Liberty Mutual, an American diversified global insurer, completed the acquisition of State Auto Group, a super-regional insurance holding company headquartered in Columbus, Ohio, for $2.3bn.
"State Auto Group's capabilities and product expertise are an ideal complement to Liberty Mutual's domestic personal lines and small commercial business, and we welcome 2k talented associates to our family. Equally appealing are its values. For almost a century, State Auto has celebrated a culture of caring for people, exceptional service and deep philanthropy, mirroring our purpose to help people embrace today and confidently pursue tomorrow," David Long, Liberty Mutual Chairman and CEO.
State Auto Group was advised by Bank of America, Houlihan Lokey, Keefe Bruyette & Woods, Kirkland & Ellis and Squire Patton Boggs. Financial advisors were advised by Alston & Bird and Sullivan & Cromwell. Liberty Mutual was advised by Goldman Sachs, Waller Helms Advisors and Skadden Arps Slate Meagher & Flom.
Genstar Capital, a private equity firm, completed the investment in Lightspeed Systems, a trusted partner in learning safety and effectiveness. Financial terms were not disclosed.
"For more than two decades, Lightspeed has provided trusted solutions to meet the unique and evolving needs of K-12 schools. Our deep roots in device management and web filtering, combined with significant investments in new products and offerings, including our recent acquisition of CatchOn, have established Lightspeed as the industry-leading digital infrastructure platform. As investments in ed-tech products continue to surge, Lightspeed is well-positioned to help educators and administrators make sense of the immense data on student online activity. With the backing of both Genstar and MDP, we will continue our mission of advancing safety and educational effectiveness," Brian Thomas, Lightspeed Systems President and CEO.
Lightspeed Systems was advised by William Blair & Co, Kirkland & Ellis and KCPR. Genstar Capital was advised by Ropes & Gray and Chris Tofalli Public Relations. MDP was advised by Abernathy MacGregor Group.
Pentair, an American water treatment company, agreed to acquire Manitowoc Ice, a provider of commercial ice makers, from Welbilt, a foodservice equipment company, for $1.6bn.
"We expect this strategic acquisition to be a game-changer for our commercial water solutions platform, establishing a differentiated, total water management offering and expanded network within the foodservice industry," John Stauch, Pentair President and CEO.
Pentair is advised by JP Morgan and Faegre Drinker Biddle & Reath. Welbilt is advised by Goldman Sachs, Alston & Bird and Gibson Dunn & Crutcher.
Southwest Gas, an investor-owned utility based in Las Vegas, is set to demerge Centuri Group, an unregulated utility services platform. Financial terms were not disclosed.
"We are proud of the businesses we have built and are excited by the opportunities for continued value creation made possible by the separation. Just as Riggs Distler opens up new avenues for growth for Centuri, the acquisition of MountainWest provides us with the scale to create value across our regulated operations by sharing best practices, instilling operational excellence and delivering efficiencies, while driving strong, rate-regulated earnings and cash flow. We look forward to this next chapter of growth for both Southwest Gas and Centuri as we seek to maximize value for our stockholders, deliver excellent service to our customers and create new opportunities for employees," John Hester, Southwest Gas President and CEO.
Southwest Gas is advised by Lazard, Cravath Swaine & Moore, Morrison & Foerster, Innisfree M&A and Joele Frank.
Onex-backed WestJet Airlines, a budgeted carrier, agreed to acquire Sunwing Airlines, a low-cost airline. Financial terms are not disclosed.
“This combination brings together Canada’s two original low-cost carriers and positions us to accelerate growth in value-oriented travel, already the fastest growing segment of the airline market,” Alexis von Hoensbroech, WestJet CEO.
Westjet is advised by Barclays, Canaccord Genuity, Morgan Stanley, RBC Capital Markets and Goodmans.
Wheeler REIT, a commercial real estate investment trust, agreed to acquire Cedar Realty Trust, a real estate investment trust company, for $291m.
