AMERICAS
Clearlake Capital, a private equity firm, completed the acquisition of Cornerstone OnDemand, a provider of talent management software, for $5.2bn. Vector Capital co-invested in the transaction.
"Clearlake’s investment reflects their confidence in our talented people, the power of our SaaS solutions and our value proposition for our customers. With this transaction, we plan to continue to pursue new software capabilities that advance our customers’ efforts to optimize workforce agility, transform skill development, deliver personalized, engaging growth experiences, and align their organizations around a shared definition of success. We’re thrilled to welcome Clearlake as a partner that appreciates the impact our SaaS solutions have on the lives of people at work and our customer-centric philosophy as we accelerate our innovation," Phil Saunders, Cornerstone CEO.
Cornerstone OnDemand was advised by Centerview Partners, Qatalyst Partners, Cooley and Joele Frank. Financial terms were not disclosed Morrison & Foerster. Clearlake was advised by Bank of America, Barclays, Goldman Sachs, JP Morgan, Jefferies & Company, Morgan Stanley, Rothschild & Co, William Blair & Co, Sidley Austin and Lambert & Co. Debt financing was provided by Antares Capital, Ares Management, BMO Capital Markets, BNP Paribas, Bank of America, Barclays, Blue Owl, Credit Suisse, Goldman Sachs, Golub Capital, JP Morgan and Jefferies & Company.
Medallia, a provider of customer and employee experience solutions, announced that its shareholders voted to approve the $6.4bn acquisition of Medallia by Thoma Bravo, a software investment firm. The transaction is expected to close by November 1, 2021, subject to customary closing conditions.
“Shareholder approval is an important milestone in our transaction with Thoma Bravo, which we believe will position Medallia to better deliver innovation to our customers. On behalf of the Medallia Board of Directors, I thank our shareholders for their support of this transaction. We are confident that, as a private company, Medallia will be strongly positioned to build on its success and begin its next phase of differentiated growth," Leslie Stretch, Medallia President and CEO.
Medallia is advised by Bank of America, Morgan Stanley, Wells Fargo Securities, Wilson Sonsini Goodrich & Rosati and Joele Frank. Financial advisors are advised by Gibson Dunn & Crutcher. Thoma Bravo is advised by Kirkland & Ellis and Finsbury Glover Hering. Debt financing is provided by Antares Capital, Apollo Global Management, Blackstone Capital Markets and KKR Capital Markets.
Capstead Mortgage, a REIT, announced that in its special meeting of stockholders, Capstead stockholders approved the merger transaction in which Capstead will merge with Benefit Street Partners Realty Trust, an asset manager.
The merger is expected to close prior to market open on October 19, 2021, subject to customary closing conditions. In addition, as a result of the merger, each outstanding share of Capstead 7.50% Series E Cumulative Redeemable Preferred Stock will be converted into the right to receive one newly-classified share of FBRT 7.50% Series E Cumulative Redeemable Preferred Stock.
Capstead Mortgage is advised by Credit Suisse, Hunton Andrews Kurth and Sard Verbinnen & Co. Credit Suisse is advised by Cleary Gottlieb Steen & Hamilton. Benefit Street Partners is advised by Barclays, Houlihan Lokey, Hogan Lovells and Prosek Partners. Financial advisors to Benefit Street Partners is advised by Alston & Bird.
Enjoy Technology, a provider of e-commerce platform, went public via a SPAC merger with Marquee Raine Acquisition in a $1.2bn deal. Marquee Raine Acquisition is backed by The Raine Group and Marquee Sports.
"Today marks a significant milestone for Enjoy. At Enjoy, we are pioneering the next disruptive channel in retail as we reinvent 'Commerce at Home.' We are launching our Smart Last Mile solution to reimagine the last mile for our partners by providing fast, convenient and personalized experiences for customers. As a public company, we believe Enjoy is poised to scale our business, add new services and meet our partners' requests to accelerate our expansion into new markets. We are excited to embark on this new chapter with Marquee Raine and all of our investors as we meet the expected increasing demand for Enjoy," Ron Johnson, Enjoy Technology Founder and CEO.
Enjoy Technology was advised by Credit Suisse, Goldman Sachs, Cooley and Abernathy MacGregor Group. Marquee Raine Acquisition was advised by Houlihan Lokey, The Raine Group, Weil Gotshal and Manges and ASC Advisors. Financial advisors were advised by Alston & Bird.
Horizon Acquisition, a SPAC, announced that in an extraordinary general meeting on October 14, 2021, its shareholders voted to approve its $2bn business combination with Vivid Seats, an independently owned and operated online ticket marketplace. Approximately 95.5% of the votes cast at the meeting were in favor of the business combination.
Tempo Automation, a software-accelerated electronics manufacturer, to go public via a SPAC merger with ACE Convergence Acquisition in a $919m. $82m fully committed common stock concurrent PIPE financing anchored by Point72 Ventures Investments and ACE Equity Partners with participation from other top institutional investors Firsthand Funds and Lux Capital.
