A trial over Elon Musk's bid to end his $44bn deal for Twitter should be delayed by several weeks to allow the billionaire to investigate a whistleblower's claims about security on the social media platform, Musk's lawyer told a judge,
Reuters reported.
Last month, whistleblower allegations became public that provided Musk fresh ammunition to bolster what legal experts said was a long-shot attempt to walk away from the deal without paying a $1bn termination fee.
Twitter's former head of security, Peiter Zatko said in a complaint to regulators that the company falsely represented that it had a solid data security plan. Twitter has dismissed Zatko's allegations as a "false narrative," and its lawyer accused the billionaire of seizing on the whistleblower allegations to cover up the fact that he supposedly rushed into buying the company without assessing the risks.
Zendesk, a customer experience software company, commented on a report issued by Institutional Shareholder Services, an independent proxy advisory firm. In its report, ISS recommends that Zendesk stockholders vote for the proposed $10.2bn acquisition of the company by the consortium led by Hellman & Friedman and Permira with participation from Abu Dhabi Investment Authority and GIC.
"We are pleased that ISS recognizes that the acquisition by the consortium is the best path forward for Zendesk and provides stockholders with the best available outcome. ISS's support further validates our view that the immediate, attractive and certain value of the proposed transaction is superior to the risk of the standalone alternative. We urge Zendesk stockholders to follow ISS's independent recommendation and vote FOR the all-cash acquisition of 100% of the outstanding common shares of Zendesk by the Consortium," ISS.
Zendesk is advised by Goldman Sachs, Qatalyst Partners, Wachtell Lipton Rosen & Katz and Sard Verbinnen & Co. Financial advisors are advised by Morrison & Foerster and Sullivan & Cromwell. Hellman & Friedman is advised by Morgan Stanley, Fried Frank Harris Shriver & Jacobson, Kirkland & Ellis, Simpson Thacher & Bartlett and Finsbury Glover Hering. Debt provider are advised by Latham & Watkins. Permira is advised by Sard Verbinnen & Co. GIC is advised by Dechert.
The European Union blocked Illumina's acquisition of Grail, a cancer-test developer, putting an $8bn merger into jeopardy just days after a US administrative law judge allowed it to go forward,
WSJ reported.
The fate of the acquisition has emerged as an early test case for regulators in the US and EU, who have vowed to scrutinize mergers more closely after years of allowing many corporate combinations. The outcome could establish new precedents for M&A oversight, especially because Grail's tests are relatively new and have generated little revenue, and none in the EU.
The bloc's antitrust regulator said the purchase would stifle innovation and reduce choice in an emerging market for early cancer-detection blood tests. The decision could prompt Illumina, a maker of gene-sequencing machines, to shed Grail just over a year after scooping it up. The EU's antitrust regulator said Illumina didn't offer sufficient remedies to address its concerns about the deal and that it would issue a separate decision ordering Illumina and Grail to dissolve their transaction.
Grail was advised by Morgan Stanley, Latham & Watkins, McDonald Hopkins, Proskauer Rose, Ropes & Gray and Sard Verbinnen & Co. Illumina was advised by Goldman Sachs, Cravath Swaine & Moore, Davis Polk & Wardwell and Joele Frank. Goldman Sachs was advised by Freshfields Bruckhaus Deringer. Debt was provided by Goldman Sachs.
EIG, an institutional investor in the global energy and infrastructure sectors, agreed to acquire a 25% stake in Repsol Upstream, a gas-weighted global E&P company that will own and operate Repsol's globally diversified portfolio of upstream assets, delivering cash-generative and resilient operations, for $4.8bn.
"Energy transition informs every decision we make, and we are thrilled to partner with a global leader of Repsol's stature on this compelling opportunity to lead change in our industry. Evaluation of ESG impact is integrated into EIG's core investment and portfolio management functions, and we look forward to working with Repsol, a world-class operator, and energy transition leader, to continue building on the business's ESG best practices. As the world looks to meet the twin goals of decarbonization and reliability, we believe this partnership is well positioned to help meet the growing global demand for accessible, efficient, and safe energy," R. Blair Thomas, EIG Chairman and CEO.
EIG is advised by Goldman Sachs, JP Morgan, Lazard, Latham & Watkins and FGS Global. Repsol is advised by PJT Partners.
