Short-seller Hindenburg Research warned on Monday that Elon Musk's $44bn offer to take Twitter private could get repriced lower if the the world's richest person walked away from the deal, Reuters reported.
"Musk holds all the cards here. If Elon Musk's bid for Twitter disappeared tomorrow, Twitter's equity would fall by 50% from current levels. Consequently, we see a significant risk that the deal gets repriced lower," Hindenburg.
Twitter is advised by Allen & Company, Goldman Sachs, JP Morgan, Simpson Thacher & Bartlett, Wilson Sonsini Goodrich & Rosati and Joele Frank. Financial advisors are advised by Sullivan & Cromwell. Elon Musk is advised by Bank of America, Barclays, Morgan Stanley, McDermott Will & Emery, Skadden Arps Slate Meagher & Flom. Debt financing is provided by BNP Paribas, Bank of America, Barclays, Mitsubishi UFJ Financial Group, Mizuho Securities, Morgan Stanley and Societe Generale. Debt providers are advised by Davis Polk & Wardwell.
Cornell Capital, a private equity firm, agreed to acquire Advancing Eyecare, a provider of ophthalmic instruments, from Atlantic Street Capital, an operationally focused private equity firm. Financial terms were not disclosed.
"AEC's trusted brands and broad portfolio of high-quality products and services have supported the daily operations and growth needs of our customers since our founding, and we are excited to take our company to new heights in partnership with Cornell. We look forward to leveraging Cornell's expertise and our multi-channel platform and strong relationships to capitalize on organic and inorganic growth initiatives, accelerate the development of top-quality product and service offerings and unlock enhanced value for customers," Brad Staley, Advancing Eyecare CEO.
Cornell Capital is advised by CapM Advisors, Golub Capital, Jefferies & Company, UBS, Weil Gotshal and Manges and Joele Frank. Debt financing is provided by UBS. Advancing Eyecare is advised by Houlihan Lokey and Kramer Levin Naftalis & Frankel. Atlantic Street is advised by Chris Tofalli Public Relations.
Workspace Group, an office-space provider, completed the acquisition of McKay Securities, a commercial REIT, for $364m.
"The market for office space is shifting, with businesses prioritising greater flexibility and the right location for their teams. This acquisition is a fantastic opportunity to accelerate our growth plans by capturing more of the strong demand we are seeing for our flexible offer in London, whilst selectively extending our reach into attractive commercial locations in the South-East. We will be a larger, more resilient company with an enhanced financial profile, and by applying our proven operational model and expertise, we expect to generate strong returns from McKay's portfolio of high-quality assets over the medium term," Graham Clemett, Workspace CEO.
McKay Securities was advised by Rothschild & Co, Stifel, Slaughter & May and FTI Consulting. Workspace was advised by Grant Thornton, JP Morgan, Herbert Smith Freehills and Finsbury Glover Hering. Financial advisors were advised by Ashurst.
Carvana, a company specializing in buying and selling cars online, completed the acquisition of ADESA US, the second largest provider of wholesale vehicle auction solutions in the United States, from KAR Global, a used car dealers company, for $2.2bn.
"We are thrilled to welcome ADESA US to the Carvana family. Together with Carvana’s existing operations, ADESA US’s nationwide infrastructure network and robust, highly profitable business will accelerate Carvana’s progress toward becoming the largest and most profitable automotive retailer," Ernie Garcia, Carvana Founder and CEO.
KAR Global was advised by Goldman Sachs and Skadden Arps Slate Meagher & Flom. Carvana was advised by Citigroup, JP Morgan and Kirkland & Ellis. Debt financing was provided by Citigroup and JP Morgan.
Plusgrade, an operator of a SaaS-based revenue optimization platform, agreed to acquire Points.com, a provider of powering loyalty commerce, for $385m.