“Our customers are among some of the world's greatest innovators, using our platform to power initiatives that include travel to the moon and Mars. We expect that this business combination will greatly broaden our capabilities and footprint in the market, provide substantial manufacturing data to fuel our platform and allow us to help more and more customers accelerate their innovations," Joy Weiss, Tempo President and CEO.
Tempo Automation is advised by Citigroup, Latham & Watkins, BOCA Communications and Blueshirt Group. ACE Acquisition is advised by Citigroup, Jefferies & Company, Paul Hastings and Skadden Arps Slate Meagher & Flom.
Learning Technologies Group, a provider of services and technologies for digital learning and talent management, completed the acquisition of GP Strategies, a global workforce transformation solutions provider, for $394m.
"The acquisition of GP Strategies represents a transformational leap for our business. It creates a combination of award-winning technology, leading talent development skills and a global delivery capability. As an enlarged business, we will be well placed to enable a broadened array of corporate clients to recruit, train, motivate and retain their people in a world of increasing complexity and a rapidly changing relationship between talent and the workplace," Jonathan Satchell, Learning Technologies CEO.
GP Strategies was advised by Jefferies & Company and Hogan Lovells. Jefferies & Company was advised by Covington & Burling. Learning Technology Group was advised by Goldman Sachs, Numis Securities, DLA Piper and FTI Consulting. Debt providers were advised by Ashurst.
Navios Maritime Partners completed the acquisition of Navios Maritime Acquisition.
Navios Maritime Partners, an owner and operator of dry cargo vessels, completed the acquisition of Navios Maritime Acquisition, an owner and operator of tanker vessels. Navios Acquisition received 0.1275 of a common unit of Navios Partners for each outstanding common share of Navios Acquisition.
“We are announcing a transformative transaction. The combined entity will be the largest US publicly-listed shipping company in terms of vessel count, with 15 vessel types diversified across three segments, servicing more than 10 end markets. This combination of two companies with similar core values and beliefs, as it relates to our service offerings, will allow us to continue to deliver the high-quality service that our customers expect. We have a proven model to execute seamless combinations, as evidenced by our prior successful roll-up transactions, and we anticipate a smooth execution for this combination as well," Angeliki Frangou, Navios Maritime Partners Chairwoman and CEO.
Navios Maritime Partners was advised by Jefferies & Company, S. Goldman Advisors, Fried Frank Harris Shriver & Jacobson and Capital Link. Financial advisors are advised by Covington & Burling. Navios Maritime Acquisition was advised by Pareto Securities, Latham & Watkins and Thompson Hine.
BancorpSouth Bank and Cadence Bancorporation announced their proposed merger had received final Federal Deposit Insurance Corporation approval. The FDIC approval follows recent approvals from the Mississippi Department of Banking and Consumer Finance and from shareholders of both companies.
"We're pleased to have received regulatory approval for this transformational merger. BancorpSouth and Cadence both enter into this merger from a position of strength and will create a company serving some of the most highly attractive markets in the United States. A combination of this scale provides the opportunity to deliver long-term value for our teammates, customers, communities and shareholders," Dan Rollins, BancorpSouth Chairman and CEO.
Cadence Bancorporation is advised by Goldman Sachs, JP Morgan, Piper Sandler and Wachtell Lipton Rosen & Katz. BancorpSouth is advised by Keefe Bruyette & Woods, Alston & Bird and Sullivan & Cromwell.
Bakkt, a digital asset marketplace, went public via a SPAC merger with VPC Impact Acquisition in a $2.1bn deal. ICE owns c. 78%, VPC Impact Acquisition shareholders own c. 8%, VPC owns 2%, and PIPE investors own c. 12% of the combined company.
“The company has a strong position in one of the most well-funded and fastest growing areas of technological expansion, as evidenced by its diversified revenue generation model and pathway to near-term profitability. We thank Jeff, David and the ICE team for their vision and look forward to working with Gavin and the Bakkt team to grow its market-leading position in digital assets," John Martin, VPC Impact Acquisition CEO.
Bakkt was advised by PJ Solomon and Shearman & Sterling. VPC Impact Acquisition was advised by Citigroup, Jefferies & Company, White & Case and Edelman.
Old Second Bancorp announced the reciept of regulatory approvals to complete its merger with West Suburban.
Old Second Bancorp, the holding company for Old Second National Bank, announced that it has received the bank regulatory approvals required to complete its previously announced merger with West Suburban Bancorp, and its wholly-owned subsidiary, West Suburban Bank.
Subject to Old Second stockholder approval and West Suburban shareholder approval, as well as the satisfaction of customary closing conditions, Old Second anticipates closing the transaction in early December 2021.
"We are extremely pleased to have received the bank regulatory approvals required to complete the proposed merger with West Suburban, which represents a significant milestone towards closing the transaction. Given our overlapping core values and our complementary product and service offerings, we believe this merger will create a strong institution that is well-positioned to grow, which will benefit the stockholders of both Old Second and West Suburban," James Eccher, Old Second, President and CEO.
West Suburban is advised by Keefe Bruyette & Woods, Barack Ferrazzano Kirschbaum & Nagelberg and Kirkland & Ellis. Old Secound is advised by Citigroup and Nelson Mullins Riley & Scarborough. Citigroup is advised by Cleary Gottlieb Steen & Hamilton.
