Baring Private Equity Asia agreed to acquire Virtusa, a global provider of digital strategy, digital engineering, and IT services and solutions, for $2bn.
“This transaction represents a strategic evolution for Virtusa and a unique opportunity to take our business to new heights at a time of accelerating digital adoption. The benefits of this transaction extend to all Virtusa stakeholders, including our shareholders, who will receive immediate and substantial cash value, as well as to our team members, since BPEA has an exemplary track record of valuing innovative and talented global teams and supporting and empowering the businesses in which it invests. With a strong partner in BPEA, we will solidify our position at the forefront of digital transformation for years to come," Kris Canekeratne, Virtusa Chairman and CEO.
Virtusa is advised by Citigroup, JP Morgan, Goodwin Procter, ICR and Joele Frank. Baring is advised by Bank of America Merrill Lynch, Ropes & Gray and Newgate Communications.
Radiology Partners, a physician-led and physician-owned radiology practice, agreed to acquire Radiology Solutions division of MEDNAX, a national health solutions partner, for $885m.
“We believe the benefits of increased scale, paired with local practice autonomy and physician leadership, will allow us to continue to advance patient care, improve clinical value and ultimately transform radiology. The addition of these leading practices, as well as the nation’s premier tech-enabled teleradiology platform, represents an amazing opportunity to accelerate our progress on this important mission,” Rich Whitney, Radiology Partners CEO.
Radiology Partners is advised by Goldman Sachs, Kirkland & Ellis and Jarrard Phillips Cate & Hancock. MEDNAX is advised by Barclays and DLA Piper.
HIG Capital-backed Eze Castle Integration, a provider of end-to-end technology solutions to financial and professional services, completed the acquisition of Alphaserve Technologies, a provider of digital transformation services. Financial terms were not disclosed.
"Eze Castle's acquisition of Alphaserve furthers our ability to transform our clients' businesses, extends our global reach and deepens our talent poo. We have been actively seeking opportunities that not only complement and expand our offering but also align with our corporate culture," John Cahaly, Eze Castle Integration CEO.
Alphaserve Technologies was advised by Leonis Partners. Eze Castle Integration was advised by King & Spalding, Morais Leitao Galvao Teles Soares da Silva, S&R Associates and Sycip Salazar Hernandez & Gatmaitan.
Basalt-backed Black Bear Transmission, an oil and gas company, completed the acquisition of the natural gas transmission business of Third Coast Midstream, a full-service midstream company. Financial terms were not disclosed.
“We are very pleased to finalize this purchase of additional pipelines from Third Coast Midstream. These assets are a perfect fit with Black Bear because they strengthen our footprint of high-quality, demand-driven gas pipelines that are well-positioned to capture increasing natural gas demand in the Southeast United States. A team of seasoned operations and business development personnel will be coming to Black Bear with the assets, allowing us to maintain our focus on providing safe and reliable service to our customers," Rene Casadaban, Black Bear Transmission CEO.
Black Bear was advised by Barclays and Vinson & Elkins. Third Coast was advised by BMO Capital Markets and Orrick Herrington & Sutcliffe.
Pelican Energy Partners, a private equity firm, agreed to acquire surface pressure control unit of Baker Hughes, an oilfield products and services provider. Financial terms were not disclosed.
"This carveout transaction will enable the business to be a more focused, nimble and responsive company. We are glad to be supporting this management team that strongly believes that as a more entrepreneurial company, they will be better positioned to compete and win in these challenging markets," Mike Scott, Pelican Energy Managing Partner.
Pelican Energy is advised by Baker Botts. Baker Hughes is advised by Bank of America Merrill Lynch and McDermott Will & Emery.
BP, an oil and petrochemicals company, agreed to acquire a 50% stake in Empire Wind and Beacon Wind assets of Equinor, a Norwegian energy company, for $1.1bn.
"This is an important early step in the delivery of our new strategy and our pivot to truly becoming an integrated energy company. Offshore wind is growing at around 20% a year globally and is recognized as being a core part of meeting the world’s need to limit emissions. Equinor is a recognized sector leader and this partnership builds on a long history between our two companies. It will play a vital role in allowing us to deliver our aim of rapidly scaling up our renewable energy capacity, and in doing so help deliver the energy the world wants and needs," Bernard Looney, BPP Group Chief Executive.
Zep, a producer and distributor of chemical products, agreed to acquire EcoClear, a deep-cleaning solution provider that specializes in sanitizing and disinfecting food processing and refrigerated facilities. Financial terms were not disclosed.
