AMERICAS
Private equity firm KPS Capital Partners agreed to acquire substantially all of the assets of Garrett Motion, a company primarily involved in engineering, development and manufacturing of turbochargers and related forced induction systems for ground vehicles, for $2.1bn.
"We proceed with great conviction and enthusiasm to acquire Garrett, a global leader in turbocharger and electrification technologies, serving nearly every major automotive and commercial vehicle OEM in the world. Garrett enjoys a leading market position, scale, world-class research and development sites, and state-of-the-art manufacturing and engineering facilities strategically located around the globe. We look forward to working with the company's leadership team and employees to accelerate its many attractive growth opportunities as well as increase its already substantial investment in research and development, technology and new product development," Raquel Vargas Palmer, KPS Managing Partner.
Garrett Motion is advised by AlixPartners, Morgan Stanley, Perella Weinberg Partners, Quinn Emanuel, Sullivan & Cromwell and Edelman. KPS Capital Partners is advised by Credit Suisse, UBS, Davis Polk & Wardwell and Prosek Partners. Debt financing is provided by BNP Paribas, Citigroup, Credit Suisse and UBS.
Illumina, a developer and manufacturer of integrated systems for the analysis of genetic variation and biological functions, agreed to acquire the remaining 85.5% of GRAIL, a multi-cancer early detection company, for $8bn. Under the terms of the agreement, at closing GRAIL stockholders (including Illumina) will receive a total consideration of $8bn, consisting of $3.5bn in cash and $4.5bn in shares of Illumina common stock, subject to a collar.
"Together, we have an important opportunity to introduce routine and broadly available blood-based screening that enables early cancer detection when treatment can be more effective and less costly. Multi-cancer early detection is better for patients, their physicians, and payors. As we accelerate our path to clinical leadership and the path to multi-cancer early detection, we will continue to drive significant value creation for our stockholders," Francis deSouza, Illumina President and CEO.
GRAIL is advised by Morgan Stanley and Latham & Watkins. Illumina is advised by Goldman Sachs and Cravath Swaine & Moore.
Microsoft agreed to acquire ZeniMax Media, the parent company of Bethesda Softworks, an American video game publisher, for $7.5bn.
"Quality differentiated content is the engine behind the growth and value of Xbox Game Pass—from Minecraft to Flight Simulator. As a proven game developer and publisher, Bethesda has seen success across every category of games, and together, we will further our ambition to empower the more than three billion gamers worldwide," Satya Nadella, Microsoft CEO.
Microsoft is advised by Simpson Thacher & Bartlett. Providence Equity Partners is advised by Weil Gotshal & Manges.
CI Financial, an independent company offering global asset management and wealth management advisory services, agreed to acquire Bowling Portfolio Management, a provider of customized financial planning and investment management services to high-net-worth clients. Financial terms were not disclosed.
"Bowling has outstanding leadership and a team whose investment expertise and service excellence have earned the loyalty of generations of clients. The acquisition of Bowling gives us a presence in Cincinnati, a strategically important business hub, and expands our business in the region. With our recent acquisition of Balasa Dinverno Foltz of Itasca, Illinois, our CI Private Wealth companies will be managing approximately $5bn of high-net-worth assets in the Midwest," Kurt MacAlpine, CI CEO.
Bowling is advised by Park Sutton Advisors and Katz Teller Brant & Hild.
The Carlyle Group agreed to invest in TriNetX, a global health research network optimizing clinical research. Financial terms were not disclosed.
"Our goal is to be on the desktop of every healthcare researcher in the world. To accomplish this we need to continue to develop solutions to support clinical research at our healthcare organizations and bring more global data and technologies such as AI, machine learning and analytics to researchers so that they can ask more questions and generate more real-world evidence. Carlyle's investment accelerates our growth plans and will shorten the time it takes to turn our vision into reality," Gadi Lachman, TriNetX CEO.
TriNetX is advised by SVB Leerink.
JMI Equity, a growth equity firm, completed the acquisition of Bloomerang, a donor management software provider. Financial terms were not disclosed.