Harvest Partners completed the acquisition of Fortis Solutions from Main Post Partners. (FS)
Harvest Partners, a private equity firm, completed the acquisition of Fortis Solutions, a best-in-class provider of specialty packaging solutions, from Main Post Partners, a private equity firm. Financial terms were not disclosed.
"It's been an incredible journey with Main Post Partners and I'm very appreciative and thankful to them for their outstanding contributions. Together with our great team at Fortis, we built the 'One Fortis' culture and growth vision which have allowed us to differentiate ourselves in the marketplace. I'm very much looking forward to working alongside Harvest Partners as we further develop and accelerate the value-added offerings that we deliver to our customers," John Wynne, Fortis Founder and CEO.
Harvest Partners was advised by Ropes & Gray and Lambert & Co. Fortis was advised by BMO Capital Markets and Morrison & Foerster. Main Post was advised by Chris Tofalli Public Relations.
Walgreens Boots Alliance, a firm that operates retail drugstores that offer a wide variety of prescription and non-prescription drugs, agreed to invest $5.2bn in VillageMD, a provider of healthcare management services.
“The best healthcare is deeply rooted in local communities, and Walgreens is committed to expanding convenient access to high-quality and affordable healthcare services to our patients and customers in our neighborhood locations. VillageMD is a leader within the fast-growing, value-based primary care segment with high rates of patient satisfaction and a talented management team who share our strategic vision of the central role that primary care can serve to improve patient outcomes and lower costs," Roz Brewer, Walgreens Boots Alliance CEO.
WBA is advised by Sidley Austin and Weil Gotshal and Manges. VillageMD is advised by Latham & Watkins.
Private equity firms Goldman Sachs Asset Management and Charlesbank Capital Partners, completed the acquisition of a majority stake in MDVIP, a personalized membership-based healthcare services provider, from private equity firms Leonard Green & Partners and Summit Partners. Financial terms were not disclosed.
"For more than two decades, MDVIP has redefined primary care for both physicians and patients to enhance their experience and improve healthcare outcomes. With this investment from Goldman Sachs and Charlesbank, MDVIP is ideally positioned to advance its strategic growth initiatives and continue expanding its portfolio of services to meet increasing demand for more personalized care," Bret Jorgensen, MDVIP Chairman and CEO.
MDVIP was advised by Jefferies & Company and Latham & Watkins. Goldman Sachs was advised by Simpson Thacher & Bartlett.
South32 to acquire Sierra Gorda from Sumitomo for $1.55bn.
South32, an Australian incorporated diversified metals and mining company, agreed to acquire Sierra Gorda, a copper mine, from Sumitomo, a firm that provides export trade, technology transfer, supply chain management, project management, marketing, transportation, and distribution services, for $1.55bn.
“We are actively reshaping our portfolio for a low carbon world and the acquisition of an interest in Sierra Gorda will increase our exposure to the commodities important to that transition,” Graham Kerr, South32 CEO.
Sumitomo is advised by RBC Capital Markets and Sullivan & Cromwell.
Uber Technologies completed the acquisition of Drizly, an on-demand alcohol marketplace, for $1.1bn.
“Uber Eats and Drizly are truly the perfect pairing. We invest in expanded offerings in our delivery business—from grocery and convenience stores to a wide variety of retailers—alcohol remains a key driver of demand from consumers in the US. On the Uber Eats app searches for alcohol items have spiked by 200% in the last year alone. By joining forces with Cory’s talented team, we can accelerate our shared trajectory by introducing Drizly to Uber consumers and expanding its geographic presence in the years ahead,” Dara Khosrowshahi, Uber CEO.
Drizly Group was advised by Latham & Watkins. Uber was advised by Cooley.
KAR, a global vehicle remarketing and technology solutions provider, completed the acquisition of CARWAVE, an online dealership network and auction, for $450m.
"This acquisition adds a leading digital platform on the West Coast to our dealer-to-dealer segment—solidifying our competitive position and improving profitability across our dealer-to-dealer offerings. With the addition of CARWAVE to our successful digital marketplaces—including ADESA and BacklotCars—as well as our broad network of vehicle logistics centers, we are able to meet the needs of dealers in any market at any time," Peter Kelly, KAR Global President.
CARWAVE was advised by Latham & Watkins. KAR was advised by Winston & Strawn.
IronSource, a software developer, agreed to acquire Tapjoy, a mobile advertising and app monetization company, for $400m.
“Our platform-based approach to serving app developers means we’re able to plug in multiple strategic additions to our software platform to add more value for customers. This acquisition follows that strategy, ultimately allowing us to serve our customers in the most beneficial way possible, by growing our SDK footprint, improving our monetization capabilities, and positioning our platform as a deep and integral part of the in-app and in-game economy," Omer Kaplan, IronSource Co-Founder and CRO.
IronSource is advised by Finsbury Glover Hering and Fluid Group.
American Securities and Greenbriar-backed LaserShip to merge with OnTrac Logistics in a $1.3bn deal. (FS)
Private equity firms American Securities and Greenbriar-backed LaserShip, an e-commerce last-mile delivery services provider, agreed to merge with OnTrac Logistics, a logistics services provider, in a $1.3bn deal.