“We are thrilled to be joining forces with Plusgrade in what will become a truly global leader and provider of value-adding and revenue-generating services for partners in the airline, hospitality, rail and financial services industries. Additionally, we have benefitted from a supportive group of shareholders over the past number of years and are pleased to have created this compelling outcome," Rob MacLean, Points.com CEO.
Plusgrade is advised by TD Securities, Stikeman Elliott and Teneo. Points.com is advised by Blair Franklin Capital Partners, RBC Capital Markets, Davies Ward Phillips & Vineberg and Gateway Investor Relations.
Grindr, a social network for the LGBTQ+ community, agreed to go public via SPAC merger with Tiga Acquisition in a $2.1bn deal.
“Grindr is the leading platform focused on the LGBTQ+ community for digital connection and engagement. We have a near ubiquitous global brand in the community we serve, impressive scale, best-in-class user engagement metrics and adjusted EBITDA margin, and we’re still just beginning our monetization and growth journey,” Jeff Bonforte, Grindr CEO.
Grindr is advised by The Raine Group, Cooley, Ellipsis and TrailRunner. Financial advisors are advised by Freshfields Bruckhaus Deringer. Tiga Acquisition is advised by Milbank.
Pfizer, a pharmaceutical firm, agreed to acquire Biohaven Pharmaceuticals, a clinical-stage biopharmaceutical company, for $11.6bn. Biohaven common shareholders will receive $148.5 per share in cash representing a premium of approximately 33%.
“Today’s announcement builds on our legacy of delivering breakthroughs for patients living with complex pain disorders and diseases that disproportionately impact women. NURTEC ODT, which is already the #1 prescribed migraine medicine in its class in the United States, coupled with Biohaven’s CGRP pipeline, offers hope for patients suffering from migraine worldwide. We believe Pfizer is uniquely positioned to help the portfolio reach its full potential given our leading scale and capabilities, including comprehensive field force engagement with Primary Care Physicians, specialists and health systems delivering the right information at the right time," Nick Lagunowich, Pfizer Global President.
Biohaven is advised by Centerview Partners, Sullivan & Cromwell and Sam Brown. Pfizer is advised by JP Morgan and Ropes & Gray.
Aztiq, a healthcare investor, and Innobic, a life sciences company, completed the acquisition of Alvogen, a pharmaceutical company, from CVC Capital Partners and Temasek for $500m.
"I would like to take this opportunity to thank the existing shareholders for their great support in the transformation of both Lotus and Adalvo, and at the same time to welcome our new partner Innobic as we look forward to carrying out the essential work of expanding access to medicines to more people who need them. With our vast collective expertise, and the comprehensive geographic networks and solid market intelligence in ASEAN brought by innobic and PTT, I believe that Lotus and Adalvo will have a compelling competitive advantage, enabling both enterprises to support one another and advance their global leadership in their sectors," Robert Wessman, Alvogen Chairman and CEO.
Aztiq was advised by Latham & Watkins and Shearman & Sterling. Alvogen was advised by White & Case.
Aramark, a provider of food, facilities, and uniform services to a variety of clients and institutions, agreed to spin-off its uniform services business into an independent, publicly traded company. The company expects close the deal by the end of fiscal 2023. Financial terms were not disclosed.
“Substantial improvements across the company—including culture, organization, strategy, client, and customer service—and a program of selective, targeted investments, have enabled us to materially improve our growth trajectory. Kim Scott, who joined in October 2021 as President and CEO of AUS, and her team have developed a compelling strategic framework and vision for AUS. We believe that Aramark and AUS can best execute their respective value-creating strategies operating as two independent, publicly traded companies," John Zillmer, Aramark CEO.
Aramark is advised by Goldman Sachs, JP Morgan and Wachtell Lipton Rosen & Katz.
Prologis, a provider of logistics real estate, agreed to acquire Duke Realty, an Indianapolis-based publicly traded REIT, for $23.71bn. Duke Realty stockholders would receive 0.466 shares of Prologis common stock for each share of Duke Realty common stock they own. Prologis' proposal is valued at $61.68 per Duke Realty share representing a premium of 29%.
