Centene Corp and Wellcare Health Plans agreed to sell Wellcare’s Missouri and Nebraska Medicaid plans for people with low income to Anthem, a provider of health insurance in the United States, as the companies look to close their merger $15.3bn deal. The agreement was announced in March 2019.
Goldman Sachs and Kirkland & Ellis are advising WellCare. Cleary Gottlieb Steen & Hamilton is advising Goldman Sachs. Allen & Company, Barclays, Evercore, JP Morgan and Skadden Arps Slate Meagher & Flom are advising Centene.
European Union antitrust regulators are set to open a full-scale investigation into Boeing’s $4.8bn bid for a controlling stake in Embraer’s commercial aircraft arm. The European Commission’s current review of the deal is scheduled to end on October 4.
Citigroup, Pinheiro Neto, Barbosa Mussnich & Aragao and Skadden Arps Slate Meagher & Flom are advising Embraer. Cleary Gottlieb Steen & Hamilton is advising Citigroup. Simpson Thacher & Bartlett is advising Boeing.
NorthStar Realty Europe, a real estate investment trust company, announced that its stockholders approved the proposed merger with a wholly-owned subsidiary of a fund managed by AXA Investment Managers. NRE stockholder approval was a condition to the closing of the transactions contemplated by the merger agreement. The closing of the merger remains subject to certain other customary closing conditions. The deal was announced in July.
Goodwin Procter, Goldman Sachs, Clifford Chance, Fried Frank Harris Shriver & Jacobson, Sullivan & Cromwell, Venable and Vinson & Elkins are advising NorthStar Realty. KPMG, CBRE, Deutsche Bank and DLA Piper are advising AXA.
GTCR and Golden Gate Capital invested in Cole-Parmer Instrument Company, a leading global manufacturer of peristaltic, temperature monitoring, and environmental precision equipment and related consumables. Financial terms were not disclosed.
"We are grateful to Jim Rauh and the Golden Gate Capital team for their collaboration and are very proud of the strategic and operational progress we have made. Together, we have been able to execute on numerous growth initiatives, including a deepened focus on product innovation, establishing us at the forefront of our industry. We are delighted to be renewing our successful partnership with GTCR and look forward to working with both firms, who share our vision and commitment to continuing Cole-Parmer's evolution into a diversified products company focused on the life sciences, healthcare and environmental end-markets." Bernd Brust, CEO of Cole-Parmer.
Jefferies & Company is advising Cole-Parmer. Baird, Kirkland & Ellis and Nob Hill are advising Golden Gate Capital. Latham & Watkins is advising GTCR.
Private equity firm TPG Capital canceled its agreement to buy oilfield water management company Goodnight Midstream for $930m. The parties terminated TPG’s deal to buy a majority stake in Goodnight from Tailwater Capital on July 5 because Goodnight was unable to satisfy certain closing conditions.
CORE Industrial Partners, a Chicago-based private equity firm, acquired FATHOM, an advanced manufacturer with an expertise in 3D printing and additive manufacturing. Financial terms were not disclosed.
“The acquisition of FATHOM aligns well with our previously stated intention to build a leading Industry 4.0 additive manufacturing company. From customer bases to technical expertise and additive manufacturing capabilities, MCT and FATHOM are highly synergistic, and we’re looking forward to further building out the platform through additional complementary acquisitions and continued organic growth.” Matthew Puglisi, a Partner at CORE.
Stifel is advising FATHOM. Winston & Strawn is advising CORE.
Vista Equity Partners, a leading investment firm focused on enterprise software, data, and technology-enabled businesses, invested in Acquia, the open digital experience company. Financial terms were not disclosed.
This news follows Acquia’s recent strategic acquisitions of Mautic and Cohesion which have expanded the company’s offerings to customers. It will enable Acquia to grow its presence in the digital experience platform market as it continues to innovate and serve the world’s most ambitious brands.
