Daily Review

AMERICAS

 

Blackstone to acquire Interior Logic Group for $1.6bn. (FS)

 

Blackstone agreed to acquire Interior Logic Group, a data-driven and technology-enabled provider of interior design, supply chain and installation management solutions, for $1.6bn.

 

“ILG’s technology, relationships and purpose position it very well in the single-family real estate value chain. We look forward to partnering with ILG’s leadership team and providing Blackstone’s operational resources and expertise to support ILG, its homebuilder customers and prospective homeowners," Vikram Suresh, Blackstone Managing Director.

 

ILG is advised by Bank of America Merrill Lynch, Citigroup and Goldman Sachs. Blackstone is advised by RBC Capital Markets and Kirkland & Ellis. Debt financing is provided by Citigroup and Goldman Sachs. Littlejohn is advised by Alston & Bird, Sheppard Mullin Richter & Hampton and Gasthalter & Co.

 

 

Acies Acquisition to merge with PLAYSTUDIOS in $1.1bn deal. (FS)

 

Acies Acquisition, a special purpose acquisition company, agreed to merge with PLAYSTUDIOS, a mobile games developer, in $1.1bn deal. Consideration to PLAYSTUDIOS will comprise at least 89m shares of ACAC common stock and up to $150m in cash. In addition, BlackRock, ClearBridge Investments, Neuberger Berman Funds, and MGM Resorts International are leading participants in the $250m PIPE. PLAYSTUDIOS shareholders are expected to own 64% of the combined company, the Acies sponsors 3%, PIPE investors 18%, and public stockholders to own 15%.

 

“Within today’s vast and growing games market, PLAYSTUDIOS is unique in offering their audience the opportunity to play for fun and earn for real. They know how to make engaging and enduring games, and stand apart in having harnessed the power of a robust and full-featured loyalty program,” Jim Murren, Acies Chairman.

 

Playstudios is advised by JP Morgan, LionTree Advisors, Davis Polk & Wardwell and ICR. Acies is advised by Morgan Stanley, Oppenheimer & Co and Latham & Watkins.

 

AE Industrial-backed NuWave Solutions completed the acquisition of BigBear. (FS)

 

AE Industrial-backed NuWave Solutions, a provider of data management, advanced analytics, artificial intelligence, cloud solutions and technologies to the US federal government, completed the acquisition of BigBear, a provider of cloud-based big data analytics solutions to the national security community within the US Government. Financial terms were not disclosed. 

 

"BigBear.ai offers unmatched artificial intelligence, analytics, cyber and data management tools tailored specifically to the national security communities, giving our customers 'decision dominance.' The company's comprehensive and seamless approach to handling and analyzing data allows our customers to better manage risk and be more prepared for the future," Reggie Brothers, NuWave CEO.

 

BigBear was advised by Robert W Baird, Foundry General Counsel and King & Spalding. NuWave Solutions was advised by Ernst & Young, Akerman and Lambert & Co.

 

Norwest Equity Partners completed the investment in recteq.

 

Norwest Equity Partners, a middle-market investment firm, completed the investment in recteq, a designer, marketer, and direct seller of premium pellet grills, accessories, and other consumable products. Financial terms were not disclosed.

 

“recteq is another great addition to our consumer products portfolio. The NEP team has tremendous ability to work with high-growth, founder-owned businesses and we are excited about our partnership with Ron, Ray and the rest of their management team. They’ve built an outstanding lifestyle brand with a culture of innovation that is well positioned for continued growth," Sundip Murthy, NEP Partner.

 

recteq was advised by Jefferies & Company. NEP was advised by Winston & Strawn. Debt financing was provided by First Midwest Bank, Norwest Mezzanine Partners, PennantPark Investment Advisers and Yukon Partners. 

 

 

THG Holdings completed the acquisition of Dermstore from Target for $350m.

 

The Hunt Group, a multi-website online retailer, completed the acquisition of Dermstore, a provider of personal care products, from Target, a company operating general merchandise discount stores, for $350m. 

 

"THG's acquisition of the US number 1 pure-play online prestige skincare business means over 20% of the Group's sales are now within the US, presenting an exciting opportunity to further scale the wider Group in a key global market, Matthew Moulding," THG Executive Chairman and CEO.

 

THG was advised by KPMG, Stifel, Gibson Dunn & Crutcher, Powerscourt and Deloitte.

 

The Carlyle Group completed the acquisition of IST Research and Two Six Labs. (FS)

 

The Carlyle Group completed the acquisition of IST Research, a provider of open-source data collection, population engagement, and content discovery solutions, and Two Six Labs, a company providing cybersecurity and technology solutions for national security customers. Financial terms were not disclosed.

