Duke Energy, an energy company, completed the first of a two-phase sale of Duke Energy Indiana to GIC, a private equity firm, receiving cash proceeds of $1.03bn in exchange for an 11.05% minority interest.
Under the previously announced agreement, GIC will acquire a 19.9% indirect minority interest in Duke Energy Indiana for a total purchase price of $2.05bn in two separate phases.
Proceeds from this transaction will help fund the company's $59bn capex plan and satisfy all equity capital raising needs through 2025. Duke Energy has the discretion to determine the timing of the second closing, but it will occur no later than January 2023.
GIC is advised by Barclays, Ice Miller, Sidley Austin and Steptoe & Johnson. Duke Energy is advised by Centerview Partners, JP Morgan and Skadden Arps Slate Meagher & Flom.
Intuit, an American business and financial software company, agreed to acquire Mailchimp, an operator of a marketing and commerce platform, for $12bn.
“We’re focused on powering prosperity around the world for consumers and small businesses. Together, Mailchimp and QuickBooks will help solve small and mid-market businesses’ biggest barriers to growth, getting and retaining customers. Expanding our platform to be at the center of small and mid-market business growth helps them overcome their most important financial challenges. Adding Mailchimp furthers our vision to provide an end-to-end customer growth platform to help our customers grow and run their businesses, putting the power of data in their hands to thrive," Sasan Goodarzi, Intuit CEO.
Intuit is advised by Morgan Stanley and Latham & Watkins. Mailchimp is advised by Qatalyst Partners, King & Spalding, McDermott Will & Emery and Joele Frank.
Arcline Investment-backed Fairbanks Morse, a manufacturer of internal combustion engines, completed the acquisition of Hunt Valve, a manufacturer and designer of fluid power engineering components and parts, from May River Capital, a private equity investment firm. Financial terms were not disclosed.
"Our excellent partnership with May River Capital over the last five plus years has not only fueled our growth but has also positioned us well for the next stage of development. We have continued to focus on meeting customer expectations, particularly in handling the growth in our end market and focusing on quality and delivery. Our customers continue to be great partners and we are excited to be part of the Fairbanks Morse Defense and Arcline Investment Management team which will further improve our ability to bring the highest quality solutions to our customers," Charles Ferrer, Hunt Valve CEO.
Fairbanks Morse was advised by Houlihan Lokey and Mercom Communications. May River Capital was advised by Duff & Phelps, Harris Williams & Co and Paul Hastings.
GI Partners, a private investment firm, completed the acquisition of a majority stake in LightEdge, a provider of colocation, cloud and managed service solutions, from Anschutz, an American private holding company. Financial terms were not disclosed.
"Over the last several years, LightEdge has emerged as a leading platform for colocation and cloud and managed services, particularly in the Midwest region. The Company has a proven model for delivering excellent service to enterprise customers in an increasingly complex hybrid-cloud world. We look forward to partnering with Jim and the LightEdge team to realize their vision for growth in the business," Mark Prybutok, GI Partners Managing Director.
LightEdge was advised by Bank Street Group, Hogan Lovells and Trozzolo. GI Partners was advised by Paul Hastings and Chris Tofalli Public Relations.
Clearlake Capital agreed to acquire Mold-Rite, a manufacturer of plastic packaging components, from Irving Place Capital, a private equity firm. Financial terms were not disclosed.
"Our combination of innovative design solutions with a customer-centric approach has made MRP a trusted supplier. Clearlake's operational knowledge and resources will allow us to grow our position in the market while we continue to innovate and provide quality products and services to our valued customers across the healthcare and consumer packaging segments in which we participate," Brian Bauerbach, Mold-Rite President and CEO.
Clearlake Capital is advised by Deutsche Bank, Evercore and Lambert & Co. Mold-Rite is advised by William Blair & Co.
Kape Technologies, a "privacy-first" digital security software provider to consumers, agreed to acquire ExpressVPN, a VPN service company, for $936m.
“With ExpressVPN to join the Kape family of world-leading privacy and security brands—together, we will have the vision, talent, and resources to take the industry to the next level. Controlling one's digital presence is at the forefront of every tech consumer’s mind now, and Kape is more committed than ever to innovating and delivering the tools internet users need to protect their data and rights. Kape is now synonymous with taking control of your digital experience,” Ido Erlichman, Kape Technologies CEO.
Kape Technologies is advised by FTI Consulting and Vigo Communications.
Agiliti, an essential service provider to the US healthcare industry, agreed to acquire Sizewise, a manufacturer and distributor of specialty hospital beds, surfaces and patient handling equipment, for $230m.
