AMERICAS
Thoma Bravo, a software investment firm, agreed to acquire Medallia, a provider of customer and employee experience solutions, for $6.4bn.
"Medallia has positioned itself at the forefront of the experience management market with a best-in-class SaaS platform that leverages proprietary AI to help companies better understand their customers and employees and drive meaningful business growth at scale. Medallia's ability to provide personalized and predictive insights across every channel and to companies of all sizes has become mission-critical in a rapidly expanding universe of structured and unstructured data, where more and more business is transacted digitally. We look forward to partnering with Leslie and the talented Medallia team and applying our operational and investment expertise in software to support the company in the next phase of its growth journey," Scott Crabill, Thoma Bravo Managing Partner.
Medallia is advised by Bank of America, Morgan Stanley, Wells Fargo Securities, Wilson Sonsini Goodrich & Rosati and Joele Frank. Thoma Bravo is advised by Kirkland & Ellis and Finsbury Glover Hering. Debt financing is provided by Antares Capital, Apollo Global Management and Blackstone Capital Markets.
Private equity firms GTCR and Reverence Capital Partners completed the acquisition of the asset management unit of Wells Fargo, a financial services company, for $2.1bn.
"We are thrilled to work with Nico and the team at WFAM, and we have tremendous conviction in the caliber and capabilities of the management professionals and leadership team. The organization is poised to provide further innovation in the investment marketplace while continuing to deliver high-quality products to its clients. The team, underpinned by its diversity, client-orientation, and collaborative culture, has delivered strong performance, and we will work to reinforce these values and sustain this performance. Along with our partners at Reverence Capital, we are committed to the long-term success of the organization," Collin Roche, GTCR Managing Director.
GTCR and Reverence Capital Partners were advised by UBS, Barclays, Broadhaven Capital Partners, Perella Weinberg Partners, RBC Capital Markets, Jones Day, Kirkland & Ellis and Gladstone Place Partners. Wells Fargo was advised by Wells Fargo Securities and Skadden Arps Slate Meagher & Flom.
Microvast, a global provider of next-generation battery technologies for commercial and specialty vehicles, went public via a merger with Tuscan Holdings in a $3bn deal. The transaction was supported by Oshkosh as well as funds and accounts managed by BlackRock, Koch Strategic Platforms and InterPrivate Investment Partners.
"In Microvast we have found a disruptive technology company operating in a large, addressable market with a long runway of future growth that has developed long-term competitive advantages and has established a multi-year track record of proving its capabilities. We believe that climate change is one of the world's greatest challenges and opportunities. It will take a concerted global effort to reengineer the economy in a manner that empowers citizens of the world to thrive sustainably. We are encouraged by the progress and are fortunate to be in a position to help support a company that we believe can play an important role in that future. Mr. Wu and his excellent management team have established Microvast as precisely that pioneering leader within the electric vehicle battery industry," Stephen Vogel, Tuscan Chairman and CEO.
Microvast was advised by Barclays, Houlihan Lokey, Shearman & Sterling and ICR. Tuscan was advised by EarlyBirdCapital, Graubard Miller, Morgan Stanley, Greenberg Traurig and ICR. Morgan Stanley was advised by Davis Polk & Wardwell.
Skyworks Solutions, an American semiconductor company, completed the acquisition of the infrastructure and automotive business of Silicon Labs, a provider of silicon, software and solutions, for $2.75bn.
"With our companies' shared cultures of design excellence and customer collaboration, I am confident that the Infrastructure & Automotive team will continue their decades-long history of delivering industry-leading innovations. Silicon Labs and Skyworks will partner to ensure a seamless transition for customers, suppliers and employees," Tyson Tuttle, Silicon Labs CEO.
Skyworks Solutions was advised by JP Morgan, Jones Day, Steptoe & Johnson and Sard Verbinnen & Co. Debt financing was provided by JP Morgan. Silicon Labs was advised by Matthews South, Qatalyst Partners and DLA Piper.
RBC Bearings, an international manufacturer of precision bearings and components, agreed to acquire DODGE Mechanical Power Transmission unit from ABB, a robotics company, for $2.9bn.
"The combination will enhance RBC Bearings' capabilities, footprint, and customer base while increasing our access to DODGE's attractive end markets. Our businesses are highly complementary, with DODGE bringing new offerings, new end markets, and more scale to the combined organization. The combined company will have an attractive position in the Aerospace, Defense and Industrial markets with a diversified client base and expansive geographic footprint. We look forward to welcoming DODGE's talented team to RBC Bearings," Dr. Michael J. Hartnett, RBC Chairman, President and CEO.
