VMware, a leading innovator in enterprise software, closed its $2.1bn acquisition of Carbon Black, a leader in cloud-native endpoint protection. The deal was announced in August 2019.
"The security industry is broken and ineffective with too many fragmented solutions and no cohesive platform architecture. By bringing Carbon Black into the VMware family, we are now taking a huge step forward in security and delivering an enterprise-grade platform to administer and protect workloads, applications and networks. With this acquisition, VMware will also take a significant leadership position in security for the new age of modern applications delivered from any cloud to any device." Pat Gelsinger, CEO, VMware.
Morgan Stanley and Goodwin Procter advised Carbon Black. Latham & Watkins advised Morgan Stanley. JP Morgan and Morrison & Foerster advised VMWare.
Pernod Ricard, which produces and markets alcoholic beverages, closed its $223m acquisition of Castle Brands, which wholesales alcohol beverages. Under the terms of the merger agreement, which has been unanimously approved by the Castle Brands board of directors, Castle Brands shareholders received $1.27 in cash for each outstanding share of Castle Brands common stock they owned.
"Through this acquisition, we welcome this great brand portfolio, in particular, Jefferson's bourbon whiskey, to the Pernod Ricard family. Bourbon is a key category in the US, which is our single most important market. This deal aligns well with our consumer-centric strategy to offer our consumers the broadest line-up of high-quality premium brands. As with our American whiskeys Smooth Ambler, Rabbit Hole, and TX, we would provide Jefferson's a strong route to market and secure its long-term development, while remaining true to its authentic and innovative character." Alexandre Ricard, Chairman and Chief Executive Officer of Pernod Ricard.
Houlihan Lokey, Perella Weinberg Partners, Holland & Knight, Sullivan & Cromwell and Sard Verbinnen & Co advised Castle Brands. Bank of America Merrill Lynch and Debevoise & Plimpton advised Pernod Ricard.
Liberty Latin America, a leading telecommunications company with operations in Chile, Puerto Rico, the Caribbean and other parts of Latin America, agreed to acquire AT&T's operations in Puerto Rico and the US Virgin Islands for $1.95bn.
"This strategic and complementary acquisition is an exciting and unique opportunity to expand our business in one of our best markets. This acquisition is at an attractive valuation, in the mid-6s in terms of EV to OCF1 excluding synergies, and consistent with our disciplined approach towards M&A. With this combination, we will achieve: in-market consolidation with significant associated synergies, expand our product portfolio with the leading post-paid mobile network, add a predominantly subscription-based business, increase our distribution channels on the island, increase our B2B presence and materially increase our US dollar revenue weighting at LLA." Balan Nair, President and CEO of Liberty Latin America.
Credit Suisse and LionTree Advisors are advising Liberty Latin America.
Cannabis Companies MedMen and PharmaCann terminated their all-stock transaction valued at $682m. The deal was announced in October 2018.
"The cannabis sector has evolved tremendously since we first announced the PharmaCann transaction and based on the current environment and future opportunities that exist for our business, we believe it is now in the best interest of our shareholders to deepen, rather than widen, our company's reach," MedMen Chief Executive Adam Bierman.
Thoma Bravo, a leading software-focused private equity investment firm, agreed to acquire IDS, a leading provider of asset finance software solutions, from its current owner, SV Investment Partners. Financial terms were not disclosed.
"Thoma Bravo provides the resources and operational expertise needed to continue our cloud momentum, accelerate our product vision and support our ability to better serve a global customer base." David Hamilton, CEO of IDS.
Bank of America Merrill Lynch and Wilson Sonsini Goodrich & Rosati are advising IDS. Kirkland & Ellis and Hiltzik Strategies are advising Thoma Bravo.
Värde Partners, a $14bn global alternative investment firm, and Agam Capital, a New Jersey-based insurance solutions provider, agreed to form a joint venture to pursue the acquisition, reinsurance and management of life and retirement businesses globally. Financial terms were not disclosed.
