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AMERICAS
Thoma Bravo, a private equity firm, agreed to acquire Magnet Forensics, a software developer. for $1.3bn.
"We look forward to bringing together the complementary capabilities of Magnet and Grayshift to create a leader in the digital forensics and cyber security space. Digital evidence is an increasingly critical aspect of investigations and the combined company will be well-positioned to further market expansion, accelerate innovation, and provide even greater solutions to its customers. We look forward to leveraging Thoma Bravo’s deep industry, operational and investment expertise to help the combined company capture the tremendous growth opportunities ahead,” Hudson Smith, Thoma Bravo Partner.
Magnet is advised by CIBC World Markets, Morgan Stanley, Blake Cassels & Graydon, Dentons and FGS Global (led by Joe Berg). Thoma Bravo is advised by Kirkland & Ellis an McMillan.
Vitol-backed VTX Energy Partners, an oil and gas company, agreed to acquire Delaware Basin Resources, a oil and gas company. Financial terms were not disclosed.
“The opportunity to go back to work in the southern Delaware Basin, combined with the opportunity to do so with the DBR asset base and team is very exciting. With Vitol’s unique market insights, expertise and funding capabilities, we expect this transaction will serve as the foundation for growing a highly profitable US lower 48 focused upstream business over the next decade," Gene Shepherd, VTX CEO.
Delaware Basin Resources is advised by Jefferies & Company and Kirkland & Ellis (led by John Pitts). VTX is advised by JP Morgan and Vinson & Elkins.
AcBel Polytech, a manufacturer of standard and custom switching power supplies, agreed to acquire the power conversion division of ABB, a business conglomerate, for $505m.
“We are very happy to have found an excellent new home for this specialized business that can go from strength to strength under the leadership of AcBel in the future. We are also delighted to complete all divisional portfolio divestments announced at the end of 2020, including the sale of Dodge and the spin-off of Accelleron," Björn Rosengren, ABB CEO.
AcBel Polytech is advised by Morgan Stanley. ABB is advised by Citigroup and Milbank.
Cargill, an international producer and marketer of food, agricultural, financial, and industrial products, and services, completed the acquisiition of Owensboro Grain Company, a family-owned soybean processing facility and refinery located in Owensboro. Financial terms were not disclosed.
"We are pleased to welcome Owensboro Grain Company into our Cargill family. Our two companies have tremendous operational histories, similar heritages as grain merchants, and values, including an unwavering commitment to prioritizing people ― making this a tremendous fit. Additionally, this is a significant milestone in Cargill's journey to create a connected and modernized grain experience for our customers," Leonardo Aguiar, Cargill President of North American Agricultural Supply Chain.
One Rock Capital, a private equity firm completed the acquisition of EnviroServe, a national provider of environmental and waste management services, from Savage. Financial terms were not disclosed.
"EnviroServe has established itself as a reliable partner for its customers as they address a wide range of environmental challenges. Our extensive experience in the business and environmental services sectors as well as with corporate carve-outs positions us well to work with EnviroServe to grow and scale the business. We are excited to collaborate with EnviroServe's leadership team and provide the strategic and operational resources necessary to enhance its operational capabilities and expand its geographic footprint," Tony W. Lee, One Rock Managing Partner.
One Rock was advised by Prosek Partners. Savage was advised by BMO Capital Markets.
Warren Equity Partners, a private equity firm, completed the minority investment in Rock Hill Capital-backed KV Power, an electrical infrastructure solutions provider. Financial terms were not disclosed.
“It has been a pleasure to be partners with Bryan and the team at KV Power. Both Rock Hill and Bryan share the same goal of continuous growth while providing ever improving service to our customers, and we are excited to remain involved with the Company moving forward. We believe Warren Equity is the ideal partner to accelerate growth and enhance value for KV’s stakeholders,” Randall B. Hale, Rock Hill Founder and Managing Director.
KV Power was advised by Piper Sandler and Winston & Strawn.
Shoreline Biosciences, a genome editing company, agreed to acquire the iNK cell franchise and gene editing technologies of Editas Medicine, a biotechnology company. Financial terms were not disclosed.
“The acquisition of our allogeneic iNK franchise by Shoreline is highly aligned with our strategic portfolio reprioritization, as it allows us to sharpen our efforts on advancing current clinical stage trials and focus our resources on in vivo fit-for-purpose therapeutic construction and development. Shoreline is a leader in developing next generation iNK and macrophage cell therapies, and we believe they are the right company to move these assets toward clinical applications," Gilmore O’Neill, Editas Medicine President and CEO.