 

“IST Research and Carlyle are ideal partners as we embark on the next chapter of Two Six’s journey, evolution, and growth. The IST and Carlyle teams share our long-standing commitment to building an industry-leading culture and team, developing innovative technology solutions that serve critically important missions of national security. We look forward to combining Two Six’s products and capabilities with IST’s to further enhance and accelerate our team’s impact to our customers and the nation,” Chris Greamo, Two Six Labs President and CEO and the combined enterprise Chief Technology Officer.

 

Two Six Labs is advised by Raymond James and King & Spalding. IST Research is advised by Holland & Knight. Carlyle is advised by Latham & Watkins.

 

Tradeweb to acquire Nasdaq’s US fixed income electronic trading platform for $190m.

 

Tradeweb, a global operator of electronic marketplaces for rates, credit, equities and money markets, agreed to acquire Nasdaq’s US fixed income electronic trading platform, for $190m.

 

“This is a great opportunity for us to add value to the wholesale U.S. Treasuries market — one of the world’s largest and most liquid cash markets — by providing greater choice among protocols, more connected participants and lower cost. Tradeweb has been facilitating electronic trading in UCorp S Treasuries for more than 20 years, and this targeted investment allows us to introduce more innovation for wholesale markets in a way that enhances our existing platform and expands our client base," Lee Olesky, Tradeweb CEO.

 

Tradeweb is advised by Centerview Partners and Fried Frank Harris Shriver & Jacobson. Nasdaq is advised by Skadden Arps Slate Meagher & Flom.

 

Uber Technologies to acquire Drizly for $1.1bn.

 

Uber Technologies agreed to acquire Drizly, an on-demand alcohol marketplace, for $1.1bn.

 

“Wherever you want to go and whatever you need to get, our goal at Uber is to make people’s lives a little bit easier. That’s why we’ve been branching into new categories like groceries, prescriptions and, now, alcohol. Cory and his amazing team have built Drizly into an incredible success story, profitably growing gross bookings more than 300 percent year-over-year. By bringing Drizly into the Uber family, we can accelerate that trajectory by exposing Drizly to the Uber audience and expanding its geographic presence into our global footprint in the years ahead,” Dara Khosrowshahi, Uber CEO.

Drizly is advised by Latham & Watkins.

 

IFM Investors and Ontario Teachers to acquire district energy operations of Enwave Energy for $2.1bn. (FS)

 

Investment firms IFM Investors and Ontario Teachers' Pension Plan Board, agreed to acquire district energy operations of Enwave Energy, a Canadian multinational energy company, for $2.1bn. IFM Investors and Ontario Teachers’ will retain the Enwave brand as part of this transaction and each will own 50% of the company.

 

“Enwave will be an attractive addition to our infrastructure portfolio. Its delivery of essential district energy services, providing investors with highly defensive, utility-like exposure coupled with leading sustainability attributes, will help IFM Investors deliver on our purpose to protect and grow the long-term retirement savings of working people. We are looking forward to working with Ontario Teachers’ and continuing to grow Enwave’s footprint of sustainable district energy solutions throughout North America,” Kyle Mangini, IFM Investors Global Head of Infrastructure.

 

IFM is advised by Prosek Partners.

 

Sontiq to acquire Cyberscout.

 

Sontiq, a portfolio company of The Wicks Group of Companies, and the intelligent identity security services provider, agreed to acquire Cyberscout, a provider of cyber products and services tailored for the insurance industry. Financial terms were not disclosed.

 

“With IdentityForce, Cyberscout and EZShield, we have created the trifecta required for all those we serve to combat and recover from the increasing harm resulting from identity crimes and cyber threats. This is a powerful acquisition for Sontiq. By adding Cyberscout into our product portfolio we are further strengthening our financial services market position with insurance industry expertise," Brian J. Longe, Sontiq President and CEO.

 

Sontiq is advised by Kelly Moore's PR Collective.

 

Rexel completed the acquisition of the Canadian utility business of WESCO International.

 

Rexel, a provider of the multichannel distribution of products and services for the energy world, completed the acquisition of Canadian utility business of WESCO International, a multinational electronics distribution and services company. Financial terms were not disclosed.

 

“This is a unique opportunity for Rexel to accelerate its development in Canada in the attractive and green hydro utility business and to increase its recurring service revenues,” Roger Little, Rexel Canada Group Executive Committee member and Chief Executive Officer.

 

Rexel was advised by Brunswick Group.