Goldman Sachs and Goodwin Procter are advising Acquia. Kirkland & Ellis is advising Vista Equity Partners.
PJT Partners, a global advisory-focused investment bank, and Nasdaq, a leading global provider of trading, clearing, exchange technology, listing, information and public company services, formed a joint venture to provide enhanced execution capabilities for general partner-sponsored secondary transactions built on world-class advisory services and industry-leading technology. Financial terms were not disclosed.
"This partnership is an exciting next step for Nasdaq in our focus on delivering next-generation technology to the world’s capital markets. NPM pioneered the structure and standards for private company secondary transactions, and PJT Partners is an industry leader in advising and managing secondary transactions for GPs and LPs. Together, we can apply world-leading technology to transform the market for GP-led secondary transactions.” Adena Friedman, President and Chief Executive Officer of Nasdaq.
SS&C Technologies, a global provider of investment and financial services and software for the financial services and healthcare industries, agreed to acquire Algorithmics assets from IBM, an American multinational information technology company. Financial terms were not disclosed.
"The companies we serve, face a rapid pace of regulatory change and increasing need for integrated real-time and predictive analytics. The addition of Algorithmics enables us to empower clients in the global financial services industry with innovative, cloud-based solutions and premium services to help them navigate enterprise risk successfully." Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies.
Strattam Capital, a private equity firm, invested in MHC Software, a leader in enterprise content automation and document management software solutions. Financial terms were not disclosed.
"We continue to be laser-focused on delivering solutions that allow our customers to achieve significant productivity gains. We are very excited to partner with Strattam. We share a common vision of investing in MHC to drive increased innovation for our customers. We are also thrilled to welcome Vanguard to the MHC family. Vanguard is a highly strategic acquisition that extends our reach into new ERP ecosystems and brings novel capabilities that we look forward to introducing to our existing customers." MHC Software CEO Gina Armada.
DC Advisory advised MHC Software. Madison Capital provided debt financing.
Private equity firm Bertram Capital invested in Solo Stove, a leading designer and supplier of portable, low-smoke fire pits and camping stoves. Financial terms were not disclosed.
"Solo Stove is one of the first digitally native outdoor brands to achieve critical mass. The company excels at designing products that are loved by ultralight hikers, car campers, and backyard enthusiasts alike. We see a tremendous opportunity for our in-house IT group, Bertram Labs, to augment the company's digital capabilities and help accelerate brand awareness." Ryan Craig, Partner at Bertram Capital.
Inspire Brands, a multi-brand restaurant company whose portfolio includes more than 8.3k Arby's, Buffalo Wild Wings, SONIC Drive-In and Rusty Taco locations worldwide, agreed to acquire Jimmy John's, an American franchised sandwich fast-food restaurant chain. Financial terms were not disclosed.
"Jimmy John's is a great fit for the Inspire family. What started in 1983 as a sandwich shop in a converted garage in Charleston, Illinois, has grown into a national, differentiated brand with a passionate fanbase. We are excited to welcome the Jimmy John's brand to Inspire and look forward to working with their team and franchisees to help the company achieve its next stage of growth." Paul Brown, Co-Founder and Chief Executive Officer of Inspire Brands.
Phoenix Sports Partners, a sports technology and data investment fund, acquired a majority stake in Atavus Football, a football tackling analytics and certification platform. Financial terms were not disclosed.
"Atavus is a natural fit within our portfolio. Our goal at Phoenix is to find companies that are changing the game, like Atavus, and give them access to the tools and connections that will fuel their continued growth and have a lasting impact on the markets we serve." Brian Kopp, Group CEO and Partner at Phoenix.
LoCorr Funds, a leading provider of low-correlating investment strategies, acquired Steben & Company, an alternative investment innovator that launched its business in 1989. Financial terms were not disclosed.
“This is a very exciting time for our business. The acquisition of Steben & Company was a natural fit and will increase our ability to offer a growing suite of solutions to our partners, with the ultimate goal of diversifying portfolios.” Kevin Kinzie, Chief Executive Officer of LoCorr Funds.
