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AMERICAS
Zendesk's investor Light Street Capital Management said on Monday it would vote against the software company's $10.2bn deal to go private and instead proposed that Zendesk remain a standalone public company and find a new CEO.
Light Street, which manages funds that own more than 2% shares of Zendesk, said the deal struck with investment firms led by Hellman & Friedman and Permira undervalues the San Francisco-based company.
Zendesk is advised by Goldman Sachs, Qatalyst Partners, Wachtell Lipton Rosen & Katz and Sard Verbinnen & Co. Financial advisors are advised by Morrison & Foerster and Sullivan & Cromwell. The bidders are advised by Morgan Stanley, Dechert, Fried Frank Harris Shriver & Jacobson, Kirkland & Ellis, Simpson Thacher & Bartlett, Finsbury Glover Hering and Sard Verbinnen & Co. Debt providers are advised by Latham & Watkins.
LifePoint Health, a healthcare provider that serves patients, clinicians, communities and partner organizations across the healthcare continuum, agreed to acquire a majority stake in Springstone, a behavioral health provider, from Medical Properties Trust, a real estate investment trust that invests in healthcare facilities. Financial terms were not disclosed.
"The need for greater access to behavioral health services continues to grow and is fundamental to our objective of providing diversified healthcare delivery services to communities and partners across the country. Adding the talented team at Springstone's depth of experience and platform for providing high quality behavioral healthcare will accelerate our ability to broaden these crucial services for communities that need them," David Dill, LifePoint Health Chairman and CEO.
Springstone is advised by Baker Donelson Bearman Caldwell & Berkowitz, Bradley Arant Boult Cummings, Goodwin Procter and US Behavioral Partners. LifePoint Health is advised by Barclays, Goldman Sachs, Paul Weiss Rifkind Wharton & Garrison and Sidley Austin.
Nogin, a provider of commerce-as-a-service technology, went public via merger with Software Acquisition III, a publicly traded special purpose acquisition company, in a $646m deal.
“As commerce continues to become more and more complex, brands and merchants are looking for a way to get the hard stuff handled so they can focus on making great products and better connecting with their customers. Nogin’s platform delivers the complex ecosystem traditionally afforded to only the biggest, most sophisticated retailers in a simple, easy-to-use platform for merchants. Nogin also leverages data to drive incremental growth and profitability for merchants while delivering a better experience to consumers," Jan Nugent, Nogin CEO and Co-Founder.
Nogin was advised by Stifel, Latham & Watkins, BOCA Communications, Gateway Investor Relations and Jaffe Communications. Software Acquisition III was advised by Jefferies & Company and Kirkland & Ellis.
Revelstoke Capital Partners, a Denver-based private equity firm, completed the acquisition of Monte Nido & Affiliates, an eating disorder treatment provider serving patients across the full continuum of care, from Levine Leichtman Capital Partners, a Los Angeles-based private equity firm. Financial terms were not disclosed.
"We are excited to partner with Monte Nido, a high-impact organization that treats individuals suffering from eating disorders. The increase in demand for eating disorder services continues to accelerate along with our nation's overall mental healthcare needs. By providing the necessary capital, resources, and expertise, Revelstoke will help accelerate the Company's mission of providing high-quality eating disorder treatments to communities across the nation," Andrew Welch, Revelstoke Partner.
Monte Nido & Affiliates was advised by Harris Williams & Co, Kirkland & Ellis and Polsinelli PC. Revelstoke was advised by Raymond James, McDermott Will & Emery and Lambert & Co. LLCP was advised by Gasthalter & Co.
Randy Hetrick, TRX founder and former CEO, and JFXD Capital, a US-based private investment firm based in Delray Beach, Florida, agreed to acquire TRX, a global fitness brand. Financial terms were not disclosed.
"It's gratifying to be back at the helm of TRX at a time when the world is emerging from Covid and the Company needs inspired, innovative leadership," Randy Hetrick.