“The acquisition of Sizewise is a perfect example of our ‘overlap and extend’ approach to M&A. The combination builds on our existing geographic footprint and adds relevant scale to our Equipment Solutions service line, while simultaneously expanding our capabilities to bring differentiated products and services to market for our customers,” Tom Leonard, Agiliti CEO.
Sizewise is advised by Orrick Herrington & Sutcliffe. Agiliti is advised by Cozen O'Connor.
Private equity firms Insight Partners and Tiger Global led a $250m Series D funding round in Papaya Global, a workforce management platform. Additional investors include Greenoaks Capital, IVP, Scale Venture Partners, Bessemer Venture Partners, Alkeon Capital, Workday Ventures, Access Industries and Group 11.
“Papaya is redefining the global people management category with its best-in-field technology and superior customer experience, supporting needs in compliance, benefits and labor law globally. Its seamless platform supporting all employment options, employee engagement, payroll and global payments makes it a standout. We’re thrilled to continue our partnership with Papaya and watch the company grow," Teddi Wardi, Insight Partners Managing Director.
Apollo, an alternative investment manager, offered to acquire Tronox, a firm that mines, manufactures and sells titanium dioxide mineral sands and soda ash, for $4.3bn. Apollo has offered $27 per share to buy Tronox.
Tronox makes titanium dioxide pigment and other chemicals used to add brightness and durability to paints, plastics and paper. The Covid-19 pandemic weighed on demand for many of Tronox’s products, but the company has said its core markets are recovering as the world’s major economies bounce back.
Andreessen Horowitz, a venture capital firm, led a $300m Series E funding round in SpotOn, a developer of a cloud-based financial platform. Additional investors include DST Global, 01 Advisors, Dragoneer Investment, Franklin Templeton, Mubadala Investment, Wellington Management, Coatue Management, Douglas Merritt and Mike Scarpelli.
“This investment enables SpotOn to significantly increase its total addressable market, with an end-to-end platform for restaurants and retail business of all types and sizes. The acquisition is a natural fit given the companies’ complementary technology and shared focus on market-leading customer support," David George, Andreessen Horowitz General Partner.
Moody’s, an American business and financial services company, agreed to invest $250m in BitSight, a developer of a SaaS-based security rating platform designed to scale third-party risk programs.
“As organizations invest in cyber defense and resilience, another critical need has emerged: the ability to accurately measure and quantify cyber risk and exposure. Creating transparency and enabling trust is at the core of Moody’s mission – to help organizations assess complex, interconnected risks and make more informed decisions. BitSight is the leader in the cybersecurity ratings space, and together we will help market participants across disciplines better understand, measure, and manage their cyber risks and translate that to the risk of financial loss," Rob Fauber, Moody’s President and CEO.
Sapphire Ventures led a $159 Series F funding round in JumpCloud, a developer of a directory-as-a-service platform. Other investors include Owl Rock, Whale Rock Capital, Sands Capital, Endeavor Catalyst, General Atlantic, BlackRock and H.I.G. Capital.
“Large enterprises have put in place various directory and security solutions to solve these problems, but with large investments in tech outlays and IT support teams. SMBs and mid-sized enterprises don’t have the big budgets or large staff to replicate the large enterprise model. Developing for this market is a huge challenge because it requires building a product with all of the features large enterprises require, plus it has to be easy to use, easy to deploy and not terribly expensive," Rajat Bhargava, JumpCloud CEO.
Insight Partners led a $140m Series C funding round in Copado, a DevOps platform powering some of the world's largest digital transformations. Additional investors include SoftBank Vision Fund 2, Declaration Partners, DG Ventures, Salesforce Ventures, ISAI, Lead Edge Capital, Perpetual Investors and IBM Ventures.
"DevOps is now strategic to every business as digital economies become mainstream. Nearly every company in the world is looking to accelerate their development lifecycle and empower teams to quickly deliver software without the fear of failed deployments. Since I joined Copado, we've been focused on making release days obsolete, allowing businesses to deliver more features, faster, more securely and with high quality. Copado is powering the next generation of cross-cloud digital transformation," Ted Elliott, Copado CEO.
Fox, a news, sports and entertainment company, completed the acquisition of TMZ, a tabloid journalism online newspaper, from AT&T-backed WarnerMedia, an American multinational mass media and entertainment conglomerate. Financial terms were not disclosed.
"We see great potential building upon TMZ’s brand and track-record and adding new creative ventures with Harvey and the TMZ team," Charlie Collier, Fox Entertainment CEO.
