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AMERICAS
Pfizer said on Tuesday it plans to raise $31bn from a debt offering to finance its proposed acquisition of Seagen. The company has been pumping billions of dollars into research and acquisitions to mitigate an anticipated $17bn hit to revenue by 2030 from patent expirations for top drugs, and a decline in demand for Covid products, Reuters reported.
The debt offering, which would be in eight tranches, is expected to close on May 19. Yield to maturity on Pfizer's 10-year bonds would be 125 basis points higher than the benchmark risk-free US 10-year Treasury. Bank of Americas, Citigroup, Goldman Sachs and JP Morgan are the joint lead managers and joint book-running managers for the offering.
Samsung Electronics, a South Korean multinational electronics corporation, agreed to acquire eMagin, an American electronic components manufacturer, for $218m.
"This agreement is a validation of our technical achievements to date including our proprietary direct patterning technology, provides a significant premium for our shareholders, and represents a win for our customers and employees. By teaming with Samsung Display, we will be able to achieve the full potential of our next-generation microdisplay technology with a partner that can provide the resources and expertise we will need to scale production. Moreover, our customers will benefit from resulting improvements to our production capabilities in terms of yield, efficiency, and quality control," Andrew G. Sculley, eMagin CEO.
eMagin is advised by Nomura, Goodwin Procter, White & Case and Sharon Merrill Associates. Samsung is advised by Evercore and O'Melveny & Myers.
Waters, an analytical laboratory instrument and software company, completed the acquisition of Wyatt Technology, a developer and manufacturer of instrumentation for the characterization of nanoparticles and macromolecules, for $1.36bn.
“Over the past two years, Waters has regained our commercial momentum, revitalized innovation and put an outstanding leadership team in place. Now we are entering the next phase of our strategy to accelerate value creation and generate faster growth. While biologics therapies, including cell and gene therapies, can dramatically change the quality of life for a significant percentage of the population, the cost of delivering these therapies is a major barrier for broader adoption. We share a common mission to harness our technology and deep scientific expertise to increase the availability and affordability of life-changing therapies. We look forward to welcoming the Wyatt team to the Waters family,” Udit Batra, Waters President and CEO.
A&M Capital and Abry Partners-backed NexusTek, a national provider of managed IT and technology consulting services, completed the acquisition of ICCS, a regional managed IT services provider based in New York City. Financial terms were not disclosed.
"ICCS is one of the strongest performing regional MSPs we've seen and operates in the largest metropolitan area in the US, making them a perfect partner for NexusTek's expansion into the Northeast. We believe their excellent customer service and strong financial performance make them an excellent partner for us as we grow our national platform, and we look forward to bringing additional capabilities to our collective customer base," Bill Wosilius, NexusTek CEO.
ICCS was advised by Drake Star Partners and K&L Gates. NexusTek was advised by Guggenheim Partners.
VICI Properties, an experiential real estate investment trust, agreed to acquire the Century Canadian Portfolio from Century Casinos, a casino entertainment company, for $165m.
"We are thrilled to announce our third international investment with the acquisition of Century's four Canadian casino assets, demonstrating our ongoing desire to expand internationally and confidence in the Canadian gaming market. We are also pleased to continue growing our partnership with Century by supporting their asset monetization strategy, unlocking value that fuels their strategic growth initiatives," John Payne, VICI Properties President and Chief Operating Officer.
Century Casinos is advised by Stifel and Faegre Drinker Biddle & Reath.
Stellantis, an automaker and a mobility provider, agreed to acquire a 33.3% stake in Symbio, a hydrogen company, from Faurecia, an automotive technology company and Michelin, a tyre manufacturing company. Financial terms were not disclosed.
"Symbio's technical roadmap perfectly matches with Stellantis' hydrogen roll-out plans in Europe and in the US. This move will foster the speed of development to bring low-emission products to our customers, beyond traditional electric vehicles. We're grateful to the teams at Faurecia, Michelin and Symbio for their commitment to innovation, excellence, and collaboration as we all work to achieve decarbonized mobility," Carlos Tavares, Stellantis CEO.
Stellantis is advised by Societe Generale. Faurecia is advised by Santander.
Lead Edge Capital, a technology-focused investment fund, and Nadavon Capital, a private equity firm, completed the investment in GrowthZone, a provider of membership management software to non-profit associations. Financial terms were not disclosed.
"Since inception, GrowthZone has been laser-focused on helping associations grow and bolster member engagement by providing the must-have technology engine that streamlines operations. Our partnership with Lead Edge will allow GrowthZone to accelerate our mission of providing market-leading solutions to our growing customer base of over 4k associations," Lisa Barnett, GrowthZone CEO.
GrowthZone was advised by William Blair & Co. Lead Edge was advised by Raymond James.
