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AMERICAS
KKR agreed to buy Circor International for $1.7bn including debt after boosting its offer for the maker of industrial valves and pumps. KKR increased the all-cash price of its previously announced merger agreement to $51 a share from $49. KKR also has agreed to provide a full equity backstop for the completion of the merger.
Private-equity firm Arcline Investment Management also proposed to buy Circor International for $57 per share in cash, topping a rival bid from KKR for the industrial machinery maker.
DraftKings, a daily fantasy sports contest and sports betting company, failed to acquire the US operations of PointsBet, a cutting-edge, digital sports betting and technology company, for $195m.
“While we continue to focus on operating more efficiently and driving substantial organic revenue growth in the United States, we will also look to prudently capitalize on compelling opportunities at attractive valuations, as is the case with PointsBet’s US business. We believe DraftKings is uniquely positioned to submit this superior proposal due to our scale and corresponding ability to generate meaningful synergies from the acquisition,” Jason Robins, DraftKings CEO and Co-Founder.
Rosemont, a private investor in employee-owned asset and wealth management firms, agreed to invest in Landmark Management, a multi-family office with more than $4bn in assets under management. Financial terms were not disclosed.
"We are thrilled to form this partnership with Landmark—which in many respects represents the ideal Rosemont investment—after several years of discussions. Landmark has provided distinctive investment advice and valuable services to a limited number of enduring client families over a long period of time. With Rosemont's support, it will continue serving these families as well or better for many years to come," Brad Mook, Rosemont Managing Director.
Landmark Management is advised by Berkshire Global Advisors and DLA Piper. Rosemont is advised by Cozen O'Connor and Wealth Matters Consulting.
Monument Group, an independent placement agent and capital advisory firm, completed the merger with Advisor Mozaic Capital, an independent secondary advisor. Financial terms were not disclosed.
"We are thrilled to announce the combination of our deeply experienced and highly respected firms with a strong heritage of working alongside both investors and general partners. Blending Mozaic's expertise in LP secondaries and GP-led transactions with Monument Group's private placement capabilities allows us to be a comprehensive capital solutions partner to our clients. Following our eight-year strategic partnership, the unification has proven to be seamless, with the firm well positioned to continue offering customized solutions to meet clients' capital needs, strategic objectives and long-term goals," Mike Miller, Monument Group Managing Partner.
IAG Capital, a venture capital company, Koch Disruptive Technologies, an investment firm, and Xora Innovation, an investment company, led the $100m Series B funding round in Celestial AI, a company that created Photonic Fabric™ technology platform, with participation from Samsung Catalyst, Smart Global, Porsche Automobil, The Engine, imec.xpand, M Ventures and Tyche Partners.
“Celestial AI has developed a transformational optical connectivity capability that will deliver step-change advancements in both performance and energy efficiency of high-performance computing, unlocking the potential of Generative AI and other complex workloads. We believe this could be a truly disruptive moment for advanced computing and we are excited to be a part of it,” Chase Koch, Koch Disruptive Technologies Founder and CEO.
Celestial AI was advised by Shelton Group (led by Tyler Weiland).
Lightspeed Venture Partners, an American venture capital firm, led a $100m Series C round in Redpanda Data, a Kafka-API-compatible streaming platform, with participation from GV and Haystack VC.
"The hero of the Redpanda story has always been the engineer, hands on keyboard, behind a terminal, materializing her ideas into a working system. That's who we built Redpanda for, and why we made it easy to use, scalable to double-digit gigabytes per second, and compatible with all the existing applications. Last year we grew to thousands of production installations. The funds will help us accelerate this growth while building a future where all data is instantly available, with embedded processing in a multi-tenant platform that truly scales to zero, finally making streaming accessible to the 44m developers in the world," Alex Gallego, Redpanda Founder and CEO.
Redpanda Data was advised by Bulleit Group.
CyberRisk Alliance, a business intelligence company, completed the acquisition of LaunchTech Communications, a PR agency dedicated to raising brand profiles through detail-oriented, strategic communications programs. Financial terms were not disclosed.