Kelso & Co, a private equity investment firm, completed the acquisition of a majority stake in Emtec, an information technology consultant. Financial terms were not disclosed.
"Emtec's success has been made possible by our talented associates and our valued clients who trust Emtec with their most demanding digital engagements. We have developed a unique culture over our history, and we are excited to welcome a partner in Kelso who shares our passion for customer service, dedication to our associates, and commitment to investing for growth," Sunil Misra, Emtec CEO.
Kelso & Co was advised by Canaccord Genuity, Gibson Dunn & Crutcher and Profile Advisors. Emtec was advised by Guggenheim Partners and Dechert. Guggenheim Partners was advised by Sullivan & Cromwell.
EQT, an integrated energy company, agreed to acquire the upstream assets of Tug Hill, an operator of an oil and gas exploration company, and the gathering and processing assets of XcL Midstream, a developer and operator of natural gas assets, for $5.2bn. Tug Hill and XcL Midstream are backed by Quantum Energy Partners.
"We believe the company is in a uniquely strong position as the largest producer of natural gas in the country, with a differentiated track record of operational excellence, a deep core inventory base and a peer-leading commitment to ESG. The Tug Hill and XcL Midstream assets are complementary to EQT's existing footprint, and we believe the company is now positioned to create even more value for its shareholders through this highly strategic combination," Wil VanLoh, Quantum Energy Partners Founder and CEO.
EQT is advised by RBC Capital Markets and Kirkland & Ellis. Tug Hill and XcL Midstream are advised by JP Morgan, Akin Gump Strauss Hauer & Feld, Wells Fargo Securities and Vinson & Elkins.
Francisco Partners, an investment firm, completed the investment in Drawbridge, a provider of cybersecurity software and solutions to the financial services industry. Long Ridge remains significant equity holders in the company. Financial terms were not disclosed.
"Jason and Scott have done an exceptional job building Drawbridge's market-leading platform and have shown an impressive dedication to solving customers' critical cybersecurity and compliance needs. We are very excited to partner with Long Ridge and the Drawbridge team to accelerate growth and continue to drive innovation in the sector," Peter Christodoulo, Francisco Partners Partner.
Francisco Partners was advised by Kirkland & Ellis and Sloane & Company. Drawbridge was advised by Raymond James and Faegre Drinker Biddle & Reath. Long Ridge was advised by BackBay Communications.
Cogent, an Internet service provider, agreed to acquire the wireline business of T-Mobile, a telecommunications service provider. Financial terms were not disclosed.
For Cogent, acquisition of T-Mobile's wireline business is expected to be an ideal strategic fit with its existing business. The wireline business offers the legacy Sprint US long-haul network that provides an owned network asset to complement and eventually replace Cogent's current leased network and provides the ability to expand its product set, including the sales of optical wave transport services to new and existing customers.
Cogent is advised by Morgan Stanley and Latham & Watkins. T-Mobile is advised by Houlihan Lokey and DLA Piper.
Gamut Capital, a New York-based middle market private equity firm, agreed to acquire Extreme Reach, a tech platform for video ad campaign workflow. Financial terms were not disclosed.
“We look forward to partnering with Extreme Reach’s strong management team to continue to bring transformative solutions to key industries that face complex challenges with the rise of streaming, media fragmentation, and content proliferation. Gamut will work with ER to leverage its strong roots in video delivery and commercial production payroll processing and invest in technologies and talent that accelerate growth in creative asset management, digital video activation, and the rich insights revealed by end-to-end workflow while enhancing its position in payroll solutions for the entertainment industry,” Stan Parker, Gamut Founding Partner.
Extreme Reach is advised by Moelis & Co and Kirkland & Ellis. Gamut Capital is advised by LionTree Advisors and Prosek Partners.
Misfits Market, an online grocery platform, agreed to acquire Imperfect Foods, an online grocer. Financial terms were not disclosed.
“Scale matters in grocery, and this combination makes us a truly meaningful disruptor in the space. Both organizations have made significant progress as individual brands—together we have already rescued nearly 500m of pounds of food that may otherwise have gone to waste, and driven innovation in a category propped up by antiquated technology and thinking. The combined experience and expertise of this newly merged team will exponentially increase our ability to take on established players in the traditional grocery space,” Dan Park, Imperfect Foods CEO.
