M&A wrap: Fortive, Accruent, Genstar, GenNx360, IOP, Riverside Co., Revelstoke
Industrial technology company Fortive Corp. (NYSE: FTV) is acquiring real state software provider Accruent from Genstar for $2 billion. Accruent’s software offers site management, lease, project, facilities and asset management along with capital planning to help clients reduce expenses. The Austin, Texas-based target serves more than 10,000 customers including retailers, universities, wireless carriers and hospitals. Genstar acquired Accruent in 2016. Fortive expects Accruent to generate around $270 million in revenue in 2018. “Accruent’s team of software veterans and acquisition strategy have positioned the company for accelerated growth," says Fortive CEO James Lico, adding that Accruent will complement Fortive's recent Gordian acquisition. Gordian, which Fortive purchased from Warburg Pincus for $775 million, offers data, finance and workflow management to contractors and facility managers. Fortive will seek add-on deals for Accruent, according to Lico. In Addition to Gordian, Fortive recently made deals for Johnson & Johnson's advanced sterilization products business and Landauer, a manufacturer of environmental radiation measurement tools. UBS Investment Bank and Kirkland & Ellis are advising Fortive on the Accruent acquisition. Lazard and Irell & Manella are advising Accruent.
GenNx360 Capital Partners has purchased Precision Aviation Group, a provider of aircraft repair and maintenance services, from PNC Riverach Capital. Harris Williams advised Precision.
Industrial Opportunity Partners has acquired SignResource, a maker of exterior and interior signs for the hospitality, retail and restaurant sectors. Winston & Strawn represented IOP.
Logitech International SA (Nasdaq: LOGI), a maker of keyboards and speakers, is buying Blue Microphones from the Riverside Co. The target produces microphones along with other audio products and recording equipment. Deloitte, Intrepid Investment Bankers and Jones Day are advising Riverside.
Lovell Minnick Partners is buying National Auto Care Corp., a provider of automotive protection products such as vehicle service contracts, from Trivest Partners. Houlihan Lokey Inc. (NYSE: HLI) is advising National Auto and Trivest. Sandler O'Neil is advising Lovell Minnick. Madison Capital Funding and NewStar Financial are providing financing.
Resurgens Technology Partners is acquiring InvestorForce, which offers data that measures performance analysis, from MSCI Inc.
Revelstoke Capital Partners has invested in DataLink Fund Solutions, a provider of health management software that helps payors and providers improve quality, practice management, and care coordination. McGuireWoods LLP is representing Revelstoke and Holland & Knight is representing DataLink.
Bank consolidation in the Northeast has been a snore compared to other hot markets. The region has lagged behind much of the nation in terms of merger activity since 2011. The Northeast's 211 bank deals over that period are about a third of the volume reported in both the Midwest and South, and trail the 251 acquisitions announced in the West. Read the full story: Why bank M&A has been so quiet in the Northeast.
Peter Eccles and Karyn Koiffman were hired by Akerman as partners where they will be focusing on cross-border M&A in Latin America, particularly in Brazil. Eccles was most recently with Foley & Lardner and Koiffman was previously with Baker McKenzie.
Susan Stautberg was hired by Atlantic Street Capital as a governance advisor where she will be helping the PE firm recruit women for board positions for its portfolio companies. Stautberg is the founder and former CEO of WomenCorporateDirectors. Atlantic Street claims that it is the "first private equity firm to launch a significant, institutional effort to recruit women for its portfolio company boards."
Mergers & Acquisitions has announced the Rising Stars of Private Equity. These 11 up-and-coming investors are expected to play significant leadership roles in the future. Congratulations to:
Daniel Hopkin, Partner, Kainos Capital
John Kos, Principal, GTCR
Erik Latterell, Director, Stone Arch Capital
Ethan Liebermann, Principal, TA Associates
Jaime McKenzie, Director, Monomoy Capital
Jennifer Roach, Vice President, Yellow Wood Partners
Joseph Rondinelli, Principal, Frontenac
David Shainberg, Vice President, Balmoral
Tom Smithburg, Vice President, Shore Capital Partners
Nicholas Stone, Managing Director, Cyprium Partners
Afaf Ibraheem Warren, Senior Associate, Siris Capital
For profiles of the emerging leaders, see Meet Mergers & Acquisitions' 11 Rising Stars of Private Equity.
Exponent, a new group of women dealmakers, brought together 200 women from private equity funds, investment banks, entrepreneurs and advisors for the Exponent Exchange, featuring Sallie Krawcheck as the keynote speaker. Previously the CEO of Wall Streetbanks, including Merrill Lynch Wealth Management and Citi Private Bank, Krawcheck serves as the CEO of Ellevest, an online investing platform for women. Mergers & Acquisitionsparticipated in the event as an in-kind sponsor, and editor-in-chief Mary Kathleen Flynnmoderated Spotlight Panel, From Startups to Showtime: Investment Case Studies. Check out our slideshow, Exponent drew 200 women dealmakers to event featuring Sallie Krawcheck.
The newly enacted tax act presents asset buyers, both large and small, with a new opportunity to increase post-transaction cash flow via tax savings. This opportunity results from the very generous expansion of an old rule with no prior significant relevance to asset acquisitions: bonus depreciation. Read the full guest article by Frank Vari of FJV Tax: Tax reform: how buyers and sellers can benefit from expanded bonus depreciation.
High valuations and abundant use of debt continued to mark completed deal activity in the first quarter of 2018, according to GF Data. Two hundred and eight private equity groups and other deal sponsors reported on 52 transactions closed in the quarter. The overall average valuation mark for the quarter was 6.9x valuation multiple, a marked retreat from the torrid 8.0x valuation multiple average in the prior quarter. At first blush, valuations in 2018 seem to have retreated to pre-2017 levels. However, GF Data gravitates to the view that the random fall of completed deals in 4Q 2017 versus 1Q skewed artificially high in the first period and low in the second. Averaged together, the result is a continuation of already unprecedented aggregate valuations attained in the middle quarters of GF Data. Read the full story: Valuations dropped slightly but are still higher than average.
Summer reading list: From stories of star athletes Arnold Palmer, Keith Hernandez and Tiger Woods to advice from entrepreneurs Bridgewater Associates’ Ray Dalio, KPCB’s John Doerr, Nike’s Phil Knight and Brava Investments’ Nathalie Molina Niño, plus strategies to help business leaders in general, and female dealmakers in particular, the 15 books on Mergers & Acquisitions’ list entertain, instruct and inspire. Check out our listicle: Dealmaker’s guide to summer reading: 15 new books.