SoftBank is expected to invest an additional $1bn into WeWork after delayed IPO. (FS)
SoftBank is planning to pump an extra $1bn or more into WeWork by renegotiating a warrant agreement struck before falling valuations delayed the US office-sharing startup's IPO, Reuters reported.
A new deal would reduce the price per share at which SoftBank acquires WeWork stock, giving it a more significant stake in the unprofitable property group.
WillScot looking to acquire Mobile Mini.
WillScot, the largest US provider of mobile office trailers, has made an offer to acquire Mobile Mini, the biggest US provider of portable storage solutions, Reuters reported.
WillScot has made an offer that values Mobile Mini in the mid-to-high $30s per share range and would be funded for the most part by using WillScot shares as currency.
Negotiations between the two companies are ongoing, and there is no certainty that a deal will be reached.
Lightsource BP to fund solar projects across four states in the US. (FS)
Lightsource BP announced that it has successfully raised over $140m in funding, including the tax equity investment and long-term debt financing, for a portfolio of seven utility-scale solar photovoltaic projects across the US.
"We are pleased to be working with Guardian Life and NatWest to finance this 125-megawatt portfolio of solar projects. The transaction demonstrates the quality and bankability of our developed assets, Kevin Smith, Lightsource BP CEO.
Light Wave Dental Management and CarolinasDentist come together to form a strategic partnership. (FS)
Light Wave, a portfolio company of middle-market private equity firm Alpine Investors, has formed a strategic alliance with dental group CarolinasDentist. Financial terms of the deal have not been disclosed.
"CarolinasDentist's high-quality dental practice and patient-first approach make them a highly complementary fit with Light Wave and Alpine Investors." Daniel Cohen, Alpine Investors Vice President.
Apollo to bring new leaders on board. (FS, People)
Apollo announced several leadership changes across its investing business. Matt Nord and David Sambur promoted to Co-Lead Partners of Private Equity, Olivia Wassenaar and Geoff Strong promoted to Co-Leads of Natural Resources and Dylan Foo Joins Apollo as Co-Lead of Infrastructure.
"These new appointments reflect Apollo's deep reservoir of proven investment talent and lay the foundation for the firm's next generation of leadership," Leon Black, Apollo Founder, Chairman, and CEO.
Divvy raised $43m in Series B round. (FS)
Divvy raised a $43m in Series B from investors including GIC, Lennar, Andreessen Horowitz, and Caffeinated Capital. The company is the developer of a homeownership platform that helps customers build equity as they rent.
Spire Global raised $40m in a financing round led by Bessemer Venture Partners and Qualcomm Ventures. (FS)
Spire Global, which uses proprietary satellite data to forecast weather and track ships and airplanes, raised $40m from investors including Bessemer Venture Partners and Qualcomm Ventures. The San Francisco-based company last raised $70m at a $345m valuation in 2017.
The Swiss anti-trust authority approved Sunrise Communications' $6.4bn deal to buy Liberty Global's UPC business. Sunrise, which is locked in a feud with its largest investor, Germany's Freenet, which opposes the deal, now plans an extraordinary shareholders meeting on Oct. 23 to vote on a capital increase needed to fund the takeover.
"The Swiss Competition Commission has decided to raise no objections to the acquisition of UPC Switzerland by Sunrise, and has now approved the transaction," Sunrise said on Thursday. "The approval was granted without any conditions or stipulations being imposed."
PwC, Deutsche Bank, Morgan Stanley, UBS, Latham & Watkins, Meyerlustenberger Lachenal, Slaughter & May, Deloitte, NautaDutilh, and Lenz & Staehelin are advising Sunrise. Credit Suisse, JP Morgan, Lion Tree Advisors, and Shearman & Sterling are advising Liberty Global.
Omnes Capital-backed Batiweb, a business to business service in Montigny-le-Bretonneux, France, acquired Archionline, a construction company in Paris. Financial terms were not disclosed.
