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AMERICAS
Britain's competition regulator said it was looking into whether US chipmaker Broadcom's $71.6bn acquisition of cloud computing company VMware may substantially lessen competition.
The Broadcom-VMware deal, announced in May, is the second biggest globally so far this year and marks Broadcom's attempt to diversify its business into enterprise software. The companies are also seeking European Union antitrust approval.
VMware is advised by Goldman Sachs, JP Morgan, Gibson Dunn & Crutcher (led by Barbara Becker and Andrew Kaplan) and FGS Global (led by Paul Kranhold). Financial advisors are advised by Debevoise & Plimpton (led by Jennifer Chu and William Regner) and Sullivan & Cromwell (led by Alison S. Ressler and John L. Savva). Broadcom is advised by Bank of America, Barclays, Citigroup, Credit Suisse, Morgan Stanley, Morgan Stanley, Wells Fargo Securities, Cleary Gottlieb Steen & Hamilton, O'Melveny & Myers (led by Adit Khorana), Wachtell Lipton Rosen & Katz (led by David Karp, Ronald Chen and Viktor Sapezhnikov), Brunswick Group and Joele Frank (led by Joele Frank). Financial advisors are advised by Cooley (led by Ben Beerle). Silver Lake is advised by Simpson Thacher & Bartlett (led by Atif Azher).
Merck, a science and technology company, agreed to acquire Imago BioSciences, a clinical-stage biopharmaceutical company, for $1.35bn.
“We continue to invest in our pipeline with a focus on applying our unique capabilities to unlock the value of breakthrough science for the patients we serve. This acquisition of Imago augments our pipeline and strengthens our presence in the growing field of hematology," Robert M. Davis, Merck President and CEO.
Smith Financial, a family holding company of Stephen Smith, agreed to acquire a 90.9% stake in Home Capital, a federally regulated trust company offering residential and non-residential mortgage lending, for $1.55bn.
“With its talented workforce, diversified presence across Canada, trusted positions as a lender and deposit-taker and 36-year operating history, Home Capital is a strategic asset. Having followed the development of the business for three decades, I can attest to Home Capital’s strong partnerships with mortgage brokers and great customer relationships. I’m also impressed with the direction the Company has taken to build quality assets and enduring advantages in its chosen industry segments. I look forward to owning another business with a bright future," Stephen Smith, Smith Financial Founder.
Home Capitali is advised by BMO Capital Markets, Deloitte, TD Securities and Torys. Smith Financial is advised by RBC Capital Markets, Stikeman Elliott and Fundamental Creative (led by Ernie Stapleton).
A group of investors including ARCH Venture Partners, Milky Way Investments, Fidelity Management & Research Company, VenBio Partners, Deerfield Management, GV, Cormorant Asset Management, T. Rowe Price Associates, Invus, Farallon Capital Management, HBM Healthcare Investments, Casdin Capital, and PagsGroup led a $178m Series D round in FogPharma, a biopharmaceutical company.
“FogPharma continues to make rapid progress on our moonshot mission to achieve universal druggability – a world where no targets are off-limits to medicine. We believe that Helicon polypeptides, a compelling new therapeutic modality, represent the future of precision medicine. We are thrilled by the support of our investors and will continue to build our platform capabilities, product pipeline which aims to address a significant percentage of cancer patient populations, and our phenomenal team across all levels as we aim to create one of the most impactful new classes of drugs in history," Gregory Verdine, FogPharma Founder, Chairman and CEO.
Renovus Capital Partners-backed Deep Water Point, a federal management consulting and advisory firm, agreed to acquire Wolf Den Associates, a consulting firm specializing in full lifecycle growth. Financial terms were not disclosed.
"Federal contracting remains a competitive and complex undertaking. By combining the immense expertise of the Deep Water Point and Wolf Den teams, we will bring unmatched experience to clients and seamlessly support their accelerated growth in the federal market," Howard Seeger, Deep Water Point Founder and CEO.
Deep Water Point is advised by Boscobel Marketing Communications (led by Joyce Bosc).