SECOM, a security integration company, completed a $192m investment in Eagle Eye Networks, a cloud video surveillance company, and Brivo, a cloud-based access control and smart space technologies provider.
"The SECOM investment underscores that cloud and AI are the future of physical security. Both Eagle Eye and Brivo will use a significant portion of the investment to further develop AI that dramatically improves the security of enterprises and businesses globally. The Eagle Eye and Brivo open platforms provide customers with choice, efficiencies, and innovation, all of which this investment will accelerate," Dean Drako, Eagle Eye Networks Founder and CEO.
Brivo was advised by CCgroup.
Enlightenment Capital-backed iNovex, a provider of software development solutions, agreed to acquire INNOPLEX, a high-performance software engineering, cybersecurity, and SIGINT business. Financial terms were not disclosed.
"iNovex and INNOPLEX have operated and grown alongside each other, developing a close relationship over nearly two decades. We hold shared values and philosophies on doing business the right way, with a mission to solve our customers' toughest challenges by driving innovation and technology. We are excited to welcome and work collaboratively with INNOPLEX as one team," Gary Daigle, iNovex CEO.
Ansys, an engineering simulation software developer, agreed to acquire Diakopto, a provider of differentiated EDA solutions to accelerate integrated circuit development. Financial terms were not disclosed.
"Diakopto's culture of strong engineering excellence and its innovative and highly differentiated products create a natural alignment with our organization. We are eager to welcome their team to the Ansys family. Incorporating Diakopto's unique methodology will support designers using Ansys to quickly and easily pinpoint the few elements, out of billions, causing bottlenecks. Designers can then optimize and debug designs more efficiently for enhanced IC performance and reliability, and accelerate time to market. The acquisition will complement Ansys' existing offerings for engineers at every level as Diakopto's intuitive and out-of-the-box experience doesn't require extensive training or complicated setups or configurations," Shane Emswiler, Ansys Senior Vice President of Products.
US bank regulators vow tougher rules, oversight after bank failures.
The Federal Reserve will unveil its plan to ratchet up capital rules for banks this summer and will ensure supervisors more aggressively police lenders following several recent bank failures, its top regulatory official told Congress on Tuesday.
Fed Vice Chair for Supervision Michael Barr said the agency was "carefully considering" rule changes for larger regional banks of over $100bn in assets, including requiring them to account for unrealized losses on their books when considering capital levels. Such lenders had previously had rules relaxed under the Trump administration.
Bank watchdogs have been under intense scrutiny after the collapses of Silicon Valley Bank and Signature Bank triggered a rout in global banking shares and set off fears of contagion. Also testifying before the House Financial Services Committee were top officials from the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency.
Capital One shares rebound after Warren Buffett makes near $1bn bet on bank. (FS)
Shares of Capital One Financial rose on Tuesday, rebounding from two weeks of losses after billionaire investor Warren Buffett's Berkshire Hathaway disclosed it had taken a stake of nearly $1bn in the credit cards-focused bank.
Berkshire acquired 9.92m shares in Capital One, a stake worth $954m based on the closing price on March 31, regulatory filings showed on Monday. Capital One's stock rose 2.1% to $90.95 per share, its highest since May 1. The bank's shares have shed around 17% since early March as the banking crisis has clobbered shares of US regional lenders. Since regional bank deposits are quite sticky and data does not show outflows accelerating, the analysts said their shares are now cheap and are headed for a rebound in coming months, Reuters reported.
Dimon says JP Morgan is unlikely to buy more struggling banks.
JP Morgan Chase is unlikely to purchase additional regional lenders struggling through the industry’s current turmoil, Chief Executive Officer Jamie Dimon said.
Bloomberg reported, Dimon was responding to a shareholder question at the bank’s annual meeting. He said the industry was hopefully “coming back to stability.”
Legion pushes Clear Channel to speed breakup. (FS)
Activist investor Legion Partners Asset Management is urging billboard operator Clear Channel Outdoor to accelerate asset sales and consider selling the entire company to boost its stock price.
Legion, which has been investor since 2021, wants Clear Channel Outdoor to accelerate the sales process for its operations in Northern Europe and begin a sale of its Latin American business.
Legion, which owns a 5.1% stake in Clear Channel Outdoor, said it should also review divesting select US assets while exploring a sale of the entire company.
Goldman banker wins promotion, then leaves for rival two weeks later. (People)
A Goldman Sachs Group banker quit his post just two weeks after landing a plum position in the firm’s prized merger advisory unit, Bloomberg reported.
Troy Broderick, who was named chief operating officer of the financial giant’s M&A business earlier this month, is leaving for boutique investment bank Perella Weinberg Partners. The exit follows that of Russ Hutchinson, who got the same role at Goldman Sachs in November, only to depart five months later.
