Owl Rock Capital, a specialty finance company, Neuberger Berman-backed Dyal Capital Partners and Altimar Acquisition, a blank check company, are set to form Blue Owl Capital, an alternative asset management firm with over $45bn in assets under management, in a $12.5bn deal.
“Our businesses will combine robust growth and a strong margin profile with a high level of earnings visibility and stability, offering investors a compelling way to access the alternative asset management industry. By building on this strong foundation, we believe we are well positioned to continue to expand our current platforms and pursue new, complementary business lines to provide differentiated sources of returns for our investors," Michael Rees, Dyal Founder.
Owl Rock Capital is advised by Bank of America Merrill Lynch, Goldman Sachs, Perella Weinberg Partners and Kirkland & Ellis. Dyal Capital is advised by Evercore and Fried Frank Harris Shriver & Jacobson. Neuberger Berman is advised by Ardea Partners, Citigroup and UBS. Altimar Acquisition is advised by JP Morgan, Paul Weiss Rifkind Wharton & Garrison and Prosek Partners.
Monocle Acquisition, a public investment vehicle, completed the acquisition of AerSale, a global supplier of aftermarket commercial jet aircraft, engines, OEM used serviceable material, maintenance, repair & overhaul and engineering services, from Leonard Green & Partners and Florida Growth Fund for $317m.
"AerSale aligns perfectly with the investment criteria we outlined throughout Monocle's IPO process. The aviation aftermarket sector has proven resilient to economic cycles, and we believe presents a compelling opportunity for future growth. AerSale has created significant competitive advantages through regulatory streamlining, data capture and analytics, long-term customer relationships, and its integrated business model. We are acquiring this business at an attractive valuation relative to public aerospace peers, while providing significant potential to generate shareholder value over the near- and long-term," Eric Zahler, Monocle CEO and President.
AerSale was advised by Harris Williams & Co, RBC Capital Markets, Latham & Watkins and ICR. Monocle was advised by Cowen & Company, PJT Partners, Cadwalader Wickersham & Taft, Greenberg Traurig, Kekst CNC and Alton Aviation Consultancy.
CapVest Partners, an international private equity firm, completed the acquisition of Datasite, a provider of technology solutions that enables mergers, acquisitions, initial public offerings, restructuring and other critical capital transactions. Financial terms were not disclosed.
“This is an exciting day for the entire Datasite family - employees, customers and industry partners alike - and further solidifies the company’s position as a leading SaaS provider for the global M&A community. We have the best people and the best technology, making transactions faster, simpler, and more secure. CapVest’s long track record of transforming the size and scale of their portfolio companies and enabling them to realize their potential makes them an exciting partner for our next phase of growth. We look forward to bringing new products to address our customers’ pain points and increase efficiency,” Rusty Wiley, Datasite CEO.
Datasite was advised by Goldman Sachs and Akin Gump Strauss Hauer & Feld. Goldman Sachs was advised by Sullivan & Cromwell. CapVest was advised by Graph Consulting, KPMG, William Blair & Co, Kirkland & Ellis, ReputationInc and West Monroe Partners.
Thoma Bravo, a private equity investment firm focused on the software and technology-enabled services sector, agreed to invest in Zipari, a software development company. Through this investment, Zipari will combine with Healthx, a provider of trusted healthcare engagement technologies. Financial terms were not disclosed.
"This is an exciting day for Zipari and the culmination of six years of evolution and innovation for healthcare payers. We are very excited to begin our next chapter of growth. I'm especially excited to welcome new colleagues from Healthx and the talent and expertise they bring to our combined company. This transaction opens up new opportunities for our clients and enables payers and TPAs of all sizes to create breakthrough experiences for their consumers. We look forward to working closely with Thoma Bravo as we develop a strategic roadmap for integration and migration that advantages our clients and addresses the diverse needs of the marketplace," Mark Nathan, Zipari CEO.
Healthx is advised by Brentwood Capital Markets and Goodwin Procter. Zipari is advised by TripleTree. Thoma Bravo is advised by Kirkland & Ellis. Debt financing is provided by Goldman Sachs.
Goldman Sachs Merchant Banking-backed West Street Infrastructure, a infra vehicle managed by Goldman Sachs, completed the acquisition of Synagro Technologies, a provider of biosolids and organic waste management services, from EQT Infrastructure. Financial terms were not disclosed.
"Partnering with the Synagro management team to develop the company into the industry-leading platform has been a fulfilling experience. Synagro's sustainable business model aligns well with EQT's ESG goals and we are proud to have been a part of the company's transformation. With ever-increasing demand for sustainable biosolids solutions, Synagro is well-positioned for its next phase of growth under Goldman Sachs' ownership," Crosby Cook, EQT Partner.
