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AMERICAS
Xylem, a global water technology company, agreed to acquire Evoqua, a provider of mission-critical water treatment solutions and services, for $7.5bn.
"Solving the world's water challenges has never been more urgent. Our acquisition of Evoqua creates a transformative global platform to address water scarcity, affordability and resilience at even greater scale. The combined company delivers an unparalleled portfolio of advanced technologies, integrated services and application expertise across the water cycle," Patrick Decker, Xylem President and CEO.
AstraZeneca commenced a tender offer to purchase all outstanding shares of CinCor Pharma, for $26 per share in cash at closing, plus a non-tradable contingent value right of $10 per share in cash payable upon a specified regulatory submission for a baxdrostat product.
On January 9, 2023, AstraZeneca announced that it had entered into a definitive agreement to acquire CinCor for $1.8bn. Following the successful closing of the tender offer, CinCor will become a subsidiary of AstraZeneca.
Battery Ventures, a global, technology-focused investment firm, agreed to invest in Ascendant, an international provider of cross-border business payment solutions and a financial technology company. Financial terms were not disclosed.
"This announcement signifies a tremendous milestone for Ascendant as we continue to grow, innovate and achieve our vision as a global leader in international payments. Our partnership with Battery Ventures, one of the most high-profile investment firms in the industry with an extensive software and FinTech portfolio, will draw upon their capital and expertise to accelerate our ambitious growth plans and make the international payment process more efficient," Jason Mugford, Ascendant CEO.
Abacus Group, a provider of hosted IT services and solutions to alternative investment firms, completed the acquisition of Gotham Security, a cybersecurity consulting company, and GoVanguard, a cybersecurity consulting company. Financial terms were not disclosed.
The deal will additional cybersecurity consulting expertise to the group's existing services portfolio, including a comprehensive set of information security capabilities to provide clients with real-world, actionable insight, including penetration testing, red teaming, tabletop exercises, risk and compliance gap assessments, and threat hunting services.
Abacus Group was advised by Lowenstein Sandler. GoVanguard was advised by Szaferman Lakind Blumstein & Blader.
RINA, a certification company, agreed to acquire Patrick Engineering, a national engineering & design, construction, management services, and technology firm. Financial terms were not disclosed.
"The acquisition of Patrick Engineering and the combined expertise of the new organization represents a unique opportunity for expansion and growth in the thriving North American Infrastructure market. It establishes an excellent platform not only in this sector, but also to grow all RINA's businesses to make the US one of RINA's main hubs. RINA will gain leverage to export its highly specialized competencies in materials, lab testing and innovative technology," Ugo Salerno, RINA Chairman and CEO.
RINA is advised by AMA International, PricewaterhouseCoopers and Mayer Brown.
Vehlo, a software and financial solutions provider, agreed to acquire Rapid Recon, a software company, and Velocity Automotive, a software solutions provider. Financial terms were not disclosed.
"The addition of Rapid Recon and Velocity to our portfolio allows us to connect the service department to its best customer: the pre-owned department. Rapid Recon adds the reconditioning solution that invented the software category, while Velocity Automotive gives us a digital merchandising solution that connects those reconditioning investments to the sales process. These companies also align with our mission to build a suite of tools that deliver a clear return on investment for our dealers, with features that their customers love, and powered by passionate employees, " Michelle Fische, Vehlo CEO.
Velocity Automotive is advised by Cowen & Company. Rapid Recon is advised by Presidio Technology Partners.
Live Ventures, a diversified holding company, completed the acquisition of Flooring Liquidators, a retailer and installer of floors, carpets, and countertops to consumers, builders and contractors in California and Nevada, for $84m.
"We are thrilled to add Flooring Liquidators to our family of companies. And we welcome all employees of Flooring Liquidators to the Live Ventures family. This is the kind of company we love—run by a visionary founder, staffed by talented people, and providing products and services that individuals and businesses want and need. It fits perfectly within our existing operation and our 'buy-build-hold' strategy. We expect the acquisition to increase our overall revenues by approximately 50%, or about $125m per year, and grow in the coming years," Jon Isaac, Live Ventures President and CEO.
Arthur J. Gallagher-backed Risk Placement Services, an insurance company, completed the acquisition of Remco Insurance Agencies, a full-service insurance agency. Financial terms were not disclosed.
"Remco brings us strong market expertise and complements our existing footprint in Texas. I am delighted to welcome the Remco team to our growing, global company," J. Patrick Gallagher, Jr., Arthur J. Gallagher & Co. Chairman, President and CEO.
Gemspring Capital, a middle market private equity firm, completed the investment in Chicago Switchboard, an electrical/electronic manufacturing company. Financial terms were not disclosed.
"Chicago Switchboard is an industry leader, providing a tremendous value proposition to its current and future customers. We're eager to work in partnership with Roberto and his talented team to build on the Company's nearly 90-year track record of success," Jay Reynolds, Gemspring Capital Managing Director.
Elliott Management takes a stake in Salesforce. (FS)
Activist investor Elliott Management made a multibillion-dollar investment in Salesforce, WSJ reported, adding to the pressures facing the business-software provider. While details of the campaign were not disclosed, Elliott, one of the biggest and most prolific activists, often seeks board representation and pushes for companies to make operational improvements and other changes.