"We started Bloomerang with a vision to improve nonprofit effectiveness through smart, intuitive technology and world-class customer service and support. This partnership with JMI allows us to retain our autonomy as a company, while giving us access to resources that will help us continue to grow and further our mission of helping nonprofits do good," Ross Hendrickson, Bloomerang CEO.
Bloomerang was advised by Canaccord Genuity.
Sun Capital Partners, a private investment firm, completed the investment in Mancini's Sleepworld, a mattress retailer serving the Northern California market. Financial terms were not disclosed.
"Mancini's is in Sun Capital's sweet spot: a family-owned business in an industry that Sun Capital knows well and where we have had a track record of success. The company's success is a testament to Randy Mancini and Marc Fey's hard work and business acumen, and we appreciate their trust in Sun Capital's ability to partner with them in growing the business," Marc Leder, Sun Capital Co-CEO.
Sun Capital Partners was advised by Stanton PRM.
Sagewind-backed QuantiTech, a business management consultant, completed the acquisition of Dynamic Concepts, a provider of high-end engineering and software services for human spaceflight. Financial terms were not disclosed.
"DCI is an excellent addition to QuantiTech as it provides us with a complementary set of high-end specialized services and bolsters our existing relationship with NASA. DCI personnel are shaping the future of human spaceflight and we look forward to supporting them in combination with QuantiTech," Darryl Wortman, QuantiTech President and CEO.
QuantiTech was advised by Kekst CNC.
TPG Capital-backed communications providers RCN, Grande Communications and Wave Broadband completed the acquisition of EnTouch Systems, a full-service provider of broadband, TV, voice, security and home automation services. Financial terms were not disclosed.
"As part of Grande Communications' service network, we will continue to focus on providing customers with high-quality technology and customer service. Together, we will offer new and improved products and services and continue to grow and innovate," Sam Luxton, EnTouch President and CEO.
Centerbridge Partners and Vistria Group partnering to acquire Wellspring Capital Management-backed Help at Home for $1.4bn. (FS)
Centerbridge Partners, a PE firm with approximately $26bn in capital under management, partnered with Vistria Group, a Chicago-based PE firm focused on middle-market companies in health care, education and financial services industries, to acquire Help at Home for $1.4bn,
PE Insights reported.
Help at Home provides a range of medical and non-medical services to seniors and individuals with disabilities. The Chicago-based provider currently operates in 13 states, serving about 67k clients across 155 locations. Wellspring, a New York-based private equity firm, acquired Help at Home in 2015.
Goldman Sachs picks new leaders of global M&A unit. (People)
Goldman Sachs Group is shuffling the top ranks of its mergers and acquisitions department, appointing Stephan Feldgoise and
Mark Sorrell as co-heads of its global M&A practice.
Feldgoise, formerly co-head of M&A for the Americas, will continue his job as global head of consumer and retail. Sorrell, who previously led M&A in Europe, the Middle East and Africa, will continue as co-head of Goldman Sachs's UK investment banking business and become a member of the division's executive committee.
EMEA
Iliad, a mobile phone operator, agreed to acquire Play Communications, a cellular network in Poland, for $4.2bn. Two reference shareholders owning 40% of Play have already signed an agreement for the stake sale at the same price.
“This excellent alliance constitutes a newgrowth driver for the iliad Group and gives it access to one of Europe’s high-potential telecom markets. Pooling the expertise of Play’s and iliad’s teams will reinforce the iliad Group’s fundamentals through a combination of growth and innovation. The transaction will make iliad the sixth-largest telecom operator in Europe. Fully committed to implementing its Odyssey 2024 Plan, iliad is a solid group that is pursuing its expansion with confidence,” Thomas Reynaud, iliad CEO.
Play is advised by JP Morgan.
Victory Capital, an independent investment management firm, completed the acquisition of a 15% stake in Alderwood Partners, a London-based investment advisory firm. Financial terms were not disclosed.