EMEA
UBS is expected to secure unconditional European Union antitrust approval for its planned takeover of struggling Credit Suisse, putting the Swiss bank closer to completing the deal.
UBS agreed to buy Credit Suisse for CHF3bn ($3.2bn) in stock and to assume up to CHF5bn ($5.3bn) in losses in March, in a shotgun merger engineered by Swiss authorities to avoid more market-shaking turmoil in global banking.
Credit Suisse is advised by Centerview Partners (led by Blair Effron), Rothschild & Co (led by Cyril de Mont-Marin), Cleary Gottlieb Steen & Hamilton (led by David Lopez), Homburger (led by Claude Lambert, Benjamin Leisinger and Daniel Daeniker), Sullivan & Cromwell (led by Mitchell S. Eitel) and Community Group (led by Auro Palomba). UBS is advised by JP Morgan, Morgan Stanley, UBS, Bar & Karrer (led by Rolf Watter), Davis Polk & Wardwell (led by Evan Rosen, Luigi L. De Ghenghi and Marc O. Williams), Freshfields Bruckhaus Deringer (led by Michael Raffan and Jennifer Bethlehem) and Community Group (led by Marco Rubino).
Naturgy, an energy group with an innovative, end-to-end, and sustainable business model, completed the acquisition of ASR Wind, a renewable energy wind farms company, from Ardian for $706m.
"We are very happy with the signing of this operation. Our team has been a pioneer in Spain in betting on wind and solar hybridization, optimizing the evacuation capacity and enhancing its industrial value, as demonstrated by the great interest generated in the market. In addition, together with the AGR-AM team, we will continue to develop the 1GW portfolio, continuing to create value," Juan Angoitia, Ardian Co-Head of Infrastructure in Europe.
Naturgy was advised by AZ Capital and Gomez-Acebo & Pombo. Ardian was advised by Banco Bilbao Vizcaya Argentaria, Santander, Clifford Chance (led by Samir Azzouzi) and Headland Consultancy.
Software management faced criticism from some shareholders at its annual general meeting for backing Silver Lake Management's takeover bid, as investors laid into executives for not considering rival offers, Bloomberg reported.
Shareholder representatives said Silver Lake, which has two seats on Software's supervisory board, had access to insider information before submitting its offer and enjoyed favorable treatment from the company's takeover committee.
Skyepharma, a pharmaceutical CDMO, is set to go public via a SPAC merger with eureKING, a special purpose acquisition company. Financial terms were not disclosed.
"This transaction would be a critical milestone of our ambitious project to build a leading European bio-CDMO player. In Skyepharma, we have found a partner that matches all of our investment criteria, including quality of business and assets, a clear path to growth, a scalable platform and a strong management team that has a proven track record in turnarounds and integrating manufacturing businesses. eureKING was formed with long-term investors and highly-qualified executives, committed to bringing together the most innovative European players in biomanufacturing to service the biopharmaceutical industry. By adding David and Benoit's track record of manufacturing and operational excellence within the industry, we are ready to tackle a high-growth market and deliver sustainable value to our shareholders," Michael Kloss, eureKING Co-Founder and CEO.
Skyepharma is advised by Claris Avocats. eureKING is advised by BNP Paribas, Societe Generale, Linklaters, Willkie Farr & Gallagher and Image Sept.
Ripple, an enterprise blockchain and crypto solutions provider, completed the acquisition of Metaco, a provider of digital asset custody and tokenization technology, for $250m.
"Metaco is a proven leader in institutional digital asset custody with an exceptional executive bench and a truly unmatched customer track record. Through the strength of our balance sheet and financial position, Ripple will continue pressing our advantage in the areas critical to crypto infrastructure. Bringing on Metaco is monumental for our growing product suite and expanding global footprint," Brad Garlinghouse, Ripple CEO.
Metaco was advised by Ashbury Communications (led by Noel Cheung).
Orano, a nuclear fuel cycle company, and XTC New Energy, a specialist in the production of cathode materials for batteries, agreed to form a joint venture. Financial terms were not disclosed.
"We are proud of these agreements, which see Orano and XTC New Energy combine their strengths and know-how to contribute to the development of a new industrial sector in France. This partnership confirms our determination to position Orano as a key industrial player in the energy transition and circular economy," Philippe Knoche, Orano CEO.
Sheikh Hamad bin Jassim bin Jaber Al Thani, a son of Qatar’s former prime minister, offered to acquire Manchester United, a football club, for $6.3bn.
Manchester United's American owners late last year launched a formal sale process and have received several bids, including from British billionaire Jim Ratcliffe, founder of chemicals producer INEOS, and Finnish businessman Thomas Zilliacus. According to a report in April by The Times, Ratcliffe's INEOS had outbid Sheikh Jassim in the battle to buy Manchester United. Sheikh Jassim is offering to buy 100% of the club now for a price nearer to $6.3bn, Reuters reported.
