235m.
The project is being developed by Avangrid Renewables, a wholly-owned subsidiary of Avangrid. Commercial operation is expected to begin by early 2021. The project has long-term offtake agreements for 100% of the energy produced with a multinational investment-grade company and a well-established electric cooperative that serves utilities in multiple states.
"This is the latest in a series of investments that fit exceptionally well with our strategy of deploying capital in renewable energy assets that will serve strong, vibrant customers for years to come," Gale Klappa, WEC Energy Executive Chairman.
Rocket Companies seeks to raise $3.3bn in IPO.
Rocket Companies, the parent company of the US mortgage lender Quicken Loans, expects to raise $3.3bn in its IPO, Reuters reported.
The deal, potentially the biggest US listing so far in 2020, marks a further sign of recovery for the US IPO market, which was hampered in March as the Covid-19 pandemic sent stock prices plummeting. Rocket Companies expects its offering of 150m shares on the New York Stock Exchange to be priced between $20 and $22 per share, valuing it at about $43.7bn.
Rackspace looking to raise $754m in upcoming IPO. (FS)
Apollo Global-backed Rackspace Technology, a cloud hosting services provider, announced terms for its upcoming IPO.
The San Antonio-based company plans to raise $754m by offering 33.5m shares at a price range of $21 to $24. At the midpoint of the proposed range, Rackspace Technology would command a fully diluted market value of $4.8bn and an enterprise value of $8bn.
Rackspace is advised by Paul Weiss Rifkind Wharton & Garrison.
RedBall Acquisition seeks to raise $500m in an IPO.
RedBall Acquisition, a special purpose acquisition company, co-chaired by baseball executive Billy Beane and former Goldman Sachs banker Gerald Cardinale, plans to raise $500m in its IPO, Reuters reported.
The offering on the New York Stock Exchange will consist of 50m units, which include shares and warrants. SPACs typically raise money in an IPO to pursue an acquisition without telling their investors in advance which specific company they will buy.
Carlyle raised $1.84bn for the second long-dated fund. (FS)
Carlyle Group has collected at least $1.84bn in commitments so far for its latest long-lasting investment fund, PE News reported.
The Washington firm has been raising Carlyle Global Partners II since January 2019, the Securities and Exchange Commission filing shows. It so far has received commitments from 21 investors.
Gallant Capital closes debut fund at $378m. (FS)
Los Angeles-based private equity firm Gallant Capital Partners announced the final closing of its inaugural fund, Gallant Capital Partners I, with $378m in total commitments.
Fund I reached its hard-cap and was substantially oversubscribed, exceeding its target of $300m. Investors include public and corporate pension funds, financial institutions, insurance companies, endowments and foundations, fund-of-funds, wealth managers and family offices from North America and Europe.
EMEA
France's PSA, a French multinational manufacturer of automobiles, managed to make an unexpected profit in the first half of the year despite the pandemic's impact on the auto sector, as it raised expectations for cost savings in its pending c. $50bn merger with Fiat Chrysler, an Italian-American automaker, FT reported.
Carlos Tavares, the CEO of PSA, who will take over as chief executive of the combined group, said he would be carefully watching its cash position "from day one". FCA plans to distribute a $6.4bn special dividend to its shareholders in order to equalize the value of the two groups ahead of the merger.
The deal was announced formally in December, and Mr Tavarez said it was on track to close in the first quarter of next year despite an in-depth competition assessment in Brussels.
Fiat Chrysler is advised by Bank of America Merrill Lynch, Barclays, Citigroup, Goldman Sachs, JP Morgan, UBS, d'Angelin & Co, Darrois Villey Maillot Brochier, De Brauw Blackstone Westbroek, Legance, Loyens & Loeff, Sullivan & Cromwell, Community Group, Image Sept and Sard Verbinnen & Co. Financial advisors of Fiat Chrysler were advised by Macfarlanes and Cleary Gottlieb Steen & Hamilton. PSA is advised by Mediobanca, Messier Maris & Associes, Morgan Stanley, Perella Weinberg Partners, Bredin Prat, Cabinet Bompoint, Linklaters and Stibbe. Peugeot Family is advised by Zaoui & Co. Bpifrance is advised by Willkie Farr & Gallagher. Exor is advised by Lazard.
An Italian banking group, UBI Banca's main shareholder group CAR, stated that it would take up Intesa Sanpaolo's improved bid, bringing Italy's biggest retail bank closer to its goal of creating the euro zone's seventh-largest banking group, Reuters reported.