"We believe this combination of transactions represents the best possible outcome for our common shareholders and we are very pleased with the progress thus far of our dual-track review of strategic alternatives," Bruce Schanzer, Cedar President and CEO.
Cedar is advised by Bank of America, Jones Lang LaSalle, Goodwin Procter and Gasthalter & Co.
Fulton Financial, the bank holding company for Fulton Bank, agreed to acquire Prudential Bancorp, the bank holding company for Prudential Savings Bank, for $142m.
“I have shared with investors Fulton’s desire to be more active in mergers and acquisitions of companies that are a good fit for us – strategically, culturally and geographically. We look forward to working with the Prudential team to bring our mutual community-oriented style of banking, our comprehensive range of products and services, and our talented teams together to help even more customers and communities in Philadelphia achieve financial success. As we do this, we are pleased to increase our financial support, through the Fulton Forward® Foundation, of community organizations that are focused on enhancing diversity, equity and inclusion, building vibrant communities, fostering affordable housing, driving economic development and increasing financial literacy in and around Philadelphia,” E. Philip Wenger, Fulton Chairman, President and CEO.
Fulton is advised by Stephens and Barley Snyder. Prudential is advised by Keefe Bruyette & Woods and Silver Freedman Taff & Tiernan.
Thoma Bravo, a software investment firm, agreed to invest in UserZoom, a provider of user experience insights solutions, at an $800m valuation.
"This investment from Thoma Bravo reinforces the strength of our industry-leading insights solution and our ability to empower businesses by gathering, combining and extracting high-quality, actionable data-driven UX insights that help them quickly build and deliver enhanced digital experiences. In 2021, we made significant strides in expanding our footprint in key industries and geographies, and we are excited to partner with Thoma Bravo to accelerate our growth," Alfonso de la Nuez, UserZoom Co-CEO.
UserZoom is advised by Houlihan Lokey and Gunderson Dettmer Stough Villeneuve Franklin & Hachigian. Thoma Bravo is advised by and DBO Partners and Goodwin Procter.
H.I.G. Capital, a global alternative investment firm, completed the investment in Mobileum, a global provider of telecom analytics solutions. Financial terms were not disclosed.
"We are excited to welcome H.I.G. Capital as a partner as we continue to build the leading global analytics platform for communications service providers. H.I.G. has deep and relevant expertise in the sector with a strong track record. Working together, we intend to further Mobileum's mission to support telecom partners with market-leading solutions and capitalize on the growth in the broader telco software sector, including the significant opportunities presented by 5G and private networks," Bobby Srinivasan, Mobileum CEO.
Mobileum was advised by Jefferies & Company, Lincoln International and Kirkland & Ellis. Audax was advised by Sard Verbinnen & Co.
EssilorLuxottica, a global company in the design, manufacture and distribution of ophthalmic lenses, frames and sunglasses, completed the acquisition of Walman Optical, the US-based lens-finishing labs network. Financial terms were not disclosed.
"Walman is a company we've admired as a longtime partner - they share EssilorLuxottica's customer-first sensibility and our relentless pursuit of higher service standards. They also share our history of employee shareholding, which makes them an ideal cultural fit for our family. Walman has cultivated broad recognition and relationship equity and we will invest in the areas that make them such a great partner to the industry," Francesco Milleri and Paul du Saillant, EssilorLuxottica CEO and Deputy CEO.
Walman Optical was advised by Houlihan Lokey. Houlihan Lokey was advised by Alston & Bird. EssilorLuxottica was advised by Community Group.
TIER Mobility, a shared micromobility provider, agreed to acquire Spin, a shared electric bike and scooter operator, from Ford, an American multinational automobile manufacturer. Financial terms were not disclosed.
"TIER's acquisition of Spin and our entry into the North American market are huge milestones in our mission to Change Mobility for Good. We are excited to support citizens in cities and communities across North America to make the switch from cars to more sustainable urban mobility solutions - a switch that is urgently needed to decarbonize towns and cities across the world. We look forward to delivering this together with Spin who share our values of responsible partnership and sustainable vision," Lawrence Leuschner, TIER Mobility CEO.