Edifecs, a technology company in the US healthcare market, completed the acquisition of Talix, a developer of integrated workflow applications intended for health plans, healthcare providers and coders. Financial terms were not disclosed.
“The merger of these companies enables Edifecs to offer a more complete risk adjustment solution from insight, to intervention, to submission. This, in turn, will advance industry-critical value-based care initiatives by directly supporting providers with their increased acceptance of financial risk," Sunny Singh, Edifecs Founder and Chairman of the Board.
The Derbyshire Group, a firm operating commercial real estate properties, completed the acquisition of Smallcakes Cupcakery and Creamery, a provider of a range of gourmet cupcakes. Financial terms were not disclosed.
Each Smallcakes store specializes in freshly baked gourmet cupcakes, as well as seasonal and featured flavors presented in a signature pink box. Since opening, Smallcakes has added small batch cupcake-inspired ice cream to the menu, which has proven to be a successful addition for the brand.
Strathcona is in talks to buy Caltex Resources.
Strathcona Resources, a private oil and gas producer, is in advanced talks to buy rival Caltex Resources, a company that specializes in the extraction of conventional and heavy oil, for around CAD$700m ($553m), adding to its enhanced oil recovery portfolio in Saskatchewan.
Caltex attracted interest from at least half a dozen public and private oil companies after the Calgary-based firm hired an investment bank to run a sale process earlier this year, Reuters reported.
Vonage said to work with advisers on a possible sale.
Vonage Holdings, under pressure from activist investor Jana Partners, is working with advisers to run a strategic review of the business, including a potential sale of the telecommunication services company.
The company said it was terminating a sales process for its consumer business after a nine-month strategic review. Since then, Jana, a hedge fund run by Barry Rosenstein, has acquired a roughly 4% stake in Vonage and has called on it to hire advisers and explore selling all or parts of the company, Bloomberg reported.
Elliott said to push for breakup of SSE. (FS)
Elliott Investment Management, one of the oldest fund managers of its kind under continuous management, is pushing for a breakup of SSE after building up a stake in the British power company.
The activist hedge fund sees value in separating SSE’s renewable portfolio from its regulated electricity businesses. Elliott has been meeting privately with representatives from SSE, which is based in the central Scottish city of Perth, as well as some of its major shareholders, Bloomberg reported.
Knowlton targets over $3bn valuation in US IPO.
Knowlton Development said on September 14 it was looking to raise up to $857m through a US initial public offering, valuing the manufacturer for beauty, personal and home care brands at more than $3bn.
Goldman Sachs, JP Morgan, UBS and BMO Capital Markets are the lead underwriters for the offering, after which KDC will list on the New York Stock Exchange under the symbol “KDC”.
Genworth Financial reviews IPO of Enact Holdings.
Genworth Financial, an S&P 400 insurance company, on September 13 revived plans for an initial public offering of Enact Holdings, a holding company, aiming for a valuation of more than $3bn for its mortgage insurance unit.
The company had deferred the IPO in May due to market volatility, with Chief Executive Officer Tom McInerney saying the market pricing did not accurately reflect the company's value, Reuters reported.
Vonovia, a German property group, ditched a requirement for a majority of shareholders to back its takeover bid for Deutsche Wohnen, a German property company, in a move CEO Rolf Buch said meant the deal could no longer fail. Vonovia’s $22.7bn offer is no longer subject to gaining the support of more than 50% of shareholders, the target company said in a statement, Reuters reported.
“Vonovia has waived the minimum acceptance threshold and all other closing conditions of its takeover offer to the shareholders of Deutsche Wohnen,” Deutsche Wohnen.
Vonovia said it had secured control over more than 40% of Deutsche Wohnen shares, not including a further 4% it can acquire following completion of the takeover offer.
Vonovia is advised by Bank of America, Morgan Stanley, Perella Weinberg Partners, Societe Generale, Freshfields Bruckhaus Deringer and Kekst CNC. Debt financing is provided by Bank of America, Morgan Stanley and Societe Generale. Debt providers are advised by Hengeler Mueller. Deutsche Wohnen is advised by Deutsche Bank, Goldman Sachs, JP Morgan, Perella Weinberg Partners, UBS, Victoria Partners, Hengeler Mueller and Sullivan & Cromwell. Financial advisors are advised by Gleiss Lutz and Skadden Arps Slate Meagher & Flom.
Clayton Dubilier & Rice said it had reached an agreement with the pension trustees of Morrisons, a British supermarket chain, to provide additional security and support to the schemes, as it seeks to clinch the deal ahead of a rival bidder, Reuters reported.
