AMERICAS
Payments processor StoneCo raised its bid for Brazilian software company Linx by nearly 4% to $1.17bn. StoneCo said each Linx shareholder will get $5.8 in cash and 0.0126774 of StoneCo Class A common share per Linx share.
StoneCo’s also revised some provisions of its initial proposal that have drawn regulatory scrutiny, cutting its breakup fee to $83.5m from $111m. If Linx shareholders reject the deal, the breakup fee would fall to $20.6m proposal.
Linx is advised by Goldman Sachs, Pinheiro Neto, and White & Case. StoneCo is advised by Proton Partners, JP Morgan, Morgan Stanley, Davis Polk & Wardwell, Mattos Filho, and Spinelli Advogados. Debt financing to StoneCo is provided by JP Morgan and Morgan Stanley.
The Competition and Market Authority has opened a consultation to address competition concerns over Stryker's $4.5bn acquisition of Wright Medical.
On June 30, 2020, the CMA announced that it would refer the acquisition for an in-depth investigation unless Stryker offered acceptable undertakings to address the CMA's concerns. To address the CMA's concerns, Stryker has offered undertakings to divest Stryker's Scandinavian Total Ankle Replacement product and related assets.
As part of this process, the CMA is now consulting publicly on whether the proposals are sufficient to address the CMA's competition concerns. Before reaching a final decision, the CMA is therefore inviting interested parties to make their views known. The deadline for responses is September 16, 2020.
Wright Medical is advised by Guggenheim Partners, JP Morgan, Ropes & Gray, and Stibbe. Guggenheim Partners and JP Morgan are advised by Latham & Watkins. Stryker is advised by Houthoff and Skadden Arps Slate Meagher & Flom.
Flying Eagle Acquisition, a blank-check firm, agreed to merge with Skillz, a mobile gaming company, in a $3.5bn deal. The transaction is expected to close in the Fall of 2020.
Wellington Management, Fidelity Investments, Franklin Templeton Investments and Neuberger Berman have committed more than $159m to the deal in the form of a PIPE at a price of $10 per share of Class A common stock of Flying Eagle immediately prior to the closing of the transaction.
"Becoming a public company is an important milestone for Skillz. We look forward to accelerating growth as we work with our developer partners to bring Skillz-powered competitions to every kind of game for billions of gamers worldwide," Andrew Paradise, Skillz CEO and Founder.
Skillz is advised by LionTree Advisors, Winston & Strawn and ICR. Flying Eagle is advised by Goldman Sachs, White & Case and Priority PR.
Tottenham Acquisition I, a special purpose acquisition company, agreed to merge with Clene Nanomedicine, a clinical-stage biopharmaceutical company, in a $542.5m deal. Upon the closing of the transactions, Clene will be NASDAQ-listed under a new ticker symbol.
"Clene is excited to partner with Tottenham in the creation of shareholder value. By creating the world's first public pure-play nanotherapeutic company, Clene is especially honored to bring forward the first neuroreparative therapy candidate to potentially improve neurological function across multiple sclerosis, Parkinson's disease, ALS, and many other neurological diseases with Clene's lead asset, CNM-Au8. Bioenergetic failure is a common element of many neurodegenerative diseases that we hope will soon be treated successfully with CNM-Au8. The combined company will also enable further clinical investigation of its second key asset, CNM-ZnAg, in two newly launched studies for the treatment of Covid-19," Rob Etherington, Clene President and CEO.
Clene Nanomedicine is advised by Kirkland & Ellis and Stoel Rives. Tottenham Acquisition I is advised by Chardan, LifeSci Capital and Loeb & Loeb.
First BanCorp, a bank holding company of FirstBank completed the acquisition of Santander Bancorp, a holding company including Banco Santander Puerto Rico, a retail bank for $1.3bn.