"Given the current landscape of historically low-interest rates and fundamental regulatory and accounting changes, we believe the opportunity across the $23tn life insurance industry is huge. Life insurance companies are increasingly seeking risk mitigation solutions for legacy blocks of liabilities with multi-dimensional risks. This is particularly true for complex annuity products, such as those with high guarantees or exposure to certain market risks, which typically attract a higher capital charge. We are excited to expand Värde's financial services footprint into insurance, and partner with Agam to provide alternative solutions to the industry." Elena Lieskovska, Partner and Head of European Financial Services at Värde Partners.
Tailwater Capital invested $500m in Goodnight Midstream, a leading produced water midstream infrastructure company. Goodnight is a pioneer in the produced water midstream sector, which is expected to require multi-billion dollar investments to accommodate projected volume growth in Goodnight’s basins of operation.
“We are thrilled to have the opportunity to support the next phase of Goodnight’s growth. With favorable market dynamics driving further investment in the produced water midstream sector, and the Company’s numerous customer contract wins, our team at Tailwater has strong conviction in Goodnight’s industry leadership and continued success.” Edward Herring, Tailwater Capital Co-Founder and Managing Partner.
Global Impact, a leader in the global philanthropy and social impact marketplace, agreed to acquire and merge with Geneva Global, a certified B Corporation that provides advice and services to help philanthropists, charitable organizations and corporations maximize their social impact. Financial terms were not disclosed.
"Geneva Global is pleased to be partnering with Global Impact to create a single organization that provides an end-to-end solution for individuals and organizations that are looking to strategically maximize their social impact," Doug Balfour, Geneva Global's CEO.
AMG Advanced Metallurgical Group, a leading international supplier of titanium master alloys and titanium aluminides to the aerospace industry, agreed to acquire International Specialty Alloys, a producer of titanium master alloys and other binary alloys for the aerospace market, from Kennametal, a supplier of tooling and industrial materials. Financial terms were not disclosed.
"The acquisition of ISA provides an excellent opportunity for AMG Titanium Alloys and Coatings to increase its market position in these key products for the aerospace market in North America and Europe." Guido Loeber, President of AMG Technologies.
WellSky, a leading health and community care technology company, agreed to acquire ClearCare, a leading provider of software-as-a-service, from Battery Ventures. Financial terms were not disclosed.
"ClearCare adds an important new dimension to WellSky's comprehensive offerings, and this acquisition strengthens WellSky's ability to better connect care across the continuum," Bill Miller, CEO of WellSky.
General Atlantic, a leading global growth equity firm, invested in Marathon Health, a leading provider of employer health centers. Financial terms were not disclosed.
The partnership will position Marathon to scale its operations and footprint further to serve employees, spouses, and dependents across the United States. Along with the transaction, General Atlantic became the majority owner of Marathon, while Goldman Sachs’ Private Capital Investing Division has exited its approximately three-year partnership with the company.
“Over the past 14 years, Marathon Health has acted as a trusted partner to patients, providers, and employers. We are appreciative of Goldman Sachs’ involvement as an investor for the past three years, and as we look ahead to our next phase of growth, we have the opportunity to expand into a broader population health platform, an area in which General Atlantic brings specific expertise. The General Atlantic team shares our vision of creating an engaged system of primary care that integrates multiple solutions to improve patient health outcomes while offering meaningful value to employers. We are thrilled to be entering this next chapter alongside General Atlantic” Jerry Ford, Marathon Health CEO.
NewRez and First Team Real Estate, two mortgage lenders, have agreed to form a new joint venture, Homeowners First Mortgage. Financial terms were not disclosed.
"First Team has clearly distinguished itself as the ideal resource for homebuyers in Southern California, with the experience and innovative approach to making buyers' dreams a reality," Randy VandenHouten, NewRez SVP, Joint Venture & Retail Lending.
MSX International, a leading technology-enabled business process outsourcing company supporting car manufacturers around the world, acquired Pacific Technology Solutions, a leading provider of eLearning, training development and performance improvement solutions to the automotive industry. Financial terms were not disclosed.
