M&A wrap: Luminate, T. Boone Pickens, MSI Data, HSE, London Stock Exchange

fieldtechnician
Two maintenance engineers inspect relay protection system with laptop computer. Bay control unit. Medium voltage switchgear

Luminate Capital Partners has made a strategic growth investment in field service management software provider MSI Data. Companies are becoming more efficient and businesses are relying on technology to improve their operations. MSI Data's software allows mid-market businesses to schedule and dispatch technicians, manage maintenance contracts, track warranty information, manage inventory and complete work orders in the field. The target's technology, which mainly serves the equipment distribution and service contractor industries, is aimed to help companies run operations more efficiently. "We are thrilled to partner with them as they continue to build their business and enter their next phase of growth,” says Luminate founder Hollie Haynes, who is one of Mergers & Acquisitions' Most Influential Women in Mid-Market M&A. Luminate backs middle-market software companies with $10 million to $50 million in annual revenues. The PE firm recently invested in invested in Thought Industries, which offers customer training and learning software services. Growth Point Technology Partners advised MSI. Luminate was advised by Kirkland & Ellis.

DEAL NEWS
T. Boone Pickens, the onetime Texas oil wildcatter turned corporate raider who became a billionaire energy investor and television pitchman for wind and natural-gas power, has died. He was 91. Though he achieved much of his fame for takeover bids in the 1970s and 1980s, Pickens earned much of his wealth in the energy futures market after turning 75 in 2003, making billions through his Dallas-based BP Capital LLC by correctly betting on rising prices for oil and natural gas. Read the full story Bloomberg News: T. Boone Pickens, oilman turned raider, passes away at 91.

Hong Kong Exchanges & Clearing Ltd. made an unexpected $36.6 billion bid for London Stock Exchange Group Plc, a bold move that would upend the U.K. bourse’s combination with Refinitiv. An HKEX-LSE pact would put an end to the Refinitiv purchase, instead creating a global trading power that would have stock, derivatives and commodities exchanges, as well as clearinghouses across two continents. Read the full story by Bloomberg News: Hong Kong Exchange makes unsolicited bid for LSE.

Utz Quality Foods is buying Conagra Brands Inc.'s (NYSE: CAG) direct store delivery snacks business. The deal includes the Tim's Cascade Snacks, Hawaiian Snacks, Erin's, Snyder of Berlin and Husman's brands. "While Conagra has a large and growing snacks business, we do not currently operate with a DSD model," says Conagra CEO Sean Connolly. Jones Day is advising Conagra.

I Squared Capital-backed Tip Trailer Services is acquiring Trailer Wizards, a supplier of trailer rental and leasing services in Canada. The buyers are being advised by ING Bank N.V. Financing is being provided by HSBC Bank Canada and the Bank of Nova Scotia.

Spartan Motors Inc. (Nasdaq: SPAR) has bought Royal Truck Body, a manufacturer of truck bodies. Spartan was advised by Donnelly Penman & Partners and Varnum LLP.

Huron Capital-backed High Street Insurance Partners has acquired Ottawa Kent Insurance Agency, an outsourced risk management and independent insurance agency.

FEATURED CONTENT
Bank M&A soared all summer, with dozens of deal announcements, creating the perfect backdrop for Piper Jaffray’s July news that it would acquire Sandler O’Neill. “There has been a lot of consolidation in the bank space,” Piper Jaffray CEO Chad Abraham told Mergers & Acquisitions. “Frankly that’s been very consistent over the last 10 years and has created a great opportunity for Sandler. But there are still 5,000 banks, and we expect the pace of consolidation to continue.” Piper Jaffray is determined to be the market leader in all the industries it does business in. The Minneapolis-based boutique investment bank currently dominates some of the sectors it serves, especially healthcare. With the acquisition of New York-based Sandler O’Neill & Partners LP, the renamed firm Piper Sandler will instantly become a leading investment bank in financial services, a sector it has sought to expand in for several years. “We’ve had conversations with Sandler for many years, and we’ve admired their franchise” Abraham explained. For analysis of the Piper Sandler deal, see Counting on bank M&A: Why Piper Jaffray bought Sandler O'Neill.

