AMERICAS
An investor in MobileIron, an American software company which provides unified endpoint and enterprise mobility management for mobile devices, intends to oppose its proposed takeover by an IT software company, Ivanti, arguing the company could be worth more than double what is being offered by mid-2021.
White Hat Capital Partners said in a letter to the company's board that it owns a 1.2% stake and believes MobileIron could be worth from $11 to $15 a share if it is able to execute on its proposed strategy, Bloomberg reported.
"Absent an improvement in the deal price, we plan to vote our shares against the proposed transaction at the upcoming special meeting of shareholders," David Chanley and Mark Quinlan, White Hat Managing Partners.
MobileIron is advised by Barclays, Morrison & Foerster and Sard Verbinnen. Barclays is advised by Sullivan & Cromwell. Ivanti is advised by BMO Capital Markets, Bank of America Merrill Lynch, Morgan Stanley, UBS, Kirkland & Ellis, Sidley Austin and Avista PR. Debt financing is provided by BMO Capital Markets, Bank of America Merrill Lynch, Morgan Stanley and UBS. Clearlake Capital is advised by Lambert & Co. TA Associates is advised by BackBay Communications.
SK Hynix, a South Korean memory semiconductor supplier of dynamic random-access memory chips and flash memory chips, agreed to acquire NAND memory and storage business from Intel, an American multinational corporation and technology company, for $9bn.
"I am pleased to see SK hynix and Intel's NAND division, which have led the NAND flash technology innovation, work to build the new future together. By taking each other's strengths and technologies, SK hynix will proactively respond to various needs from customers and optimize our business structure, expanding our innovative portfolio in the NAND flash market segment, which will be comparable with what we achieved in DRAM," Seok-Hee Lee, SK Hynix Chief Executive Officer.
SK Hynix is advised by Citigroup, Fangda Partners and Skadden Arps Slate Meagher & Flom. Intel is advised by Bank of America Merrill Lynch, Bae Kim & Lee, Linklaters, Munger Tolles & Olson and Wilmer Cutler Pickering Hale and Dorr.
CapVest Partners, an international private equity firm, agreed to acquire Datasite, the provider of technology solutions that enable mergers, acquisitions, initial public offerings, restructuring and other critical capital transactions. The transaction is subject to customary closing conditions and is expected to close in Q4 2020. 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 is advised by Goldman Sachs and Akin Gump Strauss Hauer & Feld. CapVest Partners is advised by Graph Consulting, KPMG, William Blair & Co, Kirkland & Ellis, ReputationInc and West Monroe Partners.
HIG Capital agreed to acquire St. Croix Hospice, a provider of hospice care across the Midwestern United States, from The Vistria Group, a Chicago-based investment firm focusing on the healthcare, education and financial services sectors. Financial terms were not disclosed.
"Over the years, as society has more openly and honestly talked about end-of-life care, we have seen more individuals choosing hospice when faced with a terminal diagnosis, and more families reporting that hospice helped their loved ones pass gracefully. We're honored to be partnering with Heath and the St. Croix team to continue to support their important work of providing compassionate hospice services," Alok Sanghvi, HIG Capital Managing Director.
HIG Capital is advised by Edgemont Partners, Ropes & Gray and Triple Tree. The Vistria Group is advised by Cain Brothers, Houlihan Lokey and Winston & Strawn.
The Flowr, a Toronto-headquartered cannabis company, agreed to acquire Terrace Global, a Canadian company focused on the development and acquisition of international cannabis assets, for $63m. The transaction remains subject to certain other closing conditions including the receipt of certain approvals and the satisfaction of certain customary closing conditions. Upon completion of the transaction, existing Flowr and Terrace Global shareholders would own approximately 60.9% and 39.1% of the pro forma company.
"Terrace Global and Flowr have enjoyed a collaborative and symbiotic working relationship and share similar philosophies, making this transaction a strong fit for us. With Flowr, we believe that we can realize our full potential and are excited to participate in the upside of Flowr. Combining our complimentary management expertise, and collaborative strengths will result in a combined entity that is poised for global growth," Francisco Ortiz von Bismarck, Terrace Global Chief Executive Officer.
The Flowr is advised by ATB Capital and Fasken. Terrace Globa is advised by Hyperion Capital, Norton Rose Fulbright and Wildeboer Dellelce.
