EMEA
Stobart's ex-CEO made an alternative offer for Flybe.
Mid Europa-backed Hortex acquired Jurajska.
One Equity Partners acquired a 51% stake in MediaKind from Ericsson.
First Reserve Management looking to buy Weir Group’s unit for $390m.
CIAM criticized Scor over dispute with Covea.
BlackRock sold its UK renewables portfolio to Equitix.
Eiger Advisors and Investeam formed a commercial partnership.
Activist investors eyeing British industrial sector.
Rothschild launched an investor advisory services unit.
AMERICAS
Gannett rejected MNG’s $1.3bn hostile bid.
Tyler Technologies acquired MicroPact from Arlington for $185m.
Insignia Capital acquired a stake in MediaAlpha, valuing the company at $350m.
Del Frisco’s added a board seat in a deal with Engaged Capital.
Spotify looks to acquire Gimlet Media for $200m.
Palo Alto negotiates a deal to acquire Demisto.
APAC
KKR explores sale of Hitachi Kokusai.
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Latest Deals
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EMEA
Stobart's ex-CEO made an alternative offer for Flybe.
British airline Flybe, which is being bought by a consortium of Virgin Atlantic, Stobart Group and Cyrus Capital, was approached by Stobart’s ex CEO Andrew Tinkler about a possible alternative financing proposal. Flybe said it prefers the offer of the consortium.
“The board of Flybe Group notes the recent media speculation and confirms that, on 1 February 2019, Flybe received a very preliminary, short and highly conditional outline contingency proposal from Mr. Tinkler which envisages a capital injection and replacement of the funding provided by Connect Airways,” Flybe said. “The board does not consider that the preliminary proposal offers the certainty required to secure the future of Flybe.”
Flybe Group was advised by Evercore and Bryan Cave Leighton Paisner. Stobart Group was advised by Barclays and Hill Dickinson. Cyrus Capital was advised by Morgan Lewis & Bockius. Virgin Atlantic was advised by Rothschild, Herbert Smith and FTI Consulting.
Brimstone Investment Corporation, an investment company incorporated and domiciled in the Republic of South Africa, made a $359 offer for Clover Industries, a branded foods and beverages group, listed on the main board of the Johannesburg Stock Exchange. The proposed deal offers a 25% premium to Clover’s closing share price on Friday.
Brimstone believes that Clover presents a uniquely attractive investment given its expansive chilled distribution capability, strong market position for key brands and an experienced management team.
Mid Europa-backed Hortex acquired Jurajska.
Hortex, Mid Europa's leading consumer company in Poland active in frozen and juice categories, acquired Jurajska, one of the leading independent players in branded natural and flavored mineral water in Poland. Financial terms were not disclosed.
Paweł Padusiński, Partner and Co-Head of Mid Europa's Warsaw office, commented: "The acquisition of Jurajska further strengthens Hortex's market position in Poland. It is consistent with our strategy to expand into new and adjacent product categories, both organically and through M&A. By tapping into the large and growing water segment, Hortex will complement its existing beverage portfolio with attractive SKUs."
Hortex and Mid Europa were advised by Vienna Capital Partners, Clifford Chance and EY.
Investcorp acquired Cambio Healthcare Systems, a company that delivers products and services to the e-healthcare market, from Valedo Partners. Cambio’s management team and co-founders will continue to hold a meaningful stake in the company. Financial terms were not disclosed.
Daniel Lopez-Cruz, Head of Investcorp’s European Private Equity group, said: “The EHR software market is growing rapidly as hospitals constantly seek to increase the efficiency of their operations and ultimately the quality of their care. Cambio is a strong player in the Nordic market with leading EHR software as well as other competitive eHealth solutions that have the potential to grow beyond its core regional markets. We look forward to working with Cambio’s founders and its exceptional management team as the business expands in the Nordic countries and other international markets. We strongly believe Cambio has the potential to become a successful, and ultimately publicly traded, company and are looking forward to supporting the company on its journey to a future successful listing.”
One Equity Partners acquired a 51% stake in MediaKind from Ericsson.
One Equity Partners acquired a 51% stake in MediaKind, a global provider of media processing, delivery and TV service platforms, from Ericsson, a Swedish multinational networking and telecommunications company. Financial terms were not disclosed.
Angel Ruiz, who will continue to lead MediaKind as the CEO, said: "The work we have done to integrate and advance our end-to-end roadmap is paying off in strong customer engagement. One Equity Partners brings valuable experience in the media and telecom sectors, and we're confident that we have found the right partner to further develop and grow the business."