“AFCO|Zep is honored to bring Brian Hindt and the EcoClear team into the AFCO Food & Beverage Division. Over the last few months during the worldwide pandemic, EcoClear’s staff and service-oriented approach have successfully provided immediate solutions in response to Covid-19 and other levels of food defense challenges. By integrating EcoClear into Zep’s portfolio, we add another level of solutions-based offerings for our valued customers,” Bob Klinetob, AFCO Senior Vice President & General Manager.
Francisco Partners-backed Dynamo Software, the provider of cloud software for the alternative investment industry, completed the acquisition of Imagineer Technology, a software vendor. Financial terms were not disclosed.
“By adding the Imagineer team and technology to the Dynamo family, we not only expand our platform’s offering, but increase our flexibility and speed of deployment. Imagineer is a perfect partner as we solidify our leadership position in the hedge fund sector. We already are working closely with Imagineer’s management team to explore ways to unlock immediate value for our hedge fund clients,” Hank Boughner, Dynamo CEO.
Mondee Holdings, a travel technology group, agreed to acquire Rocketrip, a behavior change technology solution for global business travel programs. Financial terms were not disclosed.
"Aligning the needs of travelers with the company is no longer an option but a necessity in this new travel environment. By leveraging Mondee's technology experience and global infrastructure, we will be able to scale Rocketrip's reach like never before. The travel ecosystem and needs of travel managers are evolving faster than ever, and this will ensure we can continue to deliver innovative functionality to meet those needs," Dan Ruch, Rocketrip Founder and CEO.
ECI Software Solutions, a provider of cloud-based business management solutions, agreed to acquire Shoptech Industrial Software, a provider of ERP software for job shops and made-to-order manufacturers. Financial terms were not disclosed.
“Acquiring Shoptech is exciting for ECI because we are both dedicated to serving the needs of our manufacturing customers. Together, our team is even better, and we’re looking forward to sharing best practices and increasing innovation as we continue to do what we do best: support our customers as they grow their own businesses,” Ron Books, ECI CEO.
ByteDance may miss US deadline for TikTok deal.
ByteDance may miss the deadline imposed by the Trump administration for the sale of TikTok’s US assets as new Chinese regulations have complicated deal talks with bidders Microsoft and Oracle, Reuters reported.
The company needs beyond the US executive order ban on September 20 to reach an agreement with either of the parties due to the Chinese regulatory review.
JC Penney reached $1.75bn rescue deal with creditors and landlords. (FS)
JC Penney, an American department store chain, reached a tentative deal with its landlords and creditors to save the troubled store from the one of the biggest downfalls caused by the pandemic. The deal is valued at $1.75bn.
Mall owners Simon Property Group and Brookfield Property Partners joined forces to acquire retail operations of the company and are currently finalizing the agreement.
Kirkland & Ellis that is representing JC Penney in this matter, confirmed the deal during the court hearing.
Kansas City Southern rejects $20bn bid from the investor group. (FS)
Kansas City Southern, a transportation holding company, has rejected a roughly $20bn acquisition offer from a group of investors, arguing that the bid undervalues the railroad operator, WSJreported.
Global Infrastructure Partners and the infrastructure arm of private-equity giant Blackstone Group had offered Kansas City Southern $208 a share. Kansas City rejected that offer after earlier brushing back a bid that was below $200 a share.
GPA plans to spin off Assai wholesale unit.
Brazilian food retailer GPA is planning to spin off its Assai wholesale unit via an IPO. The new company would be listed on the Novo Mercado segment of Brazil’s Sao Paulo stock exchange, which requires elevated corporate governance standards. It would also issue American Depositary Receipts in New York.
GPA plans to list Assai by March 2021, but no share offering is planned. GPA intends to transfer Assai shares to its shareholders, including parent company Casino Guichard Perrachon, after the listing, Reutersreported.
Raizen in talks to acquire Biosev from Louis Dreyfus.
Raizen Energia, the third-largest Brazilian energy company, is in talks to acquire Biosev, which processes sugarcane to manufacture sugar, ethanol, and to generate electric energy, from Louis Dreyfus, a global merchant firm that is involved in agriculture, food processing, international shipping, and finance. The company eyes mills that would help it boost efficiencies and defend margins.
The deal would see Louis Dreyfus swap its Biosev in return for a minority stake in Raizen, a joint venture between Royal Dutch Shell and Cosan, Bloombergreported. Biosev shares rose as much as 25% in Sao Paulo on the news.
CVC and CPPIB explore the sale or IPO of Petco. (FS)
CVC Capital Partners and Canada Pension Plan Investment Board are exploring a sale or initial public offering of Petco Animal Supplies, an American pet retailer, that could value it at $6bn, including debt, Reutersreported.
CVC and CPPIB are interviewing potential advisers while reviewing strategic options, with formal efforts around a sale or IPO not expected to kick off until next year.