“We are thrilled to welcome Wayne and the LaunchTech team into the CyberRisk Alliance family. This strategic acquisition aligns with our vision and enhances our ability to offer unique and immense value to our clients. We look forward to enriching the services offered to LaunchTech’s client base with our unparalleled portfolio of go-to-market solutions and services, while also introducing LaunchTech’s services to CRA’s clients," Doug Manoni, CyberRisk Alliance Founder and CEO.
RelaDyne, a lubricant distributor in fuel, DEF, and industrial reliability services for industrial, commercial, and automotive businesses, completed the acquisition of Michigan Petroleum Technologies, a petroleum distributor with an emphasis on industrial manufacturing, commercial fleet, and construction segments. Financial terms were not disclosed.
"When searching for a company to do business with, we wanted a company that possessed a strong influence and differentiation in the commercial and industrial marketplace." Brad Secory, Michigan Petroleum Technologies President.
GEM Global Yield, the Luxembourg-based private alternative investment group, agreed to invest $110m in Aquaback Technologies, a private company having reliably safe and highly effective patented wastewater treatment capabilities.
"We believe that this agreement with GEM provides an attractive alternative to secure growth funding that will be needed to rapidly deploy integrated wastewater, stormwater and potable water solutions to a broad range of industrial, commercial and residential customers," Scott C. Newquist, Aquaback President.
Matrix Renewables announces acquisition of Stillhouse Solar project from OCI Solar Power. (FS)
Matrix Renewables, the TPG Rise-backed global renewable energy platform, announced that it has acquired the Stillhouse Solar project, a late-stage development 284 MWdc solar project in Bell County, Texas, from OCI Solar Power, a developer of utility-scale solar projects.
The transaction follows up on Matrix's Gaskell West rroject, achieving Commercial Operation Date earlier this month and shows strong continuity in Matrix's plan to become a leading clean energy platform in the US.
Morgan Stanley-backed Durango to explore $1bn sale. (FS)
Durango Midstream, an energy pipeline operator backed by Morgan Stanley Energy Partners, is preparing to launch a sale process in the coming months. The midstream company is working with Greenhill & Co to help market its assets, which could fetch about $1bn, Bloomberg reported.
Small to mid-size pipeline operators are ripe for a wave of consolidation in the coming year as the sector moves toward bigger and more diversified companies. Houston-based Durango operates gas-gathering pipelines and processing plants in Kansas and New Mexico. In 2017, the company received backing from Morgan Stanley Energy Partners, the energy private equity arm of Morgan Stanley Investment Management, to support its growth.
Lordstown Motors files for bankruptcy, sues Foxconn.
US electric truck manufacturer Lordstown Motors filed for bankruptcy protection on Tuesday and put itself up for sale after failing to resolve a dispute over a promised investment from Taiwan's Foxconn, Reuters reported.
The automaker filed for Chapter 11 protection in a Delaware bankruptcy court. In the complaint, Lordstown accused Foxconn of fraudulent conduct and a series of broken promises in failing to abide by an agreement to invest up to $170m in the electric-vehicle manufacturer. Foxconn previously invested about $53m in Lordstown as part of the agreement, and currently holds an 8.4% stake in the EV maker. Lordstown contends Foxconn is balking at purchasing additional shares of its stock as promised and misled the EV maker about collaborating on vehicle development plans.
Postmates-backer Uncork Capital raises $400m in new funds. (FS)
Early Postmates-backer Uncork Capital has raised two new funds totaling $400m, doubling the size of its last funds.
One of the $200m funds will be for seed-stage investing and the other will be for making follow-on investments in those companies as they grow.
EMEA
Seplat Energy remains committed to purchasing Nigerian oil and gas assets from Exxon Mobil by completing a deal that’s been held up by the West African state for more than a year.
The Lagos and London-listed company is hoping that President Bola Tinubu, the new leader of Africa’s largest crude producer, will adopt a different approach than his predecessor, who reversed an initial decision to approve the transaction, Bloomberg reported.