"We are confident that the proposed combination will be a win-win for our respective shareholders. Prologis has a proven track record serving as a leader and innovator in our industry. We are known for providing exceptional service to customers and delivering superior value for our shareholders, including the shareholders of companies we have merged with or acquired in the past. We have no doubt that Duke Realty's shareholders would similarly benefit from long-term value created by the combination of our companies," Hamid R. Moghadam, Prologis CEO and Co-Founder.
Prologis is advised by Goldman Sachs and Wachtell Lipton Rosen & Katz.
Cortexyme, a clinical-stage biopharmaceutical company, agreed to acquire Novosteo, a developer of a drug discovery platform, for $120m.
“The acquisition of Novosteo adds a highly promising set of assets and meaningfully expands the breadth of our management team. We continue to review additional strategic actions that may opportunistically build upon our growing rare and degenerative disease focus. On behalf of Cortexyme’s Board, I would like to thank Chris Lowe for his leadership as interim CEO and guiding us through this acquisition," David Lamond, Cortexyme Chairman of Board of Directors.
Cortexyme is advised by Cooley. Novosteo is advised by Wilson Sonsini Goodrich & Rosati.
Digital Alpha-backed Unitas Global, a provider of IT infrastructure services, completed the acquisition of the network business assets, including INAP Japan, from INAP, a provider of high-performance data center services. Financial terms were not disclosed.
"The disruptive nature of Unitas' networking services strategy that enables hybrid cloud environments has become increasingly self-evident in the market. This acquisition is the next step to become the market leader redefining an agile hybrid cloud for the enterprise," Grant Kirkwood, Unitas Global CTO.
Unitas Global was advised by iMiller Public Relations. INAP was advised by Rothschild & Co.
Insight Partners, an investment firm, led a $210m Series C funding round in Abnormal Security, a developer of a cloud email security platform, with participation from Greylock Partners and Menlo Ventures.
“We are fortunate that some of the most notable companies in the world, with large and complex environments, trust our AI-based email security to protect their workforce. I am thrilled about the continued customer trust in Abnormal as evidenced by our 99% renewal rate,” Evan Reiser, Abnormal Security CEO and Co-Founder.
Goldman Sachs Asset Management, an investment manager, led a $150m Series B funding round in MOMA Therapeutics, an operator of a biotechnology platform, with participation from Section 32, Pavilion Capital, Invus, LifeSci Venture Partners, Third Rock Ventures, Nextech Invest, Cormorant Asset Management, Casdin Capital, Rock Springs Capital, Creacion Ventures and Alexandria Venture Investments.
“This Series B gives us runway to move our precision medicines toward the clinic for patients in need. We welcome all new investors to our syndicate, including lead Goldman Sachs Asset Management, and are tremendously grateful to our existing investors for their steadfast support and commitment to MOMA’s vision and mission," Asit Parikh, MOMA CEO.
Iconex, a provider of printer supplies for consumer transaction technologies, agreed to acquire Liberty Greenleaf, a manufacturer of paper products intended for industrial purposes. Financial terms were not disclosed.
“The addition of Liberty Greenleaf’s paper receipt business to Iconex will allow us to provide even better service to our customers, delivering unmatched product quality, service, innovation and consistent supply. This transaction, which is fully aligned with our long-term growth objectives, also strengthens our position as one of the world’s leading providers of low-cost paper receipts," Craig A. Gunckel, Iconex CEO.
EVI Industries, a distributor of commercial laundry and dry cleaning equipment, completed the acquisition of Spynr, a full-service marketing agency. Financial terms were not disclosed.
“Given the competitive environment, maximizing the return on their investment also requires laundry business owners to think and deliver across the entire marketing spectrum, from branding to web design to digital marketing, and beyond. To that end, we seek to provide these critical services to existing and prospective customers such that they may achieve their return expectations. Through Spynr, we expect to deliver the industry and our Company these necessary marketing capabilities," Henry M. Nahmad, EVI Chairman and CEO.