With the acquisition of PTS, MSX strengthens its Channel Management product portfolio with PTS's suite of software tools, proven e-learning and training management platforms. PTS maintains long-standing relationships with world-class automotive manufacturers, distributors and tier-one suppliers in the US, helping them reduce overhead costs, deliver high return on investment and increase customer satisfaction.
"We are very excited to welcome the talented PTS team to MSX International. Bringing PTS into the MSX family complements our digitalization strategy and significantly enhances our existing capabilities across the e-learning and training segment in North America. Jointly, we will create a unique value proposition with scalable solutions that provide added value to our customers by accelerating their operational performance." Patrick Katenkamp MSX International CEO.
Zelda Therapeutics, an Australian-based biopharmaceutical company developing proprietary cannabinoid formulations to treat a variety of medical conditions, agreed to merge with Ilera Therapeutics, a privately held medicinal cannabis and cannabinoid science company based in the United States. Financial terms were not disclosed.
The merger brings together long-term supply and distribution relationships with pharmaceutical-grade manufacturers in Europe (HAPA pharm BV via Zelda) and the USA (Ilera Healthcare and Ilera Holistic via Ilera) ensuring access to large scale quantities of pharmaceutical-grade medicinal cannabis to supply large and growing patient populations.
"This is a transformational opportunity for both companies. The merger will create one of the world's leading medicinal cannabis companies with a rich pipeline of clinically validated products under development and unique access to the world's largest and fastest-growing cannabis markets. As markets for medicinal cannabis become increasingly regulated, our strategy of undertaking robust clinical trials to validate and differentiate our products is recognized as being at the forefront in this sector. The merger will enable the combined company to accelerate plans to disrupt the medicinal cannabis and pharmaceutical markets globally." Harry Karelis Zelda Chairman.
IFS, the global enterprise applications company, agreed to acquire Astea International, which develops and delivers enterprise software for customers around the world who manufacture and distribute goods, build and maintain assets, and manage service-focused operations. Financial terms were not disclosed.
IFS has provided customers in its focus industries solutions that can support a massive range of service management work, from highly complex field service operations, through to transactional field routing functions. By adding Astea to its already robust platform, the combined company will be in an even stronger position to take advantage of major industry trends like servitization to drive more value for customers in all focus industries.
"We've long admired IFS's growth and global scale and know that they share our customer-centric approach to Field Service Management. I am grateful for the commitment our employees have demonstrated, which has enabled today's transformative announcement. As I've gotten to know Darren and his management team during this process, I can say I'm looking forward to working with the entire IFS organization to offer our customers the best Field Service Management solutions on the market." Zack Bergreen, Astea CEO and Founder.
Just Play looking to buy Jakks Pacific. (FS)
Just Play is looking to buy Jakks Pacific, an American company that designs and markets toys and consumer products, in a deal backed by Centerview Capital Partners. The deal would value Jakks Pacific at approximately $0.8 per share.
Biotoscana entered deal talks.
Biotoscana Investments, which develops, manufactures, and distributes pharmaceutical products, confirmed that its shareholders were in talks with investors about a sale.
"The company's shareholders are in talks with investors, but have not yet taken a decision on a transaction," Biotoscana said, adding there would be a mandatory offering to all shareholders if the company's control changed.
Continental looking to divest a stake in water unit.
Continental Resources, an American petroleum and natural gas exploration and production company based in Oklahoma City, is exploring a sale of a non-controlling stake in its water-infrastructure business that could value the unit at $1bn or more.
The company is working with an adviser to solicit interest in the unit, which helps gather and dispose of water used in drilling in North Dakota's Bakken shale and the Scoop and Stack fields in Oklahoma.
PayPal writes down $228m after Uber stock price fall.
Bloomberg reported that PayPal is set to report a $228m loss on investments before taxes in the third quarter, driven in large part by a bad bet on Uber Technologies just before it went public.
The San Jose, California-based payments company said the investment in Uber, for $500m at the initial public offering price, had declined 34%. Another investment, in Latin American online retailer MercadoLibre, had declined 10%, PayPal said.