Outdoor Living Supply, a distribution platform for outdoor living products, completed the acquisition of Tahoe Sand & Gravel, a distributor of bulk materials, hardscapes and masonry supplies. Financial terms were not disclosed.
“We are excited to welcome Steve, Roxanne and the entire Tahoe Sand & Gravel team to the OLS family of companies. They have built an outstanding family business and their unwavering customer service focus has helped establish them as the area’s go-to resource for bulk, landscape and masonry supplies. Tahoe Sand & Gravel is the perfect complement to our other branches in this market - Parker Hardscapes in Reno, Nevada and The Rock Garden in Truckee, California. I look forward to seeing what this powerful trifecta will be able to accomplish together," Brian Price, OLS CEO.
Outdoor Living Supply was advised by Faegre Drinker Biddle & Reath.
Fidelity Management and Research, an American multinational financial services corporation, led a $150m Series D round in Astera Labs, a provider of connectivity solutions for intelligent systems, with participation from Atreides Management, Intel Capital and Sutter Hill Ventures.
"Astera Labs continues to surpass every milestone for a technology start-up, and we are now deep into the next stage of evolution for our company as we accelerate growth. This latest funding round is a testament that we are not only invested in the right growth markets such as Cloud, Artificial Intelligence/Machine Learning, and Hyperscale infrastructure, but that we are also able to consistently execute and deliver breakthrough connectivity products that are critical to our customers and partners," Jitendra Mohan, Astera Labs CEO.
FTX’s Sam Bankman-Fried sold $300m stake during funding spree.
FTX founder Sam Bankman–Fried sold a stake in the company worth $300m when the crypto exchange raised capital last year.
At the time, Bankman–Fried told investors it was a partial reimbursement of money he’d spent to buy out rival Binance’s stake in FTX a few months earlier.
Brazil's Parana state to seek privatization of power company Copel.
The Brazilian state of Parana intends to turn local power company Copel into a firm with dispersed ownership and no controlling shareholder, a move that would in practice privatize the state-run utility, Reuters reported.
Companhia Paranaense de Energia, as Copel is formally known, said that recently re-elected Governor Ratinho Junior sent a letter to the company saying his administration would seek to privatize it through a secondary follow-on share offering aimed at raising money for the state's investment needs.
Irenic Capital asks News to spin off units instead of Fox merger. (FS)
Activist investor Irenic Capital Management, which holds 2% of News Corp's Class B shares, sent a letter to the company suggesting a spin-off of its digital real estate business or Dow Jones as an alternative to a merger with Fox. Irenic said the combination with Fox does not serve News Corp's strategic goals.
In October, media mogul Rupert Murdoch proposed to reunite his media empire by combining News and Fox nearly a decade after the companies split. The companies formed special committees to evaluate the proposal, Reuters reported.
Apollo closes on $2.4bn for Inaugural Accord+ Fund. (FS)
Apollo Global Management closed on $2.4bn in commitments for the Apollo Accord+ Fund, its commingled multi-asset opportunistic credit offering. These new commitments bring total fundraising for the overarching Accord strategy to approximately $11bn since inception, of which approximately $4.5bn was raised in the past 12 months.
"Accord+ is designed to provide investors with an efficient, streamlined offering that harnesses the depth and breadth of expertise resident within Apollo's Credit platform. The fund builds upon our significant experience and established track record in managing our Accord strategy and other related mandates," Chris Lahoud and Tristram Leach, Apollo Partners.
HarbourVest Partners closes sixth direct co-investment fund at $4.2bn. (FS)
HarbourVest Partners, a global private markets investment specialist, announced the final close of its sixth co-investment fund, HarbourVest Partners Co-Investment Fund VI, which closed above its $3.5bn target at $4.2bn, including the General Partner commitment.
“The continuation of our flagship co-investment program enables us to remain the partner of choice for GPs on a global level. In addition to being a provider of capital at scale, we continue to provide general partners with solutions that provide an access point for investors to gain exposure to market leading, private equity backed companies across industries and geographies,” Craig MacDonald, HarbourVest Partners Managing Director.