GV, a venture capital firm, LYFE Capital, a healthcare focused private equity company, and Revelation Partners, a private equity firm, led a $148m Series B fundcing round in Aspen Neuroscience, a private biotechnology company developing autologous cell therapies, with participation from Newton Investment, EDBI, LifeForce Capital, Medical Excellence Capital Partners, Mirae Asset Capital, NS Investment, OrbiMed, ARCH Venture Partners, Frazier Life Sciences, Section32 and Alexandria Venture Investments.
"This company was founded by a visionary team of scientists and patient advocates, who envisioned a day when personalized cell replacement could be used to target neurodegenerative diseases. We are happy to be aligned with such a prestigious group of founders and investors, having raised more than $220m since the company's founding, towards our mission to develop transformational medicines for patients with limited treatment options," Damien McDevitt, Aspen Neuroscience President and CEO.
Lux Capital, a private equity firm, led a $100m Series C funding round in Hugging Face, a AI software building firm, with participation form Sequoia, Coatue, SV Angel, Addition, a_capital, Betaworks, AIX Ventures, Kevin Durant, Rich Kleiman and Olivier Pomel.
"We want to have a positive impact on the AI field. We think the direction of more responsible AI is through openly sharing models, datasets, training procedures, evaluation metrics and working together to solve issues. We believe open source and open science bring trust, robustness, reproducibility, and continuous innovation," Hugging Face.
GrubMarket, an online marketplace, completed the acquisition of Vega Produce, a global fresh produce company that provides the highest quality Asian fruits and vegetables. Financial terms were not disclosed.
"Our true north is to continue to sustain, nourish, and feed countless families, and we are blessed to make a valuable contribution to this country, our families, our customers, our vendors, and beyond. We strive to be the most reliable distributor of the highest quality products for our customers across the nation and we also offer access to a best-in-class grower network across North and South America," Alejandro Toro, Vega Produce President.
DigitalBridge is vying to buy data-center company Switch.
DigitalBridge Group has emerged as a suitor for data-center operator Switch, Bloomberg reported.
DigitalBridge is vying against an arm of Brookfield Asset Management for Las Vegas-based Switch. Any deal, if reached, may be announced on Tuesday, when Switch is slated to report earnings.
Sachem Head drops board challenge towards US Foods. (FS)
Hedge fund Sachem Head Capital Management is in advanced talks to drop a board challenge against US Foods Holding in exchange for three seats on the food distributor's board of directors and the replacement of Chief Executive Officer Pietro Satriano, Reuters reported.
The settlement would resolve one of the year's most high-profile corporate fights. US Foods has struggled to boost profit margins in line with competitors such as Sysco as inflation has surged and supply chains were disrupted during the pandemic.
Barrick looks for more copper projects in Africa.
Barrick Gold is searching for copper projects in both Zambia and the Democratic Republic of Congo as the gold-mining giant looks to expand in one of the world's most-important industrial metals, Bloomberg reported.
Barrick already owns a copper mine in Zambia and in April laid out plans for a $7bn copper-gold project in Pakistan.
Bank of America scales back on SPAC.
Bank of America scaled back work with some SPACs, part of a retreat by banks from blank-check firms over concern about potential liability risks associated with the vehicles, Bloomberg reported.
Goldman Sachs is ending its involvement with most of the special purpose acquisition companies it took public and pausing new US SPAC issuance.
The Charlotte, North Carolina-based lender ended its relationships with some of the special purpose acquisition companies it helped take public while reviewing its policies for working with such vehicles. The bank has been in discussions with clients on navigating the current environment and is continuing selective work with some deals.
Unusual Ventures closes third fund at $483m. (FS)
Unusual Ventures, a seed-stage venture capital, raised $485m for its third flagship fund, which will be used to invest in seed-stage software companies across the SaaS, infrastructure, fintech and consumer applications verticals.
