AMERICAS
Microsoft to acquire Activision Blizzard for $68.7bn.
Microsoft, an American multinational technology corporation, agreed to acquire Activision Blizzard, an American video game holding company based in Santa Monica, for $68.7bn.
"Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms. We're investing deeply in world-class content, community and the cloud to usher in a new era of gaming that puts players and creators first and makes gaming safe, inclusive and accessible to all," Satya Nadella, Microsoft Chairman and CEO.
Activision Blizzard is advised by Allen & Company and Skadden Arps Slate Meagher & Flom. Microsoft is advised by Goldman Sachs, Simpson Thacher & Bartlett, Weil Gotshal and Manges and Assembly Media.
ProKidney, a clinical-stage cellular therapeutics company focused on chronic kidney disease, agreed to go public via a merger with Social Capital Suvretta Holdings III, a special purpose acquisition company, in a $2.64bn deal. The transaction includes a $125m PIPE led by Social Capital.
"Affecting more than 75m patients in the United States and the European Union alone, CKD is one of the most challenging and burdensome chronic conditions to treat. For the first time, we have a multimodal approach to not only slow the onset of CKD, but in some cases reverse the loss of the kidney's function. Through our advancements in cellular therapies, ProKidney can help usher in a new era of better health for millions of CKD patients living with the fear of kidney failure and a life on dialysis. With the support of the Social Capital Suvretta team, we are excited to enter this critical next stage of our journey, bringing the promise and potential of our revolutionary REACT® therapy to market and improving the wellbeing of people around the world," Tim Bertram, ProKidney Founder and CEO.
ProKidney is advised by Citigroup, Davis Polk & Wardwell, Mintz Levin and Burns McClellan. Social Capital Suvretta is advised by Evercore, Jefferies & Company, Morgan Stanley, UBS, Wachtell Lipton Rosen & Katz and Finsbury Glover Hering. Financial advisors were advised by Winston & Strawn.
Sema4, an AI-driven genomic and clinical data intelligence platform company, agreed to acquire GeneDx, a provider of genomic testing and analysis, from OPKO Health, a multinational biopharmaceutical and diagnostics company, for $623m.
"This acquisition gives us the opportunity to accelerate the use of genomics as standard of care by providing a deeper menu of precision medicine solutions to our health system partners to better meet their clinical needs," Eric Schadt, Sema4 Founder and CEO.
Sema4 is advised by BTIG, Goldman Sachs, Jefferies & Company and Fenwick & West. OPKO is advised by Cowen & Company, JP Morgan, Greenberg Traurig and LHA Investor Relations.
Liberty Strategic Capital, a private equity firm founded and led by former Secretary of the Treasury Steven T. Mnuchin, is set to invest $100m in the pending $850m SPAC merger of Satellogic, an Argentine company specialized in Earth-observation satellites, and CF Acquisition V.
"It is hard to overstate the importance of up-to-date, high-resolution Earth imagery as an aid to decision making across a broad variety of contexts. As Satellogic builds out its network to provide daily remaps of the Earth's surface at a low cost, we believe the company is well positioned to provide governments and businesses with the information they need to make better, more well-informed decisions with respect to a host of pressing problems. We are excited to partner with Satellogic as they continue to innovate in this exciting and growing market," Steven Mnuchin, Liberty Strategic Capital Founder and Managing Partner.
Satellogic is advised by JP Morgan, Friedman Kaplan Seiler & Adelman, FTI Consulting and Greenberg Traurig. Liberty Strategic Capital is advised by Paul Weiss Rifkind Wharton & Garrison. CF Acquisition V is advised by Cantor Fitzgerald and Hughes Hubbard & Reed.
EnCap Flatrock Midstream-backed Clearfork Midstream, a growth-oriented midstream company, agreed to acquire Azure Midstream Energy, a fee-based, growth-oriented midstream company based in Dallas. Financial terms were not disclosed.
"Over the past few years, we have developed strong relationships with key members of the EFM team. The firm's unparalleled reputation is well deserved. They have the financial strength we need and understand midstream better than anyone in the venture capital business. They aligned with us on the acquisition of Azure Midstream and Azure's growth potential. We are very pleased to be part of the EFM family of companies," Kipper Overstreet, Clearfork CEO.