"Salesforce is one of the pre-eminent software companies in the world, and having followed the company for nearly two decades, we have developed a deep respect for Marc Benioff and what he has built," Jesse Cohn, Elliott Managing Partner.
Goldman to cut PE exposure. (FS)
Goldman Sachs is planning to significantly reduce the $59bn of alternative investments – private equity and real estate – currently held by its asset management arm, and which dragged down the bank's Q4 earnings.
Goldman Sachs' chief investment officer of asset and wealth management, Julian Salisbury, said that the bank is planning to divest the positions over the next few years and replace some of the funds on its balance sheet with outside capital.
Western Digital talks with Kioxia are said to be advancing.
Western Digital and Kioxia are progressing in their merger talks and have figured out a rough structure that would eventually involve a dual-listing in Japan.
Under the terms being discussed, Western Digital would spin off its flash business and merge it with Kioxia, creating a publicly traded company in the US. The company would also plan a second stock listing in Japan, Bloomberg reported.
Iberdrola weighs sale of stake in US renewables business.
Iberdrola is weighing the sale of a stake in its US renewables operation, as part of plans to bring in new investors across its business, Bloomberg reported.
The Spanish power company is considering seeking a financial partner for its existing green energy projects in the US and to help fund future initiatives.
ArcLight announces closing of $407m continuation fund for third coast. (FS)
ArcLight Capital Partners announced the successful completion and final close of ArcLight 3C SPV, a continuation fund with $407m in capital commitments. In July, the fund held its initial closing and acquired the remaining 25.1% interest in Third Coast Super Holdings from an affiliate of ArcLight Energy Partners Fund V. The fund held additional closings through December 2022 bolstering available committed capital for follow-on growth opportunities in the portfolio. The fund's investor base is comprised of sophisticated global asset management, insurance, and pension plan institutions.
"Third Coast provides a critical link in the domestic energy value chain connecting the prolific and low-carbon Gulf of Mexico production basin to Gulf Coast customers and markets. We are excited to continue to invest in the Third Coast platform via the Fund as we believe Third Coast's fee-based throughput business model is poised to benefit from continued Gulf of Mexico production growth catalyzed by its lower relative costs and environmental impact, as well as bolt-on organic and inorganic growth opportunities identified by our top-class management team designed to increase redundancy and flow assurance for our customers," Joe Alves, ArcLight Managing Director.
EMEA
Ardian, a private equity company, agreed to acquire a 60% stake in Assist Digital, a digital CRM and customer experience solutions provider, from Progressio, an independent private equity firm. Financial terms were not disclosed.
”Ardian is the ideal partner to accelerate Assist Digital's growth. Assist Digital is a unique skills and services platform, capable of attracting the best talent, empowering digital transformation and delivering a new standard of customer experience for our clients. Ardian’s investment strengthens our resilience and ability to face challenges, and will help us to expand internationally. Our employees, who are at the heart of this company’s dynamic, innovative and entrepreneurial culture, will also benefit from new opportunities for professional growth and development,” Enrico Donati, Assist Digital Executive Chairman.
Funeral services provider Dignity agreed to a sweetened £789m ($978m) takeover by a consortium backed by investment firms SPWOne, Castelnau Group and Phoenix Asset Management Partners.
The group, which operates more than 700 funeral locations across the UK, has struggled in recent months, despite higher than average death rates, as customers have shifted towards cheaper products.
Tandem Diabetes Care, an American medical device manufacturer based in San Diego, completed the acquisition of AMF Medical, a medical equipment manufacturer in Saint-Sulpice, Switzerland, for $216m.
"This acquisition supports our commitment to drive growth through innovation, as AMF Medical has novel technology and a shared passion for creating easy-to-use solutions to improve the lives of people with diabetes. Our portfolio approach to diabetes care is designed to bring the benefits of advanced insulin pump therapy to more people worldwide, utilize our expertise in automated insulin delivery technology and data management, and leverage our commercial infrastructure to create shareholder value," John Sheridan, Tandem Diabetes Care President and CEO.
AMF Medical was advised by SVB Securities and Homburger (led by Andreas Müller). Tandem Diabetes Care was advised by Baker McKenzie and Bass Berry & Sims.
Primary Health Properties, an investor in modern primary healthcare facilities in the UK and Ireland, completed the acquisition of Axis Technical Services, an Irish property management business. Financial terms were not disclosed.
"We are delighted to have formalized PHP's long-standing relationship with Axis, one of the leading developers of primary care properties and the Group's partner of choice in Ireland," Harry Hyman, Primary Health Properties CEO.
NFP, an insurance brokerage and consultancy services provider, completed the acquisition of Direct Safety Solutions, a UK-based health and safety consultancy company. Financial terms were not disclosed.
"We are constantly looking for opportunities to expand our offerings, and Direct Safety Solutions adds a crucial full-service offering to help clients manage their health and safety risks in a sensible, cost-effective way. This enhances our ability to meet the evolving needs of our growing portfolio of customers through a diverse suite of resources," Matt Pawley, NFP President.
