M&A wrap: Permira, Omni Orthopedics, Corin, Stryker, Acon, First Atlantic
Permira-backed Corin Group has acquired Omni Orthopedics, which makes robots that assist with knee replacement surgery. Omni's technology is designed to assist surgeons with positioning implants for each patient, which is expected to produce less pain and faster rehabilitation. "The U.S. market for robotics in orthopedics is growing at a very rapid pace, and with the addition of Omni's technologies, we expect Corin to remain at the forefront of development in robotics and computer-assisted surgery," says Heny Minello, a principal in Permira's healthcare group. Advances in robotic technology are making it possible to complete more complex tasks, from manufacturing to medical procedures, at higher speeds and with improved control and outcomes. Advisors to Corin include: KPMG, Barclays and Skadden, Arps, Slate, Meagher & Flom LLP. Advisors to Omni include Piper Jaffray (NYSE: PJC) and Foley Hoag.
Stryker Corp. (NYSE: SYK) has purchased OrthosSpace Ltd. for up to $220 million. The target makes medical devices that are designed to realign the natural biomechanics of the shoulder. "With 20,000 treated patients world-wide, InSpace addresses severe rotator cuff tears for patients who have few other options," says OrthoSpace CEO Itay Barnea.
More deal news
Acon Investments is buying a majority stake in hair care accessories company JD Beauty from Topspin Partners, and merging it with existing portfolio company Goody Products, another beauty products seller. Advisors to JD Beauty include: Intrepid Advisors and Lowenstein Sandler. Acon is being represented by Hogan Lovells.
First Atlantic Capital-backed C-P Flexible Packaging has acquired Flexo Transparent, a provider of custom plastic manufacturing and printing services, from Orix Mezzanine and Private Equity and Sidereal Capital Group.
FFL Partners-backed Laurel Solutions has bought Servelec Technologies, a provider of remote monitoring systems and business optimization software.
Kalisher, a portfolio company of LongWater Opportunities, has acquired Soho Myriad, a consultant, curator, and manufacturer of custom art packages for the hospitality, luxury, cruise line, and high-end commercial industries.
TorQuest Partners has acquired online furniture retailer Prepac Manufacturing Ltd.
Technology M&A is thriving, and private equity firms are hot on the trail of innovations that will drive sustainable value to customers and make companies more efficient, more effective and less expensive to run. Among the developments appealing to PE investors are: artificial intelligence, data management, data virtualization, digital marketing, healthcare IT, industrial automation, the Internet of Things, machine-to-machine learning, payment processing and Software-as-a-Service. To gain more insights into what kinds of tech deals will dominate the field in 2019, Mergers & Acquisitions reached out to 10 private equity firms that are active investors in technology: Francisco Partners, Genstar, Great Hill, HGGC, Insight, LLR, Riverside, Silver Lake, TA and Vista.
In Mergers & Acquisitions' annual look at strategic buyers, we see significant deals aimed at enhancing the customer relationship, including Amazon.com Inc.'s (AMZN) purchase of PillPack, Nike Inc.'s (NYSE: NKE) acquisitions of Invertex Ltd. and Zodiac Inc. and Target Corp.s' (NYSE: TGT) acquisition of Shipt. Technology plays a key role in many transactions. But while technology is enabling developments, it’s not an end unto itself for many corporations. Instead, strategic buyers are using innovations as a means to achieve goals. Based on analyzing hundreds of recent deals, Mergers & Acquisitions has identified seven goals corporate dealmakers hope to accomplish through M&A transactions today: Integrate data with software; improve the customer experience and relationship; expand and improve distribution; process payments more efficiently; leverage tech trends, like autonomous vehicles; make manufacturing processes more efficient; and achieve better outcomes and efficiencies in healthcare. “Strategics have been really active,” says John Neuner, managing director, Harris Williams. “They are aggressive in pursuing the assets they want, as long as it fits within their strategy. Scale is critical to them, and they have to meet consumer demands by adding new capabilities.”
Mergers & Acquisitions profiles the top 28 investment banks of 2018, with KPMG, Houlihan Lokey, Goldman Sachs (NYSE: GS), William Blair and Lincoln International ranking as the five most active in M&A. The list is based on volume of completed deals, with PitchBook as the data provider. It was a good year for dealmaking, with activity in the U.S. middle market exceeding $400 billion, the first year to achieve the milestone.
Mergers & Acquisitions has named 36 leaders the 2019 Most Influential Women in Mid-Market M&A, including Kainos Capital's Sarah Bradley, Kayne Anderson Capital Advisors' Nishita Cummings and Pelham S2K Managers' Venita Fields. All 36 are outstanding dealmakers both inside and outside of their firms. This year, we asked the featured dealmakers to tell their own stories through Q&As, including their advice for women.
Mergers & Acquisitions has closed the nomination process for the 2018 M&A Mid-Market Awards. We look forward to announcing the winners later in March. The Awards are one of three special reports we produce each year to celebrate deals, dealmakers and dealmaking firms. The other two are The Rising Stars of Private Equity and The Most Influential Women in Mid-Market M&A.
The Women's Private Equity Summit is being held at the Monarch Beach Resort in Dana Point, California, March 13-15. The Summit brings together more than 550 female professionals in private equity and venture capital.
The ACG Chicago Women’s Network is hosting a lunchtime conversation with Dorri McWhorter, the CEO of YWCA Metropolitan Chicago, on March 19 at the University Club in Chicago.
ACG New York's Women of Leadership is hosting a golf event and reception on March 21 at Konnect Golf in Manhattan. The event brings together female dealmakers from private equity firms, investment banks and lenders.
Exponent Women LLC is hosting an evening of networking and conversation with leading economists at the New York office of Alliance Bernstein on April 4. Speakers include Lindsey Piegza, chief economist, Stifel Fixed Income, and Kathleen Fisher, head of wealth and investment strategies, Alliance Bernstein.