First Reserve Management looking to buy Weir Group’s unit for $390m.
Engineering company Weir Group is close to selling a unit, which supplies pumps and valves to power and oil and gas industries, for $390m. US-based private equity firm First Reserve Management is among a number of buyers eyeing the unit. The proposed sale comes after oilfield services companies were hit by a slowdown in demand last year as regional oil prices fell due to transportation bottlenecks faced by producers.
CIAM criticized Scor over dispute with Covea.
Activist fund CIAM criticized French reinsurer Scor regarding its tactics concerning Covea, which Scor is suing after it announced it was dropping plans for a takeover of Scor. CIAM, which holds a 0.94% stake in Scor, believes that the company’s legal strategy had resulted in a loss of over €900m ($1bn) in market capitalization for Scor shareholders.
BlackRock sold its UK renewables portfolio to Equitix.
BlackRock Real Assets is to sell five operating wind farms and one operating solar project located across the UK to Equitix Investment Management. The portfolio achieved commercial operations between 2010 and 2015 and has a proven track record of consistent operational performance. It was optimized by BlackRock through bringing the projects through construction and early-stage development and optimizing the Portfolio’s debt capital structure through a refinancing process.
Rory O’Connor, Global CIO and Head of Europe for BlackRock Renewable Power, said: “We are delighted to partner with Equitix on this renewable power transaction. This operating portfolio is a testament to BlackRock’s strong investment, financial and technical capability in renewable power. We are very pleased with this sale and the realization of value from this portfolio for our clients, who are showing increased interest in climate infrastructure opportunities to deliver returns with a purpose.”
Eiger Advisors and Investeam formed a commercial partnership.
Eiger Advisors, a UK-regulated business assisting alternative and traditional asset management businesses, and Investeam, an established, Paris-based third-party manager, announced a new commercial partnership. The partnership will support UK based fund managers wishing to access the French, Luxembourg and Belgium institutional investors, and French, Luxembourg and Belgium based fund managers wishing to reach British institutional investors.
Philippe Alter, President of Investeam, said: "Our desire to expand internationally has been strong in recent years and is a major differentiation point for our TPM activity. Today, we have extended our activities in the United Kingdom to offer French investment management companies professional and regulated access to Europe’s largest investment market. Our goal is to build long-term relationships with local institutional investors.”
Activist investors eyeing British industrial sector.
According to a Financial Times report, analysts expect a shake-up in the British industry sector. The sector, which comprises a diverse collection of engineering companies, has escaped the activists’ attention so far. The names that top the list of potential candidates for a break-up or restructuring include FTSE 100 engineer Smiths Group and FTSE 250 groups, Spectris, Weir and IMI.
Rothschild launched an investor advisory services unit.
Rothschild & Co, a multinational investment bank, is launching an investor advisory service to corporate clients. Robert Leitao, managing partner at Rothschild, explained the move was largely a response to the need for companies to deal more effectively with more vocal investors.
“There is a rise in activism, so as a company you need to be able to deal with activists,” Mr. Leitao told the Financial Times.
Rothschild has quietly accumulated a roster of 70 clients across Europe, including 17 in the UK, mainly inherited from the acquired companies. The bank has been hired by some companies alongside existing corporate brokers, and by others in place of them.
AMERICAS
An investor group led by Hellman & Friedman acquired Ultimate Software, a leading global provider of human capital management solutions in the cloud, for $11bn in an all-cash transaction valued at $331.50 per share. This price represents a premium of approximately 32% over Ultimate’s volume-weighted average price during the 30 trading days ending February 1, 2019. Upon completion of the transaction, the privately held company will be owned by an investor group led by Hellman & Friedman in partnership with significant investors Blackstone, GIC, and Canada Pension Plan Investment Board, and other investors including JMI Equity.
“The transaction provides our stockholders with a substantial premium. Our decision was also made with the best interests of our 5,144 employees and our more than 5,600 customers at heart. This change will bring meaningful benefits to our employees and customers — both in the long and short terms. Since all of our employees are given equity in Ultimate when they join us, as stockholders, this transaction will result in immediate financial upside for them. Today’s announcement will also allow us to make additional, prudent investments in our products and services to better serve our customers,” said Scott Scherr, CEO, president, and founder of Ultimate.
Goldman Sachs and Stroock & Stroock & Lavan advised Ultimate Software. Qatalyst Partners advised the investor group. Simpson Thacher & Bartlett advised Hellman & Friedman. Sullivan & Cromwell advised Goldman Sachs.
