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AMERICAS
Gurnet Point Capital, a private equity and venture capital firm, and Patient Square Capital, a health care investment firm, completed the acquisition of Radius Health, a biopharmaceutical company, for $890m.
“We are delighted to be acquiring Radius and providing additional resources to the Company during this critical time. We fully believe in the value of the Company’s portfolio and are looking forward to working closely with the Company to deliver a positive impact for patients,” Travis Wilson, Gurnet Point Partner.
Radius Health was advised by JP Morgan, Ropes & Gray and Gagnier Communications. Patient Square was advised by Kirkland & Ellis and Dukas Linden Public Relations. Gurnet Point was advised by Goldman Sachs, Latham & Watkins and Abernathy MacGregor Group. Debt financing was provided by OrbiMed Advisors. OrbiMed Advisors was advised by Covington & Burling.
KKR completed the acquisition of Barracuda Networks, a provider of cloud-first security solutions, from Thoma Bravo, a software investment firm, for $4bn.
"We believe that with the support of KKR, we will continue to invest in growth and foster a culture that gives our team the resources and inspiration to continue to create and deliver the next generation of leading cybersecurity solutions for our customers and partners. We are very appreciative of Thoma Bravo's support and very excited to be working with KKR on this next phase of Barracuda's journey," Hatem Naguib, Barracuda CEO.
KKR was advised by Barclays, DBO Partners, Guggenheim Partners and Simpson Thacher & Bartlett. Thoma Bravo was advised by JP Morgan, Kirkland & Ellis and Finsbury Glover Hering.
One Equity Partners, a private equity firm, completed the acquisition of Gamut, a digital media services company, and CoxReps, a diversified, cross platform seller of local advertising, from Cox Media Group, an American media conglomerate. Financial terms were not disclosed.
"We are excited to complete the acquisition of Gamut and CoxReps, which together manage more than $1.5bn in combined annual media spend, spanning both linear and connected television. Both Gamut and CoxReps are leaders in local video advertising, perfectly poised for further investment to support and grow their long-standing relationships with station group clients, CTV publishers, and agency customers," Andrew Dunn, OEP Managing Director.
One Equity Partners was advised by Latham & Watkins and Stanton PRM. Cox Media Group was advised by Progress Partners, Fenwick & West, Morgan Lewis & Bockius and Perkins Coie.
Clearlake Capital-backed Cornerstone OnDemand, an adaptive cloud-based HR software solutions provider, completed the acquisition of SumTotal, a provider of learning and human capital management software-as-a-service, from Skillsoft, an educational technology company, for $200m.
"SumTotal and Cornerstone share a passion for people growth and development. The additional depth of expertise from SumTotal, particularly in high-consequence vertical markets, is an ideal complement to Cornerstone. With Cornerstone's broad portfolio and agnostic approach to innovation, we expect to offer SumTotal customers even more options for extensibility and growth. Together, we will continue our mission in helping organizations and their people to develop future-proof skills, flexibly grow their careers, and achieve shared success," Himanshu Palsule, Cornerstone CEO.
Cornerstone OnDemand was advised by Centerview Partners, Sidley Austin and Lambert & Co. Skillsoft was advised by PJT Partners, Weil Gotshal and Manges and Joele Frank.
Partners Group, a private equity firm, agreed to acquire a minority stake in CVC Capital-backed VelocityEHS, an EHS software company. Financial terms were not disclosed.
"Our thematic research identified EHS as an attractive sub-sector of the US software market due to its large size, strong secular growth trends, and fragmented landscape. VelocityEHS is a market-leading SaaS platform in this space, with a comprehensive product portfolio, and we have strong conviction in its future prospects. We look forward to working with management and our partners at CVC on scaling VelocityEHS further and executing on the value creation plan," Chris Russell, Partners Group Managing Director.
VelocityEHS is advised by Burns & Levinson. CVC Capital is advised by William Blair & Co and Weil Gotshal and Manges. Partner Group is advised by PricewaterhouseCoopers and Ropes & Gray.
GlaxoSmithKline, a science-led global healthcare company, completed the acquisition of Affinivax, a clinical-stage biopharmaceutical company, for $3.3bn.
