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AMERICAS
Bain Capital-backed Rocket Software, a software development firm that offers enterprise infrastructure products and various related services, agreed to acquire application modernization and connectivity business from OpenText, a Canadian company that develops and sells enterprise information management software, for $2.3bn.
"We are proud to be the preferred partner dedicated to meeting our customers at any point in their modernization journeys and minimizing unnecessary risk to their business operations. For the many enterprise organizations who are built on the mainframe and ready to unlock opportunity using hybrid cloud, reality calls for a continuum with solutions and expertise that span both worlds. Welcoming the AMC business and its talented team to Rocket Software marks an extraordinary moment for the company, the market, and the thousands of organizations who share in our vision of making the best-of-both-worlds a reality," Milan Shetti, Rocket Software President and CEO.
Rocket Software is advised by Ernst & Young, Barclays, Deutsche Bank, RBC Capital Markets, UBS, Kirkland & Ellis (led by Chris Elder, Matthew O’Brien, Andrew Struckmeyer, and Zoe Quick), and V2 Communications. Debt financing is provided by RBC Capital Markets, Barclays, Deutsche Bank, UBS, Citigroup, HSBC, Mizuho Securities, and SMBC Nikko Securities. OpenText is advised by Goldman Sachs and Cleary Gottlieb Steen & Hamilton.
Adobe to defend Figma deal at the EU hearing.
Adobe will aim to counter EU antitrust charges that its proposed $20bn acquisition of cloud-based designer platform Figma hurts competition at a closed hearing on December 8, Reuters reported.
The European Commission two weeks ago warned that the deal may reduce competition in the global market for the supply of interactive product design software where market leader Figma competes with Adobe. It said the acquisition would eliminate Figma as a competitor in the supply of vector editing tools and supply of raster editing tools and reinforce Photoshop maker Adobe's dominance. Hearings allow companies to present their arguments to senior Commission officials and, lawyers and national antitrust watchdogs.
Madison Dearborn Partners, a private equity investment firm, completed the acquisition of T2S Solutions, an aerospace and defense company. Financial terms were not disclosed.
“Our T2S team has focused on exceeding our customers’ expectations and requirements for over a decade. Executing against that goal has allowed us to grow into a critical mission partner for our customers. Today, we are strategically positioned at the center of high-priority defense technology areas that will see significant growth for years to come. With MDP’s resources and expertise, we will be able to accelerate our existing R&D and prototyping core, capture lead production roles, and further increase our investments in proprietary technology products from our R&D pipeline,” Tim Jahnigen, T2S Solutions Co-Founder & CGO.
Madison Dearborn Partners was advised by Raymond James, Crowell & Moring, Kirkland & Ellis and H/Advisors Abernathy (led by Deirdre Walsh). T2S Solutions was advised by Bank of America and Holland & Knight.
KKR, a global investment firm that manages multiple alternative asset classes, agreed to acquire the remaining 37% stake in Global Atlantic, a provider of a broad range of retirement, life and reinsurance products, for $2.7bn.
"We are taking this step because we have demonstrated, over the last three years, that we are stronger together. Being part of KKR has strengthened our position as a leading insurance company and enhanced our ability to deliver compelling solutions for our clients. Moving from a diverse group of shareholders to a single one with KKR clarifies our objectives and allows us to think and invest longer term. Although we hope to unlock further value by taking this step in our capital structure, neither our client-first approach nor our investment and risk management framework will change, and the day-to-day experience of our clients and colleagues will feel very much the same as it does today," Allan Levine, Global Atlantic CEO.
KKR is advised by Simpson Thacher & Bartlett. Global Atlantic is advised by Barclays and Debevoise & Plimpton.
Fulcrum, an IT service management company, agreed to acquire LedgerPay, cloud-enabled payment processing platform, from Quisitive, a premier Microsoft solutions provider and payments solutions provider, for $45m.
"This shift allows Quisitive to realign resources and focus on our primary revenue-generating activities, which are central to our organization. Concurrently, it provides PayiQ with the necessary space, funding, and additional expertise to bring the product’s full potential to realization. We are confident that this move will greatly benefit our company as we refocus and grow our core business areas,” Mike Reinhart, Quisitive CEO.
Quisitive is advised by Gateway Investor Relations.
Golub Capital, a credit asset manager, led a $500m round in Patriot Growth Insurance Services, an insurance agency, with participation from Antares Capital.