Blackstone, Thomson Reuters consortium looks to sell further $3bn in LSEG shares. (FS)
An investor consortium including US buyout firm Blackstone and Thomson Reuters, the publisher of Reuters News, is looking to sell around $3bn worth of shares in the London Stock Exchange Group.
The accelerated stock offering, unveiled after the market close, includes some 28m shares representing a voting interest of approximately 5.5% in the market infrastructure group. Indicated demand from investors currently exceeds the size of the offer, one of the investment banks running the sale said shortly after the deal launch. The news follows an earlier sale of more than $2bn shares in March by Blackstone and Thomson Reuters, which became LSEG shareholders when they sold financial data firm Refinitiv to the bourse operator in 2021, Reuters reported.
The consortium is advised by JP Morgan, Bank of America, Barclays and Citigroup.
Buyout firms bid around $2bn for German football rights. (FS)
Private equity firms have bid roughly €1.8bn ($2bn) for a stake in the media rights business of the Bundesliga, Germany’s main football competition, Bloomberg reported.
Officials at governing body Deutsche Fussball Liga told clubs in recent days they received four bids for a 12.5% stake in the new unit which ranged from around €1.75bn ($1.9bn) to €1.85bn ($2bn). The offers assumed the business will receive proceeds from the domestic and international broadcasting rights of Germany’s top professional football teams for 20 years.
SAP says it’s open to acquisitions after Qualtrics sale.
SAP, which recently agreed to divest its stake in Qualtrics International, is open to making acquisitions again if they are a “strategic fit,” Chief Financial Officer Dominik Asam said.
The scale of that repurchase effort won’t limit the company’s ability to pursue deals if they make sense.
Thyssenkrupp seeks to launch Nucera IPO in June at €4bn value.
Thyssenkrupp plans to launch a long-awaited initial public offering of its Nucera hydrogen unit next month, which could be valued at about €4bn ($4.3bn).
The German engineering group is looking to offer at least €500m ($543m) worth of new Nucera shares in Frankfurt. The additional sale of some of Thyssenkrupp’s holding could increase the total offer size to as much as €750m ($815m), Bloomberg reported.
Martin Franklin’s new buyout vehicle raises $550m in IPO.
Admiral Acquisition, a blank-cheque firm co-founded by dealmaker Martin E. Franklin, raised $550m in an initial public offering on Wednesday, making it Britain's largest stock market listing in more than a year.
Admiral said it would use the funds to acquire a company, without constraints around geography or industry. Jefferies and UBS coordinated the share offering.
Blank-cheque firms, also known as special-purpose acquisition companies, rose in popularity in 2020 and 2021, but have lost lustre since.
Hanaco Ventures nears final close of VC funds worth up to $526m. (FS)
Israeli investment firm Hanaco Ventures is nearing the final close of its latest growth and early-stage funds with backing from Asian institutional investors, at a time when the venture capital world is grappling with an industry-wide slowdown.
The Tel Aviv- and New York-based investor has concurrently raised $400m for Hanaco Growth Fund III and $126m for its third early-stage fund so far, DealStreetAsia reported.
APAC
Korean Air Lines's proposed acquisition of rival Asiana may restrict competition in passenger and cargo air transport services between Europe and South Korea, Reuters reported.
"The transaction may reduce competition in the provision of passenger transport services on four routes between South Korea and France, Germany, Italy and Spain," The European Commission.
Shein raises $2bn but lowers valuation by a third.
Shein, the online fashion company that won over millions of American shoppers during the pandemic, raised $2bn in its latest fundraising round that values the company at $66bn, about a third less than a year earlier, Wall Street Journal reported.
Shein is a Chinese online fast fashion, and lifestyle e-retailer committed to making the beauty of fashion accessible to all, headquartered in Singapore.
Hua Hong Semiconductor wins nod for $2.6bn China listing.
Hua Hong Semiconductor has received a green light for its $2.6bn second listing on Shanghai’s Star board, potentially the biggest in China this year.
The Shanghai stock exchange approved the share sale plans of the Hong Kong-listed firm, according to the bourse’s website. The company will still have to register its plans with the regulator and hasn’t set any timeline or provided other details of the potential offering, Bloomberg reported.
HashKey Capital mulls liquid funds to tap secondary market. (FS)
HashKey Capital, the investment arm of Hong Kong-headquartered digital asset financial service provider HashKey Group, plans to launch at least two liquid funds to ride on the opportunities in the secondary market, according to Deng Chao, CEO of HashKey Capital and HashKey Singapore, DealStreetAsia reported.
The difference between what sellers ask for and what buyers intend to bid for — also known as the bid-ask spread for secondary transactions — is “one of the wildest”.
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