"This investment in a proven M&A capability provides Victory Capital with a number of compelling strategic advantages. It significantly broadens our international scope for future growth, particularly in the UK and on the European continent. In addition to expanding opportunities for complementary distribution alliances and strategic partnerships leveraging organizational and regulatory platforms in non-US jurisdictions, it also provides attractive return opportunity on our investment," David Brown, Victory Capital Chairman and CEO.
Alderwood Partners is advised by Montfort Communications.
DCC, an international sales, marketing and support services group, agreed to acquire NES Group and Primagaz Nederland, two LPG providers, for $65m.
"I am pleased to announce two complementary acquisitions in our LPG division. NES Group provides DCC LPG with an entry point in the attractive New England region and clearly adds further scale to our growing US LPG business. The acquisition of Primagaz in the Netherlands will be an important addition to our European activities. These transactions, which were originated, diligenced and executed during a period of ongoing Covid-19 restrictions, demonstrate our ability to successfully build our business in an uncertain environment. The Group continues to have the platforms, opportunities and capability for further development across each of our four divisions," Donal Murphy, DCC CEO.
DCC is advised by Powerscourt.
Intalio, a software company, completed the merger with Everteam Global Services, the content services provider and software vendor based in France. Financial terms were not disclosed.
"By merging Everteam Global Services and Intalio, and building on our respective expertise, we will offer solutions, that will bring further advancements in Content Services and Process Automation while ensuring Data Governance. This new identity will become a major player in the industry, especially in high-growth markets such as Europe and the United States," Antoine Hraoui, Intalio CEO.
Cornerstone, a financial company, completed the acquisition of FXPress Payment Services, a specialist foreign exchange firm. Financial terms were not disclosed.
"We are very pleased to have completed the acquisition of FXPress following the consent of the FCA. We are now further developing the range of products and services we provide for the benefit of our SME customers. Our overarching aim is to decrease the cost and complexity of business finance and treasury functions, thereby easing process workflow. Through the use of our tools, technologies and services, SMEs can be more efficient in the way they conduct international business. We look forward to progressing our operations under the Cornerstone umbrella and becoming a major player in the global payments landscape," Julian Wheatland, Cornerstone CEO.
Hipgnosis Songs to raise £250m in a private placement.
Hipgnosis, a UK investment company offering investors a pure-play exposure to songs and associated musical intellectual property rights, intends to raise up to £250m ($323m) by way of a placing of new ordinary shares. The issue price represents a 7.9% discount to the closing price on September 18, 2020.
"We have made a significant impact on the songwriting community over the last two-plus years and the overwhelming love and support we have from these great creators has led to further opportunities on evergreen songs and catalogues. I would like to thank all the songwriters, artists and producers that have made us first choice to look after your incomparable legacies," Merck Mercuriadis, Hipgnosis Songs Fund Founder.
Hipgnosis Songs Fund is advised by N+1 Singer, JP Morgan, RBC Capital Markets, Ocorian, The Outside Organization and FTI Consulting.
APAC
Chinese multinational internet technology company ByteDance said it will remain in control of a hived-off TikTok Global business, appearing to contradict President Donald Trump’s statements about how the new entity will be directed by Americans and pay an unusual $5bn fee to the US government.
The world’s most valuable startup sought to play down speculation it’s giving up control of valuable Chinese technology and assets after striking a deal with Oracle
and Walmart
to create TikTok Global. ByteDance will retain full control of its prized social media algorithms and allow Oracle only limited access to view source code for “safety” purposes, Bloomberg reported.
“As for the so-called $5bn tax to the US Treasury, that refers to an estimate of the corporate income tax and other taxes TikTok will have to pay in coming years as part of its business development. TikTok is confident in its future but the actual tax amount will have to be determined in accordance with the actual state of the business and American tax structures,” ByteDance.
Investors Value Partners, GBAHI, Vision Knight Capital, Ariana Capital, Maoyan and Infinity Power completed the $285m investment in AMTD Digital, an integrated digital platform.
“We have chosen Singapore as our global headquarters to build a one-stop digital solutions platform that connects the ASEAN market with our solid financial services presence in Hong Kong, including a digital bank joint venture with Xiaomi. We are committed to connecting the dots across the many major markets in Asia to create a one-stop digital solutions platform,” Calvin Choi, AMTD Digital Chairman.
