AMERICAS
Thoma Bravo agreed to acquire Instructure, an educational technology company, for $2bn. Instructure stockholders will receive $47.60 per share. The agreement includes a 35-day “go-shop” period expiring on January 8, 2020, which permits Instructure’s Board of Directors and advisors to solicit alternative acquisition proposals from third parties.
“Instructure believes the opportunity to become a private company will provide additional flexibility and position us to invest more strategically to drive innovation for our customers. We look forward to working closely with all parties to complete this transaction and enter into our next chapter of growth and industry leadership,” Dan Goldsmith, Instructure CEO.
Instructure is advised by JP Morgan and Cooley. Thoma Bravo is advised by Kirkland & Ellis.
Apollo Global-backed Rackspace, an American managed cloud computing company based in Windcrest, Texas, completed the acquisition of Onica, a cloud native services company. Financial terms were not disclosed.
"By combining our capabilities with Rackspace’s global presence, resources and scale, we will be better positioned to achieve our mission of helping customers innovate using AWS. We pride ourselves on delivering results for customers, and in Rackspace we have found a partner that shares our passion for providing a customer-obsessed experience," Stephen Garden, Onica CEO.
Onica was advised by Barclays. Rackspace was advised by Evercore, INK Communications and Sard Verbinnen & Co.
Columbia Financial, an investment holding company, agreed to acquire Roselle Bank, a full-service bank. Financial terms were not disclosed.
“We are pleased with the opportunity to welcome Roselle Bank and its employees to Columbia Bank. The transaction will combine two community banks with strong, loyal customer bases while expanding the Columbia Bank franchise in Union, Somerset, and Hunterdon Counties,” Thomas J. Kemly, Columbia President and Chief Executive Officer.
Columbia is advised by Boenning & Scattergood and Kilpatrick Townsend & Stockton. Roselle is advised by Sandler O’Neill + Partners and Luse Gorman.
NTT DATA, a provider of global technology services, agreed to acquire Flux7, an Amazon Web Services premier consulting partner, that provides cloud implementation and migration, automation, and DevOps consulting services for enterprises. Financial terms were not disclosed.
With the acquisition of Flux7, NTT DATA will strengthen its ability to refactor and replatform applications, while enhancing its modern development practices, such as microservices and serverless application architecture.
“This opportunity will allow Flux7 and our clients to take advantage of NTT DATA’s expanded portfolio and resources, as well as the depth and expertise of a top 10 global IT services provider. Access to NTT’s global R&D, applications, infrastructure, and investments in digital transformation and innovation will also enable us to leverage complementary resources that accelerate modernization initiatives for our clients and bring improvements to our employee culture,” Aater Suleman, Flux7 Co-Founder and CEO.
Flux7 is advised by Layer 7 Capital.
Transworld Systems, a provider of outsourced accounts receivable management, agreed to acquire the financial services business of Alltran, a first- and third-party accounts receivable management provider. Financial terms were not disclosed.
"The acquisition of the Alltran Financial Services business expands TSI's customer base with leading US banks and consumer financial services companies. We look forward to a smooth transition and we welcome the Alltran Financial Services customers and employees to the TSI family," Joseph Laughlin, TSI Chief Executive Officer.
Alltran is advised by Houlihan Lokey.
Platinum Equity-backed United Site Services, a provider of porta potty rentals, completed the acquisition of S&B Porta-Bowl Restrooms, a portable restrooms provider. Financial terms were not disclosed.
S&B Porta-Bowl was advised by SDR Ventures.
Intact Financial, the provider of property and casualty insurance in Canada, completed the acquisition of The Guarantee Company of North America, a specialty lines insurer in Canada and the US, and Frank Cowan Company, a general managing agent, focused on specialty insurance, for $753m.
"Closing this transaction represents meaningful progress on our strategic objectives. After months of working together on integration planning, we can now welcome The Guarantee and Frank Cowan employees into the Intact family. We look forward to continuing to work together to advance our goals of bolstering our leadership position in Canada while building a leading North American specialty insurer," Charles Brindamour, Intact Financial Chief Executive Officer.
Lazard Global Total Return and Income Fund completed the merger with Lazard World Dividend & Income Fund. The exchange ratio at which shares of LOR common stock were converted into shares of LGI common stock was 0.62.
The combined fund retained the name "Lazard Global Total Return and Income Fund" and the "LGI" ticker symbol. LOR ceased trading as of the close of business.
Sprinklr, a provider of social media marketing, social advertising, content management, collaboration, advocacy and social media monitoring for large brands, agreed to acquire a social advertising business from Nanigans, a performance advertising software company supporting brands in the e-commerce and gaming space. Financial terms were not disclosed.