Intesa's bid was due to end on Tuesday, but market regulator Consob extended it to Thursday to protect shareholders after asking UBI for clarifications on communications issued concerning the bid.
The offer is valid with a take-up of 50% of UBI's capital plus one share.
UBI is advised by Goldman Sachs, BonelliErede and Linklaters. Intesa is advised by Equita SIM, JP Morgan, Mediobanca, Morgan Stanley, UBS, Gatti Pavesi Bianchi and Pedersoli Studio Legale.
Mastercard, an American multinational financial services company, offered concessions in an attempt to address EU antitrust concerns about its planned purchase of part of Nets, a Scandinavian payments group, Reuters reported.
The EU's competition enforcer has said that the acquisition threatens to significantly affect competition in the Nordic area, the European Economic Area and Britain.
The Commission can either clear the deal based on the concessions, demand more or open a four-month long investigation if it has serious doubts.
Nets is advised by Credit Suisse, Bruun & Hjejle, Freshfields Bruckhaus Deringer and Kromann Reumert. Mastercard is advised by Bank of America Merrill Lynch, Clifford Chance and Wikborg Rein.
IAG, the parent of British Airways and Spain's Iberia, is close to an agreement to cut in half the price of its planned $1.17bn acquisition of Spanish rival Air Europa, Reuters reported.
Air Europa's price tag would be lowered to $583m - $700m. The new terms of the deal could be announced this week.
Air Europa is advised by Uria Menendez. IAG is advised by KPMG, Morgan Stanley and Garrigues. Globalia is advised by Ernst & Young and Linklaters.
Network International Holdings, an enabler of digital commerce across the Middle East and Africa, agreed to acquire DPO Group, an online commerce platform in Africa, for $288m.
"We are excited by the proposed acquisition of DPO, the leading high-growth online commerce platform operating at scale across Africa. Africa is a vast and diverse continent, representing the world's most underpenetrated, nascent and fast-growing payments markets, where we have seen recent signs of an acceleration in those trends. DPO will further consolidate our presence in Africa, strengthen our position across the entire payments value chain and accelerate our growth," Simon Haslam, Network International CEO.
Network International is advised by Citigroup, JP Morgan, Evercore and Finsbury.
AGC Biologics, a global contract development and manufacturing organization, is set to complete the $267m acquisition of Molecular Medicine, a biotechnology company focused on research, development, production and clinical validation of cell and gene therapies, on July 31, 2020.
"While we work hard to take care of each other and our customers during this very challenging and uncertain time, it's also important that we ensure the continued growth of our company. AGC Biologics is committed to continuously expanding our offerings and growing our capacity to serve all the needs of current and future customers. We are very pleased to be adding MolMed and its great cell and gene therapy capabilities and track record to AGC Biologics' global CDMO service offerings," Patricio Massera, AGC Biologics CEO.
MolMed is advised by Centerview Partners and Gattai Minoli Agostinelli & Partners. Centerview Partners is advised by Cleary Gottlieb Steen & Hamilton.
Private equity firm Eurazeo agreed to invest $93m in Dutch Ophthalmic Research Center, a specialist in the area of vitreoretinal surgery.
In connection with this investment by the Eurazeo China Acceleration Fund, the company will gain access to the networks of local experts built up by China Investment Corporation, BNP Paribas and Eurazeo, the fund's three partners.
Eurazeo is advised by Maitland.
Global investment firm Permira agreed to invest in EF Kids & Teens, a premium English language education unit of EF Education First, an international education company. Financial terms were not disclosed.
"EF Kids & Teens is a gem in the EF portfolio. With Permira, we have a dedicated partner investing with us to meet the enormous market opportunity. We look forward to growing EF Kids & Teens' investments in academics and technology and expanding our leading educational programs for the Chinese market. Our long-term commitment to China remains unchanged, and we will continue to operate our other businesses, adults education and study abroad programs, as usual," Philip Hult, EF Education First Chairman.
EF Education is advised by Davis Polk & Wardwell.
Investment companies Providence Equity Partners and Verdane agreed to invest in Hornetsecurity, a cloud security provider in Europe. Financial terms were not disclosed.
"Today's transaction represents a strong vote of confidence in our team, product offering, and business model. We have built a solid technological platform since launching in 2007, expanding our geographic footprint and winning significant customers along the way. With the support of PSG and Verdane, we are now well-positioned to accelerate our growth and enhance our technology. We look forward to working together to deliver even greater value to our customers, partners, employees, and the communities in which we do business," Daniel Hofmann, Hornetsecurity Founder and CEO.
