AMERICAS
dMY Technology Group, a publicly-traded special purpose acquisition company, agreed to merge with Rush Street Interactive, an online casino and sports wagering company, in a $1.8bn deal.
"We started RSI in 2012 to create a fun and engaging online experience for the US gaming customer and we now have a great opportunity to accelerate our growth in this dynamic market. We are looking forward to investing further in market expansion, product innovation, and growing our talented team," Greg Carlin, Rush Street Interactive CEO.
Rush Street Interactive is advised by Jefferies & Company, Needham & Co, Oakvale Capital, Kirkland & Ellis, Culloton + Bauer Luce, Gasthalter & Co and Lisa Johnson Communications. dMY Technology Group is advised by Goldman Sachs, Cleary Gottlieb Steen & Hamilton, Greenberg Traurig and White & Case.
Schultze Special Purpose Acquisition, a blank check company, agreed to merge with Clever Leaves International, a multi-national cannabis operator, in a $255m deal. The combined public company will be listed on Nasdaq.
"Clever Leaves is well-positioned for substantial growth and profitability. We view the transaction valuation as highly attractive to investors, and upon closing, we expect Clever Leaves to be among the best-capitalized companies in the cannabis industry. We believe that our strategic alignment, coupled with our own background in successfully building businesses, including through targeted M&A, has the potential to create significant value for shareholders over time," George J. Schultze, SAMA Chairman and CEO.
SAMA is advised by Canaccord Genuity, EarlyBirdCapital, Greenberg Traurig, Posse Herrera & Ruiz, Stikeman Elliott, ICR and KCSA Strategic Communications. Clever Leaves is advised by Cowen & Company, Brigard & Urrutia, Dentons and Freshfields Bruckhaus Deringer.
Pure Acquisition, an oil and gas exploration and production focused special purpose acquisition entity, amended its business combination agreement with HighPeak Energy, an oil and natural gas company, to finalize the merger consideration for those Pure stockholders who participate in the business combination.
Each Pure stockholder who participates in the HighPeak Energy business combination will receive the following consideration: one share of HighPeak Energy common stock, a cash payment equal to the amount, if any, by which the per-share redemption value of Pure's Class A common stock exceeds $10 per share at the closing of the business combination and which is estimated to be approximately $0.63 per share, one contingent value right at the closing of the business combination in exchange for each share of Pure Class A common stock and one full warrant to purchase HighPeak Energy common stock for $11.50 per share.
HighPeak Energy is advised by Vinson & Elkins. Pure Acquisition is advised by EarlyBirdCapital, Jefferies & Company and Hunton Andrews Kurth. Jefferies & Company is advised by Latham & Watkins.
SK Capital, a private investment firm focused on the specialty materials, chemicals and pharmaceuticals sectors, agreed to acquire the specialty polymers business of Baker Hughes, an American international industrial service company. Financial terms were not disclosed.
"The specialty polymers business is a pioneer in the development of specialized polymerization technologies. We see tremendous opportunity for growth by further developing functional, solutions-oriented products that solve problems and create significant value for customers," Mario Toukan, SK Capital Managing Director.
SK Capital Partners is advised by Morgan Lewis & Bockius. Debt financing is provided by KeyBanc Capital Markets. Baker Hughes is advised by Evercore and King & Spalding.
CNX Resources to acquire the remaining stake in CNX Midstream Partners for $357m.
CNX Resources, one of the largest independent natural gas exploration, development and production companies, agreed to acquire the remaining stake in CNX Midstream Partners, a company that owns, operates, develops and acquires gathering and other midstream energy assets, for $357m.
"We believe that this take-in transaction of CNX Midstream Partners is the optimal solution for all relevant stakeholders given the near- and long-term view of the MLP market. We expect the combined entity to be an even stronger company with a lower cost of capital and increased investable free cash flow," Nicholas J. DeIuliis, CNX Resources President and CEO.
CNX Midstream Partners is advised by Intrepid Advisors and Baker Botts. CNX Resources is advised by Citigroup and Latham & Watkins.
Atlas Holdings, a private investment and equity firm, agreed to acquire the Americas business of Exide Technologies, a global provider of stored energy solutions, for $179m.
"We are gratified to have generated strong interest in our Americas business and delighted to have reached this agreement with affiliates of Atlas, an investor with significant operational and financial resources and a proven track record of building strong, high-performance organizations. Under new ownership, our Americas business will continue delivering high-quality energy storage solutions and service to our customers, maximizing future growth and profitability," Tim Vargo, Exide Technologies Chairman, President, and CEO.