"Despite the current economic turbulence throughout the US, and worsening geopolitical conditions abroad, Patriot continues to attract the best and fastest-growing agencies in the country. Our business model is truly unique, and the capital raised in this round of funding validates our approach to building a national insurance services platform. We appreciate the continued support of our lending partners in helping us exceed our aggressive growth goals," Matt Gardner, Patriot Growth Insurance Services Chairman and CEO.
BlueVoyant, a cybersecurity company that offers an end-to-end internal and external cyber defense platform for enterprises, agreed to acquire Conquest Cyber, a cyber security force that protects the nation’s defense industrial base and critical infrastructure sectors. Financial terms were not disclosed.
"Despite the extensive range of cybersecurity vendors, a significant gap persists in the market concerning comprehensive solutions that empower clients to assess, operationalize, validate, and mitigate risks. The integration of BlueVoyant's and Conquest Cyber's capabilities addresses this shortfall, bolstering our ability to protect clients' internal and external digital ecosystems in a more comprehensive manner," James Rosenthal, BlueVoyant CEO and Co-founder.
Core & Main, a distributor of water, sewer, stormwater and fire protection products, completed the acquisition of Enviroscape ECM, a provider of geosynthetics and erosion control products. Financial terms were not disclosed.
"My brother Ron and I have enjoyed being innovators in this industry and building relationships with our trusted suppliers, customers and associates for over 20 years. We've taken this company to the point where we're ready to entrust what was built by us and our associates to someone that shares the family-focused and service-oriented culture that those around us expect. With Core & Main's extensive product line and nationwide branch network, we see only good things in the future for our people," Mark Deitering, Enviroscape ECM Partner.
Accenture, an Irish-American professional services company, agreed to acquire Incapsulate, a management and technology consulting firm. Financial terms were not disclosed.
“For 15 years, our clients have relied on us to deliver high-quality solutions that not only meet their technical requirements but, more importantly, their underlying business needs. By joining forces with Accenture, we can further scale both our industry and Salesforce expertise and experience to support an even broader spectrum of clients, while offering new growth opportunities for our people,” Ajay Batish, Incapsulate CEO.
CDPQ, an institutional investor, completed the acquisition of a minority stake in Solotech, an audiovisual and entertainment technology company. Financial terms were not disclosed.
"With this investment—the largest in the last decade for Solotech—CDPQ will support the company in its next growth stage. Aligned with CDPQ's priorities, this means not only shifting activities into high gear, but also facilitating the company's global expansion and promoting its audiovisual and technological know-how," Kim Thomassin, CDPQ Executive Vice-President.
Brazilian fuel distributor Vibra rejected the merger proposal it received from energy firm Eneva, saying the exchange ratio of the offer was "unjustifiable," while leaving the door open for new offers, Reuters repoorted.
"That the indicated exchange ratio is unjustifiable. It is evident that the terms proposed for the combination intended by Eneva do not have any attractiveness for Vibra's shareholders," Vibra.
GM plans $10bn stock buyback in bid to assuage investors.
General Motors plans to sharply increase cash return to shareholders, as Chief Executive Mary Barra seeks to reassure investors about the health of GM's core car-making business after setbacks in fledgling pursuits such as electric and driverless vehicles, WSJ reported.
The company also said it will work to offset higher labor expenses from its new contract with the United Auto Workers and unionized employees in Canada. The contracts will add a total of $9.3bn in costs over about four years, including $1.5bn next year, higher than analysts had estimated.
Kingdom buys $450m Citigroup stake from Alwaleed. (FS)
Kingdom, the investment company of Prince Alwaleed Bin Talal, has raised its stake in Citigroup to 2.2% after buying a $450m stake from the Saudi billionaire, Bloomberg reported.
Kingdom previously owned a 1.63% holding in the Wall Street firm.
Bay Grove-backed Lineage Logistics eyes $30bn IPO. (FS)
Temperature-controlled storage and logistics provider Lineage Logistics has been reported to be pursuing a more than $30bn initial public offering for next year.
Backed by private equity firm Bay Grove, Novi, Michigan-based Lineage is the largest cold storage real estate investment trust in the world. The company has amassed a portfolio of more than 400 facilities and 2.5bn cubic feet of space across North America, Europe and the Asia-Pacific since 2008.