Fasanara Capital secures new $200m mandate from major Canadian pension fund. (FS)
Fasanara Capital, a London-based asset management and technology platform, has secured a strategic circa $200m mandate from one of Canada’s largest pension funds. These latest funds will be used by Fasanara Capital to support further expansion of its global fintech ecosystem.
Funds will be used to lend to the real economy, to either invoice receivables, working capital facilities, short term SME loans, and an array of specialty finance products.
Arizona Public Safety Personnel makes additional $125m PE allocation. (FS)
The Arizona Public Safety Personnel Retirement System, Phoenix, has made two new commitments to private equity investments with a combined value of $125m.
Christian Palmer, a spokesman for the $17.8bn pension finds as revealing that PA MAC Fund, a private equity fund managed by Portfolio Advisors has received a $75m commitment, while Mountain Capital Partners II, a buyout fund managed by Mountain Capital Management, has received $50m.
Robert Iger returns as Disney CEO as Bob Chapek is ousted. (People)
Walt Disney's board of directors on Sunday night replaced Chief Executive Bob Chapek with Robert Iger, the company’s former chairman and CEO who left the company at the end of last year, WSJ reported.
“The board has concluded that as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely situated to lead the company through this pivotal period,” Susan Arnold, Disney Chairman.
EMEA
Uniphar, a diversified healthcare services organization, agreed to acquire BModesto Group, a Netherlands-headquartered healthcare services business, for €75m ($77m).
"BModesto is a significant addition to the Group, strengthening our Product Access offering in Europe and beyond. The acquisition is another step in achieving our strategy of becoming a global leader in the ethical provision of access to medicines which remain unlicensed at the point of care. It also provides a further boost to our capabilities in the provision of Expanded Access Programs for innovative new medicines. The company's strategic location, sophisticated sourcing, regulatory capabilities and broad access to key end markets strengthens our evolving global service offering and will allow us to make a positive difference in the lives of more patients. We are delighted to welcome the highly talented BModesto team to the Group," Ger Rabbette, Uniphar CEO.
Sopra Steria, a consulting, digital services and software development provider, announced it has signed an acquisition agreement with a view to acquiring all the shares of CS Group held by the company’s Chairman Yazid Sebag, CEO Eric Blanc-Garin, and their joint holding company Duna & Cie, comprising around 29.73% of CS Group’s share capital, at the price of €11.5 ($11.9) per share.
“The tie-up between Sopra Steria and CS GROUP would create a benchmark player in digital services and engineering, a prime contractor for critical systems in the fields of defence & security, space, and nuclear energy. It would also strengthen our position in aeronautics and cybersecurity. Furthermore, it would confirm our positioning in digital sovereignty and trust supporting our major European public- and private-sector clients. Lastly, it would position us well in verticals which, in light of the geopolitical and energy situation, offer a very strong growth outlook over the coming years,” Cyril Malargé, Sopra Steria CEO.
Sopra Steria is advised by Societe Generale and Image Sept (led by Caroline Simon).
The Rohatyn Group, a specialized global asset management firm, agreed to acquire Ethos Private Equity, an alternative asset management firm in Africa. Financial terms were not disclosed.
"The philosophical and cultural similarities of TRG and Ethos were apparent from the start. We share a belief that multiple thematic cross-currents -- such as private credit, renewable energy, digitalization, and agriculture, among others -- will anchor future investment priorities for investors. Our combined firm, with almost $8bn in AUM, almost 400 institutional LPs, and the ability to offer solutions for de novo investing, as well as ongoing GP consolidations and fund restructurings, will occupy a unique position in our industry," Nicolas Rohatyn, The Rohatyn Group Founder and CEO.
Ethos Private Equity is advised by Edelman (led by Rachel Quigley). TRG is advised by Lazard.
GlobalLogic, a digital services company, agreed to acquire Fortech, a software engineering services company. Financial terms are not disclosed.
“Fortech is a leading firm with proven track record and specialization in technology that is needed for digital evolution. This acquisition will further enhance GlobalLogic’s presence in Europe, and accelerate our access to the rich technical talent in Romania; it will arm Fortech with the resources and strong backing of GlobalLogic and Hitachi. We are excited to welcome Fortech and their talented people to the GlobalLogic family," Nitesh Banga, GlobalLogic President and CEO.