“Social channels, with their ability to micro-target and personalize advertising, are quickly emerging as the preferred destination for performance advertisers. Sprinklr’s acquisition of Nangians’ social advertising business will enhance our modern advertising product while also helping brands reduce the number of point solutions in their MarTech stack. With Sprinklr’s unified front office, brands will have a single platform for all their social advertising, marketing, customer care, research, and engagement needs,” Ragy Thomas, Sprinklr CEO & Founder.
Hub International, a global insurance brokerage, agreed to acquire SilverStone Group, one of the largest insurance brokerages in the US and the largest brokerage in Nebraska. Financial terms were not disclosed.
"Hub remains bullish on the growth we are experiencing, and it's opening new M&A opportunities for us with various product, distribution and geographic channels. The differentiating value we can deliver to the staff of our new partners has helped us to attract larger firms such as SilverStone," Marc Cohen, Hub President and Chief Executive Officer.
Snow Software, a provider of technology intelligence solutions, agreed to acquire Embotics, a hybrid cloud management company. Financial terms were not disclosed.
“Today, these organizations are strategically blending on-premises, private, public and multicloud architectures, and that requires a flexible and multi-faceted approach to gain agility through automation while controlling costs and risks. By joining forces with Snow, Embotics will continue to address these issues and answer the next generation of challenges with integrated capabilities at a global scale. Both organizations have a customer-centric DNA and commitment to innovation that will help us achieve our shared vision of technology intelligence,” Jay Litkey, Embotics Founder and President.
Hub International, a global insurance brokerage, agreed to acquire HMBD Insurance Services, a full service, multi-line insurance agency licensed throughout the United States. Financial terms were not disclosed.
“HMBD is a solid fit with our growth strategy with proven specialized capabilities in key industries that will expand the scope of our insurance solutions. They will be a huge asset to our clients in the region,” Andrew Forchelli, Hub Los Angeles Regional Leader.
World Insurance Associates, an insurance agency, agreed to acquire McMillan Insurance Group, a provider of customized commercial trucking insurance solutions for trucking enterprises of all sizes. Financial terms were not disclosed.
“McMillan Insurance Group’s expertise in the trucking industry and commitment to excellent customer service will enhance World’s growing transportation division. Expanding into Texas will allow us to better distribute our niche products in a new region,” Rich Eknoian, World Insurance Associates CEO and Co-Founder.
Hire Dynamics, a provider of human resource management services, agreed to acquire Trace Staffing Solutions, a commercial staffing company, from Amzak Capital Management, a private investment firm. Financial terms were not disclosed.
“The combination of Hire Dynamics and Trace brings together staffing providers known for their high service levels, growth rooted in proven client and talent satisfaction and a long-term focus on the Southeastern United States. The companies both provide support for warehouses, administration, manufacturing and contact centers. Trace’s branches are complimentary to Hire Dynamics branches and will expand our ability to serve clients in South Georgia and the growing markets in the coastal areas of South Carolina, Virginia and Jacksonville, Fla,” Billy Milam, Hire Dynamics CEO.
T.Y. Lin International, a full-service infrastructure consulting firm, agreed to acquire The Municipal Infrastructure Group, a civil engineering consulting company. Financial terms were not disclosed.
“By combining the local knowledge and expertise of The Municipal Infrastructure Group Ltd. with T.Y. Lin International’s global presence and experience in the design of transportation infrastructure, including bridges, highways, and rail and transit systems, we are able to provide greatly enhanced support and value for our clients across Canada and the United States,” Matthew G. Cummings, TYLI President and CEO.
Permira considers sale of John Masters Organics. (FS)
Permira is considering the sale of its organic personal care business, John Masters Organics. The fund is working with a financial adviser to help sell the firm, which could fetch as much as $200m.
BlackRock raises $1bn for clean energy investments. (FS)
BlackRock raised $1bn for clean power as wind and solar sectors boom. The company received initial commitments from over 35 institutional investors in North America, Europe and Asia for its third global renewables fund. It's the most BlackRock has raised yet for a clean-power fund's first close. BlackRock aims to raise a total of $2.5bn for the fund.
EMEA
Algeria's state-owned Sonatrach is set to block Occidental Petroleum's deal to sell Anadarko assets in Algeria to Total, a French multinational integrated oil and gas company. Mohamed Arkab, Algeria's energy minister, said the deal, part of a wider sale of Anadarko assets to Total after its acquisition by Occidental this year, was "incompatible" with Algerian legislation.