Irradiant Partners raises $411m in commitments for third vintage of CLO equity strategy. (FS)
Irradiant Partners, an alternative investment manager with over $10bn in assets under management, announced the closing of $411m in commitments on the third vintage of the Irradiant CLO equity strategy, eclipsing its fundraising target of $400m.
"We are honored that so many existing ICLOP investors have again entrusted us with their capital, and we thank them for their partnership. We are proud of our performance and excited to continue the expansion of our CLO platform with the successful close of ICLOP III" John Eanes, Irradiant Co-CEO.
IFC invests $75m in Apis Partners's new fund to support mid-cap firms in Asia, Africa. (FS)
World Bank Group member International Finance Corporation has invested $75m in a new fund by London-based private equity firm Apis Partners, DealStreetAsia reported.
The new vehicle, Apis Growth Markets Fund III, will focus on fast-growing companies that are using technological innovations to expand access to financial services. It will issue cheques of $60-70m, including co-investments, per transaction.
EMEA
Decathlon, a global sporting goods retailer, agreed to acquire Bergfreunde, an mountaineering and climbing equipment online shop, from Backcountry, an online specialty retailer. Financial terms were not disclosed.
"We're proud of Bergfreunde's growth over Backcountry's 10-year ownership and look forward to watching its continued success with Decathlon. Closing this deal will allow Backcountry to focus on furthering its commitment to the North American market, as well as explore new opportunities to expand the Backcountry brand," Melanie Cox, Backcountry CEO.
Backcountry is advised by JP Morgan, Skadden Arps Slate Meagher & Flom (led by Ruediger Schmidt-Bendun and Jan Bauer) and rygr. Decathlon is advised by Cleary Gottlieb Steen & Hamilton.
Ardian, a private equity investment firm, and Public Investment Fund, a sovereign wealth fund by the government of Saudi Arabia, agreed to acquire a 25% stake in Heathrow Airport from Ferrovial, a provider of transport infrastructure and urban services, for £2.4bn ($3bn). Ardian agreed to acquire a 15% and Public Investment Fund a 10% stake.
"Over the last 17 years, we have been contributing to Heathrow's transformation, together with our fellow shareholders, achieving some excellent milestones throughout our long-term role as investor. These include overseeing an investment of £12bn, expanding its capacity with the construction of Terminal 2, and improving its operational performance. We are very pleased to have made Heathrow one of the world's most connected airports and the busiest airport in Europe," Luke Bugeja, Ferrovial Airports CEO.
Public Investment Fund is advised by Barclays. Ferrovial is advised by JP Morgan. Ardian is advised by 5654 & Company (led by Ben Thornton).
Ampersand Capital Partners, a middle-market private equity firm, completed the investment in Julius Clinical Research, an academic research organization. Financial terms were not disclosed.
"Julius Clinical Research is extremely pleased to have secured the support of Ampersand to help expand our expertise and geographic reach as a global research and scientific partner to pharmaceutical and biotechnology companies. We’ve been on a growth journey at Julius Clinical, driven by a combination of world-class scientific expertise and clinical study execution skills,” Martijn Wallert, Julius Clinical CEO.
Julius Clinical Research was advised by Loyens & Loeff (led by Antoinette van der Hauw and Michel van Agt). Ampersand Capital Partners was advised by Blenheim Advocaten and McDermott Will & Emery.
A consortium of investors, including Jeffrey David, Johan Dettel, David Rönnberg and Sonae SGPS, a retail company that operates in food and non food retail stores, offered to acquire Musti Group, a pet care firm that provides pet items, for €868m ($945m).
"We are excited about this opportunity and look forward to, together with Sonae, focus on long-term value creation in the next chapter of Musti's journey, a development phase which will need to be supported by further investments and a different capital structure, and hence we believe is best executed in an unlisted environment. We believe that the company, its employees and stakeholders will benefit from a committed and long-term strategic shareholder that provides capital, support and agility for further market share gains in the Nordics and materialise the potential for broader international expansion," David Rönnberg, Musti CEO.
TotalEnergies, a French multinational integrated oil and gas company, completed the acquisition of a minority stake in Xlinks, a company looking to address the key challenges associated with the transition to a low carbon economy, for £20m.
"We are excited to welcome Europe's largest energy company to be a part of our ambitious vision to foster long distance power exchanges through this iconic partnership with the UK and Morocco. TotalEnergies' investment goes far beyond capital, providing a rare combination of expertise in areas that meet the unique challenges we face. This marks a highly successful end to 2023 and will give us an even greater impetus to achieve our goals as we enter 2024," Simon Morrish, Xlinks CEO.