TIER Mobility is advised by JP Morgan and White & Case. Ford is advised by Citigroup.
Constellation Software-backed Harris Computer, a software company, agreed to acquire the hospitals and large physician practices business of Allscripts Healthcare Solutions, a healthcare information technology solutions provider, for $700m.
“We have been watching and admiring the hospitals and large physician practices franchise for many years. We believe that we are the perfect forever home for the many talented employees and loyal customers that are the backbone of the franchise. We are excited to begin the next chapter in our Harris story, continuing to serve those who serve us in the communities where we live, by partnering with healthcare professionals to deliver care that improves lives,” Jeff Bender, Harris CEO.
Allscripts is advised by William Blair & Co.
BOND led a $400m Series D round in Veev, the technology-enabled homebuilding company, with participation from LenX, Zeev Ventures, Fifth Wall and JLL Spark Global Ventures.
"Veev reimagined the entire homebuilding process by thinking about the home-as-a-product – the ultimate consumer product. By rethinking every element of the home, including design, materials, and the built environment, and fully integrating the homebuilding process from start to finish, we have managed to produce homes at a quality, speed, value, and sustainability that is unseen in the industry – until now," Amit Haller, Veev CEO.
Veev was advised by LaunchSquad.
CalPortland, a major producer of cement, ready mixed concrete, aggregates, concrete products and asphalt in the western United States and Canada, agreed to acquire the West Coast cement and ready mixed concrete operations of Martin Marietta, a building material company, for $250m.
"Consistent with our SOAR (Strategic Operating Analysis and Review) 2025 plan, we continually look for ways to optimize our portfolio and product mix through asset swaps and divestitures. After thoughtful evaluation, we determined that monetization of these operations is the best avenue to maximize value for all stakeholders," Ward Nye, Martin Marietta Chairman, President and CEO.
Martin Marietta is advised by Cravath Swaine & Moore.
ALLETE, an electric services company, agreed to acquire New Energy Equity, a solar developer, for $166m.
"New Energy Equity's strong track record of success, talented and experienced team, robust project pipeline and significant growth potential will support ALLETE's long-term average annual growth objective of 5% to 7%," Bethany Owen, ALLETE Chair, President and CEO.
ALLETE is advised by JP Morgan.
One Rock Capital Partners, a private equity investment management firm, agreed to acquire Therm-O-Disc, a sensors manufacturer, from Emerson, a technology and engineering company. Financial terms are not disclosed.
"Therm-O-Disc is well-positioned as a leading global manufacturer of branded, essential sensor and safety products. We are excited to collaborate with management to drive innovation, enhance strong operational capabilities and serve Therm-O-Disc's customers, building on the long history as an industry leader," R. Scott Spielvogel, One Rock Managing Partner.
One Rock is advised by Prosek Partners.
PSP Partners led a $102m Series D funding round in OpenSpace, an AI technology company, with participation from BlackRock, Alpaca, Fischer Homes, Harmonic Growth Partners, Mirae Asset, Sino Group, Alkeon Capital Management, GreenPoint Partners, JLL Spark, Lux Capital, Menlo Ventures, Navitas Capital, Nine Four Ventures and Taronga Ventures.
"Builders have an incredibly important, incredibly difficult job—our goal is to make their lives easier and more efficient. We do so with technology that augments and supports their work. The strong adoption we've seen from the industry shows the desire for this technology, and we're pleased to partner with investors who recognize and support our mission to meet that demand. We're looking forward to continuing to scale our platform to best serve the needs of builders across industries, around the world," Jeevan Kalanithi, OpenSpace CEO and Co-Founder.
Epic Games, an American video game and software developer and publisher, agreed to acquire Bandcamp, an internet music company. Financial terms were not disclosed.
"Bandcamp's mission is to help spread the healing power of music by building a community where artists thrive through the direct support of their fans. In Epic, we've found a partner who believes as deeply as we do that the future of music, and art itself, depends on the creation of equitable and inclusive communities like the one our fans and artists have helped to build. We're excited to work alongside the Epic team to accelerate the realization of our mission and pursue our shared goal of empowering more creators in a fair and open way," Ethan Diamond, Bandcamp CEO.