Imperfect Foods is advised by Solomon Partners and DLA Piper. Misfits Market is advised by Wilson Sonsini Goodrich & Rosati and Archetype Agency.
Arlington Capital-backed Systems Planning & Analysis, a provider of strategic advisory, systems engineering, modeling and simulation, completed the acquisition of operations research & cyber analysis business of Metron, a scientific consulting and research firm. Financial terms were not disclosed.
"ORCA is a key component of SPA’s overall strategy to solidify its position as the elite technical advisory partner to the national security community. SPA and ORCA both solve customer challenges within missions of strategic importance by pairing highly skilled employees with innovative tools. This shared business model will facilitate a smooth integration and accelerate the delivery of further innovation to each set of customers," David Wodlinger, Arlington Capital Managing Partner.
Systems Planning & Analysis was advised by Morrison & Foerster and Sheppard Mullin Richter & Hampton. Metron was advised by Robert W Baird and Venable.
Harvest Partners and Cressey & Company-backed VetCor, an operator of a chain of veterinary clinics, completed the acquisition of People Pets & Vet, an operator of veterinary hospitals intended to partner with veterinarians to help them reach their full potential. Financial terms were not disclosed.
"Chris and his team have rapidly developed the founding PPV practice group into an impressive national network. We are excited to partner our organizations to expand the resources, support services, and career opportunities for our veterinary teams, as they continue to care for growing numbers of patients, clients, and communities," Dan Adams, VetCor CEO.
VetCor was advised by Jefferies & Company, Ropes & Gray and Lambert & Co. People Pets & Vets was advised by Harris Williams & Co.
SK Capital, a private investment firm, agreed to invest in VanDeMark Chemical, a global producer of life science chemistries. Comvest will remain a co-owner of the company. Financial terms were not disclosed.
SK Capital’s investment will serve as a catalyst for a new strategic direction as the Company seeks to deepen and expand its presence in fine chemistries for the global life science market.
“SK Capital has followed VanDeMark for many years, and we believe this is a great opportunity to partner with Comvest to bring our shared strategic vision to life. We feel privileged to play a part in VanDeMark’s story and will work closely with the company’s employees and customers to bring further success to fruition," Jon Borell, SK Capital Managing Director.
SK Capital is advised by King & Spalding and BackBay Communications. Debt financing is provided by CIT Group. Comvest is advised by Kirkland & Ellis.
Susquehanna Growth Equity, a private equity firm, led a $180m Series A funding round in Muck Rack, a public relations management platform.
"We're thrilled to partner with SGE to support our rapid growth and continue to define the role of PRM in the SaaS ecosystem. This investment is an indicator of the strength of our business and Muck Rack's bright future as we drive toward our mission to enable organizations to build trust, tell their stories and demonstrate the unique value of earned media," Gregory Galant, Muck Rack Co-Founder and CEO.
SGE was advised by Gasthalter & Co. Muck Rack was advised by AQ Technology Partners.
Namely, a developer of a human capital management platform, completed the merger with Vensure Employer Services, a provider of comprehensive and cost-effective human resources services, and PrismHR, a developer of software for human resource outsourcing service providers. Financial terms were not disclosed.
"Small and mid-sized businesses are the lifeblood of the US economy and culture—and we're committed to providing them with even more cloud-based HCM solutions that help them compete with large companies. We do this by offering them the same high quality HR technology, healthcare plans, and outsourcing services including payroll, benefits and risk management that big companies enjoy. Namely's significant technology investments and well-respected brand will enable us to provide employers and our PEO and ASO partners with even more functionality," Gary Noke, PrismHR President and CEO.
Namely was advised by Jefferies & Company and The Devon Group.
Helios Technologies, an industrial valve manufacturing company, agreed to acquire Daman Products, a hydraulic valve manifolds manufacturer. Financial terms were not disclosed.
“Adding Daman onto our pure play Hydraulics platform is a clear demonstration of the continued progress we are making with our flywheel acquisition strategy. Daman has established, long-term relationships with a diversified customer base serving multiple end markets. They bring a differentiated value proposition through sophisticated inventory programs that reduce supply chain delays and enable rapid delivery,” Josef Matosevic, Helios President and CEO.
Helios Technologies is advised by Kei Advisors.