KKR looking to raise $1.5bn for third special situations fund. (FS)
KKR & Co is seeking to raise $1.5bn for its third special situations fund. The fund, which was registered with regulators in June, will acquire distressed debt at a discount. KKR closed its first special situations fund after raising $2bn from investors in 2014. Its second closed with $3.35bn in 2016.
One Equity Partners closes Fund VII at $1.75bn. (FS)
One Equity Partners, a middle-market private equity firm, completed fundraising for One Equity Partners VII with $1.75bn in total capital commitments, bringing the firm's total assets under management to $6.5bn.
"We look forward to continue unlocking value for our investors, remaining focused on our middle market investment strategy, and building upon our long-term track record in global private equity investing." Dick Cashin, President of One Equity Partners.
Carlyle looking to capitalize on debt market opportunities. (FS)
Bloomberg reported that Carlyle Group's newest credit fund is looking to capitalize on an opening in the market by lending to midsize companies that are privately held or family-owned.
"Our focus is on borrowers and businesses that for one reason or another cannot access the traditional credit markets and they do not want private equity," Alex Popov, head of Carlyle Credit Opportunities.
Bessemer raises a fund for later-stage tech start-ups. (FS)
Venture capital firm Bessemer Ventures is raising a fund to invest in later-stage start-ups that want to remain private for longer, after high-profile flops by technology companies on the public markets this year.
Byron Deeter, a Bessemer partner, said the new fund brings total assets above $6bn, giving it the ability to fund "every round of a cloud company's existence," in case "late-stage investors pull out of the market or IPO windows shut."
DNV GL, the world's largest resource of independent power and renewables expert, agreed to sell KEMA Laboratories to CESI, world leader in testing, inspections and technical consulting services in the energy sector, for $154m. The transfer comprises KEMA and all the high-voltage and high-power testing and inspection activities performed by its personnel in its own laboratories in Arnhem, Prague and Chalfont.
"Following a thorough review of our strategy for our laboratories in 2018 we are glad we have found a very good new owner for the KEMA Laboratories. In DNV GL's energy business we will continue to focus and expand our business in advanced, often digital, advisory, testing and certification services that help our customers handle the exponential growth of wind, solar and storage and their integration into the power grids," Ditlev Engel, CEO of DNV GL – Energy.
De Brauw Blackstone Westbroek is advising CESI. Rothschild & Co is advising DNV GL.
Private equity firm Equitix agreed to acquire a 55% stake in Telecom Castilla, a national operator of broadcast services, from GED Capital. Financial terms were not disclosed.
"We are pleased to announce the sale of our stake in Telecom CLM after having been able to grow and diversify the company's business areas over these years. With this disinvestment, only two companies remain in the former infrastructure fund portfolio of Ahorro Corporation: Aseguramiento Tecnico de la Calida, that with more than 400k annual inspections is the main provider of technical inspections of vehicles in the Valencian Community; and Terminal de Graneles Agroalimentarios de Santander, the main argi-food bulk logistics operator in the Port of Santander, offering bulk unloading, storage and dispatch services," Victoriano Lopez-Pinto, GED Managing Partner.
Egmont, ING Bank and Perez-Llorca are advising GED Capital. DC Advisory, KPMG and Herbert Smith Freehills are advising Equitix.
Acciona, a Spanish conglomerate group dedicated to the development and management of infrastructure and renewable energy, raised its stake in Nordex, a European company that designs, sells and manufactures wind turbines, for €99m ($114m). Acciona's stake in Nordex will increase from 29.9% to 36.27%, above the 30% regulatory ceiling that automatically determines the legal obligation to make a public tender offer at the regulated price established by German law.
Acciona, the reference shareholder of Nordex, accepted the proposal in view of the company's solid growth prospects with the goal of strengthening its balance sheet in a challenging market environment. Acciona thus contributes to improving Nordex's solvency and reinforces its commitment to the long-term success of the company as an independent global turbine manufacturer.
Anath Capital Group, an investment company in London, agreed to acquire Stratton Street, the London-based fixed income specialist. Financial terms were not disclosed.