“This merger of two strong companies is a testament to the extraordinary efforts of our team members to build a leading parcel carrier and logistics business. With OnTrac, we will use our combined best practices and scale to support customer growth and provide excellent opportunities for our associates," Mike Roth, LaserShip Interim CEO.
OnTrac Logistics is advised by Jefferies & Company.
RedBird Capital, Fenway Sports, Nike and Epic Games to invest in SpringHill Company at a $725m valuation. (FS)
RedBird Capital, an investment firm, Fenway Sports, a global sports, marketing, media, entertainment, and real estate platform, Nike, a sports retailer, and Epic Games, an interactive entertainment company, agreed to invest in SpringHill Company, a provider of media content, at a $725m valuation.
The new investment will enable SpringHill to expand its existing businesses and explore new categories and global markets. The company said it will consider M&A opportunities and connect with the creator community. It plans to build games and other digital experiences, and work with Epic to bring new content to the metaverse.
SpringHill is advised by Main Street Advisors.
Atlantida Bank-backed General International Telecom, a telecom company constituting of a group of Salvadorean investors, agreed to acquire Telefonica Moviles el Salvador, a mobile unit of Telefonica, a Spanish multinational telecommunications company, for $144m.
Closing of the deal is subject to certain conditions, including clearance by relevant regulatory bodies.
Telefonica is advised by Citigroup.
Coatue Management led a $100m Series C funding round in Reliable Robotics. (FS)
Coatue Management, a global investment manager, led a $100m Series C funding round in Reliable Robotics, a provider of advanced aircraft automation service. Additional investors include Lightspeed Venture Partners, Eclipse Ventures, Teamworthy Ventures and Pathbreaker Ventures.
“We believe Reliable Robotics is a leader in aircraft automation for commercial aviation. We were impressed by the team's clear vision, measured certification progress and track record of industry achievement. We are proud and excited to support Reliable’s goal to be the first to deliver FAA-certified, remotely piloted systems to market," Jaimin Rangwalla, Coatue Senior Managing Director.
Reliable Robotics was advised by GMK Communications.
Steel Dynamics to acquire a 45% stake in New Process Steel.
Steel Dynamics, an American steel producer, agreed to acquire a 45% stake in New Process Steel, a manufacturer of carbon steel. Financial terms were not disclosed.
"We have enjoyed a strong customer relationship with New Process since our founding. This minority equity interest enables us to grow our exposure to value-added manufacturing opportunities, while continuing to serve our other long-standing flat roll steel customer needs. New Process Steel has a reputation for high-quality standards and strong customer relationships. With Richard Fant and the current New Process leadership team at the helm, we believe there will be numerous opportunities for value-added manufacturing growth. Steel Dynamics' focus remains on providing the highest quality steel and service to all of our customers, while creating innovative supply-chain solutions," Mark D. Millett, Steel Dynamics Chairman and CEO.
Steel Dynamics is advised by JP Morgan.
Hg-backed Intelerad completed the acquisition of Ambra Health. (FS)
Hg-backed Intelerad, a global provider of medical imaging software and enterprise workflow solutions, completed the acquisition of Ambra Health, a developer of an image management platform. Financial terms were not disclosed.
“Ambra has been focused on ensuring large hospital systems, medical groups, imaging centers, clinical research organizations, and health information exchanges can rely on us to significantly improve processes and workflows in the circle of care. This commitment is strengthened by joining Intelerad, and we look forward together to further enhance our products and services," Morris Panner, Ambra CEO.
Intelerad was advised by ARPR.
Aguila Energia to acquire Bahia onshore fields from Petrobras for $1.5bn.
Aguila Energia offered to acquire Bahia onshore fields from Petrobras, a state-owned Brazilian multinational corporation, for $1.5bn.
The block's average production in January and February 2021 was around 13.5k barrels of oil per day and 660k cubic meters per day of gas.
Assai, a wholesaler, agreed to acquire 71 Extra Hiper stores from GPA, a supermarkets retailer, for $943m.
"The payment for the stores will allow it to pursue merger and acquisition targets among regional supermarket chains. The transaction would raise GPA’s profitability and reduce its debt as the company walks away from its Extra Hiper hypermarkets chain to focus on its flagship Pao de Acucar stores," Jorge Faical , GPA CEO.
Trane Technologies, a global climate innovator, completed the acquisition of Farrar Scientific, a provider of ultra-low temperature control for biopharmaceutical and other life science applications, for $365m.
“We are delighted to officially welcome Farrar Scientific associates. Trane Technologies’ world-class business operating system and expertise in refrigeration, cold chain and sustainable climate controls combined with Farrar’s specialized expertise in ultra-low temperature control will enable us to deliver even greater value to customers around the world in the critical biopharmaceutical and life science industries," Holly Paeper, Trane Technologies President.
EDP to acquire Celg T from CelgPar for $359m.
EDP, a renewable energy company, agreed to acquire Celg T, a Brazilian power transmission company, from CelgPar, an operator of a pulp mill, for $359m.