LumiThera, a commercial-stage medical device company offering photobiomodulation treatment, completed the acquisition of Diopsys, a provider of modern visual electrophysiology medical devices. Financial terms were not disclosed.
"We are excited for the new combined entity and the potential to prevent vision loss. The theranostic company will provide the tools eye care professionals need to diagnose, treat, and monitor patients, providing a solution for multiple ocular diseases with limited treatment options," Joe Fontanetta, Diopsys President.
Ping An, a Chinese holding conglomerate, led a $100m Series E round in Visby Medical, a medical diagnostic company, with participation from Healthcare of Ontario Pension Plan, John Doerr, Cedars Sinai Medical Center, ND Capital, Artiman Ventures, Pitango Venture Capital, Blue Water Life Science Advisors and Nissim Capital.
This financing will enable Visby Medical to scale production capacity from tens to hundreds of thousands of tests per month, further expand the product menu to include Covid + influenza A/B combination testing, antimicrobial resistance panels, and deliver the power of PCR diagnostics to consumers at-home.
Fanatics set to raise $1.5bn. (FS)
Fanatics, an American online retailer of licensed sportswear, sports equipment, and merchandise, is reportedly set to raise $1.5bn at a $27bn valuation.
Investors include Fidelity Management & Research and funds operated by BlackRock and MSD Capital.
Elliott makes bid to acquire Mercury Systems. (FS)
Activist investor Elliott Investment Management has built a sizable position in Mercury Systems and has made an offer to acquire the defense electronics manufacturer,
Bloomberg reported.
The size of Elliott’s stake and the price it has offered for Mercury couldn’t be determined. Talks are ongoing and may not result in a transaction.
US activist investors, Icahn cry foul over proposed stock disclosure rule. (FS)
Activist investors including Carl Icahn say a US proposal that would require them to disclose 5% stakes in companies days sooner than current rules could make it unprofitable for them to build the large positions they need for successful campaigns,
Reuters reported.
The Securities and Exchange Commission proposed the new rule last month in a push to reduce the information advantages that the $18tn private funds industry has over retail investors.
Ford reorganizes to run EV and engine businesses separately.
Ford Motor will separate its fast-growing electric vehicle operations from its legacy combustion engine business in a historic reorganization of the 118-year-old company,
Bloomberg reported.
The new Ford Model e unit will scale up the automaker’s EV offerings and develop software and connected-vehicle technology and services for all of the company. Ford Blue will focus on combustion vehicles, cutting costs and simplifying operations.
Talkdesk prepares for US IPO.
Talkdesk, a maker of cloud-based customer-service software, is preparing for a US IPO,
Bloomberg reported.
The San Francisco-based startup has interviewed underwriters and confidentially filed paperwork with the Securities and Exchange Commission regarding an IPO that could occur as soon as this year. Nothing is finalized and it’s possible that the company could delay a listing.
Electric Capital raises $1bn for new crypto funds. (FS)
Crypto venture capital firm Electric Capital announced a combined $1bn raise for the creation of two new funds: a $400m venture fund and a $600m token fund.
The funds will have a wide-ranging focus on decentralized finance, non-fungible tokens, decentralized autonomous organizations, layer 1s and blockchain infrastructure.
PA Capital closes on $673m across two private equity funds. (FS)
PA Capital, a private equity investor in the North American middle-market, held final closes for two of its private equity funds earlier this year. The firm closed its ninth flagship private equity fund, PA Small Company Private Equity Fund IX at $473m, above its $350m target. The firm also closed PA Small Company Co-investment Fund II at its $200m hard cap.
"We are excited to close two successful fundraises and are grateful for the continued support of our LPs. Both funds are demonstrating strong results out of the gate implementing the strategy and process we've refined over the last 20 years," Chris Stringer, PA President.