“The proposed acquisition further strengthens our vaccines R&D pipeline, provides access to a new, potentially disruptive technology, and broadens GSK’s existing scientific footprint in the Boston area. We look forward to working with the many talented people at Affinivax to combine our industry-leading development, manufacturing, and commercialisation capabilities to make this exciting new technology available to those in need," Hal Barron, GSK Chief Scientific Officer.
Affinivax was advised by Centerview Partners and JP Morgan. GSK was advised by Cleary Gottlieb Steen & Hamilton and Davis Polk & Wardwell.
Navitas Semiconductor, an IC chips manufacturer, agreed to acquire GeneSiC Semiconductor, a semi conductor manufacturer, for $311m.
“GeneSiC’s patent-protected, advanced technology and innovative, experienced team are critical factors in the growth of our company. Our SiC MOSFETs offer the industry’s highest performance, reliability, and ruggedness – parameters critical towards widespread adoption of electric vehicles and associated infrastructure. With almost 20 years of leading-edge R&D, proven platforms, over 500 diverse customers, and growing revenue and profitability, we can leverage Navitas’ mass-production expertise and go-to-market strategy to accelerate SiC revenues. We are very excited about this new partnership," Ranbir Singh, GeneSiC President.
GeneSiC is advised by Bank of America and Gibson Dunn & Crutcher. Navitas is advised by Jefferies & Company and TCF Law Group.
Waste Connections, a waste management company, completed the acquisition of Lone Star Disposal, a garbage collection firm, from J.F. Lehman, a private equity firm. Financial terms were not disclosed.
"We are proud of the growth we have achieved over the past three years. JFLCO has been instrumental in identifying and supporting critical value creation efforts across our business. We are grateful for JFLCO's support and look forward to continuing this momentum within the Waste Connections family," Brett Sarver, Lone Star President.
J.F. Lehman was advised by Houlihan Lokey, Robert W Baird and Shearman & Sterling.
FTC push to block Meta VR takeover set for December showdown.
Meta Platforms proposed acquisition of Within, a virtual reality company, is headed for a court showdown in December in the Federal Trade Commission’s first preemptive challenge to a takeover by the tech giant, Bloomberg reported.
Hearings on the FTC’s move to block the deal are expected on seven days through December 20, US District Judge Edward Davila in San Jose, California.
Within is advised by Cooley. Meta is advised by Latham & Watkins.
Baker Hughes, an energy technology company that provides solutions to energy and industrial customers worldwide, agreed to acquire Quest Integrity, a company in the development and delivery of asset integrity and reliability management services, for $280m.
“The acquisition of Quest Integrity marks another step in Baker Hughes’ commitment to help customers ensure their asset infrastructure is safe and reliable and demonstrates how we continue to invest for growth in this area. Today’s announcement strengthens Baker Hughes’ unique capability to bring holistic industrial asset management services to our customers,” Rami Qasem, Baker Hughes Executive Vice President of Digital Solutions.
Team is advised by Robert W Baird and Kirkland & Ellis.
The Peoples Bank, a wholly-owned subsidiary of Peoples Financial, completed the acquisition of the corporate trust business of Trustmark, a diversified financial services company. Financial terms are not disclosed.
"This transition supports our focus on strategic initiatives that will help our company grow, become more efficient and serve our customers with new and innovative products and services as we move forward. The seamless transition process of the Corporate Trust business portfolio to The Peoples Bank has underscored our confidence that this transaction will be positive for the Corporate Trust customers. We are most pleased that these customers will enjoy the same level of service from The Peoples Bank team that they have come to expect from Trustmark," Duane Dewey, Trustmark President and CEO.
Nerdy, a platform for live online learning, with a mission to transform the way people learn through technology, completed the acquisition of Codeverse, a creative online platform where kids build apps and games with real code. Financial terms were not disclosed.
"Coding is one of the fastest-growing segments in education, yet the tools and resources for students have not kept up with the increasing demand. We understand the importance of coding to our customers, and as we evolve our business to an all-inclusive learning destination the addition of Codeverse to the Varsity Tutors platform will help us deliver on the need for high-quality computer science and coding education year round," Chuck Cohn, Nerdy Founder, Chairman and CEO.