West Street Infrastructure was advised by Goldman Sachs, Sidley Austin and Simpson Thacher & Bartlett. EQT was advised by Morgan Stanley, Weil Gotshal and Manges and Kekst CNC.
Veritas Capital-backed Gainwell Technologies, a provider of administration solutions, agreed to acquire HMS, a technology, analytics and engagement solutions provider, for $3.4bn.
"HMS has developed a highly differentiated set of capabilities that deliver tangible value across the government and commercial healthcare payer spectrum. By aligning HMS' market focus with Gainwell and Cotiviti, these organizations can become even more strategically aligned to their customers' missions. We look forward to working closely with the talented teams at HMS, Gainwell and Cotiviti to ensure successful combinations while advancing the collective goal of reducing costs and improving health outcomes nationwide," Ramzi Musallam, Veritas CEO and Managing Partner.
HMS is advised by Barclays and Latham & Watkins. Gainwell Technologies is advised by Goldman Sachs, Schulte Roth & Zabel and Sard Verbinnen & Co.
The Blackstone Group agreed to invest $400m in Liftoff, a global performance-based mobile app marketing optimization platform.
"Liftoff is a market leader and a key growth partner for many of the world's leading mobile app developers through its extensive global reach and strong programmatic capabilities. This investment reflects our high conviction in both mobile content and mobile advertising, and we believe that Blackstone's extensive resources and expertise will help enable Liftoff to further capitalize on its strong momentum and significant growth potential. We are very excited to partner with Liftoff's talented founders to continue to provide best-in-class solutions to the industry," Sachin Bavishi, Blackstone Managing Director.
Liftoff is advised by Goldman Sachs and Gunderson Dettmer Stough Villeneuve Franklin & Hachigian. Blackstone is advised by LUMA Partners and Simpson Thacher & Bartlett.
Gryphon Investors, a middle-market private equity firm, completed the investment in Meazure Learning, a full-service exam delivery and online proctoring solution provider for academic, professional, and lifelong learners. Existing sponsor Eastside Partners will retain a significant ownership stake. Financial terms were not disclosed.
"Gryphon has invested previously in the education sector, and we are excited by the trends we're seeing in the continued intersection of technology and learning. The increasing consumer preference for digitally-driven flexibility has opened up a multi-billion-dollar market opportunity in the academic and professional remote testing spaces. We are thrilled to partner with the team at Meazure as we look to welcome new customers and reinforce the Company's position as the most secure, convenient, and accessible experience for test-takers across the globe," Nick Orum, Gryphon President and Co-Head of Software Group.
Meazure Learning was advised by Raymond James and Bradley Arant Boult Cummings. Gryphon was advised by Robert W Baird, Kirkland & Ellis and Lambert & Co.
Juniper Industrial Holdings, a publicly-listed special purpose acquisition company, agreed to merge with Clearlake-backed Janus International Group, a global manufacturer and supplier of turn-key building solutions and new access control technologies for the self-storage and other industrial sectors, in a $1.9bn deal.
"Janus represents an excellent opportunity to invest in a world-class provider of self-storage and industrial building product solutions that has delivered consistent growth and market outperformance. The Company's track record of delivering strong organic, high-margin growth and significant cash flow generation spans both up and down economies. We are very pleased to partner with Janus's proven management team, which possesses a deep understanding of its resilient markets and customers. We look forward to supporting Janus's continued M&A program and maximizing the value creation potential of its geographic expansion and adjacent opportunities as a public company," Roger Fradin, Juniper Chairman.
Janus International Group is advised by Morgan Stanley and ICR. Juniper is advised by Moelis & Co and UBS. Clearlake is advised by Lambert & Co.
Elbit Systems, a defense electronics company, agreed to acquire Sparton, a provider of design, development and manufacturing services for complex electromechanical devices, from Cerberus Capital Management, a private equity firm, for $380m.
"The acquisition of Sparton will strengthen Elbit Systems of America's capabilities and will enable expansion of activities in the naval arena. We believe this acquisition will be beneficial for both Elbit Systems' and Sparton's employees and customers," Bezhalel Machlis, Elbit Systems President & CEO.
Sparton is advised by Moelis & Co, Evercore and Kirkland & Ellis. Elbit Systems is advised by Covington & Burling and GK Investor.
Advent-backed AccentCare, a post-acute care provider, completed the acquisition of Seasons Hospice & Palliative Care, a hospice provider in the United States. Financial terms were not disclosed.