Total is advised by Ernst & Young, Lazard and Weil Gotshal and Manges. Anadarko is advised by MacKenzie Partners, Bank of America Merrill Lynch, Citigroup, Cravath Swaine & Moore, Freshfields Bruckhaus Deringer, Weil Gotshal and Manges and Brunswick Group.
The management of Centamin, a gold mining company focused on the Arabian-Nubian Shield, rejected the $1.9bn merger offer from Endeavour Mining, a gold mining company.
"The board strongly believes that Endeavour's proposal significantly increases financial and operating risk without any material benefits to our shareholders," Josef El-Raghy, Centamin Chairman.
Endeavour is advised by Numis Securities, HSBC, Scotiabank, Brunswick Group, and Vincic. Centamin is advised by BMO Capital Markets and Buchanan.
Kansai Electric Power-led consortium agreed to acquire the remaining 50% stake in Electricity North West, which conducts a power distribution business in the United Kingdom. Financial terms were not disclosed.
“We look forward to cooperating with all of the shareholders and to making a deeper contribution to Electricity North West. Presently we have succeeded in forming a long-term partnership structure. Kansai aims to develop a long-term and strategic collaboration with Electricity North West to create solutions that proactively address the current challenges to distribution networks,” Hiroshi Nakajima, Kansai Electric Power International Business and Cooperation Division Managing Executive Officer.
First State Investments is advised by Citigroup. The buying consortium is advised by Rothschild & Co.
Walter Global Asset Management, a North American private equity platform, completed the acquisition of a minority stake in Quadra Capital, an asset management firm specialized in alternative investments, with offices in London, Paris and Madrid. Financial terms were not disclosed.
"The Quadra Capital team has impressive experience and a proven ability to establish strong business relationships with prestigious clients in Europe, from large organizations to family offices. Meanwhile, we will support Quadra Capital here in the North American market, particularly when it comes to developing these same types of influential relationships," Sylvain Brosseau, Walter Global Asset Management President and CEO.
Walter Global Asset Management was advised by DDMG Communications.
The European Commission cleared VARTA's $401m acquisition of Varta Consumer Battery unit from Energizer, one of the world's largest manufacturers of batteries. The deal was announced in May 2019.
“With this transaction, we are seizing the unique opportunity to bring together what belongs together. The acquisition allows us to make extensive use of our premium brand name again, which also stands for technology and innovation leadership. In addition, VARTA Consumer’s attractive cash flow profile will make a significant contribution to the further expansion of our fast-growing, highly profitable lithium-ion production. Our growth strategy thus remains uncompromised; the pace of expansion for our lithium-ion production remains unchanged," Herbert Schein, VARTA CEO.
Weinberg Capital Partners, a Cleveland, Ohio-based private equity group, completed the acquisition of the French unit of ISS Group, a facility services company founded in Copenhagen, Denmark. Financial terms were not disclosed.
"This transaction illustrates perfectly our strategy to invest in French SMEs recognized for their solid know-how. We will bring financial and human resources to carry out the sustainable development of ISS Hygiène et Prévention in the long term," Philippe Klocanas, Weinberg Capital Partner.
Saverglass, a manufacturer specializing in the production and decoration of luxury and high-end glass bottles for the wine and spirits industry, agreed to acquire Md Verre, a subsidiary of the Spanish group Vidrala, which manufactures glass bottles and markets them throughout Europe. Financial terms were not disclosed.
“With the commissioning of a powerful new ultra-modern plant in Guadalajara, Mexico in June 2018, Saverglass significantly enlarged its footprint on the American continent, leading to consolidated sales this year that have topped the symbolic milestone of $550m,” Régis Maillet, Saverglass Group Marketing Director.
rent24, one of the world's largest coworking providers, agreed to acquire Friendsfactory, an office space provider. Financial terms were not disclosed.
"Over time, we have grown successfully together, and we have constantly evaluated the development. For this reason, we have decided to focus entirely on the core brand rent24 and exercise our call option," Robert Bukvić, rent24 Founder and CEO.
Norway cuts Entra stake in $371m share sale.
The Norwegian government sold a 14% stake in real estate company Entra for $371m, Reuters reported. Following the sale of shares to around 210 foreign and Norwegian investors, the government’s remaining stake now stands at 8.2%.
"Our goal is to boost private ownership in Norway, and the government has long said we will not be a long-term owner of Entra," Torbjørn Roe Isaksen, ruling Conservative Party Industry Minister.
Renault's chairman says merger with Nissan not the "ultimate step".
FT reported that Jean-Dominique Senard, Renault's chairman, said a merger with Nissan is not the “ultimate step” for the carmaking alliance that has come close to collapse since the arrest of former chief executive Carlos Ghosn.
“A merger is probably not the right way to think about it,” Jean-Dominique Senard.
