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AMERICAS
Spin Master, a children's entertainment company, completed the acquisition of Melissa & Doug, a children's toys manufacturer, for $950m.
"This acquisition brings together two formidable leaders in the toy industry, both driven by a passion to create magical play experiences for children and inspire imaginations on a global scale. By adding Melissa & Doug's complementary product line to our existing toy portfolio we expand our capabilities in early childhood play and further bolster Spin Master's leadership in the children's entertainment industry," Max Rangel, Spin Master Global President and CEO.
Melissa & Doug was advised by Harris Williams & Co, Jefferies & Company and Fried Frank Harris Shriver & Jacobson. Spin Master was advised by Evercore, RBC Capital Markets, TD Securities, Pillsbury Winthrop Shaw Pittman (led by Jonathan Russo), Torkin Manes and Crestview Strategy. Financial advisors were advised by Sullivan & Cromwell (led by Stephen M. Kotran). Debt financing was provided by HSBC, RBC Capital Markets and TD Securities.
Civitas Resources, an independent, domestic oil and gas producer, completed the acquisition of the Midland Basin assets from Vitol-backed Vencer Energy, an oil and gas company that invests in and operates large producing assets, for $2.1bn.
“Civitas now holds high-quality, scaled asset positions in both the Permian and DJ basins. Our assets, in combination with our strong balance sheet and low-cost structure, place us in a solid position to continue to deliver the industry’s best shareholder cash return program over the long term,” Chris Doyle, Civitas President & CEO.
TMX Group, a financial services company, completed the acquisition of the remaining 78% stake in VettaFi, a US-based, indexing, digital distribution, analytics and thought leadership company, for $848m.
"The acquisition of VettaFi will add a dynamic new component to our growing information business, with an exciting set of capabilities and a visionary, innovative team committed to client success. The experience of working together this year has confirmed that TMX and VettaFi are a powerful combination and a tremendous culture fit. Moving forward, the addition of VettaFi increases the depth and value of data-driven insights we provide to clients, expands our digital expertise and enriches our industry-leading support for ETF issuers. From a strategic standpoint, this acquisition accelerates TMX's long-term global expansion, and increases the proportion of revenue derived from our global solutions, Insights and Analytics division, and from recurring sources," John McKenzie, TMX Group CEO.
VettaFi was advised by Barclays and Ropes & Gray (led by Garrett Charon). TMX Group was advised by Evercore and WilmerHale (led by Stephanie Evans). Debt financing was provided by BMO Capital Markets, National Bank of Canada, and TD Securities.
Curi Capital, an investment advisor arm of Curi company, completed the merger with RMB Capital, an independent, employee-owned firm that offers advisory services and investment solutions. Financial terms were not disclosed.
“The completion of the Curi Capital and RMB Capital merger is an energizing way to kick off 2024. The past 12 months have been truly transformational for our company, marked by strategic decisions and investments that have strengthened our ability to serve our clients, particularly our physician base and the broader healthcare community, in more ways and in more geographies than ever before,” Jason Sandner, Curi CEO.
RMB Capital was advised by William Blair & Co, Vedder Price, and Greenhouse Partners (led by Shawn Malayter). Curi Capital was advised by Piper Sandler and Kilpatrick Townsend.
TJC, a private equity fund, completed the acquisition of TIDI Products, a manufacturer, marketer and distributor of a diversified portfolio of medical products focused on supporting caregivers and protecting patients, from RoundTable Healthcare Partners, a private equity firm focused exclusively on the healthcare industry. Financial terms were not disclosed.
"On behalf of RoundTable, I would like to thank the outstanding management team and dedicated employees of TIDI for their tireless efforts. TIDI plays an important role in ensuring clinicians have the solutions they need to drive improved patient outcomes. We are confident TJC will continue to support these efforts and will be an excellent partner for the Company and its employees going forward," Joe Damico, RoundTable Founding Partner.
TIDI was advised by Moelis & Co, Solomon Partners and Sidley Austin (led by Seth H. Katz). TJC was advised by Cain Brothers and Winston & Strawn.
KKR, a global investment firm that manages multiple alternative asset classes, completed the acquisition of the remaining 37% stake in Global Atlantic, a provider of a broad range of retirement, life and reinsurance products, for $2.7bn.