First BanCorp paid Santander cash in an amount of some $395m base purchase price for 117.5% of Santander’s core tangible common equity, comprised of a $59m premium on $336m of core tangible common equity, plus $883m for Santander’s excess capital (paid at par), which represents the estimated closing payment pursuant to the terms of the purchase agreement.
"Today we completed the acquisition of Banco Santander announced back in October 2019. The completion of this transaction marks a significant milestone in our journey. I want to acknowledge the hard work and dedication of both teams who have worked diligently on integration planning and execution throughout the operational disruption caused by the pandemic. We welcome the Banco Santander employees and customers and look forward to exceeding their expectations with an expanded branch network and service channels and enhanced technological offerings," Aurelio Alemán, First BanCorp President and CEO.
FirstBank was advised by Goldman Sachs, Moelis & Co, Simpson Thacher & Bartlett and Skadden Arps Slate Meagher & Flom.
Roark Capital, a private equity firm, agreed to acquire ServiceMaster Brands business, a provider of pest control services, from ServiceMaster Global, a provider of residential and commercial services, for $1.5bn.
"We are thrilled to welcome ServiceMaster Brands to our family. We are excited to partner with the team and support ServiceMaster Brands' long-tenured and successful franchisees to realize the tremendous growth potential of these brands," Mike Thompson, Roark Capital Managing Director.
Roark Capital is advised by JP Morgan and Paul Weiss Rifkind Wharton & Garrison. ServiceMaster is advised by Lazard and Wachtell Lipton Rosen & Katz. Debt financing to Roark Capital is provided by Barclays.
Roark Capital, a private equity firm, completed an investment in US Sports Camps, a youth sports camp, and sports events management company. Financial terms were not disclosed.
"It has been US Sports Camps' mission since we started to connect professional and passionate coaches with young athletes to facilitate athletic and personal development in a positive and safe environment to foster skill development, inspiration, and new friendships. Roark understands and embraces our vision, and they have done exactly what they said they would do since first meeting. Justin has been instrumental to US Sports Camps growth and I am excited to pass the baton to him and Roark," Charlie Hoeveler, US Sports Camps Founder.
Roark Capital was advised by Paul Weiss Rifkind Wharton & Garrison and ICR.
RLS, an isotope producer and provider of services to the nuclear medicine market, agreed to acquire the Radiopharmacy Network from General Electric, an American multinational conglomerate. Financial terms were not disclosed.
"I was intrigued and excited about the possibilities of this healthcare acquisition, beyond the financial aspects of the transaction. I have spent my career providing white-glove investment advisory services to global clients and always believed that customers, no matter the industry, not only deserve, but have a right to demand personalized, timely, high-end service, that is why we focus on service, quality and disruptive technology as key factors in our investment strategy," Werner Gruner, RLS Chief Executive Officer.
RLS is advised by Capitor.
Laborie Medical, a diagnostic and therapeutic medical technology company and Signet Healthcare Partners, a private equity firm, agreed to acquire GI Supply, a supplier of endoscopy and paracentesis products for gastroenterologists, colorectal surgeons, and interventional radiologists. Financial terms were not disclosed.
"At Laborie, we are committed to helping improve lives by enabling our clinical customers and their patients with relevant solutions for their needs. We do this organically as well as through strategic acquisitions. With the acquisition of GI Supply, we immediately enhance LABORIE's gastroenterology product offering and sales channel in the U.S. and internationally. This is an important step in the evolution of our GI business," Michael Frazzette, Laborie President & CEO.
Laborie Medical is advised by Simpson Thacher & Bartlett.
General Atlantic led a $300m Series C funding round in Neon Pagamentos, a Brazilian fintech company. BlackRock, Vulcan Capital, PayPal Ventures, Endeavor Catalyst, Monashees, Flourish Ventures and Propel Venture Partners also participated in the round. The investment will be split between two tranches of $150m each.