Keensight Capital, a European growth buyout investor, is set to acquire Nomios, a European expert in cybersecurity and secure network services, from IK Partners, a private equity firm. Financial terms were not disclosed.
"We are grateful for the support that IK has offered the business since 2019. With its help, we have significantly grown Nomios through new services and a broader geographic footprint. We are excited by the opportunity to enter into a new partnership with Keensight and to benefit from their significant experience in — and expertise on — the markets in which Nomios is active, in order to continue our strong organic growth, combined with further acquisitions in Europe to grow our footprint," Sébastien Kher, Nomios CEO.
Littelfuse, a diversified, industrial technology manufacturing company, agreed to acquire Dortmund fab from Elmos Semiconductor, a manufacturer of semiconductor products, for €93m ($102m).
“The acquisition of the 200mm Dortmund wafer fab is an important element in our long-term growth strategy for power semiconductors. Key to our sustained success is expanding our portfolio of technologies and growing internal capabilities to enable us to meet the increasing demands of our customers in high-growth power conversion applications. The Dortmund fab complements our current footprint, adding a highly experienced team and an efficient high-quality wafer processing operation. We are excited about the future prospects of our combined teams and capabilities, which I am confident will continue to position us for long-term profitable growth,” Chad Marak, Littelfuse Senior Vice President and General Manager.
Accel, an American venture capital firm, led a $100m Series B round in Cyera, a data security company, with participation from Sequoia, Cyberstarts and Redpoint Ventures.
"Cyera's vision is to enable every business to realize the full potential of their data using AI — collaboration, connection with customers, insights that fuel innovation — to power a new era of development, growth, and productivity. This investment confirms that Cyera is on the right path to help CISOs meet their most pressing challenge — securing their data in the cloud era," Yotam Segev, Cyera CEO.
Norway approves more than $18bn in oil, gas investments.
Norway's government said it has given approval for oil companies to develop 19 oil and gas fields with investments exceeding $18.5bn, part of the country's strategy to extend production for decades to come. Norway's parliament in 2020 introduced temporary tax incentives to encourage petroleum investment at a time of low activity, triggering a rush of applications from energy companies, Reuters reported.
Among the field developments receiving final approval were nine operated by Aker BP, three by Equinor and several by Wintershall Dea and OMV. The government says Norway's oil and gas resources are essential to Europe's energy security and will be needed for decades to come.
Ireland cuts AIB stake to below 50%, raises €481m.
Ireland has sold a 5% stake in AIB Group, one of the so-called Big Four commercial banks in the Republic of Ireland, lowering its holding below 50% for the first time since effectively nationalizing the lender more than a decade ago and raising €481m ($527m), Reuters reported.
Dublin began gradually selling shares in AIB at the start of 2022. Ireland pumped €64bn ($70bn), or almost 40% of its then annual economic output, into the country's banks after a huge property crash in the late 2000s.
UBS preparing to cut over half of Credit Suisse workforce.
UBS Group, a financial services company, is planning to cut more than half of Credit Suisse Group's 45k-strong workforce starting next month as a result of the bank's emergency takeover.
Bankers, traders, and support staff in Credit Suisse's investment bank in London, New York, and some parts of Asia are expected to bear the brunt of the cuts, with almost all activities at risk, Bloomberg reported.
David Lloyd could be put up for sale as owners eye £2bn price tag. (FS)
A sale will only be considered by if it draws a “sufficiently attractive valuation” for TDR, which is aiming for a £2bn ($2.5bn) price tag. TDR Capital is reportedly mulling a sale of its health and fitness business David Lloyd Leisure.
The private equity firm is understood to have drafted in Morgan Stanley to advise on potential suitors for the business. David Lloyd Leisure has over 130 clubs across the country and is trading well despite people cutting back on gym membership during the cost of living crisis. TDR Capital bought the leisure firm back in 2013 for £750m ($955m). TDR Capital has fingers in many popular UK businesses, including Pizza Express and Stonegate pub company, and owns Asda as part of a joint venture with the billionaire Issa Brothers.