Gannett rejected MNG’s $1.3bn hostile bid.
USA Today publisher Gannett rejected the $1.3bn made by newspaper chain MNG Enterprises, saying it undervalued the company and was not credible. The offered price represented a 23% premium to Gannett’s $9.75 close. MNG, which is owned by Alden Global Capital, said it would consider options including nominating its slate of directors to Gannett’s board, setting the stage for a proxy battle.
Moelis is advising MNG.
Tyler Technologies acquired MicroPact from Arlington for $185m.
Tyler Technologies, a leading provider of end-to-end information management solutions and services for local governments, acquired MicroPact, a leading provider of specialized, vertically oriented case management and business process management applications for governments, from Arlington Capital Partners for $185m.
“This is the second largest acquisition in Tyler Technologies’ history and represents a continuation of our long-term strategy to add best-of-breed companies and products that complement our current offerings and support our goals for continued growth,” said Lynn Moore, president and CEO of Tyler. “The acquisition of MicroPact will augment our product solutions, position us in new practice areas such as health and human services, and present opportunities to expand our business across new and complementary markets. We’re particularly excited about the opportunity to significantly expand our total addressable market through MicroPact’s strong presence in the federal market.”
Spurrier Capital Partners advised MicroPact.
Insignia Capital acquired a stake in MediaAlpha, valuing the company at $350m.
Insignia Capital acquired a stake in MediaAlpha, a marketing technology company, valuing it at $350m. As a result of the transaction, White Mountains Insurance Group, a financial services holding company based in Hamilton, Bermuda, will retain an equity stake in MediaAlpha. White Mountains expects to receive net cash proceeds of approximately $85m from the transaction.
“This transaction is an important milestone for MediaAlpha. It recognizes the significant value that the MediaAlpha team have created to date, and it sets the stage for further value creation going forward,” said Manning Rountree, Chief Executive Officer of White Mountains. “We are excited to welcome Insignia Capital as our new institutional investment partner. The Insignia team has a proven track record of investing in high-growth marketing technology businesses, and their strategic and operational guidance will be highly valuable.”
Petsky Prunier Securities advised MediaAlpha. Cravath Swaine & Moore advised MediaAlpha and White Mountains. Kirkland & Ellis advised Insignia Capital.
Del Frisco’s added a board seat in a deal with Engaged Capital.
Del Frisco’s Restaurant Group said it would add a board seat as part of a deal with activist shareholder Engaged Capital, which was pushing for a sale of the restaurant operator. The company agreed to appoint Joe Reece to its board and also as chairman of the transaction committee that is overseeing Del Frisco’s plan to review strategic options. Reece’s appointment will increase the board size to seven members.
Engaged Capital, the company’s third-largest shareholder with a nearly 10% stake, has been urging for the sale saying Del Frisco’s was poorly managing its steakhouse restaurants and had rushed into buying two chains to avoid an acquisition.
Spotify looks to acquire Gimlet Media for $200m.
Music streaming service Spotify is in talks to buy Gimlet Media, a popular podcast company for $200m. A move beneath the Spotify umbrella would likely provide an exponential increase in exposure to Gimlet: Spotify currently claims 200m users and 87m paying subscribers.
Stripes Group, Betaworks, Cross Culture Ventures and Emerson Collective are among Gimlet's current backers. The company launched in 2014 and raised $7m at a $30m valuation a year later. Spotify, meanwhile, had raised hundreds of millions in VC before going public last year in a direct listing.
Palo Alto negotiates a deal to acquire Demisto.
Palo Alto Networks, an American multinational cybersecurity company with headquarters in Santa Clara, is in talks to acquire US-Israeli information security firm Demisto, a company founded in 2015 by four McAfee executives, which develops and markets automation tools for information security management, including a chatbot that assists security analysts in handling tasks.
Last October, the company raised $43m in a funding round led by Greylock Partners, bringing its total equity funding to $69m. Accel Partners, ClearSky Security, Slack Technologies, Wipro Ventures, Secure Octane, and Cerca Partners are also backers.
APAC
KKR explores sale of Hitachi Kokusai.
KKR is exploring the full or partial sale of its Hitachi Kokusai chip-equipment unit and has attracted the interest of two Chinese buyers. Japanese semiconductor equipment maker Hitachi Kokusai was bought by KKR in December 2017 in a $2.2bn deal. Names of the potential buyers and deal value are currently unknown.
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