M&A wrap: Resurgens, Fiserv, First Data, Golden Gate, Apax
Resurgens Technology Partners has raised its first fund at $200 million. The PE firm focuses on lower middle-market software and tech-enabled services businesses. Atlanta-based Resurgens has made two investments since 2017 in investment performance analytics company Investment Metrics, and in 2018, the firm carved out Assurance Software from Sungard Availability Services. Assurance recently announced a deal for business software firm ClearView. Resurgens was founded by Fred Sturgis, John Baumstark and Adi Filipovic. Sturgis and Filipovic were previously with Accel-KKR, and Baumstark was previously an operating partner at H.I.G. Capital. “Our strategy is to acquire a relatively concentrated portfolio of companies, to invest deeply in a dedicated operating team and to build a portfolio management system which is unparalleled in our segment of the market," says Baumstark. PE fundraising is benefiting from a boost in M&A in the tech sector, and young PE firms, including those that focus on tech and software, are raising funds. Luminate Capital Partners, founded by Hollie Moore Haynes, has raised its second fund at $425 million. Haynes is a former managing director at Silver Lake Partners. ParkerGale, co-founded by Kristina Heinze, Devin Mathews, Jim Milbery and Ryan Milligan, has recently raised its second fund at $375 million. Proskauer Rose represented Resurgens. For more on PE fundraising, see PE fundraising scorecard: AEA Investors and Renovo Capital.
Fiserv will acquire First Data in an all-stock deal with a value of about $22 billion that will combine two of the financial services industry's largest technology and processing companies. Read the full story: Fiserv buying First Data in $22 billion deal to build fintech scale.
Golden Gate Capital and Koch Equity Development are investing $1.5 billion in cloud software company Infor. Golden Gate made its first investment in Infor in 2002, while Koch invested $2 billion in 2017. Infor is considering a potential IPO in 2019 or 2020.
Apax Partners is investing $200 million to acquire a minority stake in Fractal Analytics, which offers artificial intelligence to Fortune 500 companies.
Radian Group Inc. (NYSE: RDN) has acquired Five Bridges Advisors, a developer of software, data analytics and predictive models.
Promus Equity-backed Quest Products has merged with OraHealth Corp., an over the counter oral care company. Cascadia Capital advised OralHealth.
Ardian is in exclusive talks to buy a majority stake in Revima, a maintenance, repair and overhaul services provider for aircraft equipment from private equity firm Argos Wityu.
1315 Capital has acquired Biocoat, a supplier of coatings for medical devices.
For more deal announcements, see The weekly wrap: Advent, Eli Lilly, RLJ Equity.
Scott Mackey and Dennis Talley have been promoted to managing directors at Littlejohn & Co.'s Wellfleet Credit Partners. They joined Littlejohn in 2015 as portfolio managers to launch the Wellfleet business.
Drew Greenwood was promoted from principal to managing director at Littlejohn & Co. In addition, the firm hired Ana Goizueta as head of investor relations. She most recently held the same role at Oak Hill Advisors.
Jeff Stute has joined Perella Weinberg Partners' healthcare group as a partner. He was previously with JPMorgan (NYSE: JPM).
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. "Actively lobby and ask from day one to work on deals, so you can gain dealmaking experience early in your career," advises Bradley. "Too often, women are steered into functions like marketing, business development, and investor relations – the 'softer side' where it is easier to place a female. The excuse often used is that the females don’t have the deal experience of their male counterparts. That is why you must be an advocate for yourself and work on deals from the very beginning."
Mergers & Acquisitions asked leading dealmakers about their outlook for the middle market in 2019. Watch the video conversations, shot at ACG Philadelphia's M&A East: It is a seller's market, and deal activity is expected to remain steady, says Ramsey Goodrich of Carter Morse & Goodrich: Outlook 2019: Great time to sell. Private equity firms and strategic buyers will use their excess cash and capital to look for deals, says Bharat Ramprasad of Stifel Nicolaus: Outlook 2019: Excess capital to fuel M&A. Rising interest rates and regulatory changes may increase volatility, cautions Mark Emrich of Murray Devine: Outlook 2019: Keep an eye on rising interest rates.
Private equity firms are giving back - organizing groceries at food pantries, mentoring students in schools, running races for cancer cures and pitching in at animal shelters. Mergers & Acquisitions highlights the philanthropic and volunteering initiatives of 5 PE firms: the Carlyle Group LP (Nasdaq: CG), Frontier Capital, Huron Capital, the Riverside Co. and Star Mountain Capital. Read the full story, The Big Give.
GTCR managing director Phil Canfield learned the fundamentals of private equity investing at the Business Honors Program at The University of Texas at Austin. Now he and his wife Mary Beth are giving back to UT’s McCombs School of Business. In recognition of the $20 million gift, the program has been renamed the Canfield Business Honors Program. "Private equity investors are wired to look for opportunities to get the very best returns for their investment," Canfield tells Mergers & Acquisitions in a Q&A. Read the full story: GTCR's Phil Canfield donates $20M to UT's McCombs School of Business.
Dealmakers share their thoughts on Giving Back in video interviews conducted by Mergers & Acquisitions at ACG Philadelphia's M&A East. Check out our video with Reed Smith's Jonathan Moyer: For millennial dealmakers, giving back is part of who they are. And watch our conversation with Baker Tilly Capital's Judit Nagy-Eichelber: Volunteer work brings teams together.
The construction data industry is fragmented, and there is a growing demand for technology that will help contractors, drawing deal activity particularly from strategic buyers. Autodesk Inc. (Nasdaq: ADSK) and Trimble (Nasdaq: TRMB) are among the buyers in the sector. “There is a huge opportunity to streamline all aspects of construction through digitization and automation,” says Autodesk CEO Andrew Anagnost. Read the full story: Strategic buyers look to capitalize on construction data demand.
The Kansas City Chiefs, Los Angeles Rams, New England Patriots and New Orleans Saintsall won their games and will move on to the championship title round. Off the field, Patriots quarterback Tom Brady recently teamed with former Giants defensive end Michael Strahan, who is the co-host of ABC’s Good Morning America, to launch a sports media startup called Religion of Sports Media. Muhsin Muhammad, who played wide receiver for the Carolina Panthers and the Chicago Bears, is a managing director of private equity firm Axum Capital Partners. Steve Young, former San Francisco 49ers quarterback, is a co-founder of private equity firm HGGC. Check out: NFL stars Tom Brady, Michael Strahan, Steve Young go PE.
ACG New York Women of Leadership Summit brings together women in the middle-market dealmaking community for a day focused on networking and knowledge sharing on Jan. 17 at the Intercontinental Barclay Hotel. Alexa Von Tobel, chief innovation officer of Northwestern Mutual, keynotes.
Exponent Women kicks off the new year with an evening of networking on Jan. 24 at The Campbell, at New York's Grand Central Terminal. Jazz Age financier John W. Campbell converted the space to his private office and reception hall in 1923, and it has recently been restored by design firm Ingrao Inc.
ACG Boston, ACG Connecticut, ACG New Jersey, ACG New York & ACG Philadelphia host ACG Northeast Dealmaking at the Mountain at Stowe Mountain Resort in Stowe, Vermont Jan. 27-29. The event provides a chance for middle-market M&A professionals from across the northeast to come together for two days of close knit networking, shared conversations and valuable time spent to deepen your relationships within the deal community.