RBC is advised by Goldman Sachs, Goodwin Procter, Kirkland & Ellis and Alpha IR. Debt financing is provided by Goldman Sachs. Debt provider is advised by Latham & Watkins. ABB is advised by JP Morgan and Kirkland & Ellis.
Benefit Street Partners Realty Trust, a non-listed REIT backed by Benefit Street Partners, a credit-focused alternative asset management firm, agreed to merge with Capstead Mortgage, a REIT, in a $2bn deal. Upon completion, BSP will manage the combined company.
"With the combined capital of BSPRT and Capstead, we are well-positioned to capture opportunities ahead of us and create superior value for our stockholders. We believe our differentiated investment strategy, marked by a focus on middle-market commercial real estate mortgages, provides us a significant competitive advantage with a large-scale, diverse portfolio that has delivered strong growth and attractive returns over the long term. Coupled with BSP's strong deal sourcing and underwriting capabilities supported by Franklin Templeton's world class sponsorship, the new Franklin BSP Realty Trust will be poised to benefit from the large and compelling commercial real estate lending market opportunity resulting from a significant volume of upcoming commercial real estate debt maturities," Richard J. Byrne, BSPRT President and CEO.
Capstead is advised by Credit Suisse, Hunton Andrews Kurth and Sard Verbinnen & Co. BSP is advised by Barclays, Houlihan Lokey, Hogan Lovells and Prosek Partners.
Pembina Pipeline, an operator of transportation and storage infrastructure, announced that it terminated the merger agreement with Inter Pipeline, a multinational petroleum transportation and infrastructure firm.
The official reason for the termination was not stated, but both companies said they would look into other ways to grow. Inter Pipeline has agreed to pay the c. $280m termination fee.
Vista Equity Partners, a global investment firm, completed the investment in ESO, a data and software company. Financial terms were not disclosed.
"ESO is the clear industry leader when it comes to technology, data and thought leadership for health and public safety organizations. We invest in category-defining businesses like ESO to help accelerate innovation and maximize growth potential. We're looking forward to our partnership with Chris and the ESO team as they continue to make a positive difference in our communities," Ryan Atlas, Vista Equity Partners Managing Director.
ESO was advised by Aeris Partners, Baker Botts and Goodwin Procter. Vista Equity was advised by JP Morgan, Robert W Baird, Kirkland & Ellis and Laurel Strategies.
ModivCare, a technology-enabled healthcare services company that provides a suite of integrated supportive care solutions focused on improving patient outcomes, agreed to acquire CareFinders, a personal care provider, for $340m.
"ModivCare is leading the transformation to better connect people with care, through transportation, personal care, and nutritional meal delivery. The acquisition of CareFinders broadens access to in-home personal care solutions for patients and supports our strategy to expand on our personal care platform. We are evaluating an expanse of opportunities to continue this exciting and profitable growth. As we expand our footprint, we believe we will drive significant value for our patients, partners, and shareholders," Daniel E. Greenleaf, ModivCare President and CEO.
CareFinders is advised by JP Morgan, Moelis & Co and Paul Weiss Rifkind Wharton & Garrison. ModivCare is advised by Jefferies & Company, Gibson Dunn & Crutcher and The Equity Group.
PerkinElmer, a medical solutions provider, agreed to acquire BioLegend, a global provider of life science antibodies and reagents, for $5.25bn.
"We are thrilled to have the opportunity to bring our technologies and innovative cultures together to create seamless solutions to push science and discovery forward. We believe joining our teams presents an incredible opportunity to accelerate discoveries that help life science researchers leverage ever-developing technologies and novel approaches to better understand and fight disease," Prahlad Singh, PerkinElmer President and CEO.
BioLegend is advised by JP Morgan and Pillsbury Winthrop Shaw Pittman. PerkinElmer is advised by Goldman Sachs, McDermott Will & Emery and WilmerHale.
Old Second, the bank holding company for Old Second National Bank, which operates 29 banking offices across seven counties in northern Illinois, agreed to acquire West Suburban, the bank holding company for West Suburban Bank, which maintains 43 banking locations across DuPage, Kane, Kendall, and Will counties in Illinois, for $297m.