GI Partners, a US-based investor in data infrastructure businesses, agreed to acquire Vast Broadband, a provider of gigabit-speed broadband, video, and phone in South Dakota and Minnesota, from Pamlico Capital and Oak Hill Capital, two American private equity firms. Financial terms were not disclosed.
"Vast is committed to providing its customers with access to the most reliable, high-speed broadband connectivity available. As a native of the Great Plains, I am thrilled to partner with the local employees at Vast to bring high quality internet connectivity to my home region," Rich Fish, Vast Broadband CEO.
Vast Broadband is advised by RBC Capital Markets, Alston & Bird and Chris Tofalli. GI Partners is advised by Weil Gotshal and Manges.
Linden Capital Partners, a Chicago-based healthcare private equity firm, is set to invest in Vital Care, a chain of pharmacies for home infusion services. Financial terms were not disclosed.
“Our tagline that ‘at home is better, at home is safer’ continues to ring true. We chose to partner with the Linden team due to their exclusive focus on healthcare investing, their unique relationships and insights, and their high-integrity practical approach,” Johnny Bell, Vital Care Founder.
Vital Care is advised by Deloitte. Linden is advised by Houlihan Lokey and Kirkland & Ellis. Debt financing is provided by Twin Brook Capital Partners
The Kleinfelder Group, an engineering, design, construction management, construction materials inspection and testing, and environmental professional services firm, completed the acquisition of Gas Transmission Systems, a provider of engineering services. Financial terms were not disclosed.
“As a well-established gas utilities and pipeline services firm, GTS is a strong addition to Kleinfelder. This transaction aligns with our strategic direction and strengthens Kleinfelder’s service capabilities to utilities across the US. The specialized experience GTS brings will accelerate Kleinfelder’s growth in the power/utilities market and position the firm for expansion,” Louis Armstrong, Kleinfelder President and CEO.
Gas Transmission Systems was advised by Senex Advisory. The Kleinfelder Group was advised by KPMG and Winston & Strawn.
Sibanye considers M&A deals.
Sibanye Stillwater's efforts to buy gold assets in the Americas have been stymied by gold's record-breaking rally, which led to mining company ratings being boosted and asset prices rising, Bloomberg reported.
The Johannesburg-based precious metals producer explored opportunities at three North American gold producers with assets in the region and in Brazil two years ago. At the same time, Sibanye, famous for its deal-making prowess, is still keen to buy gold mines in North America, even though those assets are now considered too expensive and may not add value to investors.
"Our South African gold assets are deep-level, labour-intensive, utilize a lot of electricity and from an ESG perspective, utilize a lot of carbon credits. North American mines tend to be shallower, open cast and lower-cost, so acquisitions in the region would cut spending and diversify our portfolio quite significantly," James Wellsted, Sibanye Stillwater Spokesman.
Pioneer Natural Resources in talks to acquire Parsley Energy.
Pioneer Natural Resources is in talks to buy Parsley Energy, as a wave of consolidation takes hold in the beleaguered oil patch, WSJ reported.
The two oil-and-gas companies, shale producers that operate in the Permian Basin of Texas and New Mexico, are discussing an all-stock deal that could be completed by the end of the month, assuming the talks do not fall apart. Austin, Texas-based Parsley has a market value of about $4bn. It also has more than $3bn of debt.
Menlo Ventures launches $500m fund. (FS)
Menlo Ventures, a venture capital firm based in California, launched Menlo XV, a flagship $500m venture fund dedicated to Seed and Series A investments in companies spanning consumer, enterprise, frontier tech, and healthcare. The firm will continue to invest in areas of focus that include SaaS, cloud infrastructure, cybersecurity, AI, marketplaces, fintech, transportation, and bioinformatics while keeping the scope open to emergent opportunities.
"Our mission takes on new meaning during this pandemic. The transformational power of technology has never been more evident, as it enabled a massive shift to remote learning and work, drives rapid advancements in medicine and diagnostics, and connects us to friends, families, classmates, and colleagues. Menlo is investing today in the technologies that shape how we live and work tomorrow," Shawn Carolan, Menlo Ventures Partner.
Eureka Equity Partners raised $200m for its Fund IV. (FS)
Eureka Equity Partners held the final closing of Eureka IV, with just over $200m in capital commitments. Fund IV is the successor small buyout fund to Eureka's $175m Eureka III. Fund IV's limited partners include public and corporate pension funds, fund of funds, insurance companies, family offices and other established institutional investors.