Exide Technologies was advised by Ankura Consulting, Houlihan Lokey, Weil Gotshal and Manges and Kekst CNC. Atlas Holdings is advised by Winston & Strawn.
Private equity firm Oak Hill Capital offered to acquire Otelco, a wireline telecommunication services provider in Alabama, Maine, Massachusetts, Missouri, New Hampshire, Vermont and West Virginia, for $106m.
"Like much of the telecommunications industry, Otelco is rapidly deploying technology, including fiber to the premise, to increase internet speeds for our customers. We have invested in fiber network construction over the last several years in response to the demand for higher bandwidth and have demonstrated our ability to deliver the necessary technology. Oak Hill has invested capital in other telecommunications providers to advance the deployment of the technology needed to support up to one gigabit internet speeds. Oak Hill's commitment to facilitate Otelco's growth will allow the Company to accelerate fiber growth plans that would not have been possible within our existing capital structure," Richard Clark, Otelco President and CEO.
Otelco is advised by Houlihan Lokey, Lazard and Troutman Pepper. Oak Hill is advised by Paul Weiss Rifkind Wharton & Garrison.
Element Materials Technology completed the acquisition of Analytical Lab Group from Thompson Street Capital Partners. (FS)
Element Materials Technology, one of the world’s largest providers of materials and product qualification testing, inspection and certification services, completed the acquisition of Analytical Lab Group, a microbiology and viral lab, from Thompson Street Capital Partners, a private equity firm based in St. Louis. Financial terms were not disclosed.
"Led by our talented team, ALG has become a lab of scale with the right combination of breadth of services and agility to meet clients’ needs. TSCP has been extremely supportive of organic and inorganic investments, including a recent expansion of one of our labs to conduct SARS CoV2 antimicrobial testing. ALG has become a ‘go-to’ lab amongst our customers during TSCP’s ownership period and will continue providing these same, great services," Alan Roth, ALG CEO.
Analytical Lab was advised by Houlihan Lokey and Sidley Austin. TSCP was advised by BackBay Communications.
DC Capital Partners completed the investment in PBK Architects. (FS)
Private equity firm DC Capital Partners completed the investment in PBK Architects, a full-service architectural planning and design firm. Financial terms were not disclosed.
"PBK is a nationally recognized leader in education design. The company possesses all of the characteristics we seek in our investments: PBK is extremely well regarded by its customers, possesses a distinguished track record of innovation and design excellence, has an experienced leadership team and highly trained workforce, and they operate with the highest ethical standards," Thomas J. Campbell, DC Capital Founder and Managing Partner.
PBK was advised by Benchmark International and Nelson Mullins Riley & Scarborough. DC Capital was advised by Arnold & Porter Kaye Scholer.
Roadrunner Transportation Systems, an asset-right transportation and asset-light logistics provider, is set to spin-off Ascent Global Logistics, a freight management company. Financial terms were not disclosed.
"With the actions announced today, we are left with two companies positioned to deliver significant value for their customers and investors," Chris Jamroz, Roadrunner Transportation Systems Executive Chairman.
Roadrunner Transportation Systems is advised by American Stock Transfer & Trust, Lincoln International and Greenberg Traurig.
Black Knight, a provider of integrated software, data and analytics to the mortgage and real estate industries, agreed to acquire Optimal Blue, a provider of secondary market solutions and actionable data services, from private equity firm GTCR for $1.8bn.
In connection with the acquisition, Black Knight will combine its Compass Analytics business with Optimal Blue in a newly formed entity with minority co-investors Cannae Holdings and Thomas H. Lee Partners. Black Knight will own approximately 60% of the new entity.
"Optimal Blue and Black Knight share similar strategies for innovation, integration and client focus, as well as a similar culture, which is key to successfully integrating premier companies. We are excited about the opportunity to be part of Black Knight where there is such a great strategic fit, strong client base and so many opportunities to deliver innovative solutions that will add value to our clients," Scott Happ, Optimal Blue CEO.
Cannae is advised by Solebury Trout. Black Knight is advised by Weil Gotshal and Manges.
Perpetual, a diversified financial services company, agreed to acquire Barrow Hanley, Mewhinney & Strauss, a provider of investment management services, from BrightSphere Investment Group, an American holding company. Financial terms were not disclosed.
"This is a compelling acquisition. It provides Perpetual with world-class investment teams, diversify our client base by sector and geography, and presents us with significant growth opportunities in the Australian market and a formidable platform to scale our business internationally," Rob Adams, Perpetual CEO and Managing Director.
Barrow Hanley, Mewhinney & Strauss is advised by JConnelly. Perpetual is advised by Domestique.