Pin Oak Midstream completed the acquisition of LMM's Jackson Center assets.
Pin Oak Midstream, an Appalachian Basin midstream company, completed the acquisition of Jackson Center assets of Laurel Mountain Midstream, which gathers and processes natural gas resources within Pennsylvania. Financial terms were not disclosed.
"These assets in Mercer, Lawrence, and Crawford counties of Pennsylvania are a great fit to our expanding footprint and further bolster the company's midstream assets in the oil and wet gas windows of the Utica play in northwestern Pennsylvania. The Jackson Center assets currently gather conventional and unconventional gas from third party operators in the area and will allow Pin Oak Energy to connect and produce Utica wells currently waiting on pipelines. Additionally, Pin Oak remains committed to our ongoing efforts of executing our growth strategy through acquisitions even during these difficult times," Brent Breon, Pin Oak Midstream President.
Starboard Value announces pricing of upsized $360m IPO.
Starboard Value Acquisition, a blank check company, announced the pricing of its initial public offering of 36m units upsized from 30m units, at a price of $10 per unit.
Each unit consists of one share of Class A common stock, one-sixth of one redeemable warrant, and a contingent right to receive at least one-sixth of one redeemable warrant.
UBS, Stifel, Nicolaus and Cowen are acting as joint book-running managers for the offering.
Neuberger Berman closes its first fund with over $300m in commitments. (FS)
Neuberger Berman, a private, independent, employee-owned investment management firm, has closed the NB Specialty Finance Fund, an alternative credit offering, with over $300m of committed capital from a global investor base that includes insurance companies, pension funds, asset managers, RIAs, and family offices.
“As private credit offerings continue to innovate, we strive to be at the forefront of these rapidly evolving products. The group’s ability to provide multiple financing solutions along with the firm’s large scale infrastructure has been incredibly helpful in this marketplace,” Peter Sterling, Neuberger Berman Head of Specialty Finance.
Panther Metals to acquire more mining claims in Canada.
Panther Metals, an exploration company, agreed to acquire an additional 28 mining claims to expand its Big Bear gold project in Ontario, Canada.
"We are excited to increase the size of our footprint on the Schreiber-Hemlo Greenstone belt with the staking of a further 28 mining claims adjoining and supplementing our Big Bear Gold Project. This decision follows directly from the ongoing interpretation and assessment of our airborne geophysical survey data, soil geochemistry results and fieldwork programmes. We look forward to communicating our findings to date soon," Darren Hazelwood, Panther Metals Chief Executive Officer.
Worldline, a French payment and transactional services company, in EC filing, disclosed that it would offer concessions to EU to push forward with its $9.2bn acquisition of a provider of secure electronic transactions technology Ingenico.
The European Commission did not disclose the updated terms of the deal but extended decision deadline to September 30. Previously, the EC said it would launch a full-blown four-month investigation into the deal unless concessions are offered.
Ingenico is advised by Goldman Sachs, Rothschild & Co, and Bredin Prat. Worldline is advised by BNP Paribas, Bank of America Merrill Lynch, Cardinal Partners, Morgan Stanley, Cleary Gottlieb Steen & Hamilton, Latham & Watkins, FinElk, and Kairos Consulting.
EQT agreed to acquire Idealista, an online real estate marketplace, from Apax Partners for $1.5bn. The transaction is expected to close subject to customary approvals in December 2020.
“EQT’s online classifieds and real estate expertise, local presence in Spain and Italy, and extensive network of advisors will be of great value for us and key to our future success. Idealista and EQT share a similar culture and passion for growth, a key decision factor for me and my team to partner with them,” Jesús Encinar, Idealista CEO.
EQT is advised by Liberty Corporate Finance, PricewaterhouseCoopers, Allen & Overy and Freshfields Bruckhaus Deringer. Idealista is advised by Dentons. Apax Partners is advised by Evercore, Simpson Thacher & Bartlett and Greenbrook.
Silver Lake completed the acquisition of Silae, a specialist provider of cloud-based payroll and HR software for the French market. Financial terms were not disclosed.
"Investing in high-growth, innovative, founder-led technology businesses is at the core of Silver Lake’s DNA and it is a privilege to partner with the current team. As the company enters a new phase of value creation, we look forward to continuing working with them and we intend to invest in the company’s continued success to further strengthen its technology platform, as well as its products and services offered to its current and future clients,” Christian Lucas, Silver Lake Co-Head of EMEA.
Silver Lake was advised by Skadden Arps Slate Meagher & Flom and Edelman.
insightsoftware, a global provider of enterprise software solutions, completed the acquisition of Viareport, a financial software provider that delivers cloud-based financial consolidation, lease accounting, reporting, and forecasting solutions. Financial terms were not disclosed.
