Read on...
Scroll down to read deal descriptions. Your suggestions and comments support the democratisation of M&A data. If you'd like to contribute to the future editions, drop us a line.
AMERICAS
Frontier Communications' largest institutional investor is the latest stakeholder to come out against the company's proposed $9.6bn acquisition by Verizon Communications.
Glendon Capital Management sent a letter to Frontier's board on October 23 saying the $38.5 per-share acquisition price offered by Verizon significantly undervalues the telecommunications company's assets and earnings trajectory, WSJ reported.
"We recognize the strategic merits of combining with a US wireless carrier as the telecommunications industry continues to converge, but we believe a sale at this price does not adequately capture Frontier's progress and momentum," Glendon Capital Management.
Altaris Capital Partners, a private equity firm, completed the acquisition of Sharecare, a digital health company, for $540m.
“Sharecare’s Board of Directors and shareholders determined that this transaction with Altaris was in the best interests of our company and our clients, and delivered significant, immediate, and certain value to our stockholders. With Altaris, Sharecare has gained the support of an experienced, growth-oriented investor that believes in the company’s vision, strategic growth plan, and management team, and shares a commitment to maximizing the value of Sharecare’s full potential across our three channels," Jeff Arnold, Sharecare Founder and Executive Chairman.
Sharecare was advised by Houlihan Lokey, MTS Health Partners, King & Spalding (led by John Anderson), and Wachtell Lipton Rosen & Katz (led by Mark Gordon and Daniel A. Neff). Financial advisors were advised by Alston & Bird (led by Aaron Dixon). Altaris was advised by Kirkland & Ellis (led by David Feirstein and William N. Lay). Claritas was advised by RBC Capital Markets and Ropes & Gray.
Iteris, a technology ecosystem for smart mobility infrastructure management, on October 23 announced that Iteris stockholders approved the proposed $335m merger agreement with Almaviva.
“This announcement marks an exciting next chapter for Iteris and all of our stakeholders. Iteris has been a pioneer and leader in intelligent transportation systems for more than 15 years and the agreement we reached with Almaviva is a testament to the grit, determination and innovative spirit of our entire team. Almaviva shares our vision for the future of digital mobility and our commitment to excellence. With this transaction, our team will be strongly positioned to continue to innovate and expand the global adoption of our ClearMobility Platform," Joe Bergera, Iteris President and CEO.
Iteris is advised by Morgan Stanley, Latham & Watkins (led by Daniel Rees) and FGS Global (led by John Christiansen). Morgan Stanley is advised by Paul Weiss. Almaviva is advised by Ernst & Young, Goldman Sachs, King & Spalding (led by Enrico Granata and Robert Leclerc), Legance and Linklaters.
The First Bancshares, holding company for The First Bank, announced on October 23 that the previously announced merger between The First Bank and Renasant, has been approved by its shareholders. Completion of the transaction remains subject to customary closing conditions, including the receipt of required regulatory approvals.
“As two of the largest banks headquartered in Mississippi, each with a footprint across the Southeast, both Renasant and The First have grown to know and respect each other’s operating philosophy, dedication to providing best-in-class customer service and commitment to the communities in which we operate. As with Renasant, The First has expanded into some of the most dynamic, fastest growing markets in the Southeast. Together, we create a more valuable company with the meaningful scale needed to compete in today’s operating environment,” Mitch Waycaster, Renasant CEO.
The First Bancshares is advised by Keefe Bruyette & Woods (led by Michael Garea) and Alston & Bird (led by Mark Kanaly). Renasant is advised by Stephens and Covington & Burling (led by Rusty Conner).
CoStar Group, a provider of online real estate marketplaces, agreed to acquire Visual Lease, a software platform for integrated lease management, accounting, and reporting, from Spectrum Equity and Growth Street, two private equity firms. Financial terms were not disclosed.