Fugro, a surveying services company, agreed to acquire SEA-KIT International, an uncrewed surface vessels developer. Financial terms were not disclosed.
“We are excited to welcome the talented SEA-KIT team into the Fugro family. We look forward to leveraging their knowledge and growing the SEA-KIT product offering to the maritime industry as we continue to drive innovation in this space. We are committed to ensuring a smooth integration process and will work closely with our new team members to maximise the value delivered to our combined customer base,” Henk van Dalen, Fugro, Director.
Westinghouse, an American manufacturing company, completed the acquisition of the remaining 50% stake in Tecnatom, an engineering company, from Endesa, a Spanish multinational electric utility company. Financial terms were not disclosed.
“We are very pleased to welcome Tecnatom into the Westinghouse team. The partnership established in 2021 with Endesa revealed the depth of expertise and potential of Tecnatom teams, complementing exceptionally well the portfolio of Westinghouse's existing activities. We are looking forward to integrating Tecnatom fully into Westinghouse, at a time when our utility and industrial customers require the highest level of expertise and performance to help them successfully operate their existing operations and implement their plans for new capacities,” Patrick Fragman, Westinghouse President and CEO.
Digi reaches Orange-Masmovil asset deal ahead of possible merger.
The agreement — which will help Orange and Masmovil meet European regulators' demands on their combination in Spain — could be signed by the end of the year, capping months of negotiations. The preliminary agreement is non-binding. No final decision has been made and companies could still decide not to go ahead with the deal.
Alter Domus owners pursue stake sale in fund administrator. (FS)
The owners of fund administrator Alter Domus are pursuing the sale of a stake in the Luxembourg-based group that could value it at more than $4.4bn, Reuters reported.
The shareholders, which include the company's founders and buyout firm Permira, have been working with bankers at Goldman Sachs and Raymond James to gauge interest in the business.
Baloise explores sale of $1.1bn Belgian insurance portfolio.
Swiss insurer Baloise is in talks to sell around $1.1bn of life insurance policies in Belgium, Reuters reported.
The Basel-based group has been working with bankers at ING Groep to gauge interest in the portfolio.
Stability AI has explored sale as investor urges CEO to resign.
Stability AI, the British artificial intelligence startup behind the Stable Diffusion image generator, has explored selling the company as management faces increased pressure from investors over its financial position, Bloomberg reported.
The London-based firm has presented itself as an acquisition target in recent weeks, and held early-stage conversations with multiple companies. A deal is not imminent and the company could cut the process short without selling.
Onex weighs sale of Acacium. (FS)
Canadian investment firm Onex is evaluating options including a potential sale of UK healthcare staffing business Acacium Group, Bloomberg reported.
The Toronto-based company is working with advisers at Bank of America to help identify potential suitors for the business. London-based Acacium could be valued at about $1.5bn or more in a sale and is likely to draw interest mostly from buyout firms.
Air Astana to hire advisers for London IPO in early 2024. (FS)
Air Astana, Kazakhstan's flag carrier, is hiring advisers for a long-delayed initial public offering in London and at home, aiming for the first quarter of next year, Bloomberg reported.
UK defense firm BAE Systems and Kazakhstan's sovereign wealth fund — the airline's shareholders — plan to reduce their combined ownership to about 50%, and Air Astana will also sell new shares. BAE owns 49% of Air Astana, and Samruk-Kazyna controls the remaining 51%. The company has started pitching the planned share sale to would-be investors.
Norway's $1.5tn sovereign fund set to invest in private equity. (FS)
Norway's sovereign wealth fund, valued as the world's largest at $1.5tn is likely to invest in private equity as an asset class. The fund invests Norway's surplus oil and gas revenue abroad, and is the world's biggest single stock market investor, owning some 1.5% of all globally listed shares, with stakes in more than 9.2k companies.
The country's central bank has recommended that the fund invest $70m into the asset class. However, a final decision will only be made next year by parliament. The parliament has previously rejected requests by the fund to move assets into private equity, arguing it could be too costly and non- transparent.
Pantheon raises $3.25bn for its largest-ever private equity secondaries program. (FS)
Pantheon, a global private markets investor, is pleased to announce the successful closing of Pantheon Global Secondaries Fund VII and associated vehicles, its latest flagship global private equity secondaries offering, with commitments totaling $3.25bn.