Providence Equity Partners is advised by Sard Verbinnen & Co.
Private equity firms target Rolls-Royce division ITP Aero. (FS)
Private equity firms KKR, Carlyle Group and Blackstone Group, are considering making bids for ITP Aero, the Spanish business of Rolls-Royce, a British multinational engineering company.
The potential sale comes as Rolls is desperately looking for ways to raise cash and cut costs after air travel plunged during the coronavirus pandemic. The unit could be sold for approximately $1.3bn.
Comcast's SKY and A2A consider investment in Italy's single network.
Comcast unit SKY, utility A2A and state agency Invitalia are considering investing in an Italian single ultra-fast broadband network, as Rome steps up efforts to close the digital gap with the rest of Europe, Reuters reported.
Former phone monopoly Telecom Italia, partly owned by state lender CDP, has been in talks for months over a merger of its fibre assets with those of smaller rival Open Fiber, controlled by Italian utility Enel and CDP.
Eurazeo asks to submit last bids for Europcar. (FS)
Eurazeo, an investment firm, has asked bidders to submit last-ditch bids in September for French car rental firm Europcar Mobility Group as it seeks to avert a painful restructuring, Reuters reported.
The Paris-listed firm has attracted takeover interest from Volkswagen, but a bid has yet to materialize as the German carmaker remains wary of the economic fallout of the Covid-19 pandemic on the car rental industry. Europcar is trying to attract other industry players to the negotiating table despite the challenging outlook for the travel industry.
Adnoc plans $5bn properties stake sale. (RE)
Abu Dhabi National Oil is exploring the possibility of selling a stake in its real estate portfolio, the latest effort by the state-owned energy producer to raise funds and attract foreign investors.
Initial estimates value the properties at about $5bn, Bloomberg reported. A potential deal could be structured along the same lines as the energy firm’s sale of a $10.1bn stake in its natural-gas pipelines last month.
Antin raised $7.5bn for a new infrastructure fund. (FS)
Antin Infrastructure Partners, a private equity firm, has surged to a €6.5bn ($7.5bn) hard cap final close for its fourth flagship fundraise, underlining the extent to which LPs are flocking to more stable asset classes amid the coronavirus outbreak.
Fund IV’s total marks a huge increase on the €3.6bn ($4.2bn) Antin collected for its third fundraise in 2016 and was well above the firm’s initial €5.5bn ($6.4bn) target for the vehicle. More than half of the Fund IV total came from existing Antin backers – meaning a string of new investors were tempted to the raise.
"Completing an oversubscribed fundraise in the current market is another clear indication of the importance of infrastructure as an asset class and a strong vote of confidence in Antin’s capacity to create long-term value," Alain Rauscher, Antin Infrastructure Partners CEO and Managing Partner.
Azora raises $799m for its new fund. (FS)
European private equity firm Azora raised $799m for a fund focused on leisure hotels and tourism, an industry the firm believes will rebound from the Covid-19 pandemic.
"Azora believes that regardless of the short-term impact of the Covid-19 crisis, the European hotel market represents a compelling opportunity underpinned by attractive supply-demand dynamics. Furthermore, it is a highly fragmented market which has attracted limited institutional capital investment to date," Azora.
Theeb picks Fransi Capital for IPO.
Saudi Arabia’s Theeb Rent-a-Car hired Saudi Fransi Capital to advise on a potential IPO, Bloomberg reported.
The share sale and listing on the local stock exchange would allow Bahrain-based alternative investment firm Investcorp to reduce its stake in the car hire business. The IPO could happen next year, depending on how quickly the company recovers from the impact of the coronavirus outbreak.
APAC
Tencent, a global multinational conglomerate holding company, agreed to acquire the remaining stake in Sogou, a Chinese technology company, from Sohu Group, a Chinese internet company, at a $3.5bn valuation. Tencent has offered $9 per share in cash, representing a premium of 56.5%.
Sohu's board of directors has not yet had an opportunity to review and evaluate the proposal in detail, or to make any determination as to how to respond to the proposal or as to whether or not the proposed acquisition of Sogou would be in the best interests of Sohu, in its capacity as Sogou's controlling shareholder, to approve or reject the proposal.
Tencent is advised by Davis Polk & Wardwell.