TRX is advised by Kroll and Levene Neale Bender Yoo & Golubchik. JFXD Capital is advised by KPMG and Fried Frank Harris Shriver & Jacobson.
HCI Equity Partners-backed Tech24, a provider of repair and maintenance services, completed the acquisition of AmeriCold and Arrowhead Commercial Equipment, two foodservice repair and maintenance firms. Financial terms were not disclosed.
"We are excited to welcome both Americold and Arrowhead to the Tech24 organization. AmeriCold brings valuable scale and cold-side service exposure to the large New York market. Arrowhead helps us improve density and diversification in the fast-growing Phoenix market. Both companies come with a long history of strong performance, with accomplished leaders who are excited to develop future growth opportunities for their respective businesses," Dan Rodstrom, Tech24 CEO.
Tech24 was advised by Quarles & Brady and Lambert & Co.
Delta-v Capital, a provider of liquidity solutions and growth equity to private technology companies and their shareholders, led a $125m Series C round in Landing, the company behind the first membership for flexible apartment living, with participation from Greycroft and Foundry.
"Flexible living is the future, and with Landing, we’re making the lifestyle more accessible and alluring than ever before. With new funding and the continued support of our capital partners, we’re in an excellent position to continue redefining the future of living, one city at a time," Bill Smith, Landing Founder and CEO.
Landing was advised by JP Morgan and LaunchSquad.
DISYS, a global managed services and staffing firm, agreed to acquire MAKE, a full-service professional and IT recruiting firm. Financial terms were not disclosed.
“We’re incredibly excited about what MAKE brings to our overall enterprise. MAKE’s portfolio of clients within key verticals brings added strength to DISYS and, in turn, the overall strength of DISYS will serve to accelerate the growth of MAKE’s operations and its people. Additionally, the MAKE team’s leadership within VMS Professionals and industry experience also brings us invaluable positioning and insights to help best serve our clients now and in the future,” Mahfuz Ahmed, DISYS CEO.
DISYS is advised by RMR & Associates.
Bernhard Capital, an operationally focused private equity firm investing in middle-market businesses, completed the acquisition of BEM Systems, a premier consulting, engineering, and information management firm. Financial terms were not disclosed.
"There is a compelling opportunity within the environmental solutions space for a diversified, one-stop provider that can deliver sophisticated and tailored services to businesses and government agencies across the country. By partnering with best-in-class management teams and market-leading businesses, Environmental Systems Group will create unique opportunities for each brand to capitalize on the collective resources and capabilities across the platform, while driving long-term, collective growth," Chris Dillon, Bernhard Capital Managing Director.
Bernhard Capital was advised by Joele Frank.
The Riverside Company, a global private investor focused on the smaller end of the middle market, completed the investment in Meridian Flavors, a manufacturer of sweet flavors for bakery, cereal, beverage and other product categories. Financial terms were not disclosed.
"Meridian is a great addition to the FlavorSum platform. The company’s strength in organic and natural flavors is on-strategy with consumer demand for better-for-you products. Additionally, the acquisition furthers FlavorSum’s commitment to being a solutions-focused flavor provider with a comprehensive portfolio of flavor and application technologies," Loren Schlachet, Riverside Managing Partner.
S&P Global, a provider of credit ratings, benchmarks and analytics, agreed to acquire the remaining 50% stake in Private Market Connect, a data solutions provider in private markets, from Hamilton Lane, an alternative investment management firm. Financial terms were not disclosed.
"As a critical solutions provider to private market customers, we are committed to expanding our efforts to serve this market even better. This is an exciting milestone as our combined technology and expertise will further enable our clients to collect, validate, and share portfolio and fund-level data with their critical stakeholders. We look forward to welcoming our new colleagues from PMC and together enhancing our position in the market," Andrew Eisen, S&P Global Market Intelligence Head of Software Solutions.