"After two years of particularly active support, we are pleased with this 4th external expansion which gives Batiweb a strong expertise in the digitization of work from A to Z which is for we the promising market segment." Frédéric Mimoun, Senior Vice President of Investments at Omnes.
Financiere des Entrepreneurs and Vaughan are advising Archionline. NG Finance, Oderis and LL-Berg are advising the buyers. Idinvest Partners and Villechenon are providing debt financing.
Endless, the mid-market private equity investor, has completed the acquisition of Moda Furnishings, UK’s leading independent omnichannel outdoor furniture retailer. Financial terms were not disclosed.
“Moda has quickly grown into a market-leading business with high quality, premium products and a commitment to superb service with 5-star ratings on Trustpilot. Endless was able to offer shareholders a rapid, highly deliverable transaction despite the ongoing economic and political environment caused by Brexit – closing the deal only four weeks from agreeing on outline terms. We believe this is a business with fantastic potential and we’re delighted to be able to support Jonathan and Vallan on the next stage of their journey.” Mathew Deering, Endless Manchester Partner.
Convex Capital and Freeman Fisher advised Moda Furnishings. Kin and Carta, Deloitte, KPMG and DLA Piper advised Endless.
Apollo acquired a controlling stake in AGROB Immobilien, a German real estate business, from HVB, a wholly-owned subsidiary of UniCredit Bank, at a €98m ($108m) valuation.
“We are excited for the Apollo Funds to acquire a majority stake in AGROB. Apollo has been one of the most active investors in the German office space over the last several years, and this transaction represents an opportunity to grow our portfolio in one of Germany’s strongest markets.” Sebastian-Dominik Jais, Partner at Apollo.
Maitland is advising Apollo. Rothschild & Co is advising HVB.
Bakkafrost, a Faroese salmon farming company based in Glyvrar on the island of Eysturoy in the Faroe Islands, acquired 68.6% of The Scottish Salmon Company, a leading salmon farming company with operational headquarters in Edinburgh, Scotland. The deal values the target at $639m. Once the acquisition is completed, Bakkafrost will launch a mandatory tender offer for the rest of The Scottish Salmon Company.
"Bakkafrost's journey has been characterized by delivering industry-leading growth and profitability combined with a focus on shareholder value creation. The Scottish Salmon Company represents an attractive acquisition at this juncture providing exposure to the attractive and premium Scottish salmon farming region with potential for synergies and transfer of best practices. The entire Bakkafrost team is looking forward to working with the SSC management team to continue to enhance performance of the business and drive value in the years ahead." Regin Jacobsen, CEO of Bakkafrost.
Daiwa Securities is advising The Scottish Salmon Company. DNB, Goldman Sachs and Nordea are advising Bakkafrost.
3i Infrastructure, a leading European investment firm, completed its $245m acquisition of Ionisos, a manufacturer of medical sterilization devices, from Ardian. The deal was announced in July.
"Ionisos is a defensive business which has grown organically and through bolt-on M&A. We look forward to working with the management team to continue its strong track record of providing market-leading services while growing its presence across Europe." Phil White, 3i Infrastructure Investment Manager.
Delaby & Dorison advised Ionisos. Natixis Partners and Weil Gotshal and Manges advised Ardian.
European investment firm Squircle Capital acquired MB92, the world-leading superyacht refit, repair and maintenance group. Financial terms were not disclosed.
“In just a few years, MB92 has managed to carve out a unique position, not only as a leader within the sector but also as an exemplary provider of refit, repair and maintenance services for superyachts. As private equity managers, it is refreshing to find a leading industry player with local roots, a global reach and significant room for further growth. With this acquisition, we further prove our ability to identify attractive investment opportunities in the growing superyacht industry whilst adding to an existing portfolio of solid mid-market companies and unique real estate assets across several European countries." José Caireta, founding partner at Squircle Capital.