“Visual Lease and CoStar Real Estate Manager are driven by the same mission of integrating all lease management portfolio functions into one user-friendly platform. Bringing Visual Lease into the CoStar Group family will allow us to create the best possible experience for our customers. By combining CoStar Group’s industry expertise with Visual Lease’s diverse customer base, deep lease portfolio management expertise, and leading sustainability solutions, we are well positioned to offer a more comprehensive service offering and continue growing both nationally and internationally. I look forward to welcoming the Visual Lease team to CoStar Group and working together to develop new capabilities to better serve our clients," Andy Florance, CoStar Group Founder and Chief Executive Officer.
Bridgewater Bancshares, the parent company of Bridgewater Bank, and First Minnetonka City Bank announced on October 23, that the receipt of all necessary regulatory approvals, including approval from the Federal Deposit Insurance Corporation and the Minnesota Department of Commerce, to complete Bridgewater Bank’s previously announced acquisition of First Minnetonka City Bank.
“We are very pleased to add a high quality and complementary Twin Cities community bank through a transaction that aligns with and accelerates our strategic priorities. First Minnetonka City Bank brings a granular core deposit base that creates balance sheet optionality and a loan mix that increases the diversification of our loan portfolio. In addition, the bank’s investment advisory platform will allow us to offer a more complete product set to our client base," Jerry Baack, Bridgewater Chairman and Chief Executive Officer.
First Minnetonka is advised by Olsen Palmer and Winthrop & Weinstine. Bridgewater is advised by D.A. Davidson & Co and Barack Ferrazzano (led by Joseph T. Ceithaml).
CapVest Partners-backed Second Nature Brands, a creator of premium snacks and treats, agreed to acquire Voortman, a cookie brand, from J.M. Smucker, a manufacturer of food and beverage products, for $305m.
"This decision reflects our continued commitment to portfolio and resource optimization to focus on our largest growth opportunities as a Company. The divestiture of the Voortman® brand is an important step in our integration plans that will enable the execution of our Sweet Baked Snacks strategy through dedicated focus and ongoing investments in the Hostess® brand, advancing our leadership in the sweet baked goods category. I want to recognize and thank the many talented teams who have supported this brand," Mark Smucker, J.M. Smucker Chair of the Board, President and Chief Executive Officer.
J.M. Smucker is advised by Goldman Sachs, Blake Cassels & Graydon and Wachtell Lipton Rosen & Katz (led by Ilene Knable Gotts).
Branford Castle Partners, a North American-focused private equity firm, completed the acquisition of Hoffman Engineering, a provider of proprietary situational awareness solutions for mission-critical aerospace and defense applications, from Trident, a provider of marine engineering services intended to solve clients' advanced maritime engineering, manufacturing, installation and testing challenges.Financial terms were not disclosed.
"We are excited to partner with Ron and the entire Hoffman team. We see attractive opportunities in this market as the aerospace and defense industry continues to expand, creating increased demand for the most advanced, mission-critical products available. The Company's leading position in the night vision market, along with its proprietary capabilities, makes it a terrific platform for growth," Ceon Francis, Branford Castle Managing Director.
Hoffman Engineering was advised by Philpott Ball. Branford Castle Partners was advised by RSM International, Akerman and Lambert & Co (led by Caroline Luz and Jennifer Hurson).
Apave, a provider of risk management services, completed the acquisition of IRISNDT, a provider of advanced and general non-destructive testing, from First Reserves, a global private equity firm investing across diversified energy, utility, and industrial end-markets. Financial terms were not disclosed.
"We are delighted to have reached this agreement with First Reserve to acquire IRISNDT. I would like to welcome the IRISNDT teams, who, like Apave's 14k employees, share our strong values and the expertise that enables us to support our industrial customers in managing the risks associated with their activities and their own transformation," Philippe Maillard, Apave CEO.
IRISNDT was advised by Stifel and Gray Reed. First Reserve was advised by Joele Frank (led by Erik Carlson).
Merck, a science and technology company, completed the acquisition of Modifi Biosciences, a preclinical stage biotechnology company, for $1.3bn.