“KKR and Global Atlantic are a powerful combination. Our shared culture and commitment to excellence continues to enhance our ability to think – and invest – longer-term and deliver compelling solutions for our clients and policyholders. We are thrilled for what lies ahead as a wholly-owned subsidiary of KKR,” Allan Levine, Global Atlantic Co-Founder, Chairman & CEO.
The Travelers Companies, a provider of property casualty insurance, completed the acquisition of Corvus Insurance, a cyber insurance managing general underwriter, for $435m.
“We have forged a strong strategic partnership with the talented team at Corvus over the past year, and we are pleased to officially welcome them to the Travelers family. With a proven platform and deep cyber underwriting and risk management expertise, Corvus brings to Travelers important cyber capabilities,” Alan Schnitzer, Travelers Chairman and CEO.
Corvus Insurance was advised by Nomura and Gunderson Dettmer Stough Villeneuve Franklin & Hachigian (led by Jay Hachigian and Nevin Fox). The Travelers Companies were advised by Jefferies & Company and Skadden Arps Slate Meagher & Flom (led by Todd Freed).
Academic Partnerships, a company that assists primarily regional public universities in expanding access and impact by supporting their online programs, completed the acquisition of Wiley University Services, an education provider offering flexible solutions to help colleges & universities drive student success, from Wiley, a publishing company, for $150m.
"AP is in the business of transforming lives through education, and the acquisition of Wiley University Services better enables us to do just that. This is an exciting day as we combine our talent, capabilities, and resources to more effectively meet the growing demand for high-quality, affordable online degree programs and ensure our university partners and their students thrive," Fernando Bleichmar, Academic Partnerships Chief Executive Officer.
Leeds Equity Partners, a private equity firm focused on investments in the knowledge industries, completed the acquisition of Big Blue Marble Academy, an operator of 28 early-education schools in five states. Financial terms were not disclosed.
"Leeds Equity has an unsurpassed track record of success in partnering with and supporting early childhood education providers. Our team is thrilled to have the dedication and expertise our new partner brings as we continue to expand our reach and provide premier learning experiences to thousands of students across the United States," Jeff Wahl, Big Blue Marble Academy CEO.
Leeds Equity Partners was advised by Latham & Watkins. Big Blue Marble Academy was advised by Robert W Baird and William Blair & Co.
Novanta, a trusted technology partner to medical and advanced technology equipment manufacturers, completed the acquisition of Motion Solutions, a provider of highly engineered integrated solutions, for $189m.
“Motion Solutions is an excellent strategic fit to Novanta. Motion Solutions offers high-precision, customized precision motion subsystems and components to market-leading OEMs, largely centered on medical and life sciences applications. They are a market leading business, and their team shares a passion for customers, innovation, and solving complex technical challenges. By acquiring Motion Solutions, we advance Novanta’s strategy by increasing and strengthening our presence in very attractive precision medicine applications that are growing at high-single-digit to low-double-digit rates, and it creates the potential to develop new and unique intelligent subsystems using our combined technology offerings. We are excited to welcome the Motion Solutions team as they join Novanta,” Matthijs Glastra, Novanta Chair and CEO.
Obra Capital, an asset management firm, completed the acquisition of Unified Life, a life and health insurance carrier. Financial terms were not disclosed.
“We are pleased to welcome the Unified team and the business and the platform they will continue to grow with Obra. Unified is a natural fit within our evolving and differentiated longevity strategy that is designed to balance longevity and mortality risk to provide investors with expected stable and resilient cash flows, lower overall portfolio volatility, and greater targeted absolute returns. We believe this is a unique offering that extends beyond traditional life settlement longevity investment approaches,” Blair Wallace, Obra Capital President and Chief Executive Officer.
Obra Capital was advised by Gagnier Communications (led by Dan Gagnier).
TD SYNNEX-backed Shyft Global Services, an outsource technology company that offers supply chain management, IT asset disposition, and customer management, completed the acquisition of Cokeva, a computer hardware company offering enterprise computing and measurement equipment. Financial terms were not disclosed.