"We are very excited by the opportunities presented by this move. Anath invests using not only capital but also the collective management experience of their organization. Not only will we will benefit from access to their distribution, operational, legal and compliance capabilities, but the wider organization will benefit from economies of scale." Stratton Street's CIO and Partner, Andy Seaman.
Deutz, an internal combustion engine manufacturer, agreed to acquire Futavis, a development service provider for battery management hardware and software. Financial terms were not disclosed.
"Battery technology is a vitally important element of our E-Deutz strategy, which we will be further expanding with the Futavis acquisition. With Futavis adding to the strong systems expertise of our Deutz and Torqeedo development teams by contributing its knowledge of components for high-voltage batteries, battery management systems, and safety engineering, we are taking the next step towards CO2 free off-highway-mobility," Frank Hiller, CEO of Deutz.
Blackstone and Kirkbi looking to sell Armacell. (FS)
Blackstone Group and Kirkbi, a Danish family investor, launched the sale of German insulation foam maker Armacel. The deal could fetch as much as $1.6bn. Blackstone and Kirkbi acquired the firm in 2015 from Charterhouse Capital.
Rothschild & Co is advising on the sale.
SoftBank-owned Arm Holdings plans to go public by 2023. (FS)
SoftBank-owned Arm Holdings, a British multinational semiconductor and software design company, plans to return to the public markets by 2023, its chief executive said on Tuesday.
The firm's CEO Simon Segars said "a lot of things need to fall into place" before the company can return to the public markets. However, the 2023 goal date for a relisting set by Softbank chief Masayoshi Son remains unchanged.
Bourbon reports takeover interest.
French marine services group Bourbon Corporation, which has been in a court restructuring process after its business was impacted by volatile energy markets, said it had received a takeover offer for its assets.
"As part of the reorganization proceedings opened since Aug. 07, 2019 by the Marseilles Commercial Court to the benefit of Bourbon Corporation and its affiliate Bourbon Maritime, Court Administrators have received a takeover offer," Bourbon said in a statement on Wednesday.
Hays Travel to acquire Thomas Cook's UK stores.
Hays Travel, an independent travel agent chain headquartered in Sunderland, agreed to acquire Thomas Cook's UK stores, potentially saving as much as 2.5k jobs.
Thomas Cook, the world's oldest travel company whose shops have been a feature of British town centers for generations, collapsed last month, and its UK business went into liquidation.
Gunvor dropped plans to sell its refinery.
Gunvor Group, a global commodity trading company registered in Cyprus, canceled its plans to sell its Ingolstadt refinery in Germany and stall the sale of a stake in a Russian products terminal, due to a spike in profits. The company has posted a gross profit of $800m for the first three quarters of 2019 thanks to favorable market conditions and the overhaul of the firm that began last year.
Auto1 and private equity firms are interested in bidding for Scout24's cars unit. (FS)
Reuters reported that German classifieds group Scout24 attracted interest in its autos unit AutoScout24 from used-car dealing platform Auto1 as well as from several private equity firms. Scout24, yielding to pressure from activist investor Elliott, said in August it would explore a sale or spin-off of the unit.
"We are still undertaking a strategic analysis of what we will do with AutoScout24," a Scout24 spokesman said.
Telecom Italia considers a spin-off or IPO of data center business.
Telecom Italia, an Italian telecommunications company headquartered in Rome, is considering a possible spin-off and listing of its data center business. The deal is expected to be announced sometime in 2020.
Thyssenkrupp expected to open data room in elevator auction. (FS)
Reuters reported that Thyssenkrupp plans to give potential bidders access to the data room of its elevator division in the coming days. Finland's Kone, Hitachi, Barclays, Abu Dhabi Investment Authority, Cinven, Advent, CVC, Carlyle and Blackstone are interested in bidding for the unit. The bids are due at the end of October.
Helaba and Deka consider merging.
Reuters reported that two German public-sector banks, Helaba and Deka, are interested in signing a merger agreement in a sign of consolidation of the country's fragmented banking sector. The Frankfurt-based banks decided that the lenders would enter talks "with a view to examining closer cooperation, up to and including a merger."