Palo Alto Networks, a global cybersecurity firm, agreed to acquire Cider Security, a pioneer in application security and software supply chain security, for $195m.
"Any organization using public cloud has an application infrastructure with hundreds of tools and applications that can access their code and yet, they have limited visibility to their configuration or if they are secured. Cider has made it possible to connect into infrastructure, analyze the tools, and identify the risks, as well as how to remediate them. We are acquiring Cider for their innovation that will help enable Prisma Cloud to provide this capability that anyone doing cloud operations has to have," Lee Klarich, Palo Alto Networks Chief Product Officer.
Founder of Atoss Software weighs options, including sale. (FS)
The founder of software company Atoss Software is exploring strategic options for the German-listed developer after attracting takeover interest from private equity firms, Bloomberg reported.
Atoss Chairman Andreas Obereder is working with advisers as he discusses possibilities, including a sale. The company has attracted interest from buyout firms including Hg, as well as Carlyle Group and Permira, though some have dropped due to concerns over valuation.
Americana Restaurants International to raise $1.8bn in IPO.
Americana Restaurants International, the Middle Eastern operator of KFC and Pizza Hut outlets, is set to raise up to $1.8bn from its initial public offering after saying it would likely price the share sale at the top end of a marketed range, Bloomberg reported.
Americana is set to be the biggest Saudi IPO this year after Nahdi Medical's $1.4bn listing and will be the first company to have its shares traded in both Riyadh and Abu Dhabi.
ABB E-mobility raises approximately $202m in a pre-IPO private placement.
ABB E-mobility, an electric vehicle charging solutions provider, announced that it has signed a pre-IPO private placement of approximately $202m for newly issued shares, led by new minority investors. The transaction will close during the fourth quarter 2022. ABB E-mobility will use the proceeds to continue the execution of its growth strategy, driven by both organic and M&A investments in hardware and software.
“We remain committed to our strategy to separately list our E-mobility business subject to constructive market conditions. Meanwhile, having Interogo Holding, moyreal and Michael Halbherr as new co-shareholders in ABB E-mobility is a recognition of the company’s leading customer offering and market position. The private placement underpins our joint commitment to ensure ABB E-mobility’s fast growth in order to remain best positioned to lead the sector in EV charging solutions,” Björn Rosengren, ABB CEO.
APAC
Stonepeak, an alternative investment firm specializing in infrastructure and real assets, and Spirit Super, an Australian industry super fund, agreed to acquire GeelongPort, Victoria's second largest port located approximately 75km southwest of Melbourne. Financial terms were not disclosed.
"As a high-quality landlord port with operations that are critical to Australia's economy, GeelongPort is a natural fit for Stonepeak's core infrastructure strategy. It is a highly contracted entity with strong barriers to entry and stable and predictable demand drivers, which we believe are even more compelling when coupled with the port's meaningful opportunities for long-term growth through additional development to meet future import-export demand in the region. We look forward to working closely with the GeelongPort team to help further their objectives and invest behind this integral component of the Victorian economy," Darren Keogh, Stonepeak Senior Managing Director.
Stonepeak and Spirit Super are advised by Gresham, Clayton Utz, King & Wood Mallesons, Citadel Magnus (led by James Strong) and Mountain Media.
RHI Magnesita, a supplier of refractory products, systems and services, agreed to acquire the Indian refractory business of Dalmia Bharat Refractories, an India-based producer of high alumina refractory bricks for the Indian cement industry, for €212m ($219m).
"I am very pleased to announce this highly value-creating acquisition which will accelerate our development in the fast-growing Indian refractory market. It is another step in the execution of our Group strategy. We see material financial and operational benefits from the addition of the Dalmia Bharat Refractories business to our existing network, which will enable us to increasingly serve our customers with a 'local for local' approach in India and offer a broader range of products, in particular in the Industrial segment, in which RHI Magnesita is currently under-represented. This transaction demonstrates our ability to continue to grow our business in India where the outlook for the refractory industry is strong, at a time when demand in other geographies is weakening," Stefan Borgas, RHI Magnesita CEO.
