AMERICAS
Harborside, a California-focused, vertically integrated cannabis enterprise, completed the acquisition of Urbn Leaf, a top California cannabis retailer with a dominant position in Southern California, and Loudpack, a manufacturer, cultivator and distributor of award-winning cannabis brands, for c. $100m.
"Today's milestone gets us one step closer to the creation of StateHouse, a new leader in California's cannabis sector. We are grateful to the entire Urbn Leaf team that worked with us to finalize this transaction, including its seasoned CEO, Ed Schmults, who has been appointed as CEO and a director of Harborside," Matthew Hawkins, Harborside Chairman.
Loudpack is advised by Beacon Securities, Ducera Partners and Feuerstein Kulick. Urbn Leaf is advised by PGP Capital Advisors and Burns & Levinson. Harborside is advised by ATB Capital, PI Financial, Stoic Advisory, Cassels Brock & Blackwell and Duane Morris.
Civitas Resources, a natural gas liquids company, completed the acquisition of Bison Oil & Gas II, a privately held Denver-Julesburg Basin operator, for $346m.
“Civitas continues to demonstrate its commitment to delivering unprecedented value to all of its stakeholders. We firmly believe that the company is well positioned to continue successfully executing its business plan, with a clear objective of identifying and executing on the highest value-accretive consolidation opportunities," Ben Dell, Civitas Chairman and CEO.
Civitas was advised by Petrie Partners Securities, RBC Capital Markets and Kirkland & Ellis. Bison was advised by CIBC World Markets and Bracewell.
Morgan Stanley Capital Partners, a private equity firm, completed the acquisition of a majority stake in SpendMend, a recovery audit firm, from Sheridan Capital Partners, a healthcare private equity firm. Financial terms were not disclosed.
“We are delighted to partner with SpendMend and its best-in-class management team as they continue building a leader in cost cycle management and compliance management services to hospitals. SpendMend’s proven track record of robust organic growth and its customer-centric approach are a testament to what Dan, Rob, and the SpendMend team have built over the years. We look forward to working together to advance SpendMend’s market leadership in profit recovery and continue expanding the company through both organic growth and strategic add-on acquisitions," Steve Rodgers, MSCP Managing Director.
SpendMend was advised by Evercore, Kirkland & Ellis and Miller Johnson. Morgan Stanley was advised by Harris Williams & Co and DLA Piper.
Welsh Carson Anderson & Stowe, a healthcare and technology-focused investment firm, agreed to acquire a majority stake in LIBERTY, a dental benefits administrator. Financial terms were not disclosed.
“Today’s announcement is an extraordinary validation of what LIBERTY has been able to accomplish since its founding in 2002. We have pioneered the transformation to value-based care in the dental industry, resulting in improved outcomes, lower cost of care, and higher member engagement. This is another major milestone for LIBERTY and will help us fast-track our investments in technology and our industry-leading dental care management programs to serve even more members," Amir Neshat, LIBERTY CEO.
LIBERTY was advised by Cain Brothers, Macquarie Group and Debevoise & Plimpton. WCAS was advised by Sidley Austin.
The Engineered Stone Group, a company specializing in engineered stone products, completed the acquisition of MTI Baths, a producer of engineered stone, and Aquatica, a brand producing surface bathtubs. Financial terms were not disclosed.
"The acquisitions of MTI and Aquatica significantly expands our ability to serve North American customers with leading brands, capabilities and expertise. We are steadfast in continuing their commitment to innovative design and materials, excellent products and leading customer service. We are excited to expand our position to North America. The combination of these leading specialty bathtub and hydrotherapy brands in the US with the ES Group's European products, technology and scale creates a powerful set of capabilities to meet the needs of US customers," Brian McCluskie, ES Group CEO.
The Engineered Stone Group was advised by Houlihan Lokey, Milbank and Arrowpath Advisors.
CPSI, a healthcare solutions company, completed the acquisition of Healthcare Resource Group, a provider of customized revenue cycle management solutions. Financial terms were not disclosed.