"Neon was born with a clear purpose: to provide an accessible bank account to any Brazilian, placing user experience at the center of everything we do. Unlike banking incumbents in Brazil, we do not transfer the cost of inefficiency to our customers. We are thrilled to partner with our existing and new investors to continue working toward this shared vision," Pedro Conrade, Neon Founder.
Neon was advised by Ovo Comunicacao.
Mullen Group, a logistics company, completed the acquisition of the remaining 60% stake in Pacific Coast Express, a cargo transportation and trucking company. Financial terms were not disclosed.
"We have made a number of equity investments in well-run private companies over the years with a particular focus on strong Canadian based trucking and logistics companies. The strategic rationale of these investments is knowing that at some point in the future these well-run companies would become part of Mullen Group. I would like to take this opportunity to welcome PCX's 120 employees and contract owner-operators to the Mullen Group. I know that PCX's operating performance will be strengthened by joining Mullen Group's less-than-truckload network," Murray K. Mullen, Mullen Group Chairman and Chief Executive Officer.
Brown & Brown, a provider of insurance and reinsurance products and services, agreed to acquire Vehicle Administrative Services, a provider of emergency roadside assistance and related consumer auto protection products. Financial terms were not disclosed.
"We are being given the opportunity to grow our business under the Brown & Brown umbrella while maintaining a high level of performance for our customers. I have known the BBDS team for many years and have watched them grow as an innovating force in the MGA and automotive business. We look forward to adding to the financial success of Brown & Brown and to participating in the culture and values of Brown & Brown that we at VAS share,” Bill Breindel, VAS Chairman and CEO.
FDS, a pharmacy software solutions provider, agreed to merge with Amplicare, a business intelligence and decision-automation platform. Financial terms were not disclosed.
With the merger, FDS clients will have access to Amplicare's platform including Medicare plan comparison and eligibility tools that empower pharmacy patients to make better healthcare plan decisions. Amplicare clients will now be able to take advantage of FDS's platform with software solutions that enable clinical care, improve financial health, and offer valuable data insights into pharmacy operations.
"Amplicare has a proven record of enabling pharmacies and their patients to make data-driven decisions. We are eager to integrate Amplicare's capabilities into FDS' existing solutions, and we are very confident in the power of these combined organizations. Among other observations, Covid-19 has made it clear that pharmacies have critical roles to play in the continuing digital transformation of healthcare, and we are excited to expand the tools we provide to pharmacists and the patients they serve," J. Bennet Waters, Amplicare CEO.
Summit Partners, a private equity firm, completed the acquisition of a minority stake in CluePoints, a provider of software solutions. Financial terms were not disclosed.
“Summit shares our view that RBQM can be a catalyst for long-overdue change in the clinical technology sector. Together, Summit and CluePoints will work together to invest in both products and people with a vision to build on the company’s market leadership position. We are excited about the opportunity this collaboration offers the customers and partners of CluePoints,” Patrick Hughes, CluePoints Co-Founder and CCO.
AT&T to scrap sale of Warner Bros video-game unit.
AT&T has removed its Warner Bros video-game business from the list of noncore assets up for sale, deciding it was too valuable to unload during its effort to pay down debt and streamline, Bloomberg reported.
Warner Bros. Interactive Entertainment, the gaming unit that is home to titles like Harry Potter: Wizards Unite and Mortal Kombat 11, had attracted interest from several major companies and could have reaped $4bn. But AT&T balked given the business’s growth potential.
AT&T looks to sell Xandr ad unit.
AT&T is exploring a sale of its advertising unit Xandr, as it appears to reverse expensive plans to transform from a wireless carrier to a media and advertising powerhouse, Reuters reported.
AT&T has spent more than $135bn to stitch together a media company, satellite TV provider and advertising platform to grow its business. But it has faced skepticism from investors.
The discussions come as AT&T’s new chief executive, John Stankey, reviews the conglomerate’s assets in an attempt to reduce nearly $152bn in net debt.