It is similar to the second fund closed in late 2019 at $425m.
YL Ventures' $400m fifth fund will use for Israeli cybersecurity innovation. (FS)
YL Ventures, an early-stage, cybersecurity-focused venture capital firm, announced the launch of its new $400m fund, YLV V, bringing its total capital under management to $800m.
The significantly oversubscribed fund is the largest seed stage cybersecurity-focused fund ever raised, bridging Israeli innovation and the US market. The fund will continue the firm's long-standing strategy of supporting Israeli founders from inception through every critical stage of building a category-leading company and bolstering its position in the global market.
Plexus Capital closes the buyout fund at $204m. (FS)
Plexus Capital raised $204m for its inaugural private equity fund, Plexus Equity Fund I, with commitments from leading institutional investors, family offices and high net worth individuals.
"This is an important milestone for Plexus. We are grateful to have the support of our longstanding limited partners and are pleased to welcome several new institutional investors to the Plexus family," Jay Jester, Plexus Partner.
Franz Haniel-backed CWS Cleanrooms, a provider of comprehensive solutions and services for cleanrooms, agreed to acquire a majority stake in STAXS, a value-added distributor of cleanroom consumables, from Silverfleet Capital, a private equity firm. Financial terms were not disclosed.
“STAXS has a strong value proposition and an impressive growth track record. The business operates in a highly attractive niche market with structural underlying growth. I am looking forward to partnering with STAXS and management in continuing the journey together with CWS Cleanrooms,” Moritz Merkert, Haniel Senior Investment Manager.
STAXS is advised by Harris Williams & Co. Silverfleet Capital is advised by KPMG, CIL Management Consultants and De Brauw Blackstone Westbroek.
Certares, an investment management company, and Knighthead, an investment adviser, agreed to invest $225m in Global Blue, a technology and payments partner.
“We are excited to welcome our new investors, Certares and Knighthead, a great combination of travel investors and innovative capital providers. This investment will enable Global Blue to take full advantage of the anticipated robust travel recovery while continuing to pursue our external and internal growth plans in Payment and Retail Tech," Jacques Stern, Global Blue CEO.
Global Blue is advised by Simpson Thacher & Bartlett.
Philip Morris in talks to acquire Swedish Match.
Philip Morris International, an international tobacco company, is in advanced talks to acquire Swedish Match, a smokeless tobacco company, in a deal that could be valued at $15bn or more and bolster the tobacco giant’s exposure to the rapidly growing market for smoke-free brands. The companies confirmed the talks in separate statements.
The talks between US-based Philip Morris and Stockholm-based Swedish Match could yield a deal as soon as this week. The potential terms and contours of any deal couldn’t be learned, WSJ reported.
ITA Airways will be sold by the end of June.
Italy's government aims to sell state-owned ITA Airways, the successor to Alitalia, by the end of June after setting a deadline for binding offers of May 23, Reuters reported.
Under a government decree, Rome plans to privatize ITA through a direct sale while retaining a minority, non-controlling stake in a first stage. Three prospective bidders, MSC alongside Germany's Lufthansa, the US Certares fund in cooperation with Delta and Air France, and investor Indigo Partners, have had access to its finance data room.
TPG Growth, a private equity firm, and Temasek, an investment company, led a $136m funding round in Dr. Agarwal's Health Care, a single-specialty healthcare business. ADV Partners to exit the investment.
"The new investments will enable us to double our network in the next 3 years and we will be pursuing acquisitions in key markets such as Maharashtra, Gujarat, Punjab, Karnataka, AP Talangana, etc, as well as a rapid greenfield expansion of our network across the country. Africa is another important geography for us. We have an existing network presnce of 15 hospitals, and we will be deepening our presence in countries such as Kenya, Mozambique, Tanzania, and Ghana," Adil Agarwal, Dr Aggarwal's CEO.
Dr. Agarwal's Health Care was advised by Veda Corporate and Avendus.