RHI Magnesita is advised by Deloitte, Khaitan & Co and Hudson Sandler. Dalmia Bharat Refractories is advised by Arpwood Capital and Talwar Thakore & Associates.
Buffett's Berkshire boosts stakes in Japan's five biggest trading houses. (FS)
Berkshire Hathaway, run by billionaire Warren Buffett, has raised its stakes in each of Japan's five biggest trading houses by at least 1 percentage point to more than 6%, regulatory filings showed on Monday, sending shares higher.
The move is line with Berkshire's statement in 2020 that its investments in the Japanese trading houses were for the long term and the stakes could rise to 9.9%, Reuters reported.
Xiaomi-backed Chinese EV battery maker SVOLT files for $2.1bn STAR Market IPO.
SVOLT Energy Technology, a Chinese electric vehicle battery maker that counts Xiaomi and IDG Capital among its investors, has filed for an initial public offering to raise as much as $2.1bn on Shanghai’s Nasdaq-style STAR Market.
SVOLT, a spinoff from Chinese automaker Great Wall Motors, filed its prospectus on Friday with a plan to offer about 1.1bn shares, or 1.2bn if it exercises an overallotment option, through the domestic public listing. Chinese investment bank CITIC Securities served as the lead underwriter of the deal.
IFC proposes to invest $320m in three Vietnamese commercial banks. (FS)
The International Finance Corporation, a member of the World Bank Group, has proposed a total investment of $320m in three Vietnamese banks to support their small and medium enterprises loan portfolio, DealStreetAsia reported.
The three banks receiving investments from IFC are Saigon-Hanoi Commercial Joint Stock Bank, Vietnam International Commercial Joint Stock Bank, and Oriental Commercial Joint Stock Bank.
Lightspeed eyes investments in climate tech startups in India, SE Asia. (FS)
Lightspeed Venture Partners is aiming to allocate more capital to startups offering solutions for climate change, DealStreetAsia reported.
“We believe that the focus of climate tech has opened trillions of dollars of opportunities globally, so we’ll be focusing more on this,” Harsha Kumar, Lightspeed Partner.
Masayoshi Son owes $4.7bn to SoftBank after stock crash. (FS)
Masayoshi Son personally owes SoftBank close to $5bn because of growing losses on the Japanese conglomerate’s technology bets, which have also rendered the value of his stake in the group’s second Vision Fund worthless, DealStreetAsia reported.
The billionaire’s ballooning personal liabilities, discovered through a Financial Times analysis of SoftBank’s recent filings, comes as the world’s biggest tech investor was hammered by plunging tech stocks and valuations in private companies over the past year.
ESR's ARA joins China Exim Bank to close $1bn infrastructure fund. (FS)
ESR Group’s ARA Asset Management, a Singaporean real asset fund manager, has partnered with the Export-Import Bank of China for the final closing of Southeast Asia’s largest infrastructure fund, which now has $1bn in equity commitments.
Backed by China Exim Bank as its anchor investor, the China-ASEAN Investment Cooperation Fund II is a quasi-sovereign equity fund under the Xi Jinping government, DealStreetAsia reported.
Navis Capital Partners said to be raising $350m for maiden credit fund. (FS)
Southeast Asia-focused private equity firm Navis Capital Partners is understood to be seeking around $350m for its maiden credit fund, after recruiting BlackRock’s Asia credit business executive, Justin Ferrier, to lead its Navis Asia Credit platform launched in July, DealStreetAsia reported.
The Kuala Lumpur-headquartered private equity firm will make credit investments in sustainable-focused businesses or sectors primarily in Indonesia, Vietnam, Philippines, Laos and Cambodia.
SG's iGlobe Partners raising $200m fifth fund to back deeptech startups. (FS)
Singapore-based venture capital firm iGlobe Partners is raising a $200m fifth fund to back deeptech startups, DealStreetAsia reported.
The fund will be an extension of iGlobe’s existing strategy, which centres on intellectual property, and leveraging it to build commercial value. According to its official website, iGlobe focuses on startups in four main categories: smart cities; the future of money, the future of bio, and the future of health.
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