"It is an important asset for the country and, therefore, we understand that we can add and contribute so that the company, which is good, gets even better. We will be able to monetize with great operational quality. We are implementing a strong strategy, betting on the Brazilian market and betting on networks," João Marques da Cruz, EDP CEO.
D1 Capital, a global investment firm, led a $350m Series D funding round in Dutchie, a provider of safe and easy access to cannabis retailers for consumers. Additional investors include Tiger Global, Dragoneer, DFJ Growth, Thrive Capital, Gron Ventures, Casa Verde Capital, Willoughby Capital, Glynn Capital and Park West Asset Management.
“The verdict is out, and cannabis is a force for good. That is the biggest development we are excited about. The cannabis space is the fastest growing industry, up 35% year over year. Dutchie is working with over 5k dispensaries in North America and processed $14bn in annualized sales for those dispensaries. We’ve seen 100% year over year growth with dispensaries," Ross Lipson, Dutchie Co-Founder and CEO.
Hologic, a women's health company, agreed to acquire Bolder Surgical, a medical equipment company, for $160m.
“Becoming part of Hologic and its highly respected and well-known Surgical business is an exciting and pivotal junction for Bolder. Together, we will accelerate realizing Bolder’s vision to increase the efficiency of both surgeons and hospitals. Joining Hologic, with its similar mission, culture, and world-class portfolio of products, is an ideal fit for Bolder," Robert Kline, Bolder President and CEO.
Mindbody completed the acquisition of ClassPass from Vista Equity Partners. (FS)
Mindbody, a provider of management software, completed the acquisition of ClassPass, a gym-hopping app, from Vista Equity Partners, a private equity and venture capital firm. As part of the deal Sixth Street, a private equity firm, agreed to invest $500m in ClassPass.
“The ClassPass network includes many businesses already working with Mindbody. By combining our respective operations, we will create more seamless integrations and unlock new revenue opportunities for business owners using both services, while continuing to support all fitness, salon and spa businesses who choose to work with Mindbody or ClassPass,” Fritz Lanman, ClassPass CEO.
Perficient, a provider of a variety of information technology, consulting services, agreed to acquire Overactive, a provider of information technology consulting services for the financial, health, insurance, logistics and hi-tech industries. Financial terms were not disclosed.
“Our multi-shore, fully-integrated, global delivery approach continues to be a key driver of growth, and a compelling differentiator in the market. With the addition of Overactive, we now have more software and digital development talent offshore than onshore. Our global talent, coupled with our strong US presence, enables our clients to scale quickly, innovate rapidly and reduce costs to better meet rising customer demands, transform their business, and outpace the competition," Jeffrey Davis, Perficient Chairman and CEO.
Crestone Services, a Denver-based communications and utility infrastructure services company, completed the acquisition of Americom Technology, a provider of communications and utility services throughout the Mountain West, from Woodbridge, a financial services firm. Financial terms were not disclosed.
"Joining Crestone accomplishes two important goals for Americom, it ensures the continuation of our successful legacy, and provides us the additional resources to keep up with the increasing demand for our services. Crestone is a great strategic fit, and we are excited for the next 40 years," Pat Richter, Americom Technology President and Founder.
ECombustible eyes up to $1bn SPAC deal.
ECombustible, a maker of hydrogen-based fuel, is in talks to merge with blank-check firm Benessere Capital Acquisition. Benessere is discussing a potential deal that could value the combined entity at about $800m to $1bn.
Benessere, led by Chief Executive Officer Patrick Orlando and sponsored by ARC Global Investments, raised $115m in a January initial public offering. At the time, the SPAC said it would focus on dealmaking with technology-focused middle-market and emerging-growth companies in North, Central and South America, Bloomberg reported.
Expensify files to go public.
Expensify, a maker of expense management software, filed for an initial public offering, disclosing growing revenue and income.
Expensify listed the size of the offering as $100m, a placeholder that will change when terms of the share sale are set.
After the IPO, a voting trust will control the company for the foreseeable future, according to the filing. In addition to the Class A stock sold in the IPO, the company will have two other classes of shares, one with with 10 votes each and a second with 50 votes, Bloomberg reported.
Expensify is advised by JP Morgan, Citigroup and Bank of America.
Starwood Capital closes its opportunistic real estate fund at $10bn. (FS)
Starwood Capital Group, a global private investment firm, announced the closing of its latest opportunistic real estate fund, Starwood Distressed Opportunity Fund XII, with capital commitments exceeding $10bn, surpassing the $7.6bn raised for its predecessor vehicle, SOF XI.
"We are grateful to our new and longtime partners for the trust they continue to place in us as we complete the largest fundraise in Starwood Capital's history. Our sourcing capabilities continue to yield a robust pipeline of investment opportunities, and our market expertise around the globe continues to generate attractive returns for investors. SOF XII is off to an excellent start and we are confident it will continue our tradition of finding valuable investments with over 35% of the fund deployed in closed and approved transactions," Barry Sternlicht, Starwood Capital Chairman and CEO.