KSL Capital Partners-backed Baillie Lodges, a growing portfolio of luxury lodges renowned for setting benchmarks in premium experiential travel, completed the acquisition of Tierra Hotels, a luxury hotels in Chile. Financial terms were not disclosed.
"We are delighted to work with the Baillie Lodges team. We both take a personal approach to hospitality, customizing unique and enriching experiences for guests who are looking to explore the world in a meaningful, sustainable way," Miguel Purcell, Tierra Hotels founder.
Flywheel Energy, an oil and gas exploration and production company, agreed to acquire Arkansas shale gas assets from Exxon, an oil and gas company. Financial terms were not disclosed.
The assets under agreement include approximately 5k natural gas wells - 850 operated and approximately 4.1k non-operated - and related pipeline and processing properties across approximately 381k acres.
EA pares gains after retraction of report on Amazon prepping bid.
Electronic Arts found itself the subject of takeover speculation on Friday, sending its shares up as much as 16% in early trading before the report was walked back and other news outlets refuted the possibility of an imminent deal, Bloomberg reported.
A report published in USA Today by GLHF -- a gaming and esports site and content partner of USA Today’s For the Win column -- said Amazon could announce as soon as Friday an offer to acquire EA, the publisher of hit games Apex Legends, FIFA and Madden titles. The news sent EA’s shares surging early Friday morning before David Faber cast doubt on the report on CNBC following its publication. Later, USA Today added a note at the top of the original story saying that it “violated our editorial standards regarding the use of unnamed and unvetted sources,” and the language about a pending announcement had been removed.
EMEA
Walmart, a retail corporation, agreed to acquire the remaining 47% stake in Massmart, a retail and wholesale group, for ZAR6.4bn ($378m).
The potential offer will enable Walmart to continue its overweight support as a long-term shareholder and allow eligible Massmart Shareholders the opportunity to realise value now.
Walmart is advised by Goldman Sachs and Webber Wentzel. Massmart is advised by Standard Bank of South Africa, ENSafrica and PricewaterhouseCoopers.
Sony Interactive Entertainment, a company in interactive and digital entertainment, agreed to acquire Savage Game Studios, a mobile game development studio. Financial terms were not disclosed.
“PlayStation Studios must continue to expand and diversify our offering beyond console, bringing incredible new games to more people than ever before. Acquiring the talented team at Savage Game Studios is another strategic step towards that goal. I’m really excited about what Savage is working on and I’m confident they will deliver a high-quality experience. Our move into mobile, like our expansion into PC and live service games, strengthens our capabilities and our community, and complements PlayStation Studios’ purpose to make the best games that we can,” Hermen Hulst, PlayStation Studios Head.
Jaja Finance agrees £250m lending facility following KKR and TDR Investment. (FS)
Jaja Finance, a fintech company, has agreed a £250m ($293m) warehouse lending facility to allow the digital credit card provider to accelerate its growth.
“It was only five months ago that Jaja received its initial investment of £120m ($141m) and it is an absolute testament to the strength of our people and our proposition in what we have achieved in this very short period of time. We recently announced our partnership with Asda, and since launch of the new rewards credit card just a few weeks ago, we have seen thousands of Asda customers already signed up. The completion of this facility couldn’t have come at a better time," David Chan, Jaja Finance CEO.
APAC
Avanseus, a technology and software innovator, agreed to go public via merger with Fat Projects Acquisition, a special purpose acquisition company, in a $136m deal.
"As a first mover in the domain of predictive operations and maintenance powered through artificial intelligence, machine learning and cognitive computing, we have developed a software platform centered around Avanseus' patented, proprietary machine learning algorithms that are delivering high quality event predictions. Combined with our strong operationalization capabilities, we are supporting our customers in transitioning from reactive to AI-based predictive operations, resulting in tangible business benefits ranging from improved service levels, avoiding network downtime, to reduced cost of operations and higher reliability of their technology infrastructure," Bhargab Mitra, Avanseus CEO.