Azure Midstream Energy is advised by Jefferies & Company and Porter Hodges. EFM is advised by Latham & Watkins. Clearfork is advised by Donovan Ventures, Vinson & Elkins and Ten|10 Group.
Apollo-backed Athene, a financial services company focused on retirement savings solutions, completed the acquisition of Petros PACE Finance, a provider of long-term, 100% financing for energy retrofits on commercial properties. Financial terms were not disclosed.
“This transaction is a compelling opportunity to partner with the Company and its best-in-class team at the center of the ESG movement in commercial real estate, while building on our longstanding strategy of investing in businesses that add direct origination sourcing capabilities to our alpha-generating investment portfolio,” Jim Belardi, Athene Chairman and CEO.
Petros PACE Finance was advised by Barclays, Skadden Arps Slate Meagher & Flom and Winston & Strawn. Athene Holding was advised by CIBC World Markets, Gibson Dunn & Crutcher and Sidley Austin.
Stellex Capital Management, a middle-market private equity firm, completed the acquisition of Peltram Plumbing, a plumbing installation and service solutions provider. Financial terms were not disclosed.
“We are thrilled and humbled by this opportunity to provide capital and resources to support P3’s organic and M&A-focused expansion plan. Our goal is to materially expand maintenance and repair services capabilities in P3’s MSAs and consequently, seek to create more value for its customers and provide better opportunities for its employees,” Irina Krasik, Stellex Principal.
Peltram Plumbing was advised by Fifth Third Bancorp and Morrison Cohen. Stellex Capital Management was advised by DLA Piper and Marketcom PR.
Arsenal Capital Partners, a private equity firm, completed the acquisition of Eckhart, an automation solutions provider, from LFM Capital, a private equity firm. Financial terms were not disclosed.
"We are excited to announce this strategic growth investment from Arsenal, which will enable us to take our business to new heights, scale our team, and better serve our customers. Arsenal's extensive knowledge of the sector and track record of building high-growth, innovation-rich industrial technology businesses gave us confidence that they are the right partner," Andy Storm, Eckhart CEO.
Arsenal Capital Partners was advised by Harris Williams & Co and Kirkland & Ellis. Eckhart was advised by William Blair & Co and Bass Berry & Sims.
Dominus Capital Partners, an operationally-focused private equity firm, completed the investment in Uptime Institute, the global digital infrastructure authority. Financial terms were not disclosed.
"We are excited to work with Dominus to accelerate the global growth of Uptime Institute through further geographic expansion, new service offerings, and strategic acquisitions. As we look forward to this next phase, I personally want to thank our long-term financial partner, MLR Holdings, for their guidance and strategic support for over a decade," Martin V. McCarthy, Uptime CEO.
Uptime was advised by Houlihan Lokey and Faegre Drinker Biddle & Reath. Dominus Capital was advised by White & Case.
OpenGate Capital, a private equity firm, completed the acquisition of Chemisphere, a specialty solvent blender and chemical distributor. Financial terms were not disclosed.
“The acquisition of Chemisphere is an exciting second step in the building of a chemical distribution platform, and is a hallmark of our belief in seeking out ways to grow our businesses organically and through M&A," Andrew Nikou, OpenGate Capital Founder and CEO.
OpenGate was advised by Prosek Partners.
Quest Diagnostics, a provider of diagnostic information services, agreed to acquire Pack Health, an evidence-based patient engagement platform. Financial terms were not disclosed.
"This transaction also builds on our growing expertise in addressing social determinants of health, such as through our Quest for Health Equity initiative, and other programs that help organizations deliver value-based care," Steve Rusckowski, Quest Diagnostics Chairman, CEO and President.
Quest Diagnostics is advised by Dechert.
Bic, a manufacturer and distributor consumer products, agreed to acquire Inkbox, a semi-permanent tattoo technology provider, for $65m.
"Inkbox's temporary tattoos and markers empower individuals to be their continually-evolving, fluid selves. The acquisition of Inkbox will expand BIC's offerings in the DIY skin creative category which includes BodyMark by BIC, bringing more innovative and high-quality tools to individuals who are not afraid to showcase who they truly are," Gonzalve Bich, BIC CEO.