“We are pleased to announce the combination of these two leading providers of RCM services. Their Peer Reviewed by HFMA RCM solutions offer us significant opportunities to leverage our combined scale and extend our market reach. In addition to the TruBridge RCM product suite, we are excited about the ability to cross-sell other solutions to HRG clients, including TruCode Encoder, our medical coding encoder solution. We also will leverage our gains in artificial intelligence and offshoring to create additional efficiencies for HRG," Boyd Douglas, CPSI President and CEO.
Healthcare Resource Group was advised by Brentwood Capital Markets. CPSI was advised by Maynard Cooper & Gale.
Signify Health, a value-based healthcare platform that leverages advanced analytics, technology and nationwide healthcare provider networks, completed the acquisition of Caravan Health, a health consultant in Kansas City, for $300m.
“Giving providers a multi-payor solution ensures that what they do for one patient can be done for all others, irrespective of coverage or individual characteristics. With the combined capabilities of Signify and Caravan, we will be able to give providers what they need – one platform to manage better health outcomes for all of their patients, from a simple condition or procedure to a complex combination and across multiple payors. I’m looking forward to working with our expanded team to unlock these opportunities and help our clients bring their value-based care strategies to scale – and improve health outcomes across a range of payment models," Kyle Armbrester, Signify Health CEO.
Signify Health was advised by Davis Polk & Wardwell.
Stripes and Insight Partners, a private equity and venture capital firms, led a $120m Series C round in Connecteam, a management mobile solution company, with participation from Tiger Global, Qumra Capital, and OG Tech.
“Connecteam’s rapid growth is facilitated by demand from a new generation of managers who are keen on doing things differently: real-time, trackable, measurable, digital. Managers who are no longer willing to accept the old fashioned ways of running a frontline business. Employees and managers alike crave high quality tools and experiences in their work life. Connecteam is committed to providing those tools - from day-to-day operations, to internal communication and all the way to HR and people management. I strongly believe that any deskless business must have an app to run their operations, and that is why we also offer a fully free tier - so everyone who needs it can use it," Amir Nehemia, Connecteam CEO and Co-Founder.
Connecteam was advised by Activa PR.
Altus Capital Partners, an investment firm, completed the acquisition of Winsert, a manufacturer of critical metal parts. Financial terms were not disclosed.
“We are extremely excited about the opportunity to work with Altus Capital Partners to accelerate growth and create additional value for our customers. Combining our history, assets, and people with the investment and energy of Altus Capital Partners gives all of us at Winsert a great feeling of optimism for the future," Trisha Lemery, Winsert CEO and President.
Altus was advised by Marketcom PR.
The Riverside Company, a private equity firm, completed the acquisition of ESHA Research, a provider of SaaS-based nutritional analysis, labeling compliance and product formulation software. Financial terms were not disclosed.
“ESHA has an industry-leading solution that a broad base of blue-chip customers, including many of the largest food and beverage manufacturers in the world, rely on. It’s a compelling, mission-critical value proposition that drives deep loyalty and consistent recurring revenue," Loren Schlachet, Riverside Managing Partner.
The Riverside Company was advised by Jones Day.
Netflix agreed to acquire Next Games, a video games developer, for $72m.
“Next Games has a seasoned management team, strong track record with mobile games based on entertainment franchises, and solid operational capabilities. While we’re just getting started in games, I am confident that together with Next Games we will be able to build a portfolio of world class games that will delight our members around the world," Michael Verdu, Netflix Vice President.
The Sterling Group, a private equity firm, completed the acquisition of West Star Aviation, a provider of maintenance, repair, and overhaul services, from Norwest Equity Partners, an investment firm. Financial terms were not disclosed.
"We believe that our experience coupled with West Star's industry-leading customer service capabilities will make us a powerful combination. Jim Rankin has built a stellar leadership team, and we are eager to help accelerate their growth plans," Greg Elliott, The Sterling Group Partner.