Editas Medicine is advised by Evercore.
Quad-C Management, a private equity firm, agreed to acquire QED Technologies, a company which offers state-of-the-art MRF polishing and SSI metrology manufacturing solutions, from Entegris, a supplier of advanced materials and process solutions.
“QED is a leader in precision optics finishing equipment, products and services, providing the most precise technologies to manufacturers in semiconductor, aerospace & defense markets. Quad-C and our industrial tech practice are thrilled to partner with QED and its strong management team in order to execute on our shared growth strategy.” Matt Trotta, Principal at Quad-C, also added, “QED has built a reputation for excellence in precision optics over nearly three decades. We are excited to partner with the Company as it begins its next chapter as a standalone entity once again,” Tom Hickey, Quad-C Partner.
RSA Security explores a $2bn-plus sale of Archer.
RSA Security, the former cyber security division of Dell Technologies, is exploring a sale of its risk and compliance software unit Archer for more than $2bn.
RSA is working with investment banks Morgan Stanley and Goldman Sachs on an auction for Archer, which has attracted interest from other companies and buyout firms, Reuters reported.
CoinDesk hires banker to explore potential sale.
Crypto outlet CoinDesk is exploring a full or partial sale of its business and has hired investment bank Lazard to lead the process.
The crypto industry is going through one of its worst phases, with prices of major tokens at two-year lows and a string of bankruptcy filings from top players.
“My goal in hiring Lazard is to explore various options to attract growth capital to the CoinDesk business, which may include a partial or full sale,” Kevin Worth, CoinDesk CEO.
EMEA
Australia's competition regulator said it was seeking market views on the proposed sale of MBCC Group's assets in the country by Swiss chemicals maker Sika.
The divestment is part of a global remedy proposed by the Swiss company to satisfy the concerns of competition authorities about its $6bn acquisition of MBCC Group, the Australian Competition & Consumer Commission said in a statement, Reuters reported.
The Competition and Markets Authority raises concerns regarding UnitedHealth-backed Optum's $1.5bn acquisition of EMIS, a provider of healthcare software and information technology services.
CMA is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.
The CMA announced the launch of its merger inquiry by notice to the Parties on 20 January 2023 and has a deadline of 17 March 2023 for its phase 1 decision.
EMIS is advised by Numis Securities (led by Simon Willis), Travers Smith (led by Richard Spedding) and MHP Communications. Optum is advised by Robey Warshaw, Slaughter & May and Finsbury Glover Hering (led by James Murgatroyd).
Infinite Electronics, a supplier of electronic components, completed the acquisition of Bulgin, an electrical components manufacturer, from Equistone Partners, a private equity firm. Financial terms were not disclosed.
"By welcoming Bulgin to Infinite Electronics' growing brand portfolio, we are better positioned to meet the increasing demand for reliable connectivity solutions for harsh environments. Bulgin's focus on mission-critical, customizable components with outstanding design and customer support aligns with our own longstanding reputation for delivering our customers what they need, when they need it most," Penny Cotner, Infinite Electronics President and CEO.
Infinite Electronics is advised by William Blair & Co and Cleary Gottlieb Steen & Hamilton. Equistone is advised by Houlihan Lokey, Travers Smith, Hawthorn Advisors (led by Stephen Atkinson) and MC2 Manchester (led by Michael James Perls).
Zucchetti, a software developer, agreed to acquire Piteco, a financial software maker, from Dedagroup, a SaaS company. Financial terms were not disclosed.
“Our goal in acquisitions is always to enrich our offer with innovative solutions already known and appreciated by the market. Piteco’s applications for corporate treasury and financial planning, together with those of the subsidiary Myrios for risk management, they are complementary to Erp and other technological solutions that we develop within the group; they will give further added value to our customers thanks to features that are increasingly required to make the most appropriate choices in terms of business strategies," George Mini, Zucchetti Vice President.
Zucchetti is advised by Mediobanca and Giuseppe Spernicelli. Dedagroup is advised by JP Morgan, PricewaterhouseCoopers, UniCredit and Shearman & Sterling.
Playtika, a mobile gaming company and monetization platform, agreed to acquire Rovio, a games developer. Financial terms were not disclosed.
“We firmly believe the combination of Rovio’s renowned IP and scale of its user base, together with our best-in-class monetization and game operations capabilities, will create tremendous value for our shareholders,” Robert Antokol, Playtika Chief Executive Officer.