Ardian raises $20bn for secondary fund targeting stakes in buyout funds. (FS)
Ardian, a France-based, independent private equity investment company, has raised more than $20bn, including $6bn from the Abu Dhabi Investment Authority, for a new secondary fund that will target the acquisition of stakes in private equity funds from investors.
Secondary funds offer pension funds and other investors the chance to secure an early exit from private equity buyout investments, which typically lock up investor cash for more than a decade, and have become increasingly common as institutional investors have upped their PE allocations in recent years.
CVC secures €25bn for industry’s biggest-ever buyout fund. (FS)
CVC Capital Partners, the third-biggest Europe-based private equity firm according to the PEI 300, is on track to raise what would be the largest-ever private equity fund, defying the market’s choppy waters. The Luxembourg-headquartered firm has secured at least €25bn ($27bn) in commitments for CVC Capital Partners IX.
Allowing for currency conversions, the vehicle edges ahead of Blackstone Capital Partners VIII, the largest private equity fund raised so far, which closed in 2019 on €24bn ($26.2bn). CVC’s ability to accumulate commitments for Fund IX that total its target is an impressive feat in today’s market. The development comes as CVC plots to go public, with reports that either Amsterdam or London could play host to the firm’s initial public offering as early as this year.
Odey Asset Management in talks to move four funds to SW Mitchell Capital. (FS)
Odey Asset Management said it had entered "advanced talks" to move Oliver Kelton and the funds he previously managed at OAM to the equities investment firm, SW Mitchell Capital. The funds will move subject to due diligence as well as board management and regulatory approval, Reuters reported.
The funds moving include the Brook Continental European Fund, Brook European Focus Fund, Odey Pan European Fund and the Brook European Focus Absolute Return Fund. The British hedge fund has grappled with redemptions since the Financial Times and Tortoise Media on June 8 jointly reported allegations by 13 women that Crispin Odey had sexually assaulted or harassed them over a 25-year period. Odey has denied the allegations.
APAC
Thompson Street-backed BCM One, a provider of NextGen Communications and Managed Services for IT leaders and resellers, completed the acquisition of Pure IP, a voice provider. Financial terms were not disclosed.
“Pure IP’s expertise migrating enterprise customers from PBX and UCaaS platforms to Microsoft Teams is a perfect complement to the BCM One portfolio. The global infrastructure and flexibility to design both Operator Connect and Direct Routing solutions reinforce our leadership position as a NextGen Communications and Managed Services provider. Additionally, Pure IP’s international footprint enables us to extend our platform of services to customers worldwide," Geoff Bloss, BCM One CEO.
Pure IP was advised by Acuity Advisors (led by Marcus Allchurch) and Q Advisors. Thompson Street was advised by BackBay Communications.
Bitdefender, a global cybersecurity firm, agreed to acquire Horangi Cyber Security, a SaaS cybersecurity company. Financial terms were not disclosed.
“We are pleased to announce our intent to acquire Horangi Cyber Security, a strategic move that will amplify our risk analytics, threat detection and response capabilities in the cloud and complement our GravityZone platform to help business customers combat evolving cybersecurity threats as the attack surface grows. The addition of Horangi is a major milestone in our product strategy execution and aligns with our mission to be the most trusted cybersecurity platform worldwide,” Florin Talpes, Bitdefender Co-Founder and CEO.
Temasek sells 1.85% stake in Singapore Airlines. (FS)
Singapore's state investor Temasek is selling around SGD400m ($296m) worth of shares, or a 1.85% stake, in the country's national carrier Singapore Airlines, Reuters reported.
The shares are priced between SGD7.202 ($5.32) and SGD7.283 ($5.38) per share, representing a 2.89% and 3.97% discount to the last close of SGD$7.5 ($5.54).
"As an active investor, we regularly reshape and rebalance our portfolio to deliver sustainable returns over the long term. We are committed to the long-term success of SIA and continue to maintain a majority stake in it," Juliet Teo, Temasek Head of Transportation & Logistics.