Asda owners plan £10bn merger with petrol stations.
EG Group is exploring a merger of its petrol forecourts with Asda Group to create a business valued at more than £10bn ($12bn).
The Issa brothers and London-based TDR Capital are considering the combination with the supermarket chain to help refinance £7bn ($8bn) of debt due in 2025. The merger would create a business with 581 supermarkets, 700 petrol stations and more than 100 convenience stores. The competition regulator’s view is unclear at this stage, Bloomberg reported.
Dubai billionaire Al Habtoor eyes $3bn property investment.
Dubai billionaire Khalaf Al Habtoor plans to invest as much as $3bn in real estate this year and is looking toward Central Europe to expand his property and hotel empire.
The family-owned business may look at places like Budapest and Slovakia to invest after London had become a little bit difficult, Bloomberg reported.
Lithia revs up deal to buy Ferrari dealer Jardine Motors for $371m.
An American car dealership giant is in advanced talks to buy Jardine Motors, one of the largest automotive retail groups in Britain, for about $371m.
Lithia Motors, which has a market capitalisation on the New York Stock Exchange of more than $6.5bn, is within weeks of finalising a deal to buy its UK-based peer, SkyNews reported.
IK readies Swedish biotech group Mabtech for exit. (FS)
IK Partners has appointed Jefferies to guide its planned exit of Swedish biotech company Mabtech, Unquote reported.
The sale process is in the early stages, with pitches for mandates having taken place in December. The sellside is considering running the process as a dual-track for a potential.
Saudi management consultancy TAM eyes listing in first half.
Saudi Arabia-based management consultancy TAM Development is planning an initial public offering later this year, in a test of whether investor demand for new share sales will carry through from last year.
TAM is planning to list on the Kingdom’s small cap market, co-founder and Chief Executive Officer Abdullah Yousef said in an interview. It will look to be upgraded to the main exchange within two years. The consultancy derives most of its revenue from advising the Saudi government and government-related entities linked to its sovereign fund, Bloomberg reported.
Highland Europe has closed its €1bn fund. (FS)
Highland Europe closed its fifth fund, raising €1bn ($1bn) to double down on its strategy of backing the Continent’s most outstanding founder-led teams in software and internet businesses.
“We want to thank all of those European founders who chose to partner with us over the past ten years. It is their ambition, talent and drive that inspires us as we build category-defining businesses together. Current market conditions are not easy, but our founder-led companies continue to scale impressively and efficiently, with several world-leaders in the mix. We’re pleased that our investors share our conviction and thank them for their continued trust,” Fergal Mullen, Highland Europe Partner.
SUSI holds first closing of third credit fund at €132m. (FS)
SUSI Partners has held a first closing of the Energy Efficiency and Transition Credit Fund, its third credit fund, with €132m ($143m) in investor commitments. The fund, which will will be open to investors throughout 2023, has a €400m ($434m) target size.
SEETCF has received commitments from pension funds, insurance companies, and foundations based in the Nordics and the DACH region, with a high representation of LPs already invested in the predecessor fund, the SUSI Energy Efficiency Fund II.
Lazard boosts Riyadh banking hub for MENA region with new CEO hire. (People)
Lazard hired Wassim Al-Khatib as chief executive officer for the firm’s advisory business in the Middle East and North Africa, and the boutique investment bank plans to make Riyadh its regional banking hub.
Al-Khatib, the former head of Citigroup in Saudi Arabia, will also be CEO of Lazard Saudi Arabia. Prior to that Al-Khatib was the head of investment banking at NCB Capital, where he was one of the key bankers involved in Saudi Aramco’s mammoth initial public offering, Bloomberg reported.
APAC
ReSight Global, an employee-owned UX research and design organization, completed the acquisition of PeepalDesign, a UX research and design agency. Financial terms were not disclosed.
"The PeepalDesign team is excited for the opportunity to more closely collaborate with industry-leading teams at Bold Insight, uintent, Uism, and XplusX. We have a shared vision of how to deliver world-class research & design services to our clients in India and around the world, as well as, an alignment on fostering an employee-centered culture that provides team members with ownership opportunities. This employee-focused model is the common thread amongst ReSight Global companies that makes this a truly special organization," Durga Prasad, PeepalDesign CEO.
Amazon launches air freight service in key India market.
Amazon.com launched its own air cargo fleet in India, Amazon Air, as it seeks to expand and speed-up deliveries across one of its key markets, DealStreetAsia reported.
India is the third market, after the United States and Europe, where the company has launched Amazon Air. The Seattle-headquartered firm, which started the service in 2016 in the US, operates a network of over 110 jets that fly to over 70 locations worldwide.
Mega IPO planned for 2023 by Pakistan's biggest cooking oil maker.
Dalda Foods, Pakistan’s largest cooking oil manufacturer, is planning an initial public offering in the country to bankroll the expansion of its production capacity.
The company is looking to raise between PKR3.3bn ($14m) and PKR4.6bn ($19m) in a share sale that could take place before Ramadan. At PKR4.6bn ($19m), Dalda’s IPO would be Pakistan’s largest by a consumer staple company, Bloomberg reported.
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