AES, a Fortune 500 company that generates and distributes electrical power, proposed to acquire an 18.51% stake in AES Tiete Energia, a power generation company, from BNDES Participacoes, a provider of banking services. AES offered to buy 65% of BNDES’ stake in AES Tiete,
Reuters reported.
BNDES assumes the offer by AES could trump the $1.43bn bid made by Brazillian power company Eneva, and will now analyze it. AES offered to pay BNDES in cash, while Eneva’s bid offers AES Tiete shareholders both cash and new shares after both companies merge.
Francisco Partners, a global technology-focused investment firm, completed the investment in GAINSystems, a software company in Chicago. Financial terms were not disclosed.
"The value realized by GAINSystems’ extremely satisfied customer base has fueled the company’s rapid growth and leadership recognition by Gartner and other industry analysts. GAINSystems provides the most comprehensive supply chain planning suite in the industry, all delivered by a single technology platform and a proven results-focused implementation methodology. This enables customers to realize significant return-on-investment in a very rapid timeframe," Adam Solomon, Francisco Partners Principal.
Veolia intends to sell North American water treatments assets.
Veolia Environnement, which operates utility and public transportation businesses, is planning a sale of its North American water treatment assets, which could fetch as much as $580m,
Bloomberg reported.
The company is working with an adviser to review options for operations serving municipal customers. Veolia could decide late this year whether to proceed with a sale.
Veolia intends to sell about $3.5bn of assets by the end of 2023 to help fund new investments. Last year, Veolia completed the sale of its North American heating and cooling networks to Antin Infrastructure Partners in a $1.25bn deal that helped it toward that purpose.
Duck Creek Technologies files for Nasdaq IPO. (FS)
Apax Partners-backed Duck Creek Technologies, a Boston-based creator of software for the property and casualty insurance industry, filed for an IPO on the Nasdaq.
Madison Dearborn nears $4.5bn fundraising goal. (FS)
Chicago-based private equity firm Madison Dearborn Partners raised more than $4bn toward a $4.5bn target for the firm's eighth flagship fund.
The private equity firm's previous flagship effort inked $4.4bn in commitments. Madison Dearborn pursues middle-market and upper-middle-market deals in sectors including business services, financial services, healthcare and media.
Fundamental Advisors seeks to raise $1bn for latest fund. (FS)
Fundamental Advisors, an alternative asset management firm dedicated to municipal and public purpose investing, seeks to raise $1bn for its latest control-oriented fund, a regulatory filing shows.
The firm didn’t list any commitments to its Fundamental Partners IV LP in the filing,
WSJ reported.
Via Motors seeks to raise $250m in funding round. (FS)
Via Motor, an American electric vehicle development and manufacturing company, is working with a financial adviser to raise about $250m in funding that would value it at $1bn following the investment,
Bloomberg reported.
Via Motors, which would use the proceeds for product development, is also in talks with logistics companies to invest in the funding round. The company's plans aren't final, and the terms could still change.
SAP-backed Qualtrics plans an IPO.
The German software company SAP considers an IPO for Qualtrics, the US experience management company that it
acquired for $8bn in 2018. SAP will retain a majority shareholding and Ryan Smith, Qualtrics' founder and CEO, plans to be the company’s largest individual shareholder,
FT reported.
While Qualtrics had "performed above and beyond all expectations" an IPO was now a "win-win" for both sides, Christian Klein, SAP’s chief executive said.
Canadian Solar considers listing of its modules business in China.
Canadian Solar, a publicly traded company that manufactures solar PV modules and runs large scale solar projects, considers listing of its modules and system business on either the Shanghai Stock Exchange’s Science and Technology Innovation Board or the Shenzhen Stock Exchange’s ChiNext Market.
“Canadian Solar shareholders, as owners of the China IPO issuer, will continue to own the solar manufacturing business and benefit from its potential growth upside,” Shawn Qu, Canadian Solar Chairman and CEO.
EMEA
Hughes Network Systems, a broadband satellite networks and services provider, agreed to join Britain and a mobile operator Bharti Global in bidding for a bankrupt OneWeb, a broadband mega constellation startup. Hughes Network Systems will contribute $50m to the consortium.
"We are pleased to be part of this winning team, along with the British Government and Bharti. Our continuing and strengthened involvement with OneWeb extends naturally from our position as a leading geostationary satellite operator and ground network innovator, along with a meaningful partnership with Bharti and longstanding relationship with the UK through our business operations in both countries," Pradman Kaul, Hughes President.
OneWeb is advised by Guggenheim Partners, Milbank, and FTI Consulting. Bharti Global is advised by Standard Chartered Bank, Cravath Swaine & Moore, and Herbert Smith Freehills. HMG is advised by Lazard and Weil Gotshal and Manges.