"West Suburban has served its customers and communities for nearly 60 years. I could not be more proud of our team, the bank we built together and the positive impact we've made in the western suburbs of Chicago. Much like West Suburban, Old Second has a long history of supporting its communities and for over 150 years has helped individuals and businesses in Chicago and the western suburbs through a relationship-banking model. We expect that the community bank culture and values that we share with Old Second, and the expanded products and capabilities that we will have following our merger will enhance our ability to provide exceptional banking services to all of our customers. We truly believe this combination will bring out the best in both of our companies and create a better bank for our employees as well as the customers and communities we serve," Kevin Acker, West Suburban Chairman.
West Suburban is advised by Keefe Bruyette & Woods, Barack Ferrazzano Kirschbaum & Nagelberg and Kirkland & Ellis. Old Second is advised by Citigroup and Nelson Mullins Riley & Scarborough.
Cavco Industries, a provider of systems-built structures, agreed to acquire Commodore, the largest independent builder of manufactured and modular housing in the United States, for $153m.
"During the acquisition process, we have developed a tremendous respect for what has been accomplished at Commodore under Barry Shein's leadership. Their reputation for quality, design, customer relationships, and integrity is very consistent with Cavco's philosophy and approach to doing business. We are extremely excited to work with the Commodore leadership and employees as we leverage best practices and technologies across the combined manufacturing network. Commodore's market presence is a strategic extension of our current footprint, providing a platform for additional growth in the Northeast," Bill Boor, Cavco President and CEO.
Commodore is advised by Lincoln International, Whelan Advisory and Williams Parker. Cavco is advised by True North Advisors and Polsinelli PC.
Stonepeak, an alternative investment firm, agreed to acquire the Latin American business of Lumen Technologies, a telecommunications company, for $2.7bn. AustralianSuper, Australia's pension fund, is investing alongside Stonepeak in the transaction.
"This transaction unlocks value for our shareholders while allowing us to maintain our global presence through our strategic relationship with the New LATAM Company. This transaction allows Lumen to focus investments in key areas of the business to drive future growth while providing flexibility for our capital allocation strategy," Jeff Storey, Lumen President and CEO.
Lumen is advised by Bank of America, Citigroup, Goldman Sachs, Morgan Stanley and Jones Walker.
The Jordan Company, a middle-market private equity firm, agreed to acquire Dental365, a dental service organization, from private equity firm Regal Healthcare Capital Partners. Financial terms were not disclosed.
"We are thrilled to partner with Dr. Asnis and the entire Dental365 team. The Company has an incredible culture centered on delivering top-level support to its providers and the highest quality care to its patients," Dan Williams, TJC Partner.
Dental365 is advised by Jefferies & Company and Ropes & Gray. TJC is advised by Kirkland & Ellis.
Kris Infotech, a Singapore-headquartered IT consulting and advisory services company, agreed to acquire a 60% stake in AGS Tek Partners, a Colorado-based IT consultancy and staffing company. Financial terms were not disclosed.
"We are thrilled to add AGS Tek Partners into our fold. Their expertise and experience in delivering IT resourcing and training services in the US over many years is immensely valuable and will serve as a launchpad for our own growth plans. Together, we look forward to delivering our suite of IT services to a lot more companies across the US and North America and enabling them to get maximum value from their investments in Information Technology and digitalization/digital transformation," Reem D'Souza, Kris Infotech Head of Business Strategy and Investor Relations.
Kris Infotech is advised by On Target Media.
Turning Point Brands, a manufacturer, marketer and distributor of branded consumer products, completed the acquisition of the cigar assets of Unitabac, a cigar company. Financial terms were not disclosed.
"Gaining access to Unitabac's product portfolio provides us with necessary assets to build a more competitive platform to participate in this large and growing market. Our intention is to leverage both the Zig-Zag tobacco brand strength and the extensive reach of our retail distribution platform to further penetrate the cigar category by introducing new line extensions under the Zig-Zag tobacco brand and expanding the reach of the Unitabac cigar products," Larry Wexler, Turning Point CEO.
Turning Point was advised by KCSA Strategic Communications.
Tiger Global led the $235m funding round in NotCo, a food-tech firm. Other investors in the round included DFJ Growth, a venture capital firm, ZOMA Lab, an investment firm, athletes Lewis Hamilton and Roger Federer.
The new funding would be used to increase company's coverage in Asia and Europe and launch new products on the North American market. Additionally, NotCo wants to invest in AI.
NightDragon, an investment and advisory firm focused on growth and late-stage investments, led a $100m Series C round in Interos, the supply chain risk management and operational resilience technology company, with participation from Kleiner Perkins and Venrock.