The Carlyle Group, a global investment firm, agreed to invest $100m in NineDot Energy, a developer of community-scale clean energy projects.
"NineDot Energy thrives on developing innovative business models and projects that support a more resilient electric grid while simultaneously delivering economic savings and reducing carbon emissions. Carlyle's investment will enable NineDot to further advance our leadership position in providing community clean energy solutions in New York and beyond," David Arfin, NineDot Energy CEO.
Evotec partners with Lilly to research metabolic diseases.
Evotec, a German biotech company, has signed a drug discovery partnership for metabolic diseases with Eli Lilly, a US drugmaker. The total potential value of the partnership, which will last for three years, amounts to $1bn.
As part of the collaboration, Evotec will explore potential drug candidates for the treatment of diabetes and chronic liver disease. Eli Lilly reserves the right to select up to five programs developed in partnership and then be responsible for further development and commercialization.
Macellum Advisors urges Kohl to make changes. (FS)
Macellum Advisors, an activist investor which has a roughly 5% stake in Kohl's, is urging the American department store retail chain to make changes, including altering its board. Kohl's has so far rejected Macellum's request to add directors with retail experience or a shareholder to its board,
WSJ reported. The New York hedge fund, which was part of a group that ran a proxy fight at the retailer last year, now expects to do so again.
Macellum is telling Kohl's that if it doesn't change its board, the company should hire bankers to explore a sale or other transaction. Macellum has told the company it thinks there are potential buyers that have shown interest.
Jefferies gives up on a $1bn buyout fund. (FS)
Jefferies Financial Group is abandoning an effort to raise a $1bn fund to buy stakes in private equity fund managers, giving up on a niche and lucrative corner of asset management.
It is a blow to Jefferies' Leucadia Asset Management division, which offers alternative investment products such as private equity. The asset management business reported a 52% drop in net revenues in the 3 months to the end of November to $43m,
Reuters reported.
StubHub to go public in a $13bn direct listing.
Online ticket platform StubHub is considering going public in a direct listing that would value the company at $13bn.
The company, led by Chief Executive Officer Eric H. Baker, confidentially filed paperwork with the US Securities and Exchanges Commission and could pursue a direct listing as soon as this year. A transaction may value StubHub at more than $13bn, and the firm is working with advisers including JP Morgan and Goldman Sachs on the potential listing.
FTX launches a $2bn venture capital fund. (FS)
FTX, a Bahamian-based cryptocurrency exchange platform that allows users to trade cryptocurrencies, is launching a $2bn venture fund to support crypto and Web3 projects.
Dubbed FTX Ventures, the fund will invest in cryptocurrency startups across the world and in all stages, with a broad focus in the social, gaming, fintech, software and healthcare industries.
CSL Behring, a wholly-owned subsidiary of global biotechnology leader CSL, published the offer prospectus regarding its public tender offer for all publicly held registered shares of Vifor Pharma, a global specialty pharmaceutical company with leadership in Iron Deficiency, Nephrology & Cardio-Renal Therapies, as indicated in the pre-announcement of the public tender offer published by CSL.
The transaction has been unanimously approved by both companies' Boards of Directors. The offer price for each registered share of Vifor Pharma is $180 in cash. The public tender offer is subject to the offer conditions set forth in the offer prospectus.
Vifor Pharma is advised by Centerview Partners, IFBC, Bar & Karrer and Dynamics Group. CSL was advised by Bank of America, Credit Suisse, Goldman Sachs, PJT Partners, Gresham, Homburger, Simpson Thacher & Bartlett, Citadel Magnus, IRF Communications and Kekst CNC.
NeoGames, a technology-driven provider of end-to-end iLottery solutions, agreed to acquire Aspire Global, a B2B iGaming technology solutions provider, for $480m.