Invictus Growth Partners, a growth equity and buyout firm, completed the acquisition of a majority stake in Revation Systems, a cloud-based engagement and communication solutions company. Financial terms were not disclosed.
“Invictus is clearly the perfect partner for Revation as we look to expand domestically and globally. We are excited about this investment and the opportunity to scale, grow, and accelerate our market leading solutions at the intersection of secure communications and human relationships. In addition to capital, Invictus’ expertise in artificial intelligence and its SaaS business focus make this a real win for our customers, employees, and shareholders," Perry Price, Revation Founder and CEO.
SPAC issuers churn out new IPOs despite blank-check tumbles.
Banks and sponsors are pumping out new blank-check firms even as the market for old ones is in free-fall, Bloomberg reported.
Forty-four special-purpose acquisition companies have priced their IPOs this year, despite a 40% drop for a key industry index from its February 2021 peak and a glut of firms looking for targets. If the pace keeps up, this year could see about 264 IPOs, a far cry from last year’s record of more than 600, but still more than 2020’s hefty count of 248.
GSR II Meteora Acquisition announces the closing of its $316m IPO, including fully-exercised over-allotment option.
GSR II Meteora Acquisition announced that it closed its IPO of 31.6m units at a price of $10 per unit for aggregate gross proceeds of $316m. The offering size reflects the full exercise of the underwriter’s over-allotment option.
Each unit sold consists of one share of Class A common stock, one warrant to purchase a share of Class A common stock at a per share exercise price of $11.5 and one-sixteenth of a right to receive a share of Class A common stock.
GSRM is a newly incorporated, blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.
Sound Point Acquisition I announces pricing of upsized $225m IPO.
Sound Point Acquisition I announced the pricing of its upsized IPO of 22,5m units at $10 per unit. The units will be listed on the Nasdaq in the United States and trade under the ticker symbol “SPCMU” beginning on March 2, 2022.
Each unit offered for sale consists of one of the Company’s Class A ordinary shares and one-half of one redeemable warrant. Each whole warrant entitles the holder thereof to purchase one Class A ordinary share at a price of $11 per share. Once the securities comprising the units begin separate trading, the Class A ordinary shares and warrants are expected to be listed on Nasdaq under the symbols “SPCM” and “SPCMW,” respectively. The offering is expected to close on March 4, 2022, subject to customary closing conditions.
Accel-KKR raises $1.35bn for fourth growth capital fund. (FS)
Accel-KKR, a leading technology-focused private equity firm, announced the successful completion of Accel-KKR Growth Capital Partners IV, a $1.35bn growth capital fund. The new fund includes a $100m commitment from the firm's employees. Accel-KKR invests in technology companies through a series of different funds and strategies including Buyout, Emerging Buyout, Growth Capital and Credit.
Accel-KKR Growth Capital Partners IV will focus on the same strategy as the firm's prior growth capital funds, primarily making minority preferred equity investments in software and technology-enabled services companies with more than $10m in revenue. It also will continue to emphasize investing in founder-led and closely-held businesses, which results in Accel-KKR oftentimes becoming the first institutional investor into these companies.
Sonova, a company that designs, develops, manufactures, distributes and services hearing systems, completed the acquisition of the
consumer electronics business of Sennheiser, a provider of audio solutions, for £174m ($233m).
"A warm welcome to the new colleagues who have joined us from Sennheiser. Linking the complementary strengths of Sonova and Sennheiser, we will now reach even more consumers at different stages of their hearing journey, creating a new path for sustainable growth for our company. We are convinced that our expanded offering of personal audio devices with speech enhancement will be a key contributor to increase the adoption of hearing solutions," Arnd Kaldowski, Sonova CEO.
Sonova was advised by KPMG, Goldman Sachs and Fieldfisher. Sennheiser was advised by PricewaterhouseCoopers, GCA Advisors, Houlihan Lokey, Beiten Burkhardt and Hengeler Mueller.
Workspace Group, an office-space provider, agreed to acquire McKay Securities, a commercial REIT, for $364m.