"Covid-19 and other macro and digital supply chain disruptions over the past year have caused boards of directors and other leaders to awaken to the tremendous impact supply chain disruptions can have on operational resilience, business performance and reputation. Manual and annual supply chain risk monitoring is urgently moving to automated and continuous, and that can only be accomplished through AI/ML-based technology. This funding will allow us to accelerate our mission of helping organizations fix supply chain issues before they cause operational disruption," Jennifer Bisceglie, Interos CEO.
SPX Flow to explore strategic options after rejecting Ingersoll's bid.
SPX Flow, a provider of process solutions for the nutrition, health and industrial markets, is exploring strategic alternatives, including a sale or merger of the company, after rejecting Ingersoll Rand's $3.59bn buyout offer. The offer was raised in June to $85 per share from the first bid in May at $81.50 per share.
"The board concluded that (Ingersoll's) proposals did not adequately value the company in light of the board's confidence in the potential for increased profit margins and growth," SPX.
EMEA
Aon, a large global professional services firm that sells a range of financial risk-mitigation products, including insurance, pension administration, and health-insurance plans, terminated its deal to acquire Willis Towers Watson, an Irish-domiciled global multinational risk management, insurance brokerage and advisory company, for $30bn. The companies were unable to overcome the Department of Justice's opposition to the merger.
"Despite regulatory momentum around the world, including the recent approval of our combination by the European Commission, we reached an impasse with the US Department of Justice. The DOJ position overlooks that our complementary businesses operate across broad, competitive areas of the economy. We are confident that the combination would have accelerated our shared ability to innovate on behalf of clients, but the inability to secure an expedited resolution of the litigation brought us to this point," Greg Case, Aon CEO.
Vonovia, a real estate company, announced that its $22bn offer for Deutsche Wohnen, a German property company, failed to reach the minimum 50% acceptance threshold.
The offer reportedly secured 47.6% backing.
Given that shareholders' backing had not been secured, the deal will not go forward. However, Reuters reported that Vonovia is expected to launch another attempt to buy the company.
Antin Infrastructure Partners, a private equity firm focused on infrastructure investment, completed the acquisition of Pulsant, a provider of data centre and cloud infrastructure in the UK. Financial terms were not disclosed.
"The pandemic has further reinforced the importance of reliable and flexible infrastructure for connectivity, storage and processing of data given the prevalence of remote working and as more businesses shift to cloud-based solutions. Through its network of regional data centres, Pulsant is uniquely placed to support businesses across the UK with high-quality flexible data centre and cloud infrastructure solutions," Simon Söder, Antin Partner.
Pulsant was advised by Jefferies & Company and Ropes & Gray. Antin was advised by Greenhill & Co, RBC Capital Markets, Goodwin Procter and Weil Gotshal and Manges.
CVC Capital agreed to acquire the Panzani business of Ebro, a company in the Spanish food processing sector, for $647m.
This divestment is in line with Ebro's strategic goals for the period 2019-2021 and would enable Ebro to further concentrate its resources with a view to strengthening and expanding its premium, fresh pasta and convenience businesses.
CVC is advised by BNP Paribas, Rabobank and Spayne Lindsay & Co. Ebro is advised by Rothschild & Co.
Kanabo, a medical cannabis company, agreed to acquire the European business of Materia, an independent processor and distributor of medical cannabis. Financial terms were not disclosed.
"Materia's unique innovative supply chain will bring new production capabilities; it will provide strong distribution channels in the German market and offer new strategic agreements with premium cultivators around the world. Together with Kanabo's R&D and commercialization capabilities, I expect this enlarged group to become the biggest public cannabis company in the UK and EU and puts us in a unique position as the multibillion pound medicinal cannabis market begins to grow in Europe," Avihu Tamir, Kanabo CEO.
Materia is advised by ATB Capital. Kanabo is advised by Peterhouse Capital.
Goldman Sachs Asset Management and DMG Ventures led a $110m Series B round in Zilch, the London-based fintech.
"As our customer numbers continue to grow, we've taken the decision to raise additional capital to service this phenomenal demand. As Zilch continues to scale at pace, we're delighted that well-respected institutions such as Goldman Sachs and DMG Ventures share our vision of what credit should be in today's world and how that can be delivered directly to customers in the most responsible way. By putting our customers first and building direct relationships with each of them, we are doing something no one else in the industry has done before," Philip Belamant, Zilch Founder and CEO.