"We are thrilled to announce this highly strategic transaction. Our objective in combining our two companies is to create a leading global provider in interactive content, proprietary technology and operations across all elements of iLottery, online sports betting and iGaming verticals. By integrating our market-leading platform and scalable position within the rapidly expanding global iLottery market, with Aspire Global's proprietary sports betting platform, BtoBet; its iGaming content and aggregation platform, Pariplay; and its proprietary content and turn-key B2B Gaming solutions, NeoGames will be positioned to significantly increase our addressable market opportunities," Moti Malul, NeoGames CEO.
Aspire Global is advised by Oakvale Capital and Baker McKenzie. NeoGames is advised by Goldman Sachs, Stifel, Allen & Overy, Hannes Snellman, Herzog Fox & Neeman, Jones Day and Latham & Watkins. Debt financing is provided by Blackstone.
Mayfair Equity Partners, a private equity firm in London, England, agreed to invest $120m in LoopMe, a brand-focused mobile advertising platform.
"LoopMe has experienced phenomenal growth over the past ten years, particularly in the US, within the mobile video app ecosystem and now in CTV. As a leading data and privacy-compliant software platform delivering exceptional performance without the need for personal identifying data, LoopMe is poised for continued success given ongoing market developments with regards to data regulation and usage. We are excited to welcome the support of Mayfair Equity Partners as we expand into new geographies and add new product offerings around data and measurement," Stephen Upstone, LoopMe CEO and Founder.
LoopMe is advised by BDO, Deloitte, PricewaterhouseCoopers, strategy&, Raymond James, Orrick Herrington & Sutcliffe and Intechnica. Mayfair is advised by BDO, PricewaterhouseCoopers, GP Bullhound, Goodwin Procter and The One Nine Three Group.
Ekistics Property Advisors, an experienced real estate private equity fund advisory business, completed the acquisition of 19-20 St James's Street, a prestigious, mixed-use property in central London, for £118m ($162m).
20 St James's Street, which consists of over 53k square feet of multi-let Grade A office accommodation and a retail unit, was fully redeveloped in 2018, retaining the period façade.
Ekistics Property Advisors was advised by Macfarlanes.
Tencent, a Chinese multinational technology and entertainment conglomerate, led a $100m Series C round in Flipdish, an international online ordering and digital experience platform for hospitality.
"Digitization has been transforming the hospitality sector for years. The ongoing pandemic has further accelerated the trend with hospitality businesses becoming increasingly dependent on digital experiences to attract and retain customers. Our investment will help us to empower more hospitality businesses around the world to grow with the best-in-class technology," Conor McCarthy, Flipdish CEO.
Flipdish was advised by Numis Securities.
Somoil, a distributor of crude oil, agreed to acquire Block 14, a offshore oil refining platform, from TotalEnergies, a broad energy company, and Inpex, an energy company. Financial terms were not disclosed.
"By divesting this interest in mature fields, TotalEnergies is implementing its strategy to highgrade its oil portfolio, focusing on assets with low costs and low emissions," Henri-Max Ndong-Nzue, TotalEnergies Senior Vice President.
Team17 Group, a global games label, creative partner and developer of independent premium video games and publisher, agreed to acquire astragon Entertainment, a German video game publisher, for €100m ($114m).
"We are delighted to welcome the astragon team into Team17, and believe we are joining forces with one of the leading experts in the simulation games space. They have decades of game creation and publishing experience, have built an outstanding and highly devoted community and have developed an outstanding portfolio of owned IP across this genre," Debbie Bestwick, Team17 CEO.
Vivendi, a French media conglomerate, completed the acquisition of an 8.5% stake in Progressif Media, a digital communication group, from ZeWatchers. Financial terms were not disclosed.
ZeWatchers will own a 30% stake in the company while the three Progressif Media founders, Emile Duport, David Bonhomme and Thomas Ghys, will retain 60% of the company.
BlackRock, an American global investment management corporation, led a $355m Series E funding round in Bolt, an online checkout platform, with participation from Schonfeld, Invus Group, HIG Capital, CE Innovation Capital, Activant Capital and Moore Strategic Ventures.
The capital will be used for product development, hire employees and expand into new international markets.
Bain Capital weighs bid for a stake in Sodexo benefits unit. (FS)
Bain Capital is looking to bid for a stake in the benefits and rewards services unit of Sodexo, a food caterer, as it is on the lookout for investors that could help fund the group's turnaround.