"We are grateful for the strong support of our investors across the world who have entrusted us with their capital. Raising our largest-ever pool of capital reflects increasing interest from a growing range of investors in our strategy and focus on mid-market secondaries, where we can leverage Pantheon's extensive relationships, data and insights," Amyn Hassanally, Pantheon Partner and Global Head of Private Equity Secondaries.
Allianz GI and FMO team up on $1.1bn blended fnance fund. (FS)
Allianz Global Investors and Dutch development bank FMO have agreed one of the largest "blended finance" funds on record, raising $1.1bn to invest in loans that help emerging and frontier countries meet sustainable development targets.
The fund is the largest of its type since 2018 and one of the five biggest to date, which tracks the market and said the fund also stood out for the high ratio of private capital invested for every dollar of public funds.
Swiss impact investor responsAbility launches $500m, Asia-focused climate strategy. (FS)
Swiss impact investor responsAbility Investments has announced a $500m climate investment strategy as part of a collaborated response to rising CO2 emissions in Asia, DealStreetAsia reported.
German state-owned development bank KfW and Dutch development bank FMO are anchor investors in the strategy that aims to make investments in low-emission technologies and attract institutional investors. "Our investment strategy appeals to institutional investors who are looking for both environmental impact and financial value from their investment," Ewout van der Molen, responsAbility Head of Climate Finance.
Nuveen Private Capital appoints new Managing Director. (FS, People)
Churchill Asset Management and Arcmont Asset Management, the US and European operating companies of Nuveen Private Capital, have appointed Jamal Hammoud as Managing Director and Senior Investment Strategist. Hammoud will be responsible for supporting and amplifying Nuveen Private Capital's presence and fundraising efforts in the Middle East.
Hammoud will be employed by Churchill, based in its New York City office, and will spend a significant amount of time on the ground in the Middle East. He will partner with distribution colleagues from Nuveen, Churchill and Arcmont to tap into the growing demand from Middle Eastern institutions for private capital solutions and will report to Churchill's Head of Investor Relations, Christopher Freeze.
DWS appoints EMEA Head of alternative credit. (FS, People)
German asset management company DWS has appointment Dan Robinson as EMEA head of alternative credit to accelerate its private credit footprint.
This appointment comes as DWS delivers on an initiative to grow its €114bn ($122bn) alternatives franchise. DWS's Alternatives business has a 50-year plus track record including particular strength in real estate, infrastructure and liquid real assets.
APAC
NTT Docomo joins Mitsui-led group in Edotco bidding. (FS)
Japanese mobile operator NTT Docomo has joined a consortium led by Mitsui & Co in the bidding for a majority stake in the tower unit of Malaysia's biggest wireless firm Axiata Group, Bloomberg reported.
The group, which also includes Jtower, is offering to buy new shares in Edotco Group for about $750m. The Mitsui-led consortium is also interested in buying existing shares owned by Innovation Network of Japan, Malaysian sovereign wealth fund Khazanah Nasional and pension fund Kumpulan Wang Persaraan Diperbadankan.
Grifols in talks to sell part of RAAS to China Merchants.
Spanish plasma company Grifols is in advanced talks to sell part of its minority stake in Shanghai RAAS Blood Products to China Merchants Group, Bloomberg reported.
State-owned China Merchants is negotiating terms of a potential deal and the companies aim to reach an agreement as soon as the coming weeks. A deal could also lead to changes in the ownership of Grifols' diagnostics division, in which Shanghai RAAS owns a 45% stake.
Prosus-backed PayU's India unit seeks IPO within next 12 months.
The Indian unit of Prosus' PayU financial technology firm is seeking an initial public offering within the next 12 months, Bloomberg reported.
"We are preparing for a potential listing of PayU, aiming for the second half of next calendar year," Ervin Tu, Prosus interim CEO.
5Y Capital to surpass funding goal in major China test. (FS)
China's 5Y Capital is on track to surpass its target of raising $700m for a closely watched venture fund, in a sign that investors are regaining confidence in the world's biggest internet arena, Bloomberg reported.
The oversubscribed US-dollar fund has a hard cap of $800m and is set to close early next year. Known for early bets on Chinese tech leaders like Xiaomi and Kuaishou Technology, Shanghai-based 5Y had previously put off a plan for another growth fund targeting later-stage startups.
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