"The addition of Viareport directly addresses these challenges and deepens insightsoftware's extensive financial software portfolio, bringing powerful capabilities to our customers in Europe that enable them to simplify and streamline the process of meeting IFRS and other national regulatory demands," Mike Lipps, insightsoftware CEO.
Viareport was advised by Altiore Avocats and Reinhart Marville Torre.
Astute, a customer engagement and voice of the customer platform, agreed to acquire Socialbakers, a unified social media marketing platform. Financial terms were not disclosed.
“Combining the market-leading social media marketing capabilities of Socialbakers with Astute’s engagement suite not only helps our customers tackle this challenge more effectively, but also marks a major milestone along Astute’s journey towards becoming the end-to-end customer engagement platform that the Chief Customer Officer needs to succeed,” Mark Zablan, Astute CEO.
Chinese firms consider acquiring Philips' domestic appliances unit for $3.6bn.
Joyoung, a Chinese manufacturer of home-use soybean milk machines, and Gree Electric, a Chinese major appliance manufacturer, are considering acquiring the domestic appliances business of Dutch conglomerate Philips' in a deal worth up to $3.6bn, Reuters reported. Philips' advisers have sent out teasers to potential buyers.
Chinese white goods producers Haier and Midea have also shown interest in the business. Their interest comes even as Chinese white goods companies have faced heightened regulatory scrutiny of their acquisitions in Western nations.
Italy to use vetting power over Borsa Italiana.
Italy is ready to use its vetting power over strategic assets to ensure Borsa Italiana, which controls the key bond-trading platform MTS, is not sold to an unacceptable bidder outside the eurozone, Roberto Gualtieri, Economy Minister.
Serie A clears way for private equity investment. (FS)
Italy's Serie A soccer clubs agreed to set up a new media company to handle the broadcast rights for top-flight Italian soccer and are deciding between CVC Capital Partners and Bain Capital seeking a 10% stake in the business, Reutersreported.
The 10% stake in the company, which will control the league's broadcasting rights business for the next 10 years, is valued at up to $1.9bn.
Nestle eyes more significant acquisitions.
Nestle will make more acquisitions, also big ones. Nestle did not want to deleverage the company or reduce its scale so acquisitions were clearly on the agenda if they were a strategic and cultural fit and offered a proper financial return.
"We have been very disciplined, but that has not prevented us from doing sizeable acquisitions - Starbucks, Atrium, now Aimmune - and there will be probably more in the future as well because we really want to go there," Francois-Xavier Roger, Nestle CFO.
Reliance Industries considers selling its retail arm to Amazon, ADIA and PIF. (FS)
Reliance Industries, an Indian multinational conglomerate company, is offering to sell a 40% stake in its retail arm to Amazon for $20bn, Reutersreported. Amazon has held talks about investing in Reliance Retail and expressed interest in negotiating potential deals but has made no decision.
The other potential investors, including the Abu Dhabi Investment Authority and Saudi Arabia's Public Investment Fund, are also in talks to acquire stakes in Reliance Retail. ADIA considers investing $750m at a valuation of roughly $57bn, while the PIF could funnel as much as $1.5bn into the company.
3Peak eyes to raise $339m in STAR Market IPO.
3Peak, a fabless semiconductor company, is looking to raise $339m in an IPO on Shanghai's Nasdaq-style STAR Market. The company is offering 20m common shares at $16.93 apiece. The shares have been oversubscribed 4.608 times.
3Peak will allocate the proceeds for analog products and tools, its research center, and operating fund.
Sinopec Capital launches debut fund. (FS)
Sinopec Capital, an investment arm of Sinopec Group, a Chinese oil and gas enterprise, launches a debut fund to invest $730m in emerging industries, DealStreetAsiareported.
Sinopec Capital has finalised three limited partners for the fund, including China's National Manufacturing Transformation and Upgrade Fund, Haihe River Industry Fund and Foshan City Nanhai Financial Fi-Tech Zone Investment, a state-owned company involved in investment and property management.
Hang Lung Properties acquires property from US consulate in Hong Kong for $331m. (RE)
Hang Lung Properties, a property developer in Hong Kong, completed the acquisition of a property used as staff accommodation from US consulate in Hong Kong for $331m via a public tender.
Hang Lung Properties plans to redevelop the property as luxurious detached homes targeted for completion by 2024. "The purchase is a vote of confidence in Hong Kong's future," Hang Lung.
Connect the World of Dealmakers
Expand your network of fellow Dealmakers by inviting your colleagues and coworkers.