 

HGGC completed the acquisition of Marmic Fire & Safety from Thompson Street Capital Partners. (FS)

 

HGGC, a middle-market private equity firm, completed the acquisition of Marmic Fire & Safety, a full-service fire protection company, from Thompson Street Capital Partners, a St. Louis-based private equity firm. Financial terms were not disclosed.

 

"This company was founded by my grandparents, and it was very important to me to work with a firm that understands and appreciates what a family business really means. HGGC's partnership approach made them a perfect fit to help us continue to identify and acquire other great fire protection companies to join the Marmic family. We thank TSCP for their supportive and collaborative partnership over the past two and a half years as we transformed the business through operational improvements and strategic M&A," Michael Teeter, Marmic CEO. 

 

HGGC was advised by Stanton.

 

Alkeon Capital and Coatue led a $750m series F funding round in UiPath. (FS)

 

Alkeon Capital and Coatue, the venture capital firms, led a $750m series F funding round in UiPath, a global software company that develops a platform for robotic process automation. Altimeter Capital, Dragoneer, IVP, Sequoia, Tiger Global, and funds advised by T. Rowe Price Associates also took part in the fundraising.

 

The pandemic has boosted UiPath's business as a shift to remote working drove companies to intensify their search for automated solutions.
 

Boralex completed the acquisition of seven solar plants for $215m.

 

Boralex, which develops, builds and operates renewable energy power facilities in Canada, France, the UK and the US, completed the acquisition of seven solar plants from energy companies Alabama Power Company, PG&E, Southern California Edison, Indianapolis Power & Light and City of Palo Alto for $215m.

 

"The acquisition of interests in these highquality assets secured by long term contracts is perfectly aligned with the growth and diversification orientations of our 2023 strategic plan. We are extremely pleased with the stable stream of cash flow and strong growth potential this transaction is bringing to Boralex. This transaction will be accretive to discretionary cash flow per share in the first year and will be a springboard to further development in these new regional energy markets for Boralex, especially California,” Patrick Lemaire, Boralex President and Chief Executive Officer.

 

Motive Partners and Clearlake Capital Group completed the acquisition of InvestCloud. (FS)

 

Motive Partners and Clearlake Capital Group, two private equity firms, completed the acquisition of InvestCloud, a modular, enterprise-grade digital wealth & investment management software solutions platform. Financial terms were not disclosed.

 

Motive Partners and Clearlake have simultaneously combined InvestCloud with existing Motive Partners portfolio companies Finantix and Tegra118 to create the next generation software-as-a-service global wealth solutions platform led by InvestCloud's CEO, John Wise.

 

"The timing represents a once-in-a-lifetime opportunity to work with fellow entrepreneur Rob Heyvaert, the broader Motive Partners team and Clearlake to seize the opportunity to transform the industry," John Wise, InvestCloud CEO.

 

NHN Global completed the acquisition of Cloudnexa.

 

NHN Global, a technology company, completed the acquisition of Cloudnexa, an Amazon Web Services Premier consulting partner and certified AWS managed services provider. Financial terms were not disclosed.

 

"Together with NHN, we will expand and strengthen our opportunities, innovations, and talent within the AWS ecosystem. We are unlocking a massive potential for continued success in Cloudnexa through NHN Global's extensive resources," MJ DiBerardino, Cloudnexa CEO.

 

Atos and DXC end merger talks.

 

Atos, a French IT consultant and its rival DXC Technology announced they decided to end talks about the latter's potential acquisition. 

 

In January, Atos made an offer to DXC, valuing the business at $10bn with debt. On February 1, 2021, DXC publicly announced it would not accept the offer as it undervalues the company. 

 

Eneva in direct talks for Petrobras' Urucu cluster.

 

Eneva, a Brazilian energy firm, has entered into direct talks with Petrobras, a state-run oil firm, to purchase a complex of oil and gas fields in the Amazon rainforest known as the Urucu cluster, Reuters reported.

 

Eneva competitor 3R Petroleum Oleo e Gas had made a higher offer during a bidding round in 2020, but that round was scuttled after Petrobras determined the terms attached to the 3R bid were unacceptable.

 

Eneva was victorious in the fresh bidding round. While it did not cite a specific price, Eneva’s new offer was 30% to 40% higher than its previous bid for the asset, which was $600m.

  

Wilbur Ross-backed SPAC seeks to raise up to $300m in IPO. (FS)

 

A blank-check company backed by former US Secretary of Commerce Wilbur Ross is looking to raise up to $300m in its IPO, Reuters reported.