Mercer Advisors, a national registered investment adviser, agreed to acquire Jordan Financial Strategies, a wealth management firm. Financial terms were not disclosed.
"Kristy leads a highly respected wealth management team and will fit in seamlessly with our already strong presence in Colorado, including our National Hub located in downtown Denver. We are thrilled they are joining the Mercer Advisors team and look forward to working together to help deliver meaningful results for our shared clients," Dave Welling, Mercer Advisors CEO.
Mercer Advisors is advised by Chris Tofalli Public Relations.
Magna5, a national provider of managed IT services, to acquire Interphase Systems, a Philadelphia-based managed IT services provider. Financial terms were not disclosed.
"We're thrilled to join the Magna5 team and look forward to leveraging their sales and marketing expertise to expand our customer base in the Philadelphia region. Our current customers will also benefit from Magna5's broader set of capabilities and technical resources," John Biglin, Interphase Systems CEO.
Lamb Weston, an American food processing company, to invest $240m in the manufacturing facility in Mar del Plata.
“Our investment in a new french fry processing facility demonstrates our continued confidence in the growing global market for frozen french fries, and our commitment to serving our customers in Argentina and the broader South American market,” Tom Werner, Lamb Weston President and CEO.
PCX Aerosystems, a producer of advanced mechanical systems for the aerospace industry, agrred to acquire Pacific Contours, an aerospace company. Financial terms were not disclosed.
"The acquisition of Pacific Contours further expands our Southern California portfolio, adding customer and product diversification, an experienced leadership team, and a skilled workforce," Tom Holzthum, PCX CEO.
Oakley Capital, a mid-market private equity investor, agreed to invest in vLex, a developer of a legal information platform. Financial terms were not disclosed.
"vLex has all the hallmarks of an Oakley deal: a fast-growing, disruptive business model in a niche sector, led by ambitious business founders. We look forward to partnering with Lluis and Angel to help them build a successful product in the global market for legal information," Peter Dubens, Oakley Capital Founder and Managing Partner.
SoftBank nears $2bn sale of Fortress to Mubadala. (FS)
Mubadala Investment is nearing a deal to buy Fortress Investment Group, a global investment manager, from SoftBank Group in a purchase that could value the US asset manager at more than $2bn,
Bloomberg reported.
The Abu Dhabi sovereign fund could announce an agreement in the coming weeks. Rajeev Misra, a key lieutenant to SoftBank founder Masayoshi Son with close ties to the Gulf emirate, is playing a key role in brokering the deal.
Ben & Jerry's will amend lawsuit against Unilever over Israel ice cream sale.
Ben & Jerry's plans to amend its lawsuit challenging the sale of its ice cream business in Israel by its parent company, Unilever,
Reuters reported.
In a letter filed in federal court in Manhattan, Ben & Jerry's said it plans to file an amended complaint by September 27, with Unilever's response due by November 1. Unilever has agreed to the timetable. Its response to Ben & Jerry's original complaint had been due.
Kim Kardashian to launch private equity firm with former Carlyle partner. (FS)
Reality television star and entrepreneur Kim Kardashian and a former partner at Carlyle Group are launching a new private equity firm focused on investing in consumer and media businesses.
The new firm to be launched by Kardashian and Jay Sammons will be named SKKY Partners. The firm will make investments in sectors including consumer products, hospitality, luxury, digital commerce and media.
AIG revives life unit corebridge’s $1.9bn US IPO.
American International Group, a global insurance organization, will move ahead with plans to raise as much as $1.9bn selling shares in its life and retirement unit,
Bloomberg reported.
The insurer will offer 80m shares in Corebridge Financial at $21 to $24 apiece in a proposed initial public offering. The listing was slated for earlier this year before it was delayed amid a market downturn.
Advent International appoints new CFO. (FS, People)
Advent International has appointed Susan Gentile as CFO and Managing Director, effective 1 October, 2022. Gentile succeeds Eileen Sivolella, who has served in the role since 2009 and will assume the role of strategic advisor on an interim basis to provide continuity.
Gentile brings nearly two decades of experience across financial services. She most recently served as Chief Financial & Administrative Officer at HIG Capital, where she was responsible for leading the strategic direction of the global private investment firm since 2018, including managing its development and growing assets.
