Daily Review

 

Rothschild advised ABC Data. Baker McKenzie advised MCI Capital.

 

HMV, an entertainment retailing company, operating in the United Kingdom, entered administration following weak trading period over the past weeks. The firm’s owner, Hilco Capital, called KPMG to handle the administration process.

“Whilst we understand that it has continued to outperform the overall market decline in physical music and visual sales, as well as growing a profitable e-commerce business, the company has suffered from the ongoing wave of digital disruption sweeping across the entertainment industry,” KPMG’s partner and joint administrator Will Wright said.

Carlyle Group acquired a majority stake in Sedwick, a global provider of technology-enabled risk, benefits and integrated business solutions, from KKR for $6.7bn on September 12. KKR fully exited its position following the transaction. Funds managed by Stone Point Capital and Caisse de dépôt et placement du Québec, together with Sedgwick management, will remain minority investors.

“We are pleased to partner with the exceptional management team and highly talented colleagues of Sedgwick. We look forward to participating in Sedgwick’s next chapter of growth and innovation and working with the company as it builds out its global platform to meet the increasingly complex needs of its clients around the world, while leveraging the One Carlyle network,” said John C. Redett, Carlyle Managing Director and Co-head of Global Financial Services.

Bank of America Merrill Lynch and Simpson Thacher & Bartlett advised Sedgwick. Morgan Stanley, Sandler O’Neill and Wachtell Lipton Rosen & Katz advised Carlyle. Morgan Stanley, Bank of America Merrill Lynch and KKR Capital Markets provided debt financing. 

 

Brookfield acquired the data center colocation business of AT&T, an American multinational communications conglomerate holding company, for $1.1bn in June.

This agreement builds on AT&T’s nearly 20-year history of providing customers access to premier data centers. The strategic alliance with Brookfield will build on the success of the ecosystem model, allowing AT&T to continue to offer colocation services through Brookfield. AT&T and Brookfield will also work under a joint marketing agreement that will enable both companies to participate in opportunities to bring customers a full suite of services.

 

The acquisition of Veracode, an application security company based in Burlington, Massachusetts, was first announced on November 5. The company was sold by Broadcom, an American fabless semiconductor company that made products for the wireless and broadband communication industry.

“In today’s digital economy practically every company is turning into a software company through their own digital transformation. As these companies continue to build complex applications, many of which contain sensitive data, the applications themselves increasingly become the target of more sophisticated and omnipresent cyber-attacks. As such, applications need to be built with security in mind day one, and we see a significant, growing market opportunity for Veracode’s product offerings,” said Chip Virnig, a partner at Thoma Bravo.

Thoma Bravo was advised by Kirkland & Ellis.

 

Trive Capital acquired EarthLink, an IT services, network and communications provider headquartered in Atlanta, from Windstream, a provider of voice and data network communications, for $330m in cash. 

“This transaction enables us to divest a non-core segment and focus exclusively on our two largest business units. In addition, it improves our credit profile and metrics in 2019 and beyond,” said Tony Thomas, president and CEO of Windstream.

 

Vista Equity Partners acquired Wrike, a privately held project management application service provider based in San Jose, from TMT Investments, a venture capital company investing in high-growth technology companies, for $23m.

The board of TMT believes that the disposal demonstrates the company's ability to identify and invest in early-stage high-growth companies within the technology sector that have the ability to create significant shareholder value through capital appreciation.

Hybridan, Strand Hanson and Kinlan Communications advised TMT Investments.

 

Martin Bandier, chief executive of Sony/ATV, the largest music publisher that controls hits from The Beatles and Taylor Swift, said that the music industry is about to undergo more consolidation. As streaming services like Spotify have fuelled growth in the music industry, private equity groups and other investors have scoured for lucrative copyrights that generate revenue when songs are played in commercials, films and restaurants. 

“There’s been a ton of new entrants,” said Mr. Bandier. “There must be 10 new companies that have invested money,” he added, thumbing through an internal presentation and rattling of recent deals.