HCL Technologies, a global technology company, agreed to acquire DWS, Australian IT, business and management consulting group, for $116m.
“We are excited for this expansion of HCL Technologies in Australia and New Zealand and are confident that our combined strengths will further accelerate the digital transformation journeys of our clients and innovations for their end customers,” Michael Horton, HCL Technologies Executive Vice President & Country Manager, Australia & New Zealand.
BGH Capital, an Australian private equity firm, agreed to acquire a 55% stake in TripADeal, local travel tech company. Financial terms were not disclosed.
"We knew they were the ideal fit. BGH has significant experience in tourism, and their partners share our vision for growth as the travel industry takes off post-Covid-19," Norm Black and Richard Johnston, TripADeal co-founding CEOs.
JD.com set to spin off a health unit.
JD.com, a Chinese e-commerce retailer, is planning to spin off its health unit and list it on the Hong Kong stock exchange in a move that follows escalating Sino-US political tensions.
Several Chinese companies are putting off plans for US listings amid mounting tensions between the world's top two economies, while those listed in New York are seeking to return to exchanges closer to home.
JD.com, which is listed on the Nasdaq in New York, raised about $3.9bn in its Hong Kong secondary listing earlier this year.
Huazhu Group considers foreign deals.
Huazhu Group, China's biggest hotel operator, is looking to acquire foreign hospitality chains as the rapid recovery of the country's domestic travel market puts it at an advantage to ailing global peers.
While major hotel brands like Marriott International and Hilton Worldwide International remain hobbled by the halt in travel amid a resurgence of infections in Europe and the US, Shanghai-based Huazhu Group's business has bounced back to pre-pandemic levels. In the second quarter, Huazhu's occupancy rate reached 69%, compared to Hilton's 22% and Marriott's 14%.
“We won’t hesitate to take action if there are proper acquisition targets, as operators with global presences will face challenges in the next one or two years amid virus and geopolitical tensions. With capital raised from the IPO, we are able to seek partnerships at any level,” Jin Hui, Huazhu Group President.
Keppel Capital teams up with National Pension Service of Korea for Asian infrastructure investments. (FS)
Keppel Capital and the National Pension Service of Korea tied up to seek investments in Asia's private infrastructure sector. The strategic deal is expected to tap the asset management expertise of both NPS and Keppel Capital as well as Keppel Group's development and operation of complex real estate assets in sectors including energy, environmental infrastructure, and urban development.
The newly announced agreement is expected to build on a previous deal between NPS, which is the world's third-largest pension fund, and Keppel Capital.
Ant Financial raised IPO funding target to $35bn. (FS)
Jack Ma's Ant Group is seeking to raise at least $35bn in its IPO after assessing early investor interest,
Bloomberg reported, putting the Chinese fintech giant on track for a record debut sale. Ant lifted its IPO target based on an increased valuation of about $250bn, up from previous estimates of $225bn.
Ant's simultaneous listing in Hong Kong and Shanghai may mark the biggest IPO ever, topping Saudi Aramco's record $29bn sale. Ant could exceed Bank of America's market capitalization, and be more than twice the size of Citigroup. Among US banks, only JP Morgan Chase is bigger at $300bn.
SCG Packaging considers raising up to $1.27bn in Thai IPO.
SCG Packaging, Thailand's biggest packaging company, plans to raise as much as $1.27bn in the nation's second-largest IPO this year. The unit of Siam Cement, one of the country's largest industrial conglomerates, set a price range of $1.07-1.12 for its 1.13bn share offering,
Bloomberg reported. The company will sell an additional 169m new shares should a so-called greenshoe option be exercised in full.
"The packaging business has become a crown jewel of Siam Cement with the explosive growth of e-commerce and food-delivery demand amid the pandemic. The company may view the window of opportunity as small with no ending of the coronavirus outbreak any time soon," Tawatchai Asawapornchai, ASL Securities deputy managing director.