 

Ross Acquisition II said in the filing it plans to sell 30m units at $10 each. Wilbur Ross is among a growing list of politicians and government officials who have backed blank-check firms. Prominent figures including former House Speaker Paul Ryan and Gary Cohn, a former adviser to Donald Trump, have also raised millions through their blank-check firms.

 

Blank-check companies, also known as SPACs, had a record run in 2020, raising more than $82bn through IPOs. In January 2021, ninety-one SPACs raised $25.09bn.

 

Ex-Boeing CEO Dennis Muilenburg considers raising $200m for SPAC.

 

Ex-Boeing Chief Executive Dennis Muilenburg, about a year after his ouster from the aerospace giant, is taking steps to re-enter American business with a SPAC, WSJ reported.

 

Mr. Muilenburg plans to raise $200m for a SPAC seeking to merge with a private company in industries spanning space, defense, communications, advanced air mobility, and logistics.

 

The filing said Mr. Muilenburg was the CEO and chairman of New Vista Acquisition, incorporated in the Cayman Islands. The company's directors and advisers would include former Boeing executives and former officials from the Federal Aviation Administration and US Air Force.

 

EMEA

 

KKR completed the acquisition of Global Atlantic Financial Group for $4.4bn. (FS)

 

KKR completed the acquisition of Global Atlantic Financial Group, a retirement and life insurance company, for $4.4bn.

 

"Since we announced this transaction, Global Atlantic’s success has been remarkable, and in many ways we are well ahead of our initial expectations. We welcome Global Atlantic to the KKR family and look forward to supporting its policyholders and clients through our asset management and origination capabilities, as well as our global network,” Joseph Bae and Scott Nuttall, KKR Co-Presidents and Co-Chief Operating Officers.

 

KKR was advised by Morgan Stanley, Simpson Thacher & Bartlett, Willkie Farr & Gallagher and Sard Verbinnen. Global Atlantic Financial Group was advised by Goldman Sachs, Debevoise & Plimpton and ICR.

 

KAZ Minerals' chairman considers sweetening $2.4bn buyout.

 

KAZ Minerals’ chairman is considering an increase to his $2.4bn buyout offer for the Kazakh copper miner, Bloomberg reported.

 

Oleg Novachuk’s Nova Resources is weighing raising its offer to KAZ independent shareholders to at least $0.95 to $1.02 per share following discussions with some of the company’s biggest investors.

 

A fresh proposal could come as soon as this week. Shares of KAZ surged as much as 7.9%, hitting the highest intraday level since August 2018.

 

KAZ is advised by Citigroup, UBS, Linklaters and Brunswick Group. Nova Resources is advised by VTB Capital, Clifford Chance. VTB Capital is advised by Latham & Watkins, Macfarlanes and Walkers.

 

NovaSource Power Services completed the acquisition of BALIAN Energy.

 

NovaSource Power Services, a global firm in solar operations and maintenance services, completed the acquisition of BALIAN Energy, a France-based commissioning experts. Financial terms were not disclosed.

 

"With Thibaut leading our Global Field Service & Commissioning, the additional expertise, multinational reach, and leadership will provide our partners with an even higher level of service as we continue to raise the standards for operations and maintenance providers around the world," Jack Bennett, NovaSource CEO.

 

Abu Dhabi Pension Fund completed the acquisition of 31% stake in Abu Dhabi Energy Real Estate from ADNOC for $900m. (FS)

 

Abu Dhabi Pension Fund, a state-run pension fund, completed the acquisition of 31% stake in Abu Dhabi Energy Real Estate, a real estate holding company, from ADNOC, a diversified and integrated group of energy companies, for $900m.

 

“The creation of our real estate investment partnership with Apollo last year enabled ADNOC to monetize its non-oil and gas strategic infrastructure assets and reinvest the proceeds into our core business to deliver further growth. The partnership structure continues to ensure that ADNOC maintains full ownership and control over our real estate assets, while further strengthening our balance sheet and allowing for greater capital flexibility," Sultan Al Jaber, ADNOC CEO.

 

Cosworth to acquire Delta Motorsport.

 

Cosworth, a global technology business, agreed to acquire Delta Motorsport, a Silverstone-based developer of battery and vehicle dynamics control systems. Financial terms were not disclosed.

 

“We are excited to welcome Delta to the Cosworth Group of companies as we prepare to benefit from our numerous synergies. We augment each other’s capabilities, share the same passion for innovation, and the same values and culture. Successful each in our own right, together we will be extraordinary," Hal Reisiger Cosworth CEO.

 

CMA is requiring viagogo to sell all of StubHub's business outside North America.