The plans, which could lead to creation of Germany's biggest public-sector bank based on assets, come at a time when banks are facing pressure to consolidate because low-interest rates and competition from listed or cooperative banks as well as online start-ups are squeezing their margins.
MOL in talks to buy Chevron's $2bn stake in Azeri oilfield.
MOL, a Hungarian multinational oil and gas company headquartered in Budapest, is in talks to acquire Chevron's stake in a giant oilfield in Azerbaijan for more than $2bn. MOL was initially interested in buying ExxonMobile's stake as welll, but decided to bid only for Chevron's 9.57%.
Elliott Management, the top shareholder in Japan's Unizo Holdings, pressed the hotel chain to explain its sudden withdrawal of support for a $1.3bn offer made by SoftBank's Fortress Investment Group.
"We are highly concerned about the lack of disclosure and the risk of conflicts of interest that have appeared in Unizo's handling to date of the tender offer bids," Elliott, which owns 13.14% of Unizo, said in a letter to the board which it released to the press.
Benedi Consulting, KPMG, ZECOO Partners, Daiwa Securities, Mitsubishi UFJ Morgan Stanley Securities, Davis Polk & Wardwell, Nishimura & Asahi, TMI Associates, Horwath HTL Asia Pacific, Hospitality Capital Management, and Ernst & Young are advising Unizo.
The merger between two Indian banks, Lakshmi Vilas and Indiabulls, was blocked by the central bank of India. The country's banking industry, which is going through a tumultuous time, plagued by issues including high levels of bad loans, took a big hit last year after a major infrastructure conglomerate collapsed, straining liquidity in the sector.
"RBI vide their letter dated Oct. 09, 2019, informed the application for voluntary amalgamation of Indiabulls Housing Finance and Indiabulls Commercial Credit with The Lakshmi Vilas Bank Limited cannot be approved," LVB said in a statement to exchanges.
Benlai, a Chinese fresh produce e-commerce platform, raised $200m in a financing round. Mingde Holdings, a shareholder in delivery giant SF Express, led the round, joined by state-backed Beishang Capital as well as returning investors CDH Investments and Gaorong Capital.
Benlai expects the new tie-up with SF Express to bring more support in logistics and the supply chain, a crucial factor for fresh produce platforms. The firm will use the proceeds to further boost the development of the group's online-to-offline and business-to-consumer businesses.
Austal and Cerberus consider buying the biggest shipyard in the Philippines. (FS)
Bloomberg reported that a consortium of Australian shipbuilder Austal and US private equity firm Cerberus Capital Management could make an offer in the coming weeks for Hanjin Heavy Industries & Construction's cash-strapped shipyard in the Philippines.
The companies, which have until Oct. 31 to submit a bid, are in exclusive talks with creditors and finishing up due diligence. The shipyard in Zambales province to the northwest of Manila is the country's largest, covering 300 hectares.
DBS considers bidding for Bank Permata Indonesia.
Bloomberg reported that DBS Group, a multinational banking and financial services corporation headquartered in Singapore, is considering joining the race to acquire PT Bank Permata, the Indonesian lender in which Standard Chartered holds a stake.
DBS is working with an adviser on the possibility of bidding for Permata, which has a market value of about $2.4bn.
Etika Holdings looing to buy Advend Systems.
Singapore-based Dymon Asia Private Equity is said to have received interest from Malaysia's Etika Holdings, which manufactures, distributes and markets world-renowned brands such as Pepsi, Mirinda, 7UP, Revive Isotonic, Gatorade, Lipton, Tropicana, MUG and Mountain Dew, to acquire a stake in its portfolio firm Advend Systems, a vending machine company formerly known as Atlas Vending.
JERA to buy a 49% stake in Taiwan's offshore wind project. (FS)
JERA, Japan's power generator, agreed to buy a 49% stake in the Formosa 2 offshore wind project in Taiwan from Macquarie Capital. Financial terms were not disclosed.
The latest investment on the 376 MW project, due to start operation at the end of 2021, will boost JERA's renewable energy capacity through its equity holdings to 1.2GW, a step closer to its 2025 renewable target of 5GW.
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