Thompson Distribution, a certified MBE full line distributor of Plumbing, Underground, HVAC and MRO supplies, completed the acquisition of Landmark Trucks, a heavy truck dealer. Financial terms were not disclosed.
"We see in Landmark Trucks a well-run business with a large and loyal customer base situated in highly visible locations. Landmark already brings value to customers who depend on their outstanding service department. Their culture aligns well with other Thompson Distribution companies in their emphasis on building lasting relationships and with a premium customer experience. We also love the family atmosphere of Landmark and are encouraged by the existing company culture," John Thompson, Thompson Distribution CEO.
Spruce Lake Liability Management to acquire Redco from Crane Holdings.
Spruce Lake Liability Management, an industrial products manufacturer, agreed to acquire Redco, a wholly owned subsidiary that holds liabilities including asbestos liabilities and related insurance assets of Crane Holdings, a diversified manufacturer of highly engineered industrial products. Crane contributed approximately $550m in cash to Redco, and Spruce Lake made a capital contribution of $83m. Crane financed its contribution with a combination of short-term debt and cash on hand.
“Today’s announcement provides finality and certainty to investors regarding asbestos obligations, and it removes the distraction of asbestos related risks. Further, eliminating ongoing payments for asbestos related defense and indemnity costs will increase annual free cash flow available for us to invest in our business, both organically and inorganically. The transaction will also give us substantially more flexibility to optimize the capital structures for post-separation Crane Company and Crane NXT in a manner that positions both companies for growth and value creation," Max Mitchell, Crane President and CEO.
Crane is advised by Evercore, Simpson Thacher & Bartlett, Skadden Arps Slate Meagher & Flom and K&L Gates. Spruce Lake is advised by Nomura.
Activist investor Dan Loeb takes new stake in Disney and urges ESPN Spinoff.
Activist investor Dan Loeb acquired a stake in Walt Disney and called for sweeping changes at the world's largest entertainment company, including a spinoff of the ESPN sports network and new board members, Bloomberg reported.
"ESPN is a great business that currently generates significant free cash flow. Despite these advantages, we believe that a strong case can be made that the ESPN business should be spun off to shareholders with an appropriate debt load that will alleviate leverage at the parent company," Dan Loeb.
Activist Investor Elliott takes large stake in Cardinal Health. (FS)
Elliott Management, the activist investor firm, has taken a large position in drug distributor Cardinal Health and is seeking seats on the company’s board, Bloomberg reported.
The investment firm nominated five directors to Cardinal’s 11-person board roughly two weeks ago, before Cardinal announced that Chief Executive Officer Mike Kaufmann would step down.
Elliott takes 3.7% stake in Aerojet Rocketdyne. (FS)
Elliott Investment Management, which has a history of bidding for companies in the US defense sector, has bought a sizable stake in Aerojet Rocketdyne, Bloomberg reported.
The Florida-based hedge fund said it owned a 3.7% of Aerojet. While the investment is a passive one for now, the investment firm has made acquisitions of companies of a similar size in the sector. Last year it bought Cubic, along with Veritas Capital while it also had unsuccessful takeover bid for Mercury Systems.
Babylon Holdings weighs a privatization deal after SPAC deal.
The owners of Babylon Holdings are starting to consider the possibility of taking the health tech company private, less than a year after it went public, Bloomberg reported.
Babylon, founded by its Chief Executive Officer Ali Parsa, has been holding preliminary discussions with some investors about how to address a crumbling share price that’s wiped almost $4bn off its value since its October listing in New York.
EMEA
Authentic Brands, an American brand management company, agreed to acquire Ted Baker, a British high-street clothing retail company, for £211m($255m).
"Ted Baker is a highly regarded, uniquely British brand whose strong fashion credibility resonates with consumers around the world. We are excited to build on the brand's global foundation through a business model focused on licensing, wholesale, retail, digital and strategic marketing partnerships. Under ABG's ownership, we believe that Ted Baker is poised for continued growth and success," Jamie Salter, ABG Founder, Chairman and CEO.