"The market for office space is shifting, with businesses prioritising greater flexibility and the right location for their teams. This acquisition is a fantastic opportunity to accelerate our growth plans by capturing more of the strong demand we are seeing for our flexible offer in London, whilst selectively extending our reach into attractive commercial locations in the South-East. We will be a larger, more resilient company with an enhanced financial profile, and by applying our proven operational model and expertise, we expect to generate strong returns from McKay's portfolio of high-quality assets over the medium term," Graham Clemett, Workspace CEO.
McKay Securities is advised by Rothschild & Co, Stifel, Slaughter & May and FTI Consulting. Workspace Group is advised by JP Morgan, Herbert Smith Freehills and Finsbury Glover Hering.
Lone Star, a private equity firm, completed the acquisition of the XSYS division from Flint Group, a provider of printing and packaging products. Financial terms were not disclosed.
“We are delighted to have completed the sale of our XSYS division. The transaction is attractive, both financially and strategically, for Flint Group as we reinforce our position as a leader in conventional and digital printing consumables and equipment for the structurally growing segments of Paper & Board, Flexible Packaging, and Narrow Web labels. I would like to thank our XSYS colleagues for all of their hard work and wish them well in their future with Lone Star," Steve Dryden, Flint Group CEO.
Lone Star Funds was advised by Perella Weinberg Partners, Weil Gotshal and Manges and Hill+Knowlton Strategies. Flint Group was advised by Goldman Sachs, JP Morgan and Freshfields Bruckhaus Deringer.
SciPlay, a developer of digital games on mobile and web platforms, completed the acquisition of 80% stake in Alictus, a developer and publisher of casual mobile games, for $100m.
“We are incredibly excited to continue our expansion in the casual space and partner with a proven leader like Alictus that boasts an impressive, unique culture and an extraordinary track record of delivering chart-topping games. The hyper-casual market is a natural expansion for SciPlay with game mechanics and player demographics that are similar to those across casual genres in which we already operate and are growing our presence. This acquisition provides SciPlay an entry point into this market with a highly talented team and a robust pipeline of hyper-casual games, helping us to diversify into the in-app advertising business model and participate in the massive and fast-growing mobile advertising market," Josh Wilson, SciPlay CEO.
Alictus was advised by Aream & Co, Baker McKenzie and Esin Avukatlik. SciPlay was advised by Dechert and Herguner Bilgen Ozeke.
Technology companies Malakoff Humanis, Groupe VYV, and PRO BTP, agreed to acquire a minority stake in Cegedim Santé, a digital solutions company, from Cegedim, an innovative technology and services company, for €65m ($73m).
“We are delighted to see the interest expressed by such high-caliber healthcare sector players as Malakoff Humanis, Groupe VYV, and PRO BTP. By joining us, these groups—which represent 25m beneficiaries in France—will strengthen Cegedim Santé’s position as the recognized French leader in IT for doctors in private practice, with 100k healthcare professional users. This deal signals Cegedim Santé’s determination to innovate and develop solutions for healthcare professionals and patients in France,” Jean-Claude Labrune, Cegedim Chairman & CEO.
Malakoff is advised by PricewaterhouseCoopers, Rothschild & Co and Darrois Villey Maillot Brochier.
Aviva, a financial services company, agreed to acquire Succession Wealth, an investment management and retirement planning firm, for £385m ($515m).
"The acquisition of Succession Wealth boosts Aviva's presence in the fast-growing UK wealth market; supports our strategy to grow sustainably; and expands Aviva's ability to offer high quality financial advice to millions of our customers," Amanda Blanc, Aviva CEO.
Aviva is advised by JP Morgan.
KPS weighs options for $3.5bn industrial firm Howden. (FS)
KPS Capital Partners is exploring options for Scottish engineering firm Howden Group, Bloomberg reported.
The New York-based private equity firm is working with advisers to study a potential sale or initial public offering of Howden. KPS is seeking to fetch a valuation of as much as $3.5bn for the industrial equipment maker.