Saudi Aramco is approaching sovereign funds to reach $2tn IPO valuation. (FS)
State-owned Saudi Aramco approached Abu Dhabi Investment Authority, Singapore's GIC and other sovereign wealth funds to invest in the domestic leg of the oil giant'sgiant's listing as it seeks to achieve a $2tn valuation, Reuters reported.
The approaches to sovereign funds in countries on friendly terms with Saudi Arabia and wealthy Saudi families indicate bankers aimed to build an investor base to achieve the $2tn valuations targeted by Crown Prince Mohammed bin Salman.
CD&R looking to take a stake in Socotec at $2bn valuation. (FS)
Private equity firm Clayton, Dubilier & Rice is reportedly set to buy a significant stake in Socotec Group, a French construction services company, in a deal that values the company at $2bn, including debt.
The 30% stake in Socotec will be acquired from investors that include Five Arrows Principal Investments, the European private equity unit of Rothschild Merchant Banking.
Thyssenkrupp to proceed with elevator sale after CEO change. (FS)
Reuters reported that Thyssenkrupp will weed out some potential suitors for its elevator unit within the next two weeks, as the closely-watched auction gathers pace regardless of the planned ousting of CEO Guido Kerkhoff. Bidders invited to the next round will likely include private equity groups KKR, Blackstone, CVC and Clayton Dubilier & Rice as well as strategic firms Kone and Hitachi.
Prudential to demerge M&G in October.
Prudential will spin off its UK and European insurance and asset management business M&G in October, Britain's largest insurer said in a prospectus, dividing the insurance giant into two large-cap stocks.
"Prudential is planning to focus on its Asia business, while the split will allow M&G to expand globally." John Foley, M&G chief executive.
Ryanair puts an end to speculations, confirms not buying Thomas Cook airlines.
Ryanair said it is not interested in taking over any of the airlines of travel firm Thomas Cook, which has gone into liquidation. Thomas Cook's independent airline units Condor and it's Nordic Ving group have both said they are looking for new owners.
"Ryanair has no interest in buying another airline," Michael O'Leary, Ryanair CEO. However, Ryanair might be interested in some of Thomas Cook'sCook's slots in Britain, he said.
LDC is seeking more deals as it reaches closer to £1.2bn target. (FS)
LDC, which invests in small and mid-market businesses in the UK, has struck close to 50 deals over the past 18 months, including add-ons for its portfolio companies.
Over the next 12 months, the firm is planning just as many deals as it edges closer to its target of deploying £1.2bn ($1.4bn) in the UK in the next three years, Andy Grove, LDC head of the new business, said.
Israel Aerospace is considering acquiring US government contracts.
Israel Aerospace Industries said its US unit opened a new government relations office in Washington, DC as part of its strategy to secure more US contracts.
IAI said having a presence in Washington is critical to helping it grow in the US market by strengthening its ties to Congress, the White House, and local industry.
"IAI North America is executing a strategic growth plan that includes M&A and organic growth ... and will necessitate an expanded US manufacturing footprint in the world's largest defense market," Swami Iyer, IAI North America CEO.
Singapore-headquartered ride-hailing firm Grab said the acquisition of Uber’s Southeast Asian operations was done in good faith and belief that the deal will “create more efficiencies and benefits for the public in the e-hailing sector.” The company said it believes it fully cooperated with the Malaysia Competition Commission and that it is not aware of any breach of competition laws since the acquisition in March 2018.
“Grab plays a complementary role in the entire public transportation ecosystem in Malaysia, most often serving the first-mile-last-mile needs of commuters…. Today, commuters in Malaysia continue to have the choice of getting from one point to another through public transport, street-hail taxis or more than 30 other licensed e-hailing apps,” said a Grab spokesperson.
Morrison & Foerster is advising SoftBank, a shareholder of both Grab and Uber.