Playtika is advised by TrailRunner.
Saudi Arabia explored bid to buy F1 for over $20bn. (FS)
Saudi Arabia’s sovereign wealth fund considered an attempt to add Formula 1 motor racing to its growing portfolio of sports investments.
A potential deal faltered in the early stages last year as F1’s owner Liberty Media was not interested in selling the high-profile franchise, which Saudi Arabia’s Public Investment Fund valued at well above $20bn including debt.
The PIF remains interested in the asset and would be a serious bidder should Liberty Media change its mind and decide to sell, Bloomberg reported.
Global Switch takeover talks said to wind down over valuation.
Discussions on a possible sale of Global Switch Holdings have almost ground to a halt, as financing conditions tightened and bids for the London-based data center company fell short of expectations.
Deal talks between Global Switch’s Chinese owners and potential bidders are stalled because the parties have been unable to fill a significant gap in value from the $10bn originally targeted by the sellers. While some bidders have not left the discussions, access to financing and differing estimates of valuations remain the key hurdles for each transaction.
The slowdown in talks marks another twist in longstanding attempts by owners, including Jiangsu Shagang Group and Avic Trust, to sell the company. The group has explored a number of potential deals in recent years, including an IPO, a stake sale and an outright sale of the company, Bloomberg reported.
Lufthansa Technik seeks investors in partial sale.
Lufthansa’s aircraft maintenance business Lufthansa Technik plans to launch formal talks with investors this month about a partial sale.
Talks are due to start at the end of the month, with two rounds of negotiation by the summer. “We are right on schedule,” said finance chief William Willms.
Lufthansa hopes for proceeds of $1.08bn to $1.62bn for the sale of a 20% share in its maintenance arm. The German business is seeking a partner that not only provides financial investment but is also actively involved in the strategic development of the company, Reuters reported.
BE Group is in advanced talks to make a fresh takeover approach for Ageas.
BE Group, an investment firm fronted by former bankers, is in advanced talks to make a fresh attempt at a takeover of Belgium’s biggest insurer Ageas.
The consortium recently approached Ageas and has been trying to secure financing for a potential deal. BE Group has been chasing Ageas for some time. The insurer rebuffed an earlier approach from the investor group in the summer of 2020 without engaging. BE Group began exploring a new pursuit the following year.
Any deal would rank as one of the biggest in the European financial services sector, but little-known BE Group may face difficulty winning over stakeholders in Belgium, where Ageas is a national champion in a heavily regulated industry, Bloomberg reported.
ADNOC add HSBC, ADCB and EFG on mega IPO of gas unit.
Abu Dhabi National Oil has added banks including HSBC and EFG Hermes to help arrange the planned initial public offering of its natural gas business.
State-owned Adnoc also plans to hire Abu Dhabi Commercial Bank, Arqaam Capital and International Securities as joint bookrunners on the offering. Goldman Sachs, Bank of America and First Abu Dhabi Bank were already working as joint global coordinators on the proposed listing.
The deal, which could be one of the emirate’s largest listings, may happen as soon as the first quarter, though the timing and size may change. The final list of banks on the IPO may change and Adnoc may hire more banks for the offering, Bloomberg reported.
Telecel sees Vodafone’s Ghana assets as prelude to planned IPO.
The head of Telecel Group, an Africa-focused telecommunications company part-owned by French tycoon Hugues Mulliez, said the purchase of Vodafone’s operations in Ghana is part of a plan to build up its business and go public within the next five years, Bloomberg reported.
“The all-cash deal was part of Telecel’s expansion strategy ahead of a possible initial public offering. The Ghana deal is important because it’s shifting the group from one size to another. The European and London stock exchanges are more familiar with African ecosystems, so that is more attractive for us at the moment,” Moh Damush, Telecel CEO.
Nordic Capital weighs $2bn sale of Sunrise Medical. (FS)
Nordic Capital is considering a sale of Sunrise Medical that could value the German wheelchair maker at as much as $2bn.
The Swedish investment firm is speaking with advisers about kicking off a formal process for Sunrise, which is likely to attract private equity groups and other financial investors.
Deliberations are ongoing and there’s no certainty they’ll result in a sale, Bloomberg reported.
Waterland announces closing of two new funds with €4bn in capital raised in four months. (FS)
Waterland Private Equity Investments, a private equity firm, announced the closing of its ninth institutional flagship fund, Waterland Private Equity Fund IX at €3.5bn ($3.7bn), alongside Waterland Partnership Fund I at €500m ($542m). The funds closed at their respective hard caps four months after initial launch.