“In founding Modifi Biosciences, we sought to radically change the oncology treatment paradigm for cancer patients with glioblastoma and other tumors. We are honored to have Merck recognize the potential of our science, and as an oncology company, they are perfectly positioned to advance our innovations through clinical trials and commercialization," Ranjit S. Bindra, Modifi Biosciences Co-founder, Harvey and Kate Cushing, Professor of Therapeutic Radiology at Yale School of Medicine, and Scientific Director of the Yale Brain Tumor Center at Smilow Cancer Hospital.
Modifi Biosciences was advised by TellMed Strategies.
Novo, a life science investor, led a $112m Series B round in AvenCell, a clinical-stage cell therapy company focused on advancing both autologous and allogeneic switchable CAR-T cell therapies, with participation from F-Prime Capital, Eight Roads Ventures Japan, Piper Heartland Healthcare Capital and NYBC Ventures and Blackstone Life Sciences.
"We are excited by the progress of our pipeline and believe our next-generation immunotherapies have the power to address significant unmet patient needs. AvenCell is working to transform the standard of care through switchable, adaptable and readily available cell therapy treatments that can better treat a wide range of difficult-to-treat cancer and autoimmune diseases. The support of Novo Holdings and this leading group of new investors will be integral to our ability to progress and bring these therapies to patients," Andrew Schiermeier, AvenCell Therapeutics Chief Executive Officer.
Vesper, a private investment firm that partners with founders and management teams, completed the investment in TAO Digital, a provider of outcome-driven technology services and solutions. Financial terms were not disclosed.
“TAO’s mission has always been to drive significant value for our clients by delivering high-quality solutions centered on product engineering, data monetization, and industry-specific AI models. Driven by our motto to ‘Transform, Automate, and Optimize,’ our focus on measurable outcomes through agile MVP launches, API development, and AI implementation has allowed us to serve clients with precision, driving business efficiency and innovation across industries," Rajkumar Velagapudi, TAO Digital Solution CEO.
Shell, an oil and chemical group engaged in the exploration, production, transportation, refining, distribution and marketing of crude oil, gas, and petroleum products, agreed to acquire RISEC, the owner of a 609-megawatt gas power plant in Rhode Island. Financial terms were not disclosed.
"Shell has had a successful integrated gas and power business in the growing ISO New England market for over 20 years, and this acquisition secures valuable trading opportunities by guaranteeing SENA's position in the market. Our strong understanding of this plant's performance positions Shell to capitalise on its value within our existing trading portfolio," Huibert Vigeveno, Shell Downstream, Renewables & Energy Solutions Director.
ShiftPixy, a human capital management platform, agreed to acquire TurboScale, an AI infrastructure solution company, for $150m.
TurboScale specializes in AI infrastructure solutions, offering GPU-powered cloud services for AI model training and deployment. With a focus on scalability, efficiency, and cost-effectiveness, TurboScale empowers businesses to harness the full potential of AI technology, from development to deployment.
Fedex, a conglomerate holding company focused on transportation, e-commerce and business services, led a $106m Series C funding round in Nimble, an AI robotics and autonomous e-commerce fulfillment technology company, with participation from Cedar Pine.
“Today’s warehouse automation systems require integrators to stitch together fragmented point solutions from dozens of equipment and software vendors, resulting in overly complex, inefficient, and expensive systems that are difficult to integrate, operate and maintain. The unattractive ROI and operational challenges of patchwork systems has limited the adoption of robotics to just 10% of the market," Simon Kalouche, Nimble Founder and CEO.
WestCap, a strategic operating and investing firm, led a $100m Series C funding round in Valon, a vertically integrated mortgage servicing platform, with participation from Andreessen Horowitz.
“From the very beginning, our goal has been to build the servicing software platform of tomorrow. That means bringing transparency, efficiency, and improved customer experience to mortgage servicing. This new funding demonstrates that we’ve hit the milestones to prove our software is best in class and will allow us to double down on our technology to deliver even more value to the industry,” Andrew Wang, Valon CEO.
Corvex, a New York-based hedge fund, completed the investment in Fortrea, a clinical trials management company. Financial terms were not disclosed.