Kuwait looking to invest $1bn in Saudi Aramco IPO.
Kuwait’s government is set to invest as much as $1bn in the initial public offering of Saudi Aramco as the kingdom asks regional allies to bolster the record share sale, according to Bloomberg report.
The Kuwait Investment Authority had been reluctant to commit significant funds to the IPO, but was told by the government that a stake was in the country’s strategic interest.
EU authorities open to pan-European telecoms mergers according to Orange CEO.
The European Union’s top antitrust policymaker, Margrethe Vestager, is open to the idea of pan-European mergers in the telecoms market, according to Orange’s CEO Stephane Richard.
“We should not expect any major inflexion in the EU commission’s approach toward in-market consolidation. But at the same time, she told us very clearly that she was very strongly in favour of network sharing and network consolidation, which is a form of consolidation,” Stephane Richard.
PRF sees synergies in Pekao, mBank merger.
A potential merger beween Poland’s second-largest lender by assets Pekao and its smaller rival mBank would bring synergies, according to Pawel Borys, CEO at the PFR fund, which has a 12.8% stake in Pekao.
“I think that from the Pekao shareholders perspective the potential merger between Pekao and mBank could bring bigger benefits than the previously analysed transaction with Alior Bank, where we were sceptical,” Pawel Borys.
CIB Egypt considers buying a stake in Kenya’s Mayfair Bank.
CIB Egypt, Egypt's largest private lender, is looking to acquire a stake in Kenya’s Mayfair Bank, one of Kenya’s lower-tier banks. According to the Competition Authority of Kenya, CIB applied for a portion of Mayfair Bank, following four other banking tie-ups in the nation this year.
UBS picks Zoe Evans as new head of technology. (People)
UBS selected Zoe Evans as the new head of technology at its investment bank, which has increasingly been turning to algorithms and automation for tasks previously performed by humans. Zoe Evans, who has been overseeing tech at the Swiss investment bank on an interim basis since the departure of Neil Boston in the summer, was handed the role permanently.
Crescendo Venture Partners seeks $100m for Israel-focused early-stage fund. (FS)
Tel Aviv-based Crescendo Venture Partners reached a first close for its debut early-stage VC fund, which aims to raise about $80-100m. The new fund expects to reach its final close in the first half of 2020.
APAC
Private equity firm True North secured the approval of the Insurance Regulatory and Development Authority of India to acquire 51% stake in Max Bupa Health Insurance, a health insurance joint venture between Max India and Britain-based Bupa, from Max India, for $71m.
"As the health insurance sector grows in India, True North is looking to build the most trusted brand in health insurance in the country. We believe Max Bupa is one of the best positioned brands and businesses in the sector," Divya Sehgal, True North Partner.
True North is advised by Khaitan & Co. Max India is advised by KPMG and AZB & Partners.
Advent-backed Manjushree Technopack, India's largest rigid plastic packaging company, agreed to acquire National Plastics, one of the largest firms in spraying and dispensing systems and solutions in India. Financial terms were not disclosed.
This is the first acquisition by MTL since Advent bought a majority stake in the company last year. Through this deal MTL will expand its offerings to clients, by adding adjacent categories like dispensers and sprayers to its existing product portfolio –containers and preforms.
Tencent in talks to invest $2bn in Kuaishou. (FS)
Tencent is in final talks to invest $2bn in short video platform Kuaishou in the latter’s upcoming $3bn pre-IPO round, Deal Street Asia reported. The round is expected to see participation from Sequoia Capital, Temasek Holdings, Boyu Capital and Alibaba-backed Yunfeng Capital.
Tencent, which has invested in Kuaishou’s previous rounds, is the majority shareholder in the video platform. Kuaishou raised $1bn in its Series E round in 2018. Additionally, a few months later Tencent made a $400m in the company.
Circulate Capital to raise $106m. (FS)
Circulate Capital, a Singapore-based venture capital firm, made the first close of its debut investment fund, which is aimed at tackling Asia’s ocean plastic crisis, at $106m. The fund’s investors include PepsiCo, Procter & Gamble, Dow, Danone, Unilever, The Coca-Cola Company and Chevron Phillips Chemical Company.
The fund will provide both debt and equity financing to waste management, recycling, and circular economy startups and SMEs in South and Southeast Asia.
Korean's POBA raised a $100m fund to invest in private equity. (FS)
Korean pension fund Public Officials Benefit Association, raised $100m to invest in three local private equity funds. POBA opened the request for proposal to domestic blind-pool funds, seeking to invest in up to three managers.
The Korean pension fund will conduct a second evaluation in January 2020 and announce its decision in the following month, Deal Street Asia reported.
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