Citic-backed Wallaby in talks to acquire Germany’s Phenox. (FS)
Wallaby Medical, a firm that develops devices to treat strokes, is in advanced talks to buy Germany’s closely held Phenox, Bloomberg reported.
Wallaby, with offices in Shanghai and Laguna Hills, California, is still negotiating final details of a potential transaction. A deal could value Phenox at about $558m.
Owners of Madrilena Red de Gas kick off a strategic review.
The owners of Madrilena Red de Gas have launched a strategic review that could lead to a lucrative deal for the Madrid-based gas grid provider, Reuters reported.
RBC Capital Markets is handling the review that could see the company - which operates a 6km network in and around Spain's capital city - being sold or merged with another industry player.
Mubadala, QIA plan to hold on to Russian assets for now. (FS)
Two influential Middle Eastern wealth funds are for now planning to hold on to Russian assets worth billions of dollars, seen as strategic and long-term investments, Bloomberg reported.
Abu Dhabi’s Mubadala Investment and Qatar Investment Authority are taking a different approach to Norway’s $1.3tn sovereign wealth fund, which is starting a process to remove Russian assets from its portfolio.
US pensions face demands to exit hard-to-unwind Russian assets.
US politicians from New York to California are calling for public pensions to shed hundreds of millions of dollars in investments tied to Russia. So far, the retirement funds aren’t moving quickly to divest. In many cases, they can’t, Bloomberg reported.
The funds have relatively small exposure, but unwinding such assets is complex and could mean losses as they are trading at deep discounts and liquidity is scarce. Many of the largest retirement systems, which invest billions for teachers and other public servants, are adopting a patient approach.
Inflexion collects $3.34bn for its sixth fund. (FS)
Inflexion Private Equity has gathered its largest fund to date after less than a year on the fundraising circuit and in an environment where LPs are increasingly reaching their allocation limits.
The London-headquartered mid-market firm held the final close on Inflexion Buyout Fund VI on its $3.4bn hard-cap. It had an initial target of $2.67bn when the firm began raising capital last March.
APAC
Reliance Retail Ventures, the retail venture of Reliance Industries, completed the acquisition of a majority stake in Abraham & Thakore, a fashion retailer. Financial terms were not disclosed.
“Abraham & Thakore’s interesting use of material and fresh take on traditional textile techniques has crafted a highly distinctive design signature for the brand. With Indian luxury customers undergoing a generational consumption shift, there is heightened appreciation of Abraham & Thakore’s timeless design, and we are excited to partner with the brand to bring its unique expression of Indian craftsmanship to consumers globally,” Isha Ambani, Reliance Retail Ventures Director.
Reliance Retail was advised by Khaitan & Co.
Indonesia's Sinar Mas Group to invest $200m in digital wallet DANA.
An affiliate of Indonesia's diversified conglomerate Sinar Mas Group is set to invest $200m in the local digital wallet DANA. The move is part of the company's effort to expand its digital business, DealStreetAsia reported.
PT DSST Dana Gemilang, a subsidiary of Sinar Mas Group's energy and infrastructure arm Dian Swastatika Sentosa, signed conditional agreements on February 28 to invest in Elang Andalan Nusantara, whose subsidiary operates DANA.
MY's Berjaya Group reduces stake in Razer Fintech via secondary sale.
Malaysia-listed conglomerate Berjaya Group has reduced its stake in Razer Fintech from 49% to 19%, DealStreetAsia reported.
The sale of 1.17m ordinary shares was mad to Razer Midas, the only other shareholder in Razer Fintech. As a result of this transaction, Razer now controls 81% of the fintech firm, while Berjaya holds the remaining 19%. The transaction was dated to 29 October 2021.
South Korea's Crescendo Equity Partners closes oversubscribed third fund at $910m. (FS)
South Korean technology-focused private equity firm Crescendo Equity Partners has closed its third flagship fund at $910m, exceeding the original target of $700m, DealStreetAsia reported.
The firm revealed in a statement that Crescendo Private Equity Fund III was closed on December 31, 2021, after three months of launch.
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