The company’s shares, which have fallen 49% this year, closed down 6% to $17.80 each on October 22. The shares rose more than 5% after the close of regular trading.
Egis plans $800m of acquisitions in US and Canada to fuel its growth. (FS)
French construction and engineering firm Egis aims to spend around $800m on acquisitions in the US and Canada, Bloomberg reported.
The firm, which is partly owned by alternative asset manager Tikehau Capital, currently makes about $200m in revenue in the US and Canada. It is planning to reach about $1.1bn in sales there by 2028.
Frontier and Spirit Airlines revive merger talks.
Frontier Airlines is exploring a renewed bid for Spirit Airlines as it continues negotiations with bondholders over possible bankruptcy terms, WSJ reported.
Spirit has been losing money despite strong travel demand and has failed to report a profit in five out of the last six quarters. A potential merger with Frontier would happen as part of Spirit restructuring its debt and other liabilities related to bankruptcy.
Engineering software firm Altair explores sale.
Altair Engineering, an engineering software maker with a market value of nearly $9bn, is exploring a sale after receiving acquisition interest, Reuters reported.
Michigan-based Altair is working with investment bankers to gauge interest from potential suitors. Potential bidders include rival design software makers such as PTC and Cadence Design Systems.
EMEA
Seven2, a European private equity firm, completed the acquisition of Fulgard, a player in the Italian workplace safety market, from Argos Wityu, an independent pan-European investment group. Financial terms were not disclosed.
“We are excited to welcome Fulgard into the Seven2 family, reinforcing Seven2 presence in Italy. Fulgard strong market positioning, combined with our expertise in fostering growth and operational excellence, makes this an ideal partnership. We have built a solid expertise in the safety and security services sector across Europe having already supported market leaders in the Benelux. We are confident that Fulgard will continue to grow, not only as a market leader but also as a key consolidator on its market," Vincent Colomb, Seven2 Partner.
Iberdrola, a Spanish multinational electric utility company, completed the acquisition of an 88% stake in Electricity North West, a British electricity distribution network operator, from Equitix, a private equity firm, for €5bn ($5.4bn).
"This transaction reinforces our commitment to investing significantly in electricity networks, which are a critical component for supporting the electrification and decarbonization of the economy. The agreement is also consistent with our strategy to invest in countries that have ambitious investment plans and stable and predictable regulations. As a result of this acquisition, our regulated networks asset base in the UK is now valued at €14bn ($15.1bn). When combined with the US, these two markets now represent two-thirds of our total global regulated asset base," Ignacio Galán, Iberdrola Chairman.
Electricity North West was advised by Jefferies & Company and Freshfields Bruckhaus Deringer (led by David Sonter and Alastair Brown). Iberdrola was advised by Barclays.
British sportswear and apparel retailer Frasers Group walked away from its attempts to buy Mulberry on October 23, citing a lack of engagement from the British luxury brand's board after two proposals were rejected, Reuters reported.
Frasers did not get the backing of Mulberry's top investor Challice - controlled by billionaires Christina Ong and Ong Beng Seng - in its bid to buy out the loss-making brand.
Buyout firms to table bids for Evelyn accountancy arm. (FS)
Bain Capital and Partners Group are among the buyout firms which have been considering making initial offer for the division of Evelyn Partners ahead of a deadline this week.
The companies will join Apax Partners, whose interest was reported earlier this month. Evelyn is the seventh-largest UK accountancy firm by fee income, and the auction comes amid a deluge of corporate activity in the professional services sector.
Deutsche Bank says domestic M&A is option once time right.
Deutsche Bank CFO James von Moltke said buying a domestic competitor is among the options that the lender has been studying, though any such move wouldn’t happen right away, Bloomberg reported.
This comment is the clearest indication yet how much UniCredit’s decision to build a major stake in Commerzbank has changed the strategic landscape for Deutsche Bank. UniCredit has said it is considering an acquisition, potentially creating a bank that could surpass Deutsche Bank in balance-sheet size and sales in Germany.