Boxed explores $1bn sale.
US online wholesale retailer Boxed is exploring strategic options, including a sale or going public through a merger with a blank-check acquisition company that could value it at around $1bn, Reuters reported.
Referred to by some of its customers as Costco for millennials, New York-based Boxed offers everything from fresh groceries to office supplies without membership fees, and also provides free delivery for orders over $49.
Like many e-commerce businesses, it has benefited from a boom in online sales in the United States as consumers stay away from brick-and-mortar stores due to the Covid-19 pandemic. Boxed has seen an steady uptick in new customer signups since March.
Bumble preparing for an IPO above $6bn.
Bumble, a dating app, is preparing for an initial public offering that could come early next year, Bloomberg reported.
Bumble could seek a valuation of $6bn to $8bn. While it is talking to banks, it has not settled on a lineup. No plans have been finalized, and the timing of Bumble’s IPO could still change.
It would be the latest technology company to consider jumping into the hot IPO market, which could see listings this year from well-known brands including Airbnb and Doordash.
Tesla aims to raise $5bn.
Tesla is aiming to raise up to $5bn in its biggest issue of new stock in a decade, as the electric carmaker takes advantage of an almost 1k% surge in its share price over the past year, The Guardian reported.
The move comes a day after the company completed a 5-for-1 stock split, which sparked a share price rise that propelled co-founder Elon Musk past Facebook’s Mark Zuckerberg to become the world’s third-richest person.
The investor-pleasing stock split, the first since Tesla’s flotation in 2010, pushed Musk’s paper fortune to more than $115bn, making him one of only four “centibillionaires” in the world.
Enjoei files for IPO.
Brazilian online clothes and furniture shop Enjoei filed for an initial public offering on the Sao Paulo stock market.
The IPO will be coordinated by investment banks Bradesco BBI, BTG Pactual, JP Morgan, XP and UBS.
Goldman Sachs private equity banker to leave. (People)
Goldman Sachs dealmaker Mahir Zaimoglu is leaving just a year after joining the US investment bank, Bloomberg reported.
Zaimoglu, a managing director who advised on private equity transactions, is leaving for a corporate role.
The banker has been with Goldman Sachs since last September. He joined from JP Morgan, where he was head of mergers and acquisitions in Europe, the Middle East and Africa for the firm’s financial sponsors group, which advises buyout funds and other large investors.
EMEA
The price that Veolia, a resource management company, is offering for Suez, a French waste and water management company, shares is "fair", according to the company's top executive, who did not rule out a hostile bid, Reuters reported.
Veolia on Sunday launched a bid for Suez at $18.5 per share, offering to buy a 29.9% stake in the firm from utility Engie for $3.45bn, in the first step to a full takeover.
The offer elicited an unenthusiastic response from Suez, which flagged "great uncertainties" raised by the transaction, while Engie, which wants to sell assets, is holding out for a higher price.
Veolia is advised by Citigroup, Messier Maris & Associes, Perella Weinberg Partners, Cleary Gottlieb Steen & Hamilton, Flichy Grange Avocats, Gide Loyrette Nouel, Hogan Lovells, Patrice Gassenbach, Peltier Juvigny Marpeau & Associes and Xavier Boucobza.
The board members of TIM, under the chairmanship of Salvatore Rossi, have approved KKR's proposal to acquire a 37.5% stake in FiberCop, for $2bn.
TIM’s Board of Directors also examined and approved the signing of the letter of intents with CDP Equity intended to integrate FiberCop in the wider plan to establish a single national network company. The Board of Directors granted the CEO, Luigi Gubitosi, the power to sign the agreement. Under the new agreement, FiberCop will allow TIM, Fastweb and other operators to co-invest, completing the fibre coverage plans in black and grey areas of the country and speeding up the adoption of Ultra-Broadband services.
KKR is advised by Citigroup. Telecom Italia is advised by Rothschild & Co.