Morrisons is at the centre of a bid battle between two US private equity firms. The supermarket group agreed a $9.54bn offer from CD&R in August, but a rival consortium led by Fortress Investment Group could still trump the bid and the battle looks to be heading for an auction.
Morrisons is advised by Jefferies & Company, Rothschild & Co, Shore Capital & Corporate, Ashurst and Citigate Dewe Rogerson. CD&R is advised by BNP Paribas, Goldman Sachs, JP Morgan, Clifford Chance and Teneo. Debt providers are advised by Debevoise & Plimpton. Fortress Investment is advised by HSBC, RBC Capital Markets, Slaughter & May and TB Cardew. Financial advisors are advised by Herbert Smith Freehills. Debt financing is provided by HSBC and RBC Capital Markets.
Qualcomm, a designer and supplier of computer chips, has made a formal bid to buy Veoneer, an automotive technology company, for more than $4.6bn, beating a $3.8bn offer from Magna International, a retailer of auto parts.
The US semiconductor company has formalized its offer of $37 a share. Qualcomm is interested in Veoneer’s Arriver software unit, which helps cars perceive and make driving decisions, and would likely later divest the non-Arriver assets to private equity firms or other automotive companies, Bloomberg reported.
Qualcomm is advised by Centerview Partners, Evercore and Paul Weiss Rifkind Wharton & Garrison. Veoneer is advised by Morgan Stanley, Rothschild & Co and Skadden Arps Slate Meagher & Flom. Financial advisors are advised by Debevoise & Plimpton and Sullivan & Cromwell. Magna is advised by Citigroup, Osler Hoskin & Harcourt and Sidley Austin.
Crestview Partners, a private equity firm, completed the acquisition of TenCate Grass, a provider of synthetic turf systems for sports and landscaping, from TenCate, a provider of textile technology. Financial terms were not disclosed.
"The artificial grass market is growing rapidly due to a number of compelling secular trends that Crestview has been investing behind for a number of years. The importance of sports and fitness for consumers is increasing while urbanization is putting a premium on space. We also view artificial grass as part of a broad range of solutions that can help address water scarcity issues around the world. We believe TenCate Grass' best-in-class research and product development and world-class leadership team will allow it to capitalize on these growth opportunities. We look forward to partnering with management and expanding the Company's reach both organically and inorganically," Brian Cassidy, Crestview Co-President and Partner.
Crestview Partners was advised by Houthoff, Paul Weiss Rifkind Wharton & Garrison and Kekst CNC. Debt financing was provided by ING Bank, Jefferies & Company and Societe Generale. Tencate was advised by Robert W. Baird and Clifford Chance.
Italgas, a company engaged in the business of natural gas distribution, offered to acquire DEPA Infrastructure, a group of companies with presence in the energy sector, actively engaged in the wholesale market, trading and supply, from Hellenic Republic Asset Development Fund, an investment advisory firm, and Hellenic Petroleum, an energy group, for $867m.
“I am proud of the result achieved, which rewards the Italian entrepreneurial capability as well as the technical and technological leadership of Italgas. In recent years, the company has been able to continue to grow and is now recognized as an international benchmark for the sector also in the perspective of energy transition," Alberto Dell'Acqua, Italgas Chairman.
Italgas is advised by Mazars Corporate Finance, Grant Thornton, JP Morgan, Karatzas & Partners and Milbank.
Accel led a $140m Series C funding round in Commercetools, a commerce platform built on modern MACH principles. Previous investors Insight Partners and REWE Group also participated.
“Our main focus is the retailer with more than $100m in gross merchandise value. This is when it becomes interesting. So we also sometimes have customers that start at $5m in GMV and quickly go to $50m. With that scale, they also have specific requirements, so the lines get a bit blurry," Dirk Hoerig, Commercetools CEO.
Insight Partners and Commercetools were advised by Willkie Farr & Gallagher.
Glovo, a firm that designs and develops application, agreed to acquire Lola Market, a provider of an online grocery shopping platform, and Mercadão, a provider of an on-demand marketplace. Financial terms were not disclosed.
“With Lola Market and Mercadão on board, we can build stronger partnerships with retailers, offer our users big-basket purchases and provide a more complete service. These acquisitions represent a significant step forward for us, as we’re now able to cover all of the main purchasing considerations for groceries customers, making Glovo a one-stop-shop for e-groceries," Oscar Pierre, Glovo CEO and Co-Founder.
Battery Ventures, a global, technology-focused investment firm, completed the acquisition of Goodfellow, a specialist supplier of high-quality materials for research and development. Financial terms were not disclosed.