Warburg Pincus led a $171m Series B round in HaiHe Biopharma, a biotechnology company focused on the discovery and development of innovative oncology drugs. The round saw participation from CMB International, Legend Capital, a fund under CICC Capital, Chaos Investment, Beijing Langzi Asiana Asset Management, Winfast Holding, SSIC Capital, as well as the company's Series A round investors Biotrack Capital, Yingke PE, Atlas Venture Capital and CSPC.
The funds raised will primarily be used to accelerate the global development and product launch of HaiHe Biopharma's multiple new oncology drugs.
HaiHe Biopharma was advised by CEC Capital.
The Qatar Investment Authority, Qatar's state-owned holding company, completed a $250m investment in Traveloka, an Indonesian unicorn company that provides airline ticketing and hotel booking services online. EV Growth participated in the investment.
The new capital is expected to further strengthen Traveloka's balance sheet and boost efforts to deepen Traveloka's offerings in select priority areas. This will include building a more robust and integrated Travel & Lifestyle portfolio in key markets as well as expanding its Financial Services solutions to better support ecosystem partners.
Tencent, a multinational conglomerate company, agreed to acquire a 5% stake in Weaver Network, a Chinese office software maker, for $110m.
Tencent is optimistic about the target firm's business prospects, and there should be more collaboration between the parties in the future.
Steadview Capital, an alternative investment firm, completed an $85m investment in Freshworks, a customer engagement software company.
Ravi Mehta, Steadview Managing Director, said that the investment firm, which has pumped over $500m into 20 Indian private tech companies over the last two years, will continue placing bets at the same pace in Asia's third-largest economy, and may even increase the same over the next two years.
Jubilant Biosys, a contract research organization and drug discovery company, completed the merger with Jubilant Chemsys, an Indian pharmaceutical company. Financial terms were not disclosed.
"We are delighted to make this merger happen and focus our investments for growth to expand both the chemistry as well as integrated drug discovery capabilities. It provides clarity to customers and enables us to better deliver on our '4D' promise of accelerating the discovery process through increased digitization of our operations and information flow," Marcel Velterop, Jubilant Biosys President.
Reliance considers acquiring Future Group's retail operations for $3.6bn.
Mukesh Ambani’s Reliance Industries will pay between $3.2bn-$3.6bn to buy the Indian retail chains owned by Future Group, Reuters reported.
Asia’s richest man, Ambani has been buoyed by investments close to $20bn from backers including Google and Facebook in his oil-to-telecoms conglomerate and is seeking to strengthen his hand in India’s huge retail sector.
Reliance’s existing retail operation already runs close to 12k stores, including a cash-and-carry wholesale business, in over 6.7k Indian towns and cities. Owned by India’s “father of modern retailing”, Kishore Biyani, Future Group is home to supermarket chain Big Bazaar, upmarket food stores Foodhall, and bargain clothing chain Brand Factory.
KKR considers merging India NBFC with InCred Finance. (FS)
KKR and its limited partners are set to pick up a minority stake in InCred Finance, a non-banking finance company.
The proposed equity injection will take the form of a merger of KKR’s wholesale NBFC KKR India Financial Services with InCred’s retail franchise. The proposed merger, which is in the final stages of negotiations, will see KKR and its limited partners become the largest investors in the Mumbai-headquartered lender.
Ctrip considers delisting from Nasdaq. (FS)
Ctrip, a Chinese online travel giant, is in talks with potential investors about funding its delisting from Nasdaq because of rising US-China tensions and the coronavirus-driven hit to its business, DealStreetAsia reported.
The management of China’s largest online travel firm, with a current market value of $16.5bn, has reached out to a number of financial and strategic investors including private equity firms and domestic tech companies about joining a take-private deal.
Ctrip’s move comes as US-listed Chinese companies face tightened scrutiny and more strict audit requirements from US regulators, while geopolitical tensions escalate between the world’s two largest economies. Those have prompted a number of Chinese companies to abandon a New York listing and move instead to an exchange closer to home.
SoftBank-backed Grofers to launch IPO next year. (FS)
SoftBank-backed Grofers, e-grocery startup, is looking to make a debut on the stock market by the end of next year, advancing its listing plans in the wake of increased sales amidst the Covid-19 pandemic.
Earlier, the startup was slated to launch its IPO in 2022. The company, headquartered in Gurugram, has reportedly started making operational profit starting this year and going forward, it expects to become cash positive by the end of 2020.
"Our path to profitability has accelerated during the lockdow, we are on track to become EBITDA and cash positive by the end of this year," Albinder Dhindsa, Grofers Co-Founder and CEO.
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