A consortium of investors, including AustralianSuper, Singtel and Australia Tower Network completed the acquisition of Axicom, a telecommunication infrastructure services provider, for A$3.58bn ($2.6bn).
"This acquisition is a unique opportunity to scale up ATN’s operations and expand its customer base. It also reinforces Singtel’s commitment as a long-term investor in the Australian telecoms space where our goal has always been to provide more options and build better communications for Australian consumers and businesses. In combining ATN and Axicom, AustralianSuper and Singtel will be working closely to realise the significant operational synergies created," Lim Cheng Cheng, Singtel CCO.
AustralianSuper was advised by Jefferies & Company.
Jump Crypto, a research-driven quantitative trading firm, led a $150m Series B funding round in KuCoin, an operator of a cryptocurrency exchange platform, with participation from Circle Ventures, IDG Capital, and Matrix Partners.
"The vote of confidence from prominent investors, including Jump Crypto and Circle Ventures, solidifies our vision that one day everyone will be with crypto. KuCoin is built for all classes of investors, and we believe these new investors and partners will contribute to making KuCoin synonymous with a reliable and trustworthy gateway into crypto space," Johnny Lyu, KuCoin CEO.
Geely Automobile, a privately-owned automotive group, agreed to acquire 34% stake in Renault, a French multinational automobile manufacturer. Financial terms were not disclosed.
This capital increase reflects strong confidence by Geely Holding Group and Renault Group in the South Korean market’s strong potential which will further enhance Renault Group’s “Renaulution plan”. Both companies are fully committed to Renault Korea Motors by introducing new product portfolio that will lead to greater market share in the South Korean domestic market whilst exploring export market opportunities.
IFC mulls $100m investment in PH lender BDO Unibank's blue bond.
World Bank Group member International Finance Corporation is considering a $100m investment in a blue bond to be issued by BDO Unibank, a commercial bank in the Philippines, DealStreetAsia reported.
A blue bond is a relatively new form of sustainability bond, a debt instrument issued to support investments in healthy oceans and blue economies, which is the preservation and regeneration of the marine environment.
JSW competes with Adani for Holcim's cement arm.
India's JSW Group plans to compete aggressively with Adani Group for assets of Holcim's local cement businesses, setting the stage for a bidding battle to become the country's second-biggest player in the industry, Reuters reported.
The deal value could go much higher, even double, as both JSW and Adani, run by India's richest man Gautam Adani, chase ready-made assets that will immediately give the winner a big presence in the market.
Garuda Indonesia hopes to extend debt restructuring period.
State-controlled airline Garuda Indonesia asked a Jakarta court to extend for the third time its deadline to complete its debt-restructuring process, as the verification of claims remains unfinished, Reuters reported.
Garuda proposed a 30-day extension to verify claims and finalize negotiations with creditors, CEO Irfan Setiaputra said during a creditors meeting at the Central Jakarta Commercial Court.
China Eastern Airlines hopes to raise $2.2bn.
China Eastern Airlines plans to raise up to $2.2bn in a share sale to expand its fleet and replenish working capital, Reuters reported.
The Chinese airline will use $1.6bn of the proceeds from the share sale to fund the purchase of 38 airplanes which are expected to be delivered between 2022 and 2024.
East Ventures closes two funds at $550m. (FS)
Indonesia-focused venture capital firm East Ventures raised a total of $550m in the final close of its two funds, including its ninth fund for early-stage deals and its second growth-stage fund, DealStreetAsia reported.
The firm will allocate $400m to invest in growth-stage companies while utilizing the rest for early-stage deals.
Huaxing Growth Capital forth fund hits first close at $448m. (FS)
China Renaissance's Huaxing Growth Capital announced the first close of its fourth RMB-denominated fund at $448m, DealStreetAsia reported.
The RMB Fund IV secured capital commitments from China's government-guided funds, funds of funds, financial institutions, family offices, as well as companies and entrepreneur partners in the China Renaissance ecosystem.
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