Evolution Equity Partners closes on $400m for new cybersecurity fund. (FS)
Evolution Equity Partners, an international venture capital investor, announced the final closing of a new fund and total capital commitments of $400m to make investments in cybersecurity and enterprise software companies that safeguard our digital world. The fund raise was heavily oversubscribed and is backed by a premier base of new and returning institutional investors, corporates, and family offices from the United States, Europe, Middle East and Asia.
The Evolution Technology Fund II will make investments in the range of $10m to $50m in early and growth stage companies in cybersecurity and in companies utilizing machine learning, big data and SaaS to build market leading platforms.
"This capital raise is demonstrative of the continued confidence of our global investor base in the ability of Evolution Equity Partners to invest in market leading software companies. At the same time, we pay tribute to the founders and teams that we have parntered with that show tremendous ability to execute on visionary and game changing outcomes that help safeguard our digital world," Richard Seewald, Evolution Equity Founder and Managing Partner.
EMEA
Mercury-backed Nexi, an Italy-based financial technology company, said its acquisition of smaller rival SIA, a financial technology solutions provider, to create an Italian payments champion will be completed "as soon as practicable" after Italy's antitrust authority gave a conditional green light to the deal, Reuters reported.
After last month, the competition watchdog gave the approval saying it had opened an investigation into the merger due to antitrust concerns in Italy's digital payments industry.
Nexi expects to finalize the merger this quarter, creating one of Europe's largest payments groups. It said it would implement the measures demanded by the authority to clear the deal within the required timeframe.
SIA is advised by KPMG, Tremonti & Associati, JP Morgan, Rothschild & Co, UniCredit, Gianni Origoni Grippo Cappelli & Partners and Tancredi. Nexi is advised by KPMG, Pirola Pennuto Zei & Associati, PricewaterhouseCoopers, Bank of America, Goldman Sachs, HSBC, Mediobanca, Legance and Barabino & Partners. Financial advisors are advised by Sullivan & Cromwell. Mercury is advised by Barclays, Intesa SanPaolo and Nomura.
IFM, an Australian fund, secured a 10.83% holding in Naturgy, a Spanish energy group, for $2.69bn in a tender offer, less than half of what it had initially sought to buy, Reuters reported.
IFM, which launched a partial takeover offer last month to acquire a 22.69% stake in the company for around $6.2bn, said it had waived its 17% acceptance threshold.
Although its bid was subject to securing at least 17% of Naturgy, IFM had also said it could decide to lower the minimum threshold to 10%. Securing the 22.69% stake initially planned or even the 17% threshold had become a difficult task after the three main shareholders in Naturgy, which hold more than a combined 67% of the energy group, said they would not tender their shares.
IFM is advised by BNP Paribas, Credit Suisse and Linklaters. Naturgy is advised by Citigroup, Freshfields Bruckhaus Deringer, Perez Llorca, Uria Menendez and LLYC.
Flerie Invest, a venture capital firm, agreed to acquire Cobra Biologics, a provider of pharmaceutical and biotechnology research services, from Charles River, a pharmaceutical company, for $52m.
“I look forward to working with the highly competent staff in Matfors to help grow innovative biotech companies, and to create security of supply of drugs and vaccines, and so be better prepared for future pandemics,” Ted Fjällman, Flerie Invest Partner.
Bridgepoint explores options for Element Materials. (FS)
Bridgepoint Group is weighing options for Element Materials Technology, including a sale that could value the London-based testing company at about $4.6bn.
The UK-listed private equity firm is in the early stages of studying strategic alternatives for the business, with any sale process likely to take place next year at the earliest. Element could draw interest from other buyout firms, as well as strategic investors.
Deliberations are ongoing and Bridgepoint may decide to keep Element. A sale of Element could be one of the largest by Bridgepoint since it went public in a July initial public offering.
EQT targets the control of Schufa. (FS)
EQT, a private equity firm, is in talks with the owners of Schufa Holding about taking control of the Germany’s equivalent to the FICO credit score firm in the US. EQT has engaged with shareholders, politicians and consumer advocacy groups over the future of a company that holds data on tens of millions of Germans.
The private equity firm has already secured a roughly 10% stake in the business from French bank Societe Generale and is in discussions with Deutsche Bank, Commerzbank, savings banks and other Schufa owners to gather more.
Stockholm-based EQT values Schufa at $2.3bn based on the Societe Generale purchase. Acquiring stakes from Deutsche Bank and Commerzbank could bring EQT’s overall holding in Schufa to about 40%, Bloomberg reported.
Pavel Tykac seeks to acquire a stake in MONETA. (FS)
Czech investor Pavel Tykac seeks to increase his stake in banking services provider MONETA Money Bank and help build a strong domestic lender.
Tykac holds a stake of more than 5% in MONETA, the country’s sixth biggest lender. MONETA’s largest shareholder, investment group PPF, has sought to take a controlling stake via a merger with its own financial assets.
Tykac’s stake-building comes as many investors speculate about a renewed PPF bid after MONETA shareholders in June rejected a share issue to help finance the tie-up with PPF assets, which included rival lender Air Bank and other units, Reuters reported.
Italia Trasporto Aereo gives itself a year to find an investor.