Sodexo, which has a market value of $13.7bn, is looking to sell a minority stake of about 30% in the business which has been driving the group's post-Covid recovery by providing employee benefit programmes as well as meal vouchers and gift cards. An auction process is due to start this week, with other private equity firms expected to join the race,
Reuters reported.
UAE invests $100m in Israeli venture capital companies. (FS)
A major United Arab Emirates sovereign wealth fund has invested roughly $100m in venture capital firms in Israel's technology sector,
WSJ reported, a fresh sign of deepening business and investment ties between the countries at the forefront of the Abraham Accords.
A year and a half since the deal that normalized diplomatic ties between Israel and the UAE, business is growing, with trade between the two counties forecast to reach $2bn this year, up from roughly $250m annually before the accords, according to the UAE-Israel Business Council, a trade body representing 6k Emirati and Israel businesspeople.
APAC
Ness, a digital services transformation company, completed the acquisition of Niyuj, a provider of software product engineering services. Financial terms were not disclosed.
“Niyuj is well positioned to take advantage of the acceleration from hardware centric devices to cloud based services in digital infrastructure solutions. Their core competence in product engineering coupled with their domain expertise in building software solutions for digital infrastructure companies will enhance our strategic focus on specific industry domains, and in particular our Technology and ISV vertical," Ranjit Tinaikar, Ness CEO.
Ness was advised by CEO ally and Greenough Brand Storytellers. Niyuj was advised by LegaLogic.
Itochu, a Japanese corporation based in Umeda, and Japan Industrial Partners, a venture capital firm based in Tokyo, agreed to acquire a 26% stake in the construction unit of Hitachi, a Japanese multinational conglomerate corporation, for $1.7bn.
Hitachi will use the proceeds obtained from the acquisition as a source of funds for strengthening its financial base, returning to its shareholders, and investing in growth opportunities, and will strive to enhance its corporate value via sustainable growth through social innovation business.
Hitachi is advised by UBS.
Reliance Industries, a manufacturer of petrochemicals, synthetic fibers, fiber intermediates, textiles, blended yarn and polyester staple fiber, agreed to acquire a 54% stake in Addverb Technologies, an Indian robotics startup, for $132m.
“Reliance has huge plans to implement automation across digital warehouses. They have plans to expand warehousing to hundreds of locations in the next two years and when you have that scale, only robotic systems can be effective,” Sangeet Kumar, Addverb Technologies Co-Founder and CEO.
Quadria Capital, a health care focused private equity firm, completed the $90m investment in Con Cung, a retailer of mom and baby products.
"We recognise the need to expand our retail channels, both online and offline, and create a holistic ecosystem to support mothers and families," Minh Nguyen, Con Cung Co-Founder and Chairman.
Affinity to sell Japan and South Korea Burger King business in a deal over $1bn. (FS)
Affinity Equity Partners, a private equity firm, is launching the sale of its Burger King fast-food businesses in South Korea and Japan, in a deal that could fetch more than $1bn,
Reuters reported.
Hong Kong-based Affinity has appointed Goldman Sachs to run the sale, which is targeting both private equity investors and strategic buyers. Affinity bought full control of Burger King South Korea in 2016 for about $170m and a year later acquired the American fast-food brand's Japan franchise.
Citi is in talks with Fubon on $1.5bn China asset sale.
Citigroup, which has been shedding some of its retail operations as part of a global revamp, is in advanced talks with Fubon Financial, a financial investment holding company, for a sale of its mainland China consumer business.
Fubon has emerged as the likeliest buyer after outbidding rivals, and the two lenders are negotiating the terms of a potential transaction. Both are aiming to sign an agreement in the coming weeks and the assets could be valued at about $1.5bn,
Bloomberg reported.
China Merchants Bank-backed SPAC files first application under new Hong Kong rules.
China Merchants Bank-backed Aquila Acquisition becomes first SPAC applicant in Hong Kong. Aquila is the first company to do so since new rules allowing such listings took effect at the start of this year.
Interest in special purpose acquisition companies that raise cash to buy private firms and take them public without a traditional initial public offering is starting to shift to Asia, with two SPACs set to list in Singapore later this month.