“When making this strategic decision for Cokeva, we knew we had found the right fit for both our employees and our customers. Shyft’s breadth of service capabilities — in repair and technology lifecycle services — and commitment to its customers are powerful indicators of what can be expected for Cokeva’s employees and customers. We are very proud of what our team has accomplished over the past 30+ years and can’t wait to see what comes next,” Ann Nguyen, Cokeva CEO.
Fisher Investments and Advent say not in deal talks. (FS)
Fisher Investments and Advent International said they were not in deal talks after the Wall Street Journal said that Ken Fisher's money management company was in talks to be acquired by the US-based private equity firm, Reuters reported.
Advent is not buying Fisher Investments, Fisher also dismissed the Wall Street Journal report as "false" and said it was not in sale talks with anyone.
Evercore sees private equity deals bouncing back as funds seek cash for partners.
Private equity firms will face additional pressure to sell assets and return capital to investors after two years of sluggish dealmaking.
The global value of mergers and acquisitions and related transactions fell below $3tn last year for the first time since 2013. Private equity funds were less active as a sharp rise in interest rates made financing deals more expensive and raised the odds of a recession, Bloomberg reported.
Activist ValueAct backs Disney board slate with information-sharing deal. (FS)
Activist investor ValueAct reached a deal to back Walt Disney’s slate of board nominees at the coming 2024 shareholder meeting, bolstering the company’s position as it looks to fight off a proxy battle with rival activist Nelson Peltz, WSJ reported.
Disney signed a confidentiality agreement allowing it to share company information with shareholder ValueAct Capital Management and consult with the firm on strategic matters. The entertainment giant said that the arrangement allows the activist investment firm, which has been building up a stake in Disney, to consult the company through meetings with the board and management.
Fidelity’s X stake fell 72% in value since Musk buy. (FS)
Elon Musk’s X is now worth less than one-third of what the billionaire paid for the company formerly known as Twitter, Bloomberg reported.
The firm, which helped Musk complete his $44bn purchase, cut the value of its holding in X by 19% in its November portfolio update for the Blue Chip Growth Fund. It’s the latest in a series of markdowns by Fidelity since Musk concluded the acquisition of the social media platform in October 2022, as closely held X has struggled to hold on to advertisers and is weighed down by $13bn in debt.
Goldman Sachs raises $650m for life sciences bets.
Goldman Sachs’ asset management arm has completed fundraising for its debut fund dedicated to backing high-technology businesses in healthcare, a sector where many companies have lost significant value since 2021.
The GSAM unit of the New York investment bank has raised $650m for West Street Life Sciences I, through which the firm backs early- and mid-stage businesses focused on areas such as precision medicine, cell therapy, immunotherapy, synthetic biology and artificial intelligence, Goldman said. The fund gives the firm a chance to capitalise on recently reduced company values in the sector.
AllianceBernstein obtains China mutual fund business licence. (FS)
US-based AllianceBernstein has obtained a license to run its wholly-owned mutual fund business in China, making it the latest foreign asset manager to tap China's $3.8tn mutual fund market, DealStreetAsia reported.
"AllianceBernstein will offer Chinese investors onshore investment products and solutions, and help them explore opportunities in China's domestic market," AllianceBernstein.
EMEA
Carrier, a multinational heating, ventilation, and air conditioning, refrigeration, and fire and security equipment corporation, completed the acquisition of Viessmann Climate Solutions, a company that focus on the efficient use of energy and support the customers in reducing their costs and protecting resources and the environment, from Viessmann, a manufacturer of heating and refrigeration systems, for €12bn ($13.2bn).
"The combination with Viessmann Climate Solutions creates the most comprehensive and differentiated suite of sustainable climate technologies and services in the industry today. The transaction, together with the planned exits of our Fire & Security and Commercial Refrigeration businesses, will transform Carrier's business into a higher growth business with a clear focus and mandate on global leadership in intelligent climate and energy solutions," David Gitlin, Carrier Chairman & CEO.
Gi Group, a temporary & permanent recruitment, staffing and jobs provider, completed the acquisition of the European staffing business of Kelly Services, a global specialty talent solutions provider, for €130m ($142m).
“Today is a significant milestone in Kelly’s journey to become a more focused enterprise positioned to accelerate profitable growth. By further streamlining the company’s operating model to focus on higher margin, higher growth business and unlocking significant capital, we have greater flexibility and capacity to invest where we can compete and win over the long term,” Peter Quigley, Kelly President and CEO.