Italia Trasporto Aereo, the state-owned successor to Alitalia, is positioning itself for an investment from a major airline that could come as soon as the end of next year, according to Chairman Alfredo Altavilla.
The new Italian carrier, which started operations on Friday after its predecessor shut down, is too small to survive as a standalone company, Altavilla said in an interview. It is being managed in a way that will make it attractive for one of the large airline groups, whether in Europe or another region like the US, Bloomberg reported.
“I do remember very well how thankful people at Chrysler were when they got a second opportunity. I sincerely hope, wish and trust that the people working with ITA today feel that they have been given the opportunity that they deserve," Alfredo Altavilla, ITA Chairman.
Flutterwave said to seek funding at $3bn valuation.
Flutterwave, a Nigerian payments firm, is seeking fresh funding at a valuation of $3bn or more, a figure that would roughly triple its last valuation, Bloomberg reported.
The startup, which has offices in Lagos, Nigeria and San Francisco, recently held discussions with potential investors. Terms of the funding round haven’t been finalized, and it’s possible they may change.
IHC-backed Multiply plans IPO this year. (FS)
Abu Dhabi conglomerate International Holding plans to list subsidiary Multiply, a holding company that invests in tech-focused businesses, on Abu Dhabi's main stock market this year.
The planned transaction, which could value Multiply at $2.2-$2.7bn, would be the latest in a string of listings and deals for IHC, a firm with a market capitalisation of $72.5bn. IHC plans to offer 30% of Multiply's shares and is working with local banks on the transaction.
The planned deal would follow a surge of new listings on Abu Dhabi's ADX bourse this year, including companies owned by oil giant Abu Dhabi National Oil and state investor Mubadala, Reuters reported.
OVH Groupe raises $464m in IPO. (FS)
OVH Groupe, a cloud computing company, and its backers raised $464m in an initial public offering in Paris that will help the cloud-storage provider to finance its competition with Amazon and accelerate its international expansion.
The shares were priced at $21.46 apiece, the bottom of the range at which they were marketed, the company said in an emailed statement late Thursday. The deal values OVHcloud, as the company is known, at about $4bn.
The company raised $406m from the sale of new shares, less than the $464m it was initially targeting. Existing holders, including private equity firms KKR and TowerBrook Capital Partners, raised $58m. Founder Octave Klaba and his family will remain majority shareholders, Bloomberg reported.
MotorK eyes $175m Amsterdam IPO.
Italian software company MotorK said it aimed to raise $175m with an initial public offering of shares on the Amsterdam stock exchange before the end of this year.
“We are thrilled to announce our planned IPO, which we believe will unlock massive opportunities for our business, customers, partners, and our people. As a tech company with automotive in our DNA, we have worked tirelessly to build a market-leading platform and a successful growth strategy that combines organic growth with strategic acquisitions. We believe this is just the beginning of our journey and that the runway ahead of us is expansive. We are positioned to accelerate our growth and strongly believe that now is the right time to pursue an IPO, which will help provide the resources to invest in our platform and our team and to support our goal of accelerating the evolution of the automotive industry," MotorK Co-Founder and CEO.
BC Partners poised to miss fund target even after extension. (FS)
BC Partners, one of Europe’s oldest private equity firms, is likely to miss a fundraising target on its next flagship vehicle and has asked investors for more time to secure fresh commitments.
The London-based manager headed by Raymond Svider, which had sought at least $9.8bn for a new fund by August, has only pulled in around $5.7bn since fundraising began at the start of 2020. Even with the closing date pushed back to January 2022, the firm expects to fall short.
The timing of the fundraising launch just before Covid hit proved a major hurdle as investors were focused on the management of existing portfolios, and in-person meetings were severely restricted, Bloomberg reported.
Actis reaches final close on Actis Energy 5 with $6bn of investable capital. (FS)
Actis, an investor in sustainable infrastructure, announced it has completed fundraising for Actis Energy 5, significantly exceeding its $4bn target. With over $4.7bn of fund commitments and significant co-investment, the Energy team expects to deploy around $6bn of investable capital in this vintage. The fund will allocate capital globally, providing access to power in markets comprising over 80% of the world’s population.
The AE5 fundraise saw sizeable LP re-ups as well as new commitments from a high quality, diversified investor base. The LP base includes pension funds, insurance companies, endowments, sovereign wealth funds and other investors from across the globe. The fundraise was conducted entirely during the global pandemic, requiring creative solutions to due diligence including ‘virtual’ site visits and remote management team meetings.
“I would like to thank our LPs for their ongoing support. This is a ringing endorsement for our proven track record and a significant milestone for the firm as we continue to build our market position as a leading investor in sustainable infrastructure globally," Torbjorn Caesar, Actis Senior Partner.
Goldman Sachs to hire Mohit Sial as an executive director in the UK. (People)
Goldman Sachs Group, is hiring Mohit Sial from Deutsche Bank to work on deals with financial technology companies in the Europe, Middle East and Africa.
The banker will join Goldman Sachs as an executive director in London. Sial spent about two years at Deutsche Bank as the lead banker covering financial technology clients in Europe, Bloomberg reported.