Ted Baker is advised by Liberum Capital, Panmure Gordon & Co, Blackdown Partners, Evercore, Freshfields Bruckhaus Deringer and Tulchan Communications. Authentic Brands is advised by Bank of America and Slaughter & May.
I Squared Capital, a private equity firm, withdraws its $1.5bn offer to acquireFirstGroup, a bus and train operator.
"The board, having carefully evaluated the Proposal together with its advisers, concluded that the cash component significantly undervalues FirstGroup's continuing operations and its future prospects, and the contingent value does not provide shareholders with sufficient certainty," FirstGroup.
EQT, a private equity firm, agreed to acquire a 13.6% stake in Karo Pharma, a pharmaceutical company, for $217m.
“Having worked closely with Karo Pharma’s management, board of directors, and employees for the past three years, we believe that the company today is in a good position to enter its next phase of development. Looking ahead, we see great potential in continuing to develop Karo Pharma’s product portfolio and commercial capabilities, expanding into new markets, channels and categories and increasing investments into the platform and via M&A. However, for Karo Pharma to reach its full potential we are convinced that its continued value creation journey is best suited to a private environment," Erika Henriksson, EQT Partner.
EQT is advised by SEB Corporate Finance and White & Case.
Remitly, an online remittance service, agreed to acquire Rewire, a multinational fintech company that provides online financial services tailored to the unique needs of millions of migrant foreign workers worldwide, for $80m.
"From the start, Remitly has focused on delivering trusted digital financial services to serve immigrant communities around the world. We share with Rewire a deep commitment to our customers and that mission. Peace of mind starts with a trusted means for sending money home for critical costs. Rewire accelerates our progress as together we will continue to bring to market trusted financial services that are inclusive and accessible to all," Matt Oppenheimer, Remitly Co-Founder and CEO.
Rain in talks to submit bids for Telkom.
South Africa's data-only network provider Rain intends to submit a formal non-binding proposal to bigger rival Telkom in due course, Reuters reported.
South Africa’s Takeover Regulation Panel, a regulatory body, slammed rain for issuing a press release detailing its proposed merger with Telkom, saying the announcement was issued without prior approval as required by regulations.
Thoma Bravo considers taking Darktrace private. (FS)
Thoma Bravo, a US-based expertise personal fairness group, is contemplating a bid to privatize Darktrace, a cyber safety expertise firm suggested by former Autonomy head Mike Lynch, FT reported.
Thoma Bravo has begun discussions on a money takeover provide for Darktrace, the UK-based firm stated in a regulatory disclosure. It has a market capitalisation of £2.67bn($3.22bn).
Saudi Wealth Fund buys $7bn US stocks amid recession fears. (FS)
Saudi Arabia’s sovereign wealth fund invested more than $7bn to build new positions in US stocks including Amazon.com, Alphabet, BlackRock and JP Morgan as markets were battered by recession fears, Bloomberg reported.
The $620bn Public Investment Fund also added to positions it held in Facebook owner Meta Platforms, PayPal and Electronic Arts in the second quarter. The acquisitions show that the PIF, as the fund is known, is doubling down on its bet on technology investments despite a rout in valuations.
APAC
Private equity firms The Carlyle Group and Abingworth Management, led a $170m round in Opthea, a biopharmaceutical company.
"Opthea is thrilled to enter this strategic arrangement with Launch Tx, and to receive funding from world-leading investors in Carlyle and Abingworth. This strategic transaction is expected to fund us through Phase 3 topline data expected in mid-2024 and strengthens our strategic position to maximize the value of OPT-302. This transaction with Launch Tx is non-dilutive for shareholders of Opthea, and we are proud to have been selected as Launch Tx’s first partner since its formation," Megan Baldwin, Opthea CEO.
Opthea was advised by Cooley, Gilbert + Tobin, Argot Partners and Monsoon Communications. Abingworth Management was advised by DLA Piper and Goodwin Procter. Carlyle was advised by Debevoise & Plimpton.
Razorpay, the only payments solution in India that allows businesses to accept, process and disburse payments with its product suite, completed the acquisition of a 80% stake in Ezetap, a payment device maker. Financial terms were not disclosed.