"The demonstrated success of our strategy to build great companies as a first institutional equity partner to talented management teams enabled us to continue our growth in the current environment while maintaining our commitment to invest out of a series of smaller vehicles tailored to our end of the lower middle-market," Chris Hanssens, Eureka Equity Partners Managing Partner.
Horizon Acquisition II announces terms of $500m IPO.
Horizon Acquisition II, a newly incorporated blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses, announced the pricing of its IPO of 50m units at a price of $10 per unit.
Credit Suisse is serving as lead book-running manager for the offering. Deutsche Bank and RBC Capital Markets are serving as book-running managers for the offering.
Warner Music raised $250m in debt finance to fund catalogue acquisitions.
Warner Music confirmed that it is raising $250m in debt finance, via a bond offering to help fund two catalogue acquisitions. The specifics of those deals are not yet known, although one is seemingly completed while the other is at its final stages.
"Warner Music Group today announced that, through its wholly-owned subsidiary WMG Acquisition, it has commenced a private offering of $250m aggregate principal amount of additional 3% senior secured notes due 2031. The company intends to use the net proceeds of the offering to fund a portion of the aggregate cash consideration for certain acquisitions," Warner Music.
Good Works Acquisition announces pricing of $150m IPO.
Good Works Acquisition priced its IPO of 15m units at a price to the public of $10 per unit. Each unit consists of one share of common stock and one-half of one redeemable warrant, with each whole warrant entitling the holder to purchase one share of common stock at a price of $11.5 per share.
I-Bankers Securities is acting as the sole book-running manager of the offering. The underwriters have been granted a 45-day option to purchase up to an additional 2.25m units offered by the company to cover over-allotments.
EMEA
Indotek, a real estate investment and development business, agreed to acquire a 24% stake in Waberer's International, the Hungarian listed freight and logistics business, from Mid Europa Partners, a buyout house focused on central and south-eastern Europe. The transaction, which requires competition authority clearance, is expected to close by the end of the first quarter of 2021. Financial terms were not disclosed.
"This transaction recognises the leading position of Waberer's as a mission-critical provider of transportation, warehousing and insurance services in Hungary and Europe. We look forward to be supported by Indotek Group in our efforts to complete the restructuring programme and further build on the strengths of Waberer's in the long-term. We are committed to remaining the backbone of the Hungarian supply chain and a leading European FTL transportation provider," Barna Erdélyi, Waberer's CEO.
Waberer's International is advised by Ernst & Young, White & Case and Lakatos Koves and Partners. Mid Europa is advised by Rothschild & Co.
Bluestone-backed Continental Mapping Consultants, a geospatial data analytics and mapping solutions provider, completed the acquisition of TSG Solutions, the European provider of multi-energy distribution solutions for mobility. Financial terms were not disclosed.
"Geospatial solutions that provide actionable information is a driving force in the market. TSG has built a framework of services and solutions that do just that. Through this acquisition we can apply our capabilities and tradecraft with theirs to bring that actionable intelligence to our clients," Dave Hart, Continental Mapping's CEO.
Continental Mapping Consultants was advised by Dixon Hughes Goodman and Holland & Knight. TSG Solutions was advised by Wilson Sonsini Goodrich & Rosati.
The CMA has provisionally found that the acquisition of 3G Truck & Trailer Parts, the UK automotive components company, by TVS Europe Distribution, a retailer of motor vehicle parts and accessories, raises competition concerns in the supply of commercial vehicle and trailer parts.
In reaching this provisional decision, the CMA analyzed a significant body of evidence looking at how closely the two businesses compete, including the companies' internal documents and feedback from customers and competitors. The companies' internal documents showed that the businesses monitor each other closely when determining their strategies and setting prices and that Universal Components' decision to buy 3G was motivated in part by the desire to remove one of its main competitors from the market.
TVS was advised by UHY Hacker Young and Schofield Sweeney.
IRIS Software Group, the UK’s privately held software company, completed the acquisition of iSAMS, a fully integrated, online school management system. Financial terms were not disclosed.
“IRIS shares our vision for the next stage of growth. Its track record in the education market makes it the perfect partner. The support for management and its culture complements the next chapter of the iSAMS story. We are excited about IRIS investing into the business, reinforcing our commitment to service excellence for our customers worldwide,” Alastair Price, iSAMS Managing Director.
IRIS Software was advised by Grant Thornton and Octopus Group.