APAC
PNB Housing Finance, a housing finance company in India, said that its board has decided to terminate the $550m stake sale to a clutch of investors led by Carlyle Group.
The mortgage lender said that Carlyle Group affiliate Pluto Investments initiated the process to withdraw the open offer after the housing finance company decided against proceeding with the preferential allotment.
“There continues to be no visibility or certainty as to the timeline for judicial determination of the legal issues, in particular as a third member of the SAT is yet to be appointed. In addition, regulatory approvals required for the preferential issue are pending, and it is unclear whether such approvals will be forthcoming while the legal proceedings are ongoing,” PNB.
PNB was advised by Shardul Amarchand Mangaldas & Co. General Atlantic was advised by Khaitan & Co. Ares was advised by Trilegal. Carlyle was advised by AZB & Partners and Latham & Watkins.
AusNet Services, an Australian energy company, would engage with gas pipeline operator APA Group’s $7.39bn takeover bid, after a government panel asked for an amendment to an exclusive agreement between the energy infrastructure firm and Brookfield, an alternative asset management company, Reuters reported.
Australia’s Takeovers Panel ordered AusNet and Brookfield to include a provision to terminate their deal if a better offer emerges, failing which it would remove a “no-talk” restriction in their agreement.
AusNet is advised by Adara Partners, Citigroup, Allens and Domestique.
Okada Manila, an operator of casino resorts, agreed to go public via a SPAC merger with 26 Capital Acquisition in a $2.6bn deal. Universal Entertainment, a manufacturer of gaming machines, will roll 100% of its equity in the transaction and is expected to own approximately 88% of the combined company
"Okada Manila is the future of the gaming market in Asia and poised for tremendous growth. With its beautiful new facility, a desirable location in one of the fastest-growing gaming markets in the world, and potential for industry-leading margins and cash flow conversion, I believe the Okada Manila is an extremely compelling investment," Jason Ader, 26 Capital Acquisition Chairman of the Board of Directors and CEO.
Okada Manila and Universal Entertainment are advised by Baker McKenzie. 26 Capital Acquisition is advised by Schulte Roth & Zabel.
Crayon, a holding company that offers software asset management, cloud and volume licensing, training and associated consulting services, completed the acquisition of Rhipe, a cloud channel company, for A$408m ($306m).
“We are incredibly excited to welcome Rhipe to the Crayon family as part of our global expansion strategy. Rhipe is a leading distributor of cloud solutions and services in the Asia Pacific region and through our combined business models, we will help more customers and partners solve their business needs with a greater portfolio of solutions," Melissa Mulholland, Crayon CEO.
Rhipe was advised by Jefferies & Company. Crayon was advised by Baker McKenzie.
Helios Technologies, a highly engineered motion control and electronic controls technology provider, completed the acquisition of electronic control systems and parts business of Shenzhen Joyonway Electronics & Technology, an electronic control systems provider. Financial terms were not disclosed.
“After the successful closing of NEM in July, the completion of the Joyonway asset acquisition provides another example of the effectiveness of our flywheel acquisition strategy. Joyonway complements the electronic controls platform from our Balboa Water Group acquisition by bringing an innovative portfolio of new solutions, strengthening our supply chain through broader geographic reach, increasing our manufacturing capacity to meet growing global demand as well as better servicing ‘in the region for the region’. I am very pleased to welcome the Joyonway team to the Helios family,” Josef Matosevic, Helios Technologies, President and CEO.
Helios Technologies was advised by Jones Day.
Evergrande CEO in Hong Kong for restructuring, asset sale talks.
Real estate company Evergrande Group’s chief executive is holding talks in Hong Kong with investment banks and creditors over a possible restructuring and asset sales, as the Chinese developer battles against default on more than $300bn in debts.
CEO Xia Haijun, a confidant of chairman Hui Ka Yan and who runs Evergrande’s day-to-day operations including financing, has been in Hong Kong, where the property firm has a major presence, for more than two months.
Shenzhen-headquartered Evergrande, which is reeling under more than $300bn in liabilities, has left its offshore investors in the dark about repayment plans after already missing three rounds of interest payments on its dollar bonds, Reuters reported.
Chinese state-owned Yuexiu Property has pulled out of a proposed $1.7bn deal to buy China Evergrande Group’s Hong Kong headquarters building over worries about the developer’s dire financial situation.
Sino-Ocean Group sets up $1.4bn office fund. (FS)
Hong Kong-listed realty developer Sino-Ocean Group has announced the launch of a $1.4bn China office fund, garnering capital commitments from three limited partners. The new fund, dubbed Sino-Ocean Prime Office Partners I, claims to be China’s largest office fund to date.
Sino-Ocean Group, through its investment vehicle Sino-Ocean Capital, will make a seed contribution of $400m to the office fund. The rest of the capital commitments will come from three undisclosed limited partners, said to be sovereign wealth funds or institutional investors.
The fund seeks to invest in China’s Grade A office projects, including Sino-Ocean’s two projects in Beijing – the Ocean Office Park complex and Project Z6 (under construction). The office fund will help Sino-Ocean Group scale up its presence in China’s southern and western regions, DealStreetAsia reported.
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