Vietnam's Truong Hai considers stake sale in $5bn automotive arm.
Vietnamese conglomerate Truong Hai Group, founded by tycoon Tran Ba Duong, is considering bringing in an investor into its automobiles arm Thaco Auto in a deal that could value the unit at around $5bn. Truong Hai Group is in talks with a financial advisor to explore the potential sale of a minority stake in Thaco Auto after receiving interests from regional financial investors and corporates, Reuters reported.
The group could be selling about 20% in Thaco Auto. Funds raised could be used to finance Truong Hai Group's properties projects. Thaco Auto, manufactures and distributes vehicles including passenger cars and motorcycles from brands ranging from KIA to BMW to its own Thaco brand of buses.
GQG said to invest $1bn in Adani flagship. (FS)
The US-based investment firm GQG Partners and others investors bought around $1bn worth of Adani Group's stocks. This is the third round of investment in the company's stocks in the last four months, Bloomberg reported.
The group's flagship Adani saw 18m shares, or 1.6%, trade in a single block while the renewable energy firm Adani Green Energy saw a total 35m shares, or 2.2%.
Meanwhile, the Adan Group's flagship Adani was the top gainer on the Nifty, rising as much as 4.6% on several block deals. GQG, which had in March bought shares in four Adani group companies worth $1.87bn and in May increased the stake by $400-500m.
Hedge fund Davidson Kempner reviews $250m Byju’s loan as crisis grows. (FS)
Davidson Kempner Capital Management isn’t fully disbursing a $250m loan it had extended to the Indian ed-tech firm Byju’s as the US hedge fund reviews the lending decision in light of an escalating crisis at the company, Bloomberg reported.
The fund, which manages more than $38bn, has given out less than half of the $250m of convertible debt it had offered the Indian startup as some loan agreement covenants weren’t met. The firm is reviewing its lending decision after the company lost its auditor and three board members in the same week, raising questions about its accounting practices.
Fintech firm Innoviti seeking funds at $350m value.
Innoviti Technologies is weighing a new funding round that could value the Indian fintech startup at around $350m. The startup, backed by Infosys billionaire founder Narayana Murthy’s venture capital fund Catamaran Ventures, is looking to raise around $25m in a round, Bloomberg reported.
Some of Innoviti’s early investors could also tag along and sell shares worth about $25m. The Indian firm is looking for fresh funds at a time when some of the country most iconic startups are in turmoil.
China's Sichuan Kelun-Biotech looking to raise $208m Hong Kong IPO.
China’s Sichuan Kelun-Biotech Pharmaceutical is looking to raise $209m in a Hong Kong initial public offering. The company is selling 22.44m shares in a price range of $7.74-$9.30 each, DSA reported.
Five cornerstone investors have subscribed for shares worth $67m in the deal. The stock is scheduled to start trading on the Hong Kong exchange on July 11.
Indian agritech VC Omnivore hits first close of third fund at $150m. (FS)
Omnivore expects to make 25-30 new investments in Seed and Series A rounds of agritech startups, with initial cheque sizes ranging between $1m and $5m, DSA reported.
Impact venture capital firm Omnivore announced the first close of its third fund at $150m. The Omnivore Agritech & Climate Sustainability Fund, which was launched in April 2022, will continue focusing on startups developing breakthrough technologies for agriculture, food, climate, and the rural economy. First close investors include KfW, Self Reliant India Fund, FMO, SIFEM, International Finance with support from the Bill & Melinda Gates Foundation Inclusive Agritech Facility, Louis Dreyfus Company Ventures, the Dutch Good Growth Fund, the Belgian Investment Company for Developing Countries, and Yara Growth Ventures.
“The greatest risk and opportunity for Indian agriculture are the adverse effects of climate change. Our new fund will have a sharper focus on catalysing climate action in agriculture by funding startups addressing climate mitigation and climate adaptation,” Mark Kahn, Omnivore Managing Partner.
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