Eurazeo, a private equity firm, offered to acquire a majority stake in EasyVista, an IT service management company, for $93m. This price represents a premium of 7.7% compared to the volume-weighted average trading prices of the last 30 trading days.
The board of directors of EasyVista held on July 22, 2020, welcomed the proposed transaction favourably, without prejudice of the review of the tender offer documentation when such documentation will be made available.
EasyVista is advised by NewCap. Eurazeo is advised by Maitland.
Alpha Bank, the second-largest Greek bank, completed the acquisition of remaining shares in Cepal, a special servicing company, from private equity firm Centerbridge. Financial terms were not disclosed.
Alpha Bank now plans to sell all of Cepal to international investors, with a view to creating the largest independent loan servicing company in the Greek market, it said.
Alpha Bank was advised by Citigroup.
LEA Partners-backed LANDWEHR Group, a software company, agreed to merge with prosoft Group, an HCM software provider. Financial terms were not disclosed.
"By combining the best of both worlds, we take everything to a new, the next level. We are creating perspectives that are truly fantastic. Together we will improve and expand our product line and our market leadership. Our vision is to be the strongest possible partner in every part of an industry that is focused on managing staff and staff hours and has to meet complex legal regulations," Marc Linkert, LANDWEHR Managing Director.
LANDWEHR is advised by GCA Altium.
Safe Orthopaedics, a company specializing in the design and marketing of ready-to-use technologies for spinal surgeries, agreed to acquire a 92% stake in LCI Medical, a provider of tailor-made medical devices. Financial terms were not disclosed.
"Safe Orthopaedics acquires today the company LCI Medical, leading to the creation of an integrated industrial group on medical sector, three times larger than the group Safe Orthopaedics before the operation. We now control conception, production and worldwide distribution of Safe Orthopaedics technologies. Our objective is to offer our customers short innovation cycles and innovative logistic and commercial services," Pierre Dumouchel, Safe Orthopaedics CEO and Co-Founder.
Safe Orthopaedics is advised by Ulysse Communication.
Atos, a European multinational information technology service and consulting company, agreed to acquire EcoAct, a carbon reduction strategy consulting firm. Financial terms were not disclosed.
"The acquisition of EcoAct is a major step towards our decarbonization ambition. Combining the leading position of EcoAct in climate strategy consultancy and offset project development with our decarbonization portfolio of solutions and services and our go-to-market will step-change our customers' journeys to Net Zero," Elie Girard, Atos CEO.
Private equity firm TSG Consumer Partners completed an $80m investment in Revolut, a British financial technology company.
Revolut stated that the extra money will be used to finance the addition of new features in the US and the roll-out of its operations across Europan markets.
Lukoil to acquire a 40% interest in Senegal project from Cairn Energy for up to $400m.
Lukoil, a Russian multinational energy corporation, agreed to acquire a 40% interest in the Rufisque, Sangomar and Sangomar Deep project in the Republic of Senegal for up to $400m in cash from Cairn Energy, an independent oil and gas exploration and development company.
The Russian energy company will pay an initial sum of $300m to Cairn with a potential bonus payment of $100m once production starts.
Cairn Energy is advised by Rothschild & Co, Jefferies & Company and Brunswick Group.
CDP considers the acquisition of a majority stake in Autostrade in IPO. (FS)
Cassa Depositi e Prestiti, an Italian investment bank, could acquire a majority stake in Atlantia's motorway unit Autostrade in an IPO to allay investors concerns over the price of the asset,
Reuters reported.
TCI, an investor in infrastructure group Atlantia, demanded that the sale of the unit should be carried out "transparently, in accordance with market standards" and asked the government to start a competitive auction to sell Autostrade or to demerge it and list it to create the conditions for Atlantia to sell its controlling stake in the motorway unit to CDP at a "fair" price.
Atlantia is advised by Bank of America Merrill Lynch, JP Morgan and Mediobanca.
Atos in talks to acquire digital.security.
Atos, a European multinational information technology service and consulting company, entered into exclusive negotiations with shareholders of digital.security, a provider of cyber security auditing, consultancy and training services, with a view of acquiring the company.
"With this strategic move, Atos confirms its position as a leader on the French and European cybersecurity market. digital.security’s experienced and certified consultants will strengthen the Atos team and will double its cybersecurity resources in France. In the wake of our latest acquisitions, the acquisition of digital.security demonstrates our ambition to become the key cybersecurity provider for global organizations in their digital journey," Pierre Barnabé, Atos Senior Executive Vice-President and Head of Big Data & Cybersecurity.