Apollo Global Management-led consortium agreed to acquire a 49% stake in Abu Dhabi Property Leasing Holding Company, a real estate company, from Abu Dhabi National Oil Company, for $2.7bn. The transaction is expected to close before year-end, subject to customary closing conditions and regulatory approvals.
"We are pleased to partner with Apollo and leverage their world-class real estate asset management expertise to achieve international best-practice standards in managing and driving cost efficiencies across our real estate portfolio. This strategic partnership allows ADNOC to unlock and monetize significant value from its non-oil and gas strategic infrastructure assets and reinvest into our core business to deliver further growth and realize greater returns," Dr. Sultan Al Jaber, ADNOC Group CEO.
Dover, a diversified global manufacturer, completed the acquisition of XanTec, a developer and supplier of automation and control solutions for industrial machinery. Financial terms were not disclosed.
The acquisition enhances Dover's subsidiary Maag's automation solutions offering with an Internet of Things-enabled technology, and positions Maag to grow its presence in aftermarket, remote service and monitoring solutions for the polymer processing and related markets.
People Can Fly plans Warsaw IPO.
Polish video games developer People Can Fly plans an initial public offering in Warsaw this year, as rising valuations of listed gaming companies combined with record-low interest rates and high inflation have attracted investors to the sector.
The Warsaw Stock Exchange has seen turnover decline and has struggled to attract new listings in recent years as companies can often find cheaper funding via other routes.
It has seen two small IPOs this year, both by video games companies, as investors bet on increased interest in gaming during lockdowns due to the novel coronavirus.
SwanCap collects more than $359m for Fund IV final close. (FS)
Swan IV has held its oversubscribed final close and has attracted aggregated commitments north of $359m.
With more than $1.12bn of aggregated equity invested in over 90 direct co-investment transactions combined with a market-leading and consistent track record The Fund thereby continues to lever the vast experience of our platform and the differentiated sourcing capabilities of our dedicated co-investment team across Europe and North America creating access to the investment opportunities.
Since inception of the fund, the SwanCap team has already invested in various assets building a portfolio of companies across sectors, geographies and strategies providing investors with risk-adjusted returns. Going forward, the SwanCap team will enhance and complement this investment portfolio based on its investment approach.
Muzinich & Co already back with new pan-European private debt fundraise. (FS)
Muzinich & Co announces the first close of the Muzinich Pan-European II Private Debt Fund, at $251m. Like its predecessor vehicle, the fund focuses on providing growth capital to lower middle-market companies to fund acquisitions, expansions and transitions in family and founder-owned businesses. The Fund follows on the successful $844m closing of the firm’s first Pan-European Private Debt Fund in 2018. The firm has been active in European private debt since 2014 when local regional teams started investing in country specific funds.
“As the dynamics underlying this asset class continue to shift considerably, we believe our large, dedicated team of investment professionals and a local presence across Europe gives us a significant advantage in accessing a broad and diverse market in order to generate attractive returns for our investors,” Rafael Torres, Muzinich Co-Head of Private Debt, Pan-Europe.
APAC
Barloworld, an equipment supplier completed the acquisition of Wagner Asia Equipment, a supplier of heavy-duty machinery for $168m.
The acquisitions were in line with its aim to allocate capital to opportunities that complement its businesses.
"The group has consistently stated its desire to allocate capital to opportunities that complement its competencies as part of its medium-term strategy. The group’s balance sheet is strong and this opportunity, adjacent to the current Russian operation, presents an attractive growth prospect within the equipment division. The Wagner Asia business will be combined with the current Barloworld Russian business unit into a newly formed Equipment Eurasia unit," Barloworld.
Barloworld was advised by Freshfields Bruckhaus Deringer. Debt financing to Barloworld was provided by Nedbank.
TPG Capital and KKR completed a $220m investment in PropertyGuru, a provider of real estate services.