SoftwareOne, a global provider of end-to-end software and cloud technology solutions, completed the acquisition of Novis Euforia, a company that specializes in SAP technology services. Financial terms were not disclosed.
“We have been impressed by Novis Euforia’s growth trajectory, differentiated offering and demonstrated client success, and we are thrilled to welcome the team to SoftwareOne. As an established player in the market, the company is an excellent fit with our strategy as we expand in the fast-growing ~$3bn addressable market for SAP services1 by driving value for our clients through reduced time, risk and cost,” Bernd Schlotter, SoftwareOne President.
SoftwareOne was advised by FGS Global.
Airbus in talks to buy Atos cybersecurity unit for up to $2bn.
Airbus is weighing the purchase of Atos’ cybersecurity and data unit in a deal that would value the business at as much as €1.8bn ($2bn) including debt and help the embattled French software company raise funds, Bloomberg reported.
The European planemaker is in early talks for Atos’s big data and security unit to speed up its digital transformation and enhance its defense and security portfolio. The company said there’s no certainty talks will lead to an agreement. Both parties will now enter a due diligence phase.
M&A pick-up to drive more UK stock market exits.
London’s stock market could shrink further in 2024 as takeover activity swells and new share listings languish, said brokerage Peel Hunt, noting that the pace of M&A had accelerated toward the end of last year.
Smaller companies are especially in focus, Peel Hunt’s head of research Charles Hall said, noting 40 British companies with a value of more than £100m ($126m) had received takeover offers in 2023 and could therefore leave the stock exchange. Meanwhile, initial public offerings have been “minimal” in the past two years, Bloomberg reported.
UBS taps Shawki to lead Gulf dealmaking, hires Deutsche veteran. (People)
UBS named a new leadership team at its Middle Eastern dealmaking unit and hired a Deutsche Bank veteran for its wealth business, bolstering operations in a region that’s emerged as one of the most significant pockets of growth for global banks, Bloomberg reported.
The Zurich-based firm named Hazem Shawki as its head of Middle East and North Africa investment banking, including global banking and markets. Tara Luthra will lead global banking for the Middle East.
APAC
Khazanah Nasional, a private equity firm, and CGC Digital, a fintech company, agreed to invest in Funding Societies, a Southeast Asia’s digital financing platform for small and medium-sized enterprises. Financial terms were not disclosed.
"The investment in Funding Societies reflects our commitment to fostering financial inclusion and bridging the funding gap, especially within the MSME community. Being the backbone of Malaysia's economy and contributing nearly half of the nation's employment, MSMEs are both critical and critically underserved. Hence, this investment aligns with our mission of contributing to nation-building and socioeconomic growth," Amirul Feisal Wan Zahir, Khazanah Nasional Managing Director.
India's top court quashes pleas on further probe into Adani Group.
India's Supreme Court said Adani Group does not need to face more investigations beyond the current scrutiny of the market regulator, a major relief for the conglomerate hit hard by a US short-seller's allegations of wrongdoing, DealStreetAsia reported.
The Securities and Exchange Board of India has been probing the Adani Group, led by billionaire Gautam Adani, after Hindenburg Research in January 2023 alleged improper use of tax havens and stock manipulation by the group.
SK Hynix aims to raise $1b in dollar bond deal.
South Korea's SK Hynix, the world's second-biggest memory chipmaker, aims to raise up to $1bn in a dollar bond deal, DealStreetAsia reported.
The firm has appointed eight investment banks to work on the deal which could have three- and five-year tenors. SK Hynix reported combined operating losses of KRW8.1tn ($6.19bn) during the first three quarters of 2023, driven by a prolonged slowdown in demand for commodity chips used in smartphones and computers.
Philippine stock exchange expects to double IPOs in 2024.
The Philippine Stock Exchange expects the number of initial public offerings to double in 2024, after a sluggish year that saw more delistings than debuts, Bloomberg reported.
The bourse sees six companies going public this year starting with Citicore Renewable Energy, President Ramon Monzon. The exchange recorded three IPOs last year — far below its target of 14 — while four companies voluntarily delisted.
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