Louis Dreyfus Company, a leading merchant and processor of agricultural goods, and Luckin Coffee, a chain of coffee shops in China, agreed to launch a juice joint venture in China. The business will focus on co-branded Not From Concentrate orange, lemon and apple juices, for which LDC masters the full value chain from its farms to customers at destination, and plans to build its own bottling plant in the future. Financial terms were not disclosed.
"China is the fastest-growing NFC market globally and, together, Luckin and LDC see a significant opportunity to offer high quality, sustainably-developed NFC juices to the Chinese consumer. We are pleased to be partnering with one of the world's largest citrus fruit growers and juice suppliers to launch a co-branded Luckin Juice and continue our ambitious growth plans." Jinyi Guo, Luckin Coffee Senior Vice President and Co-founder.
Private equity firm Rubicon Technology Partners invested in Cin7, a pioneer in cloud-based inventory management software. Financial terms were not disclosed.
“This investment validates all of the hard work our team has put in to building a market-leading product and delivering best-in-class support to our growing, global customer base. We are now doubling-down to reach the global growth we know is possible with a great partner that has the resources, operational expertise and cultural fit to accelerate our growth.” Danny Ing, Founder and Chief Architect of Cin7.
Indiabulls sold stake in office projects to Blackstone for $388m. (FS)
Indiabulls Real Estate has sold its remaining stake in commercial office assets in Gurugram and central Mumbai to Blackstone Group for $388m. The Mumbai-based developer has sold the stake in existing joint venture companies Yashita Buildcon and Ashkit Properties, and certain subsidiaries in Indiabulls Properties Private and Indiabulls Real Estate Company to Blackstone.
"This has generated significant financial resources for the company towards achieving its goal of zero net debt in the current financial year," IBREL said.
The acquisition of stake will give Blackstone complete control and ownership in IBREL's commercial office portfolio.
Allcargo Logistics is considering buying a stake in smaller rival Gati, a multinational courier delivery services, Bloomberg reported, as India's biggest cargo company attempts to boost its presence across Asia's third-largest economy.
KKR is considering $300m TMT fund for Asia. (FS)
KKR & Co is considering a move into early-stage investing, joining other private equity firms foraying into the venture space, with plans to raise as much as $300m for a technology, media, and telecommunications fund for Asia, Deal Street Asia reported.
Baidu is considering to divest about a third of Ctrip stake for $1bn.
Chinese internet search giant Baidu will divest about a third of its stake in online travel firm Ctrip, expecting to raise about $1bn as it looks to invest in new revenue streams.
Baidu, Ctrip's biggest shareholder with a 19% stake, is offering 31.3m American Depositary Shares, each representing 0.125 ordinary shares of Ctrip. Underwriters will have a greenshoe option of 4.7m ADS, Ctrip said in a statement.
Silver Lake is considering investing in TEG. (FS)
Silver Lake Partners is considering buying a stake in TEG in a $1bn-plus deal. TEG's owner, Affinity Equity Partners, and management, headed by long-time boss Geoff Jones, are in late-stage talks to sell the company to the North American private equity firm, Financial Review reported.
Rivigo becomes the eighth Indian unicorn startup of 2019. (FS)
Trucking logistics firm Rivigo is the eighth Indian startup to become a unicorn — valued at $1bn or more — this year, after it raised $4.9m from a South Korean fund, KB Platform Fund.
TVM Capital Healthcare to assign 50% of the global fund for SE Asia. (FS)
TVM Capital Healthcare, a UAE private equity firm, will allocate 50% of its global fund for Southeast Asia while the rest will be allocated for Middle-East and Western deals, according to Helmut Schuehsler, Chairman and CEO.
Apple supplier Japan Display says Chinese-backed Harvest pulled out of bailout deal.
Chinese investment firm Harvest Group has dropped out of a bailout deal for cash-strapped Japan Display due to differences of opinion over governance, Japan Display said in a statement.
The firm will look for new investors to replace the Chinese fund while keeping up talks with Harvest Group with the aim of receiving promised investment.
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