Axcel, a Nordic private equity firm, completed the acquisition of Ventab, Ventilationsprojekt and Installationsbolaget, three providers of ventilation and building automation services, to create Currentum, which will specialise in heating, ventilation, health and safety, sprinkler systems. Financial terms were not disclosed.
“Ventab, Ventilationsprojekt and Installationsbolaget are all excellent installation businesses well known in their regions for provision of reliable and high-quality installation services. We at Axcel are very excited at the prospect of jointly further expand and develop the group across regions and technical disciplines. The installation market offers plenty of consolidation opportunities. Axcel and our partners will accelerate growth through M&A in the next years to build a strong market leader,” Thomas Blomqvist, Axcel Partner and Stefan Hollander, Axcel Director.
Axcel was advised by Vinge.
HgCapital Trust and TA Associates, two private equity firms, are set to invest in The Access Group, a provider of business management software to mid-market organisations. The transaction is subject to customary regulatory approvals and is expected to close in the first calendar quarter of 2021. Financial terms were not disclosed.
”Hg and TA’s further investment in The Access Group is a sign of our business and team’s strength. We look forward to continuing our relationship with our partners as we embark on further organic and acquisitive growth projects, as well as geographic expansion," Chris Bayne, The Access Group CEO.
HgCapital Trust is advised by Brunswick Group.
Schenck Process Group, a specialist in weighing, conveying, thermal processing, pulverizing, and feeding equipment, agreed to acquire Baker Perkins, a global supplier of food processing equipment and aftermarket services. The transaction is expected to close in Q4 2020. Financial terms were not disclosed.
"This is a long-established business with a reputation for excellent products and customer service, with a similar business model to our own. It will complement and extend our existing product offering to the food end-market, which is a key strategic focus, providing good opportunities for future growth, operating efficiency and further value creation for all stakeholders," Keith Cochrane, SPG CEO.
The Competition and Markets Authority is considering whether it is or may be the case that the a global supplier of leather chemicals TFL Ledertechnik's acquisition of the leather chemicals business of LANXESS, a speciality chemicals company, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002.
If so, whether the creation of that situation may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.
Global Risk Partners-backed Marshall Wooldridge, an insurance broker, completed the acquisition of Messrs RF Broadley, a commercial broker specializing in farm insurance. Financial terms were not disclosed.
"RF Broadley is a well-respected, long-established local family firm with a strong client base and great expertise, particularly in agriculture. David, Shirley and their team will all be remaining with the business, and we're delighted to have them on board," Geoff Kirk, Marshall Wooldridge Managing Director.
Dufry announces the final number and offers the price of new shares to be issued.
Dufry, a Swiss-based travel retailer which operates duty-free and duty-paid shops and convenience stores, announces that it has concluded the rights offering. The offer price of the new shares was set at $36.29 per share, corresponding to the volume-weighted average price of the existing shares as of market close on October 19, 2020. All 25m offered shares were sold in the offering, resulting in expected gross proceeds of $901m.
Immediately following the closing of the offering, Advent International will own a stake of 11.4% in Dufry and Alibaba Group of 6.1%. Advent International and Alibaba Group have agreed to a lock-up period of six months following the first day of trading of the new shares.
Sanofi considers divesting some anti-inflammatory products.
Sanofi is weighing a sale of some of its older anti-inflammatory products, as it swivels toward innovative new therapies, Reuters reported.
The French drugmaker is studying options for the assets. The assets include several mature inflammation treatments and could fetch as much as €200m ($234m).
Sanofi has reached out to potential private equity and strategic buyers. The drugs being sold are not part of Sanofi's fast-growing immunology franchise, which includes the blockbuster medicine Dupixent.
C&A's controlling shareholder denies sale of Brazil unit.
COFRA Holding, the parent company of Dutch fast-fashion retailer C&A, denied a report that it was seeking to sell its controlling stake in the brand's Brazilian unit.
"COFRA confirms that no process is currently underway with regards to C&A Modas and COFRA remains supportive of the business and its performance," C&A.
PlanNet21 considers further acquisitions after buying rival eCom.
PlanNet21, an IT solutions company, eyes other acquisitions after buying rival business eCom for an undisclosed sum. PlanNet21 said revenues would exceed €50m ($59m) on the back of the deal and reiterated its intention to double turnover in the coming years.