"With these two organizations together, we have a rare opportunity to shape the future of skilled home-based care. The new organization will bring together the expertise and vision needed to rethink patient-centered care in the home, and offer innovative solutions to the health systems and physician groups we serve," Steve Rodgers, AccentCare CEO.
Seasons Hospice & Palliative Care was advised by Guggenheim Partners. AccentCare was advised by Barclays and Ropes & Gray.
Bally's, a gaming company based in Lincoln, Rhode Island, completed the acquisition of Eldorado Shreveport casino resort from Caesars Entertainment, an American casino and hotel company, for $140m.
"Eldorado Shreveport represents the latest step in our ongoing portfolio diversification strategy, expanding our rapidly growing geographic footprint into the attractive Shreveport/Bossier City market. Eldorado Shreveport is a first-class, premier entertainment asset that is emblematic of the iconic Bally's brand. With the close of this transaction, we are looking forward to integrating Eldorado Shreveport into the Bally's family, and implementing our proven strategic initiatives to drive growth and revenue improvements," George Papanier, Bally's President and CEO.
H.I.G. Capital, a global alternative investment firm, completed the investment in KM2 Solutions, a business process outsourcing provider. Financial terms were not disclosed.
"Our financial partnership with H.I.G. could not be better. Their investment team has been actively tracking our progress for years. They understand our vision and have seen our consistent growth as a result. Their investment will help us accelerate that growth. This deal also keeps our management team in control of the business. Our strategies are aligned with H.I.G., and together, we will continue to become the premier nearshore BPO provider, focused on quality and customer care," David Kreiss, Founder and CEO.
GrowGeneration, a chain of specialty hydroponic and organic garden centers, agreed to acquire Canopy Crop Management, a crop management solutions provider. Financial terms were not disclosed.
"I started Canopy Crop Management with the goal of providing the highest-quality formulations, and I'm fortunate to find a partner like GrowGen, one of the most trusted names in hydroponic and organic gardening. I look forward to creating new and innovative silicic acid formulas and organic pesticides and fungicides that are much more cost-effective than what is currently on the market," Rex Gill, Canopy Crop Management CEO.
Bigtincan, a provider of sales enablement automation, agreed to acquire ClearSlide, a SaaS-based Sales Engagement platform, from Corel, a Canadian software company. Financial terms were not disclosed.
"ClearSlide expands our customer engagement capabilities to include advanced remote selling technologies and engagement tools that provide sellers a personalized solution that integrates seamlessly with their sales tools. The combined ClearSlide and Bigtincan teams are dedicated to serving the full lifecycle of needs for Sales and Service teams to succeed in a remote world," David Keane, Bigtincan CEO.
Apple CEO refused talks for acquiring Tesla.
Elon Musk, a Silicon Valley billionaire and Tesla CEO, reached out to Tim Cook, Apple CEO, “during the darkest days of the Model 3 program” to discuss the possibility of the iPhone maker acquiring Tesla for a tenth of its current value, Bloomberg reported.
Elon Musk reached out to Apple during the “darkest days” of the development of Tesla's Model 3 to talk about a possible deal. Musk planned to discuss the possibility of selling Tesla to Apple for one-tenth of its current value, indicating a valuation of about $60bn.
HeidelbergCement explores $1.5bn US asset sale.
HeidelbergCement, a company that manufactures building materials including cement and concrete, is exploring the sale of US assets as Dominik von Achten, HeidelbergCement CEO, seeks to divest peripheral businesses,Bloomberg reported.
Germany’s cement maker is working with Morgan Stanley on the sale of the operations in California. The unit could fetch around $1.5bn. The company is expected to receive first-round bids early next year.
HeidelbergCement’s advisers recently sent initial marketing documents to potential buyers and approached rivals including Martin Marietta Materials, Cemex, CRH, Summit Materials and LafargeHolcim, as well as other cement makers in emerging markets like China and Latin America.
Evolent settles dispute with activist investor Engaged Capital. (FS)
Engaged Capital, an activist investor, reached a settlement with Evolent Health, a healthcare company, that will see a new director join the board and form a committee charged with improving investor returns, Bloomberg reported.
Under the terms of the agreement, Craig Barbarosh will be appointed to the board and its newly created strategy review committee. The committee will be tasked with finding ways to boost returns for investors in Evolent, including through cost cuts, improvements to its operations and changes to its overall business strategy and direction.
“Craig’s appointment to the board, the formation of a strategy committee of the board and the commitment to seek to declassify the board at the upcoming annual meeting are important steps in Evolent’s evolution as a public company,” Glenn Welling, Engaged Founder and CIO.