PE firms said to circle German vitamin supplement maker Orthomol. (FS)
CVC Capital Partners and L Catterton are among the private equity firms bidding for German premium vitamin supplement maker Orthomol, Bloomberg reported.
Advent International, Blackstone, Groupe Bruxelles Lambert and PAI Partners have also proceeded into the next round of bidding. Orthomol and its founding family have been working with Houlihan Lokey and are seeking about €1bn ($1.1bn) in the potential sale.
ECB nod is a catalyst for UniCredit’s Commerzbank move.
UniCredit’s move on Commerzbank will probably come to a head once the Italian lender gets approval from the European Central Bank to increase its existing stake, Bloomberg reported.
UniCredit’s physical stake in Commerzbank is currently just below 10% and it has filed an application with the ECB to lift its stake to as much as 29.9%.
Mubadala Capital sees chance to buy up large private equity stakes. (FS)
An arm of Abu Dhabi’s sovereign wealth fund is preparing a push into private equity markets, spotting what it believes is an opportunity to take over large holdings as buyout groups race to sell assets and return cash to investors, FT reported.
Mubadala Capital has raised $3.1bn for its latest private equity fund, surpassing a $2bn target. It is positioning the fund as a solution to private equity groups seeking to exit large bets, or PE-backed companies managing heavy debt burdens that need fresh capital.
APAC
Hyundai India gets flood of bullish calls amid weak debut.
Analysts are rushing to recommend investors to buy shares of Motor India, a much-needed show of support after the stock’s disappointing trading debut on October 22, Bloomberg reported.
The local unit of the Korean automaker now has a total of six positive recommendations, from Nomura and Macquarie along with local brokers including Motilal Oswal Securities. It has received just one sell-equivalent rating so far, from Emkay Global Financial Services, and no holds.
Tokyo Metro on market fast track with 45% jump in debut.
Tokyo Metro's shares shot up 45% in their market debut on October 23 after Japan's largest initial public offering in six years bagged it $2.3bn with the lure of sizeable dividends, Reuters reported.
Shares closed at JPY1.7k ($11.43) giving Tokyo Metro, one of the capital's two major subway operators, a valuation of roughly JPY1tn ($6.6bn). Tokyo Metro's first-day performance is the best to follow a large Japan IPO since flea market app operator Mercari which popped 77% in its debut in 2018.
Chery is said to pick banks for auto unit’s Hong Kong IPO.
Chery has picked China International Capital, GF Securities and Huatai International to work on a potential initial public offering of its automotive unit, Bloomberg reported.
Chery Automobile, a Chinese car exporter, could list in Hong Kong as soon as next year. The company may seek a valuation of more than CNY100bn ($14bn) in the IPO.
Baillie Gifford, Norges said to invest in Horizon Robotics Hong Kong IPO. (FS)
Baillie Gifford and Norges Bank Investment Management were among the investors in Horizon Robotics’ $696m Hong Kong initial public offering, Bloomberg reported.
Baillie Gifford put in an order of more than $500m - enough to cover the entire portion reserved for institutional investors, excluding the cornerstone tranche. Allocations were, however, smaller than orders as the IPO was oversubscribed.
China Resources Beverage shares rally in boost for HK IPO market.
Shares of soft-drink maker China Resources Beverage jumped 15% in their trading debut on October 23, adding to signs of an improving outlook for Hong Kong’s market, Bloomberg reported.
The stock finished at HKD16.68 ($2.15) after an initial public offering that was priced at HKD14.50 ($1.9), the top of a marketed range, helping raise $649m. The solid start came amid a broad rally in Hong Kong’s market, with the benchmark Hang Seng Index rising 1.3%.
Hengrui Pharmaceuticals is said to weigh second listing in Hong Kong.
Jiangsu Hengrui Pharmaceuticals, a company with a market value of $45bn, is considering a second listing in Hong Kong that could happen as soon as next year, Bloomberg reported.
The company is in talks with advisers about the potential share sale, which might raise at least $2bn. Deliberations are ongoing and the size of the fundraising will depend on market conditions.
|