This acquisition marks digital payments provider Razorpay’s entry into the PoS space.
ETS Global, a digital business solution company, and Bodhi Tree, an investment firm, led a $210m funding round in UpGrad, an online higher education platform with participation from Kaizen Management Advisors, Ambuja Cements, ACC, Artisan Investments, Temasek, IFC and IIFL.
“We are excited to invest in, and partner with, upGrad to help accelerate its growth. India continues to be a priority country for ETS, and we are dedicated to strategically increasing our footprint in this key market. Our partnership with upGrad will help to advance our shared mission of providing educational opportunities for all learners, in the South Asia region and around the globe," Ralph Taylor-Smith ETS Strategic Managing Director.
Tencent plans to divest Meituan stake worth $24bn.
China's Tencent Holdings plans to sell all or a bulk of its $24bn stake in food delivery firm Meituan to placate domestic regulators and monetise an eight-year-old investment, Reuters reported.
Tencent, which owns 17% of Meituan, has been engaging with financial advisers in recent months to work out how to execute a potentially large sale of its Meituan stake. The planned sale comes against the backdrop of China's sweeping regulatory crackdown since late 2020 on technology heavyweights that took aim at their empire building via stake acquisitions and domestic concentration of market power.
Billionaire Cheng kicks off $3bn Alinta Energy Sale.
Chow Tai Fook Enterprises, backed by Hong Kong billionaire Henry Cheng, is preparing to kick off the sale of Australian power company Alinta Energy, in a deal that could value it at about $3bn, Bloomberg reported.
Chow Tai Fook is working with Goldman Sachs on the potential divestment. The company has reached out to several prospective suitors to gauge interest in Alinta and is planning to formally launch the sale process as soon as the coming weeks.
Abrdn sells £225m shareholding in HDFC Asset Management. (FS)
Abrdn, a private equity firm, said it has sold 12.8m shares in HDFC Asset Management for £225m ($271m), with the proceeds to be used for general corporate purposes.
The FTSE 100-listed investment company said it sold the 6% shareholding on the National Stock Exchange of India and Bombay Stock Exchange for $24.33 a share. Following the sale, abrdn now holds a 10.21% stake in HDFC AMC through subsidiary abrdn Investment Management.
JERA to buy a 35% stake in Gia Lai Electricity for $112m.
Japan’s biggest power generator JERA said it will spend about $112m to buy a 35.1% stake in Vietnamese renewable energy company Gia Lai Electricity to expand its overseas business, DealStreetAsia reported.
The acquisition of an affiliate of Vietnamese conglomerate TTC comes as the Japanese utility steps up its decarbonisation efforts to help tackle global climate change.
Digit Insurance files for a $440m IPO.
India’s Digit Insurance, backed by the Canadian billionaire Prem Watsa’s Fairfax Group, has filed the draft red herring prospectus for its initial public offer with the market regulator Securities and Exchanges Board of India, DealStreetAsia reported.
The size of the IPO is likely to be around $440m. The company will disclose the total IPO size in its Red Herring Prospectus. Digit Insurance’s IPO consists of a fresh issue of shares worth $158m while existing shareholders will sell up to 109.4m shares.
Chinese ride-hailing service Xiangdao Chuxing raises $148m, eyes IPO.
Xiangdao Chuxing, the ride-hailing service backed by China’s largest carmaker, completed a $148m fundraising that brings in an autonomous driving startup as new investor, DealStreetAsia reported.
The latest funding round valued SAIC Motor affiliated Xiangdao at $1bn. Largest shareholder SAIC Motor, self-driving company Momenta and Gaohang Management Consulting led the fundraising.
TRS commits $100m to Baring PE Asia's eighth buyout fund. (FS)
US pension fund Teachers’ Retirement System of the State of Illinois has committed a total of $100m to Hong Kong-based Baring Private Equity Asia’s eighth pan-Asia buyout fund, DealStreetAsia reported.
The commitment includes $75m for Baring Asia Private Equity Fund VIII and another $25m for Baring Asia Private Equity Fund VIII – Annex A. Baring currently manages $340m in TRS assets.
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