A bidding war for Entra, a Norwegian office provider, is heating up after SBB, a company that creates sustainable environments, boosted its offer above Castellum's competing proposal.
SBB raised its offer to $4bn, with 65% payable in cash and the remainder in a fixed value of Class B shares, which it aims to list on the Oslo Stock Exchange in 2021.
The bid comes after Castellum last week raised its cash and share offer to $21.3 apiece. Entra’s board was holding off with its recommendation on that offer as it was expecting other proposals and preferred to “safeguard optionality.”
Entra is advised by ABG Sundal Collier and Wikborg Rein. Castellum is advised by Danske Bank, JP Morgan, BAHR, Cleary Gottlieb Steen & Hamilton and Mannheimer Swartling. Debt financing is provided by Danske Bank and JP Morgan. SBB is advised by Arctic Securities, Citigroup, Goldman Sachs, Thommessen, Vinge and Wiersholm.
Private equity firm Pamplona Capital Management agreed to acquire Signature Foods, a provider of chilled convenience food, from IK Investment Partners, a European private equity firm. Financial terms were not disclosed.
"Over the last five years the company has transformed substantially, as we acquired and launched new brands and products, invested substantially in our production capabilities and grew our footprint in Europe. We are extremely grateful to everyone at IK for their partnership and support, enabling us to be where we are today," Erik Bras, Signature Foods CEO.
Signature Foods is advised by Jamieson and Vriman M&A Lawyers. IK Investment Partners is advised by PricewaterhouseCoopers, OC&C, Ramboll, ING Bank, JP Morgan, Allen & Overy and Maitland.
Private equity firm IK Investment Partners agreed to invest in Valoria Capital, an acquisition platform of independent financial advisors. Financial terms were not disclosed.
"We're delighted to welcome IK to support our fast-growing business operating in a market primed for consolidation. IK's experience fostering operational excellence and ambitious M&A strategies make them the natural partner for Valoria in 2021 and beyond," Romain Lefèvre, Valoria Founder and CEO.
Valoria Capital is advised by Ernst & Young and Paul Hastings. IK Investment Partners is advised by Rothschild & Co, Volt Associes, Maitland and Grant Thornton. Debt financing is provided by Idinvest Partners. Idinvest Partners is advised by Willkie Farr & Gallagher.
EQT Infrastructure offered to acquire Torghatten, a Norwegian shipping company based in Brønnøysund, for $987m. The offer was recommended by the board of Torghatten.
"I expect EQT Infrastructure will be a good owner that will execute a sustainable growth strategy to develop Torghatten going forward, from an environmental, social and economic perspective. Throughout this process, EQT has demonstrated its understanding of the important role Torghatten plays in many cities and local communities across large parts of Norway, and that it will continue to build on today's solid culture and foundation," Roger Granheim, Torghatten CEO.
Torghatten is advised by Arctic Securities and Arntzen de Besche Advokatfirma. EQT is advised by Morgan Stanley, Nordea Bank and Advokatfirmaet Selmer.
Hg Capital, a software investor, agreed to invest in Geomatikk Group, a tech-enabled services provider, managing critical 'check-before-you-dig' safety assessments to network owners, contractors and consulting engineers. Financial terms were not disclosed.
"We are hugely impressed in what Knut and the Geomatikk team have built in the Nordics. Geomatikk provides a high-value service protecting critical infrastructure in the region. By building a high-quality and increasingly tech-enabled product, Geomatikk is a leading European champion in this geographic information sector. We look forward to working with Knut and the entire Geomatikk team as we use our experience of scaling technology-enabled businesses to support further growth," David Issott, Hg Partner.
Hg Capital is advised by Haavind and Brunswick Group.
National Central Cooling, a provider of district cooling solutions, completed the acquisition of cooling business of Saadiyat Island district from Aldar Properties, a real estate development, management and investment company, for $262m.
“As an industry leader, our strategic partnerships have allowed Tabreed to grow into an international powerhouse in district cooling, with over 22 years of experience and investments across six countries. Our partnership with Aldar is one such example, and this transaction is testament to the strong relationship we enjoy with them,” Bader Al Lamki National Central Cooling Chief Executive Officer.
Siemens Energy not planning to sell Siemens Gamesa-Handelsblatt.
Siemens Energy, a company that develops and builds fossil fuel power plants and power-generating component, has no plans to sell all or parts of Siemens Gamesa, Reuters reported.
“No, there are no plans currently to do that. Wind power and therefore Siemens Gamesa is an integral part of our strategy," Christian Bruch, Siemens CEO.
Siemens Energy, which was spun off from former parent Siemens, holds 67% of Siemens Gamesa, a wind turbine maker.