Founded in 1998, the company is headquartered in Dublin with branch offices in Cork, Galway, Belfast and Edinburgh. The acquisition brings combined total headcount at the group to 140.
"The stated revenue target for the PlanNet21 group remains €100m ($117m), and future growth will be achieved primarily through acquisition rather than organic growth. We’re actively looking at several potential acquisitions in the UK market, which if successful, will take us closer to reaching those revenue goals," Peter Carroll, PlaNet21 CEO.
BAML names new CEO of EU banking. (People)
Bank of America Merrill Lynch has named Fernando Vicario as chief executive of its EU bank, based in Dublin, following Bruce Thompson's decision to relocate to the United States, Reuters reported.
Vicario's old role as head of EMEA corporate banking, based in London, will be filled by Richard King. Simeon Stevens has been appointed as head of UK corporate banking, succeeding King, who will continue as co-head of UK & Ireland corporate & investment banking.
TRIG to acquire French onshore wind construction project.
TRIG, a listed investment company, has acquired a 100% interest in Haut Vannier, with the rights to construct a 43MW wind farm located in Haute-Marne, approximately 65km northeast of the city of Dijon in France.
The project will benefit from an attractive 20-year subsidy in the form of inflation-linked contract-for-difference with the utility company EDF, which fixes the price to be received for the power. As a result, the project has no power price risk for the duration of the subsidy term. This acquisition represents the continuation of the company's strategy to complement its balanced portfolio with different revenue characteristics to generate sustainable returns for shareholders, within TRIG's identified key markets.
TRIG is advised by InfraRed Capital and Maitland/AMO.
APAC
Futuris, a human capital management company focused on the acquisition and operation of executive search, staffing and consulting companies, completed the acquisition of TalentBeacon International, a consulting and delivery organization for global talent acquisition, management and retention solutions. Financial terms were not disclosed.
"The acquisition of TalentBeacon is an integral part of our plan for global expansion as we can now support clients with infrastructure and capabilities in India, APAC, South-Central America, China and Europe. TalentBeacon's central area of expertise is deep knowledge of how international talent acquisition can be leveraged to help companies achieve their growth targets, while providing highly consultative and collaborative insights into the opportunities and challenges of working in, and from, these locations. From their hub locations, the company also models, delivers, and optimizes world-class staffing solutions. IT staffing continues to be a key focus of Futuris' business and growth strategy moving forward," Kalyan Pathuri, Futuris President.
Futuris was advised by KCSA Strategic Communications.
A consortium of investors led by CITIC, with participation from CICC Capital, a private equity fund management platform, Tsing Song Capital, Spinnotec, Ruiyi Investment, LanShang Capital, Chinese investment companies, Jemincare, a pharmaceutical firm, and Haier Biomedical, which develops low-temperature storage equipment for biomedical samples, completed the $224m investment in 3DMed Diagnostic, a molecular diagnostics firm.
Existing shareholders Luxin Venture Capital, Shandong Transportation Industrial Development Fund, and life science-dedicated VC firm Sangel Capital re-upped in the investment round.
"Proceeds from the new round will be primarily used for the R&D of precision diagnosis equipment and reagents, including fully-automated, next-generation sequencing flow-line equipment, in vitro diagnostic medical devices, and the expansion of the firm's overseas business expansion, and commercialization team," Xiong Lei, 3DMed Diagnostic Chairman and CEO.
Didi targets $60bn valuation in Hong Kong IPO. (FS)
Didi Chuxing, China's top ride-hailing firm, is considering Hong Kong for a multibillion-dollar IPO next year, dropping previous aims to list in New York amid rising Sino-US tension, Reuters reported.
Didi, backed by technology investment giants SoftBank, Alibaba and Tencent, has started initial talks with investment banks for the long-awaited IPO. It is looking to formally appoint lead banks for the float in the coming months.
Didi is also considering a new fundraising round ahead of the IPO in a bid to boost its valuation. In the private secondary market, some of its shares are trading well below a valuation of $56bn it reached in 2017.
Brookfield to acquire commercial properties from RMZ for $2bn. (FS, Real Estate)
Brookfield Asset Management will buy commercial properties from RMZ's, an Indian developer, for $2bn in the biggest real estate deal in the South Asian nation, Bloomberg reported.
The Canadian asset manager is acquiring 12.5m square feet of rent-yielding offices, and co-working spaces from the privately-held developer. The Indian firm said it will have zero debt after the transaction and will use the money to expand its portfolio.
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