Avanseus is advised by Eng and Co and Lucosky Brookman. Fat Projects Acquisition is advised by EF Hutton, Harneys, Nelson Mullins Riley & Scarborough and Pinsent Masons.
People2.0, an employer of record and agent of record services platform, completed the acquisition of Husys, an India-based end-to-end HR consulting and EOR services provider. Financial terms were not disclosed.
“Not only is it an honor to partner with an experienced and proven EOR services provider like Husys, but it signifies another important step in our mission to be recognized around the globe as the leading enabler of flexible and mobile work arrangements," Erik Vonk, People2.0 Executive Chairman and CEO.
People2.0 was advised by ClearEdge Marketing.
Bain Capital, an American private investment firm based in Boston, agreed to acquire Evident, the microscope unit of Olympus, a Japanese manufacturer of optics and reprography products, for $3.1bn.
The sale is a part of Olympus Chief Executive Officer Yasuo Takeuchi’s plan to pivot the company in the direction of health-care, with the goal of becoming the world’s leading maker of endoscopes.
Oriental Fortune Capital, a venture capital firm, led a $100m Series B round in Bao Pharmaceuticals, a biopharmaceutical company, with participation from Haitong Innovation and Guosheng Group-backed Sun Rock Capital.
Shanghai-based recombinant protein and antibody drug specialist said that it will use the funds to drive the commercialization of core products in development and key clinical trials for new pipelines.
Honda, LG Energy plan $4.4bn EV battery factory in US.
Honda Motor and LG Energy Solution said Monday they plan to build a $4.4bn electric-vehicle battery factory in the US, the latest tie-up between auto makers and battery suppliers seeking to expand capacity by sharing upfront costs, Wall Street Journal reported.
The companies plan to begin construction of the factory early next year and start mass production by the end of 2025. The factory is planned for Ohio, the same state as Honda’s longstanding auto plant in Marysville. The companies didn’t name the location.
India's Reliance Jio to roll out 5G services within 2 months.
Reliance Industries’s Jio will begin rolling out 5G services for its subscribers in the next two months, Deal Street Asia reported.
The company has committed INR2tn ($25bn) to roll out the 5G services, Chairman Mukesh Ambani said at the company’s annual general meeting. The company will start rolling out 5G in key cities before covering pan-India by December 2023, he added.
ADDX launches cash management solution.
Asia’s largest private market exchange, ADDX, has launched a cash management tool that allows investors with excess funds in their wallets to earn interest, instead of letting their cash sit idle, Deal Street Asia reported.
The product line was curated to boost the returns of investors who have deposited money in their ADDX wallets but have yet to decide on which private market product to take part in.
Bursa Malaysia launches two new ESG themed indices.
Bursa Malaysia has launched two new ESG themed indices under the FTSE Bursa Malaysia Index Series, Deal Street Asia reported.
These new indices add to the existing portfolio in the FBM Index Series suite that the exchange jointly issues with index partner FTSE Russell. The additions expand the exchange’s benchmarking offerings in the ESG, low-carbon and climate-risk index space to cater to evolving investors’ demand.
Meta, Jio launch grocery delivery on WhatsApp.
Meta and an e-commerce venture between India’s Reliance Retail and Jio Platforms are bringing grocery shopping to WhatsApp, Deal Street Asia reported.
Customers in India will be able to browse JioMart’s entire grocery catalogue on WhatsApp, add items to the cart and make payments via local payments rail UPI without ever leaving the instant messaging service.
KKR launches third infrastructure trust. (FS)
KKR announced the launch of the Highways Infrastructure Trust, its third infrastructure investment trust in India.
The latest infrastructure trust is in addition to Virescent Renewable Energy Trust, a renewable energy InvIT, and India Grid Trust, a transmissions InvIT. Together, these platforms operate and manage 33 assets valued at over $3.8bn across 22 states and Union territories across India, Deal Street Asia reported.
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