CDP offer decreases Atlantia motorway unit valuation.
Cassa Depositi e Prestiti, an Italian state lender, put forward a new, non-binding offer for Atlantia’s toll road unit that implies a lower valuation than an initial offer of €8.5bn ($10.4bn) to €9.5bn ($11.6bn), Reuters reported.
CDP will proceed swiftly with its due diligence of Atlantia’s motorway assets but needs further in-depth analysis to present a binding offer. CDP’s new offer valued Atlantia’s 88% stake in Autostrade per l’Italia at about €400 ($488m) less than the first bid. The revised offer includes stronger guarantees.
Mediobanca explores wealth deals as Italian consolidation gains.
Alberto Nagel, Mediobanca CEO, is weighing acquisitions in wealth and alternative asset management as he seeks to retain the lender’s independence amid a quickening wave of consolidation in Italy, Bloomberg reported.
The CEO plans to grow in private banking while shying away from some of the larger deals starting to take place in Italy. Mediobanca, a company that offers financial advice, consumer credit, and wealth management, wants to gain more wealthy clients instead of growing in retail banking. The lender sees wealth and alternative asset management as niches that could thrive even amid record-low interest rates and a sluggish domestic economy.
The Access Group, a software consultancy and developer company, agreed to acquire the Australia and Asia business of The Sage Group, a British multinational enterprise software company, for £95m ($127m).
"This latest acquisition continues our expanding global presence following our other recent business purchases in Australia and New Zealand and will further our position in the supply of payroll and accountancy products across our expanding global footprint. Sage's local products have a strong customer base in Australasia, and bringing them into The Access Group boosts our ability to deliver multiple business solutions in the UK, Australia and Asia," Chris Bayne, The Access Group CEO.
L’Oréal, a French cosmetics maker, agreed to acquire Takami, a Japanese premium skincare company. Financial terms were not disclosed.
“Born from the expertise of the aesthetic and dermatological Takami clinics, our products provide the quality and the efficacy expected by the most demanding Japanese consumers. After 21 years of growth in Japan, we are thrilled to join the L’Oréal Group, the world’s leading beauty company, which will allow us to develop our brand thanks to its scientific and international expertise,” Yuji Okamura, Takami President and Owner.
Hidden Hill Capital, an investment firm, completed the acquisition of a 10% stake in China Southern Airlines Cargo Logistics, a logistics company, from China Southern Airlines, an airline company, for $114m.
“When we pursue mixed-ownership reform, we are seeking valuable insights and a vision to improve corporate governance and procedures to enhance our international competitiveness. We choose partners that understand the various elements of the logistics ecosystem and bring us a great wealth of knowledge that we can leverage across our four major business sectors — air cargo, modern warehousing, supply chain management, and e-commerce,” He Xiaoqun, China Southern Airlines Logistics Chairman.
LG, a global firm focused on technology and consumer goods, and Magna, a mobility technology company, agreed to form LG Magna e-Powertrain joint venture. Financial terms were not disclosed. The transaction is expected to close in July of 2021, subject to a number of conditions including obtaining LG shareholder approval and all necessary regulatory approvals.
"This partnership fully aligns with our strategy of being at the forefront of electrification and supporting automakers with a diverse and world-class portfolio. By combining our strengths, we expect to gain investment efficiency and speed to market with synergies to achieve more, all while continuing to capitalize on the acceleration of the electrified powertrain market,” Swamy Kotagiri, Magna President and incoming CEO.
India's NIIF closes master fund at $2.3bn. (FS)
India’s National Investment and Infrastructure Fund Limited closed its NIIF Master Fund at $2.3bn, exceeding its target of $2.1bn, DealStreetAsia reported. It is also set to launch the fundraising for its new vehicle - NIIF Strategic Opportunities Fund with a $2.1bn target size.
The fund marked the fifth and final close after receiving capital commitments worth $107m from PSP Investments, DFC and existing investor Axis Bank. Other investors in the fund include the government of India, Abu Dhabi Investment Authority, AustralianSuper, CPP Investments, Ontario Teachers’ Pension Plan, Temasek, HDFC Group, ICICI Bank and Kotak Mahindra Life Insurance.
GLP closes $675m third China value-add fund. (FS)
GLP, an Asia’s warehouse operator and investment manager, established a new China fund, GLP China Value-Add Venture III, with an investment power of about $675m to back logistics assets in Shanghai, DealStreetAsia reported.
Singapore-based GLP established the new fund with a group of international and Chinese institutional investors through a parallel fund structure - an investment vehicle that co-invests and exits alongside the main fund.
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