“We look forward to continuing this heritage and further serving Goodfellow clients worldwide by growing the company’s international business and broadening its product range, including through targeted M&A, as well as improving customers’ digital-procurement experience—allowing them to more easily buy more materials online,” Jesse Feldman, Battery Ventures General Partner.
Schenck Process is up for sale. (FS)
Schenck Process, a German measuring technology group, is being put up for sale by its private equity owner in a potential deal worth more than €1.4bn ($1.7bn).
Buyout group Blackstone, which bought the Schenck Process group in 2017, is working with Goldman Sachs on the auction, which is expected to kick off shortly and target peers as well as other buyout groups.
Sportradar Group announced the pricing of its $513m IPO.
Sportradar Group, a provider of sports betting and sports entertainment products and services, announced the pricing of its initial public offering of 19m Class A ordinary shares at a price to the public of $27per share.
In addition, Carsten Koerl, Sportradar Founder and CEO, has granted the underwriters a 30-day option to purchase up to an additional 2.85k Class A ordinary shares at the initial public offering price.
Sportradar is advised by JP Morgan, Morgan Stanley, Citigroup, UBS, Bank of America, Deutsche Bank, Jefferies and Canaccord Genuity. Needham & Company, Benchmark Company, Craig-Hallum, Siebert Williams Shank and Telsey Advisory Group are acting as co-managers.
Fubon Financial, a full-service financial holding company engaging in financial planning, banking, securities, futures and insurance, agreed to acquire a 24% stake in Hyundai Card, a provider of credit card services, from private equity firms Affinity, GIC and AlpInvest, for $442m.
Fubon became one of the major shareholders of Hyundai Card, its representatives are also expected to join the card firm's board of directors in the near future, replacing those sent by previous investors.
Alibaba led a $300m Series B funding round in DeepRoute.ai, a global level 4 self-driving solution provider. Additional investors include Jeneration Capital, Fosun RZ Capital, Glory Ventures and Yunqi Partners.
“The self-driving technology market is highly competitive and features many exciting innovations. We believe DeepRoute.ai’s engineering team and proven record of success to date will enable it to continue to be a leading innovator, empowering more businesses and services in a variety of industries,” Jason Tan, Jeneration Capital Partner and CIO.
Sequoia Capital China led a $186m Series E funding round in eSign, a Chinese provider of electronic signature services. Additional investors include Ant Group, IDG Capital, Hidden Hill Capital and GLP.
"The nationwide e-signature network built by eSign can support various business scenarios, allowing enterprises across China to sign and manage their contracts online. We will also invest more resources in areas like contract management, file processing, and AI to help enhance social trust and make trust easier through e-signature services," Jin Hongzhou, eSign CEO.
TricorBraun, a provider of rigid packaging services, agreed to acquire Cormack Packaging, a manufacturer and distributor of specialized packaging to the personal care, pharmaceutical, household cleaning, food, beverage and cosmetic industries. Financial terms were not disclosed.
"We are incredibly excited to mark our first entry into Australia with the acquisition of Cormack. Mathew Cormack and his team have established the company as a respected leader in the market over many decades. We are pleased to welcome Cormack to the TricorBraun family, and we look forward to helping the team continue its strong growth while serving customers with innovative and quality packaging solutions," Court Carruthers, TricorBraun President and CEO.
GII to buy health company as part of $1bn Saudi expansion.
Gulf Islamic Investments, a financial services firm that oversees nearly $2bn, is preparing for what could be its biggest deal yet as it looks to grow investments in Saudi Arabia and India and considers a listing in the next three years.
GII, as the firm is known, plans to buy a stake in a Saudi healthcare company for around $600m, co-founder Mohammed Alhassan said in an interview. The goal is to plow around $1bn into the kingdom over the next year to 18 months, with investments also targeted at logistics and cloud kitchens, Bloomberg reported.
Gogoro in merger talks with Poema SPAC.
Gogoro, a Taiwanese startup that specializes in battery-swapping technology, is in talks to go public through a merger with Poema Global Holdings, a blank-check firm.
The deal is set to value the combined company at $1bn or more. An announcement could come as soon as this week, Bloomberg reported.
Byju’s is in talks to acquire Tynker.
Byju’s, an ed-tech company, is in late-stage talks to acquire Tynker, a coding platform for kids, in a cash-and-stock deal, in what would be its ninth acquisition so far this year.
“Byju’s is aggressively looking to double down in the US as it looks to derive strategic value from the market. It is charting big plans currently for ramping up its presence in North America and has started focusing on kids’ learning."
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