"This increased support from TPG and KKR to accelerate growth is a great validation of the group's successful performance, its leadership team and their strategy to unlock the opportunities that will achieve the group's ambitions in the region," Olivier Lim, PropertyGuru Chairman.
PropertyGuru was advised by Archetype Agency.
SoftBank Vision Fund 2 led a $150m funding round in Unacademy, an Indian online education technology company, valuing the company at $1.45bn. Facebook and Sequoia Capital also participated in the round.
"In a young country where only privileged urban Indians with a lot of money could reach exam prep experts, Unacademy has democratized knowledge," Gaurav Munjal, Unacademy Co-Founder.
Kirin revives Australian unit sale after Mengniu fallout.
Japan’s second-largest brewer has started re-engaging with suitors who had previously expressed interest in Lion Dairy & Drinks. Potential bidders could explore buying parts of the Australian unit, which includes milk, yogurt and juice products.
The asset had drawn interest from Asahi Group, Bega Cheese and Pacific Equity Partners. Deliberations are ongoing and Kirin and potential bidders could decide against a new deal.
China Post Life seeks $2.2bn in stake sale.
The life insurance arm of China Post Group is seeking to raise about $2.2bn from investors to broaden the state-backed firm’s ownership, Bloomberg reported.
China Post Life Insurance is working with advisers on the stake sale and has approached potential suitors.
The company is seeking a valuation of no less than its book value. China Post Life had assets of $28bn as of the end of 2019.
AMP sparks buyout talk with the companywide review.
Australian financial planning giant AMP Capital said it was putting all its assets under review, setting in motion a potential sale or break-up of a company that has seen its profit and reputation weakened by years of scandals.
The veteran manager of Australian retirement savings said it had hired investment banks Credit Suisse and Goldman Sachs to review all its business units after “an increase in interest and inquiries”, without saying from where.
Ant Group plans to raise more funds in Shanghai than Hong Kong in IPO.
China’s Ant Group plans to raise more funds on Shanghai’s Nasdaq-style market than in Hong Kong as part of its up to $30bn dual listing, in a major endorsement of the year-old mainland exchange, Reuters reported.
The financial technology firm backed by Chinese e-commerce titan Alibaba plans to do a simultaneous listing in Hong Kong and Shanghai, in what could be the world’s largest initial public offering and come as soon as October.
Ant, already the world’s most valuable unicorn did not disclose the size, timetable or other key details of the offering in its preliminary prospectus filed last week.
BTS label Big Hit Entertainment IPO to raise up to $811m.
Big Hit Entertainment, the management label of hugely popular South Korean K-Pop group BTS, plans to raise up to $811m in its planned IPO.
The IPO is one of the most highly-anticipated offerings in South Korea this year as retail investors bet heavily in the local stock market.
Big Hit plans to offer about 7.1m newly-issued shares at an indicative price range of $88.5-$114 per share.
Xi'An Manareco New Materials’s IPO debuts on SSE STAR Market.
Xi'An Manareco New Materials begins trading on the Shanghai STAR Market, at a public offering price of $16.5 per share, raising $293m. Its initial listing shares account for 25% of total outstanding shares. The company's initial price-to-earning ratio stands at 56.6.
Haitong Securities acted as the lead underwriter and sponsor for the IPO.
Earlier, Xi'An Manareco New Materials said its IPO was 3.4 times oversubscribed. Since 2019 to date, A-shares IPOs achieved median oversubscription of 2.4 times and the highest at 8.4 times.
3one4 Capital launches $100m early stage Indian fund. (FS)
3one4 Capital, a venture capital firm in India, today announced a $100m fund as the young investment firm looks to back more early-stage startups in the world’s second largest internet market.
The new fund, third for the five-year-old Bangalore-headquartered investment firm, has already secured $40m from new and existing investors. 3one4 Capital, which closed its previous fund late last year, now manages over $210m capital.
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