 

Britain’s competition watchdog said that Viagogo would need to sell all of StubHub’s business outside North America after its probe found the deal would reduce competition in the secondary ticketing market in UK, Reuters reported.

 

The Competition and Markets Authority said the international business of StubHub would need to be independently owned and run by a separate company. Viagogo bought StubHub in a $4.05bn deal from eBay last year. 

 

Nestle nears deal to sell Poland Spring to buyout firm One Rock. (FS)

 

Nestle has entered into exclusive talks to sell its North American bottled water business, whose brands include Pure Life and Poland Spring, to One Rock Capital Partners, a private equity firm, Reuters reported.

 

The brands to be sold, which also include Deer Park, Ozarka, Ice Mountain, Zephyrhills and Arrowhead, could be valued at more than $4bn, including debt. If the negotiations conclude successfully, a deal could be announced as early as this month.

 

Moonpig announced the pricing of its London IPO.

 

Moonpig, an online greeting card retailer, saw its shares rise by 25% within minutes of pricing its London IPO, underlining bullish investor appetite and setting the stage for other e-commerce companies to follow.

 

Stock in the newly listed firm was trading at around £4.4 ($6) per share shortly after floating at £3.5 (4.8). The listing price valued the company at about £1.2bn ($1.64bn).

 

The deal, the second-largest UK listing this year after Dr. Martens’ debut last week, sees the company sell around 5.7m new shares and existing shareholders sell 134.6m shares, setting the deal size at £491m ($673m).

 

APAC

 

Entain to acquire Tabcorp.

 

Entain, the global sports-betting and gaming group, offered to acquire Tabcorp, a gambling company in Australia. Financial terms were not disclosed.

 

Companies entered into discussions concerning the acquisition. Transaction would be in-line with Entain’s current M&A strategy of expanding across regulated international markets. If combination is successful, the deal would create a leading, integrated multi-channel and multi-brand wagering company.

 

Entain is advised by Powerscourt.

 

Kenanga Investment Bank Berhad to acquire i-VCAP Management.

 

Kenanga Investment Bank Berhad, an independent investment bank in Malaysia, agreed to acquire i-VCAP Management, an investment management services provider. Financial terms were not disclosed.

 

“The acquisition further expands our ability to build better, more diversified portfolios through our product capabilities across the Group, and enhances the range of solutions available. This addition strengthens our competitive edge in addressing client needs, which will further accelerate the growth of our business," Datuk Chay Wai Leong, Kenanga Group Managing Director.

 

Life Insurance of India could be the largest India's IPO to date.

 

The government on Monday paved the way for the proposed IPO of state-run Life Insurance of India next fiscal in what would be the country's largest public issue so far, DealStreetAsia reported.

 

LIC, in which the government holds a 95% stake, is the country's largest insurer. The insurer is currently evaluating its entire business through actuarial firms. The finance minister said the Union government will hold at least 75% in LIC for the first five years post the IPO, and subsequently, at least 51% in the insurer at all times.

 

DXN selects banks for IPO in Malaysia.

 

DXN Holdings, a Malaysian health supplement producer, has picked banks for an IPO in Kuala Lumpur that could raise about $400m, Bloomberg reported.

 

The company, backed by Southeast Asian private equity firm KV Asia Capital, has chosen CIMB Group Holdings, Credit Suisse Group, and Malayan Banking to help with the share sale, the people said. An offering could take place as soon as the fourth quarter.

 

An offering would see DXN join companies such as logistics services provider Swift Group and gloves makers Harps Holdings and Smart Glove in seeking to list in Malaysia this year. Companies raised about $487m through first-time share sales in the Southeast Asian nation in 2020, up from $458m a year earlier, Bloomberg reported.

 

Huakang considers raising $233m from Shanghai IPO.

 

Zhejiang Huakang Pharmaceutical, specializing in the manufacture of polyols and starch sugar used in the food ingredient industry, has begun the subscription exercise for its IPO in Shanghai, looking to raise CNY1.5bn ($233m). 

 

The company, which filed its IPO prospectus on January 27, is offering 29.14m common shares at CNY51.63 ($7.99) apiece. Huakang plans to allocate the majority of the IPO proceeds to its pipeline programs, including a technology center and green energy management systems. It expects to leverage the rest to refuel operating funds.

 

Its annual revenues between 2017 and 2019 stood at CNY925m ($143m) in 2017, CNY1.4bn ($217m) in 2018, and CNY1.5bn ($233m) in 2019. Of late, in the first half of 2020, it clocked CNY707m ($109m) in sales earnings.