Gordon Brothers completed the sale of assets of Bibby Hydromap.
Gordon Brothers, a US advisory, lending and investment firm, completed the sale of assets of Bibby Hydromap, which provides hydrographic, geophysical, unexploded-ordnance, remotely-operated-vehicle and asset inspection surveys. Financial terms were not disclosed.
"Gordon Brothers are pleased to have managed the successful auction and helped to fulfil the joint administrators’ goals of selling a wide range of equipment and unlocking value in the company’s assets," Mark Lord, Gordon Brothers Director.
Citi creates a London team to target fundraising for private companies.
Citigroup created a new team of dealmakers to target fundraising for private companies in Europe. Citi was the latest large investment bank to do so as IPOs in the region have dried up and demand for alternative sources of funding has exploded,
PE News reported.
The company has launched a unit in London with a team of five investment bankers, covering equity raising for private companies and so-called special purpose acquisition companies which have surged globally during the coronavirus pandemic.
APAC
Tilden Park-owned Bay Tree India Holdings, an investment holding company, completed the acquisition of a 7.78% stake in Yes Bank, an Indian bank, for $299m.
Yes Bank intends to utilize its net proceeds from the investment towards ensuring adequate capital to support its growth and expansion, including enhancing its solvency and capital adequacy ratio.
Tilden Park was advised by AZB & Partners.
Juwai IQI, a privately held real estate sales and media company, agreed to merge with The RINA Group, one of Malaysia's largest real estate agency groups. Financial terms were not disclosed.
"This is an exciting opportunity to unite two world-class teams and become a bigger regional powerhouse. We are excited by the opportunities this move creates and more than delighted to have the RINA Group and its associates join us," Kashif Ansari, Juwai IQI Executive Director.
DP World to acquire a 60% stake in UNICO Logistics.
DP World, the Dubai-based provider of worldwide smart end-to-end supply chain logistics, agreed to acquire a 60% stake in UNICO Logistics, a multimodal transport specialist. Financial terms were not disclosed.
"DP World's vision is to become the leading end-to-end supply chain solutions provider. By integrating Unico into our worldwide network we will be able to offer better service to our customers in South Korea and beyond. These new services further strengthen our logistics capabilities, which we are combining with our maritime services operations and our worldwide network of ports and terminals," Sultan Ahmed Bin Sulayem, DP World Group Chairman and CEO.
Malaysia Airlines, AirAsia merger is unlikely. (FS)
A merger between low-cost airline AirAsia and Malaysia Airlines, a subsidiary of Khazanah Nasional, can face difficulties due to the different business model and work culture of the entities, Shahril Ridza Ridzuan, Khazanah Nasional Managing Director said.
"Malaysia requires both low-cost operators as well as a higher-value operator like MAS to co-exist, because you need to address multiple segments of the market. So I think for the long-term strategy of Malaysia, it is important to provide enough choice, not only for Malaysians to fly, but for international travellers to come to the country as well," Shahril Ridza Ridzuan, Khazanah Nasional Managing Director.
Tigermed aims to raise $1.38bn in Hong Kong listing.
Hangzhou Tigermed Consulting, a China-based company principally engaged in the provision of clinical research services, considers raising up to $1.38bn in its Hong Kong listing, which could make the firm the largest healthcare transaction in Asia in 2020.
Each Tigermed stock could be priced between $11.35 and $12.90, and the company will sell 107m shares in the deal. The shares sold represent a 12.5% stake in the company.
Li Auto seeks to raise $950m in US IPO.
Li Auto, which develops, manufactures and sells smart sport utility vehicle, is seeking to raise up to $950m in a US IPO. The company plans to sell 95m shares at $8 to $10 apiece, it said in a filing with the US SEC.
Li Auto will start trading on the US market as other electric-vehicle makers. Shares of NIO, a Chinese rival, have close to doubled since it went public in 2018. Nikola started trading this year through a
reverse merger with a SPAC, while Fisker is in talks to do the same.
China's new mini-IPO market gets off to frenzied trade.
China's newly-created mini-IPO market started trading on Monday in a frenzy as circuit breakers were triggered for both surging and slumping stocks on their debuts,
Reuters reported.
The price falls, in particular, are very rare in new listings in China, which is aiming to help the country's small firms access capital quickly through the unique IPO platform and grow the next generation of innovative companies.
Sherpa Healthcare Partners closes maiden US dollar fund. (FS)
Sherpa Healthcare Partners, a healthcare investment company, reached the final closing of its maiden US dollar fund,
DealStreetAsia reported.
The company will make equity investments in early and growth-stage company investments in biomedicines, medical diagnostic devices and healthcare services sectors.