The fundraise attracted commitments from world-class institutional investors globally. The investor base for both funds is well diversified by geography, consisting of investors across Europe, North America, the Middle East and Asia Pacific. By investor type it consists of asset managers, public and private pension funds, insurance companies, sovereign wealth funds, endowments, foundations and family offices, amongst others.
Both funds were oversubscribed with demand significantly exceeding the fundraising targets. This is attributable to continued strong support from existing investors combined with significant interest from new investors.
Arcano closes €450m secondaries fund. (FS)
Spain’s Arcano has closed a secondaries fund on €450m ($488m), exceeding its €300m ($325m) target. The vehicle received commitments from institutional and private banking investors across Europe and Latin America.
The fund is the fourth specifically dedicated to completing secondary market transactions and direct coinvestments in companies, the latter representing at most 20% of the program.
APAC
Triple Flag, a pure play, gold-focused, streaming and royalty company, completed the acquisition of Maverix Metals, a clean-tech metals recycling company, for $606m.
“The merger of Maverix and Triple Flag represents that rare opportunity to combine the best with the best. Since their respective inceptions, roughly 6.5 years ago, both companies have steadfastly stuck to their objectives of building pure play precious metals streaming and royalty companies, while simultaneously exercising prudent financial discipline,” Geoff Burns, Maverix Founder and Chairman.
Maverix was advised by CIBC World Markets, Raymond James, Blake Cassels & Graydon and Davis Graham & Stubbs. Triple Flag was advised by National Bank Financial, Torys and Camarco (led by Gordon Poole).
Hindustan Zinc, an Indian integrated mining and resources producer, agreed to acquire the zinc international assets of Vedanta, an Indian multinational mining company, for $3bn.
Subject to receipt of timely regulatory approvals, the transaction is expected to be completed in a phased manner over a period of around 18 months, the company noted, adding that the agreements will be executed subsequent to shareholders’ approval.
Sun Life, an insurance company completed an $193m investment in Dah Sing Bank, a banking company.
"We are delighted to partner with Dah Sing Bank in Hong Kong. We now have more than 20 quality bancassurance partnerships in seven markets across Asia as we expand our reach with world-class solutions and partners who share our commitment to place Clients at the centre of everything we do. We look forward to forging a formidable partnership with Dah Sing Bank as together we help even more Clients achieve lifetime financial security and live healthier lives," Ingrid Johnson, Sun Life President.
JP MAM has received regulatory approval from the China Securities Regulatory Commission to complete its acquisition of China International Fund Management Co. CIFM will be operating under the JP MAM brand in China (JP MAM China), reflecting its integration into the firm's global operating model.
"Receiving regulatory approval to acquire full ownership of a Chinese fund manager is an incredibly exciting milestone that reflects our long-term mind-set and the breadth of our commitment to China. Our scale and global capabilities will enable us to help Chinese investors strengthen their investment solutions and diversify internationally, as well as to bring foreign investment and capital to China," Mary Callahan Erdoes, JP Morgan Asset Chief Executive Officer.
Chinese brokerages rush to raise billions in regulatory squeeze as Western competition looms.
Chinese brokerages are in a race to raise billions of dollars in capital to meet regulatory requirements, jumping on a market upturn to bolster operations as they brace for tougher competition from Wall Street banks on their home turf.
Chinese equities have rebounded more than 10% on economic recovery bets since Beijing dismantled zero-Covid curbs last month, opening a window of opportunity for share issues by the brokerages. Morgan Stanley expects another 13% jump from the current level by end-2023.
At least six listed brokerages - including China International Capital and Huatai Securities - are seeking to sell new shares in private placements or rights issues to raise up to $12.2bn, Reuters reported.
Elliott hires Cornwall Capital’s Tai to boost Japanese activism. (FS)
Elliott Investment Management has hired Aaron Tai, a partner at hedge fund Cornwall Capital, to grow its activism practice in Japan.
Tai joined Elliott this week and reports to London-based senior portfolio manager Nabeel Bhanji. During his time at Cornwall Capital, Tai spent close to a decade engaging with Japanese public companies.
The hire follows recent departures from Elliott including London-based portfolio manager Sebastien de La Riviere, who left earlier this month, and Mark Levine, who was one of the most senior members of Elliott’s UK office and retired late last year. Some other members of Elliott’s London office, including Franck Tuil and James Smith, have also left in recent years and gone on to start their own funds, Bloomberg reported.
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