Insud Pharma to sell stake in biotech unit mAbxience. (FS)
Insud Pharma, a pharmaceutical solutions provider, plans to sell a stake in its biopharmaceuticals unit mAbxience, specializing in the development, manufacture, and commercialization of monoclonal antibodies used in cancer treatment, valuing the deal up to $1.18bn.
Private equity firms, including BC Partners, CD&R, EQT, General Atlantic, Nordic Capital, PAI and Permira, are expected to participate in the auction.
JX Nippon is yet to decide on the North Sea asset sale.
JX Nippon, an energy company, considers selling its UK North Sea assets to review its global portfolio, but hasn't made a final decision yet.
Potential sale includes JX's stakes in Mariner and Culzean, valuing the assets at $2bn. Bank of America and Kirk Lovegrove have been hired as advisers.
APAC
Papua New Guinea's regulator blocked the acquisition of Westpac Pacific, which runs commercial banks in both Fiji and PNG, by Kina Securities, an Australia-based financial services provider.
The Independent Consumer and Competition Commission said the deal would not bring "benefits that outweigh detriments to public" and decrease competition. The final decision is due in September, and companies could make additional submissions to ICCC.
Kina is advised by Morgans Corporate and Dentons.
DigitalBridge, a global digital infrastructure REIT, agreed to acquire the data center business of PCCW, a Hong Kong-based information and communications technology company. Financial terms were not disclosed.
"As an experienced investor in the global data center sector, DigitalBridge's expertise investing in, building, and operating data centers to the highest standards aligns perfectly with PCCW DC's next stage of development. They are already a leading operator in the region and are poised for significant growth, with a strong development pipeline and considerable expansion capacity. This is a terrific platform for DigitalBridge to expand its regional presence while supporting a strong management team focused on serving many of the same hyperscale and large enterprise customers that DigitalBridge works with on a global basis," Marc Ganzi, DigitalBridge President and CEO.
DigitalBridge is advised by Joele Frank.
S4 Capital, a digital advertising and marketing services company, agreed to acquire Destined, a cloud and marketing services provider. Financial terms were not disclosed.
"At S4 Capital we differentiate ourselves by being the most agile, knowledgeable and creative partners to the world's leading platforms, hardware and software companies and I'm delighted to welcome Andrew and his colleagues as we expand our relationship with Salesforce providing services around their various clouds in Asia Pacific and beyond," Martin Sorrell, S4 Capital Executive Chairman.
S4 Capital is advised by Powerscourt.
Byju's, a Bengaluru-based edtech unicorn, agreed to acquire Great Learning, a professional and higher education platform, for $600m.
"With this acquisition, we now have a big presence in three verticals -- schools, test prep and the higher education and upskilling segment. Most of these platforms can be scaled up globally except for test prep where we will focus only on India through Aakash," Byju Raveendran, Byju's CEO.
CDB Equipment Manufacturing Industrial Investment Fund and V Fund led a $154m Series B round in SemiDrive, a Chinese automotive system-on-chip developer.
This round of financing will be mainly used for the research and development of more advanced process chips.
Rolex Rings fixes IPO price band at about $120m per share.
Rolex Rings, a forged and machined components manufacturer, fixed its initial public offering price at $11.8-$12.1 per share, opening on 28 July and closing on 30 July.
The IPO comprises a fresh issue of 7.5m shares and an offer for sale of $101m by Rivendell PE, which holds a 41.01% stake in the company. Equirus Capital, IDBI Capital, and JM Financial are the book lead managers on the issue.
GoTo in talks to raise up to $2bn ahead of IPO. (FS)
Indonesia's most valuable startup begun the process of raising $1bn-$2bn, valuing it at between $25bn-$30bn.
Li Auto gets a nod for Hong Kong listing.
Li Auto, a Chinese electric vehicle maker, received the green light from the Hong Kong stock exchange for a listing, following in the steps of its rival XPeng. The company could raise $1bn-$2bn in the listing.
The company pushes ahead with a share sale in the Asian financial hub, while Beijing is cracking down on overseas listings by Chinese companies. Li Auto's Nasdaq shares dropped 8% on Friday, giving the company a market capitalization of $27.4bn, as concerns about the regulatory onslaught deepen.
Ninja Van to mull US listing in 2022.
Ninja Van, a Singapore logistics startup, plans to go public in the US next year. The company has almost broken even and is aiming to be profitable next year. In 2019, Ninja Van's net loss was $84m on the back of $148m in revenue.
Ninja Van approached advisers to start discussions on the process. Last year the company's valuation topped $1bn following a $279m funding round.