The New York Yankees are in first place in the American League East division and have one of the best overall records in Major League Baseball. Alex Rodriguez is best known as the former Yankees star who hit 696 home runs over the course of his 22-year baseball career, but today he’s making a name for himself as an investor as the founder and CEO of A-Rod Corp. One recent example: While serving as a guest judge on CNBC’s Shark Tank, Rodriguez backed Ice Shaker, an insulated bottle maker founded by former National Football Leaguefullback Chris Gronkowski. Rodriguez talked about his life off the field as a savvy investor since his 20’s as the keynote speaker at EisnerAmper’s 4th annual Alternative Investment Summit at the The Museum of Modern Art on June 19. Among the topics discussed in a conversation led by Charles Weinstein, CEO of EisnerAmper: Rodriguez’ childhood as the son of a single mom; his investment thesis, which shares much with other middle-market investors; how he’s helping singer/dancer/actress Jennifer Lopez (to whom he became engaged in March) transition her business initiatives from licensing her brands to owning them; and how one day he just might buy a baseball team. Read the full story: A-Rod talks Ice Shaker, NRG eSports, J. Lo & maybe buying a baseball team.

Looking for a glimpse of what’s to come in the private equity industry? Meet Mergers & Acquisitions' 2019 Rising Stars of Private Equity. As the PE industry undergoes a generational shift, and many firm founders retire, it’s well worth getting to know these emerging leaders, including Branford's Austin Collier, Sterling Partners' Shawn Domanic and Summit Partners' Sophia Popova. They represent the future of private equity. For profiles and video interviews, see Meet Mergers & Acquisitions' 2019 Rising Stars of Private Equity For Q&As, see 10 Rising Stars of Private Equity tell their tales.

Activity and urgency characterize the current dealmaking environment, say investment bankers and other M&A advisors interviewed by Mergers & Acquisitions. After a record-breaking 2018, forecasts for 2019 remain bullish. Advisors point to a lot of cash that must be deployed by strategic buyers and private equity firms alike; a healthy U.S. economy; and low interest rates. Competition for high-quality targets has never been more intense, especially for technology providers, they report, which means sellers are commanding high prices. It all adds up to a sellers' market. A mood of urgency prevails, as dealmakers seek to close deals quickly, while conditions remain favorable. The advisors interviewed for this story say they don’t see signs of a recession this year; however they are closely monitoring bellwethers, including corporate earnings, wage pressure, global supply chains and slowdowns abroad. They are recommending that clients be prepared for an economic slowdown in the next two years. Specialization is the name of the game, and investment bankers advise clients to seek targets with business-model stability, limited cyclical exposure and a recurring revenue business model. Technology, business services, healthcare, consumer and manufacturing are among the most promising sectors. Read the story: 8 M&A advisors urge closing deals now, while economy stays strong.

BC Partners has joined the growing group of private equity firms selling a minority stake to another PE firm to fuel expansion plans. The firm, which is headquartered in London with additional offices in New York, Paris and Hamburg, announced it had sold an interest in the firm to New York’s Blackstone Alternative Asset Management for undisclosed terms. PE firms increasingly are selling minority stakes to fund expansion plans. For more see, Why private equity firms sell stakes to other firms.

To celebrate deals, dealmakers and dealmaking firms, Mergers & Acquisitions produces three special reports every year: the M&A Mid-Market Awards; the Rising Stars of Private Equity; and the Most Influential Women in Mid-Market M&A. For more on the timeline and nomination process for each, see Special reports overview: M&A Mid-Market Awards, Rising Stars, Most Influential Women.

EVENTS
ACG Boston and ACG Connecticut are hosting the 5th Annual ACG New England Fall Conference at Gurney's Newport Resort & Marina in Newport, Rhode Island from Sept. 17-18.

Exponent Women is hosting a fall rooftop networking session at RSM in New York on Oct. 7.

M&A East is taking place at the Pennsylvania Convention Center in Philadelphia from Oct. 22-23.

Third Annual Women in Alternative Investments Career Forum is taking place at the New York Hilton on Nov. 8.

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