M&A daily wrap: Altaris, Analogic, Vector Capital, Dyal, HGGC, Idera
Altaris Capital Partners has agreed to buy imaging technology developer Analogic Corp. (Nasdaq: ALOG) in a take-private deal for about $1.1 billion. Analogic, based in Peabody, Massachusetts, makes advanced imaging and real-time guidance technologies used for disease diagnosis and treatment, as well as for automated threat detection. Analogic’s ultrasound systems, led by its flagship BK Ultrasound brand, are used in procedure-driven markets such as urology, surgery, and point-of-care. The company's technologies are also used in computed tomography, magnetic resonance imaging, and digital mammography systems, as well as automated threat detection systems for aviation security. Over the last 15 years, Altaris made 34 investments and has "deep experience in the manufacturing and marketing of medical devices, imaging technologies and diagnostic equipment," says the company. The transaction follows a comprehensive strategic review process that was publicly announced on June 6. "Analogic’s three business units present a range of business models and investment needs, each of which is subject to its own market conditions," Analogic chairman Bernard Bailey said in a statement. "In light of these factors, the board considered the long-term positioning of Analogic in each of its markets. Analogic’s growth outlook requires continued strategic investment into new channels to market, which involves risk, especially given the pace of change in its served markets.” Analogic will represent Altaris’ 17th company to design and manufacture high-value, FDA-regulated medical products. “Analogic has a rich history of developing advanced technologies that have enabled innovation in medical imaging and security screening,” said George Aitken-Davies, co-founder and managing director of Altaris. “We look forward to building on this heritage and continuing to provide technology-driven imaging solutions and world-class service to the industry.” Citigroup Global Markets Inc. (NYSE: C) and Wilmer Cutler Pickering Hale are advising Analogic. Schiff Hardin LLP is representing Altaris.
Technology-focused Vector Capital private equity firm has taken on Dyal Capital Partners, a division of Neuberger Berman, as a minority partner. Vector, based in San Francisco, will use the capital investment to expand its businesses, but the firm will not change its strategy, investment process or day-to-day operations. Dyal’s ownership interest in the firm is a passive, non-voting, minority stake. Kirkland & Ellis represented Vector, while Fried Frank Harris Shriver & Jacobson did the same for Dyal. For middle-market private equity firms, selling minority stakes is a path to raise capital for expansion of business lines and for some general partners to gain liquidity. Kohlberg & Co. recently sold a minority stake to Stephen Schwarzman’s Blackstone Group LP (NYSE: BX), which invested with capital from its strategic capital holds fund under Blackstone Alternative Asset Management. The Riverside Co., sold a minority stake to Parkwood LLC, a private trust company, with Riverside intending to spend the capital on its debt lending business, deal businesses in Europe and Asia, and possibly acquiring other private equity firms. Read the full story.
HGGC-backed B2B software developer Idera Inc. has agreed to purchase database administration and management tools provider Webyog. Some of the target's customers include: Amazon (Nasdaq: AMZN), IBM (NYSE: IBM), Salesforce (NYSE: CRM), AT&T (NYSE: T), eBay (Nasdaq: eBay) and GE (NYSE: GE). Idera achieved many milestones in 2017, including a trio of acquisitions and a $1 billion recapitalization that brought in private equity firm HGGC as a new majority stakeholder. Other achievements included: growing Idera’s employee base by 37 percent; releasing 63 new products; adding 8,500 new enterprise clients; and expanding the company’s presence in the Asia-Pacific, Latin American and European territories. CEO Randy Jacops took home Mergers & Acquisitions’ M&A Mid-Market Award for 2017 Dealmaker of the Year.
One Equity Partners has acquired a stake in ePak Resources. The target's management team retains a stake in the company. Based in Austin, Texas, ePak makes boxes, canisters, containers and trays that are used to transport electronic products. The deal follows up OEP's recent acquisitions of FlexHead Industries and SprinkFlex.
Google is in talks to acquire Nokia Oyj’s airplane broadband business, as the Alphabet Inc. (Nasdaq: GOOGL) unit seeks to tap into new services and reach more users by offering in-flight high-speed Internet, according to Bloomberg News. Read the full story here.
Jet Aviation, a subsidiary of General Dymanics Corp. (NYSE: GD) has agreed to buy Hawker Pacific Airsevices Ltd. from Britton Hill Partners for $250 million. Sydney, Australia-based Hawker provides aviation services in Asia, including airplane and parts sales, along with maintenance and repair services. Jefferies and Sidley Austin are advising the target.
Sleepscore Labs, a joint venture between ResMed Inc. (NYSE: RMD), Dr. Mehmet Oz and Pegasus Capital Advisors LP, bought Sleep.ai. The target is a Netherlands-based digital health company that helps consumers know if they snore or grind their teether during sleep. FInancial terms were not disclosed.
GP Global has purchased a majority stake in Mag Lube LLC, a lubricant manufacturer that distributes its products across the Middle East, Africa and Asia. According to Grand View Research, the global lubricants market is expected to reach around $166 billion by 2025.
Jeffrey Schottler has joined Denver middle-market investment bank Lohi Merchant Bank as a managing director. Schottler was previously with Colorado Financial, Headwaters MB and was also a founding partner at ClearCreek Partners. In addition, Lohi hired Steve Donelson as a partner. Donelson was most recently with Ballard Sphar.
For more new hires, promotions and other dealmaker career news, including Alvarez & Marsal's hiring Debra Richman as healthcare managing director and Karin Kovacic's joining the origination team as a managing director at Monroe Capital, read People Moves.
Read full coverage of Mergers & Acquisitions' 11th annual M&A Mid-Market Award winners: Campbell Soup, Huron Capital, Idera CEO Randy Jacops, LLR Partners, McGuireWoods, Stryker, Twin Brook and William Blair.