M&A wrap: Siemens, Corindus, Broadcom, McAfee, Platinum Equity
Siemens Healthineers AG is buying Corindus Vascular Robotics for $1.1 billion. Corindus says its medical devices are the first to win FDA approval for using robots in skin and vascular procedures. "The combination of Siemens Healthineers’ advanced, high-quality imaging, digital and artificial intelligence tools with Corindus’ precision robotics platform has the potential to transform the way healthcare is delivered to those suffering from cardiovascular or peripheral disease," says Corindus CEO Mark Toland. Advances in robotics are making it possible to complete more complex tasks at higher speeds and with improved control and outcomes for a wide range of activities, including medical procedures. The developments are driving M&A in healthcare and other industries. Advisors to Corindus include: Citigroup Global Markets Inc. and Cadwalader, Wickersham & Taft LLP.
Broadcom Inc. (Nasdaq: AVGO) agreed to buy Symantec Corp.’s (Nasdaq: SYMC) enterprise division for $10.7 billion in cash, adding software designed to keep hackers out of corporate systems. The deal, which is expected to close iin January, comes after discussions between the two companies for a full merger fell apart, reportedly over disagreements about the price. The acquisition marks Broadcom’s second big bet on software, following its $19 billion takeover of CA Technologies in 2018. Read the full story by Bloomberg News: Broadcom buys Symantec's enterprise division.
Platinum Equity is buying Wesco Aircraft Holdings Inc. (NYSE: WAIR), a provider of supply chain management services to the aerospace sector. After the deal closes, Platinum will merge Wesco with existing portfolio company Pattonair. Advisors to Wesco include: Morgan Stanley, J.P. Morgan Securities (NYSE: JPM) and Latham & Watkins. The advisors to Pattonair are Hughes Hubbard & Reed and Willkie Farr & Gallagher LLP.
OceanFirst Financial has agreed to buy Two River Bancorp, and Country Bank Holding. The $8 billion-asset OceanFirst said that it will pay $182.8 million in cash and stock for the $1.2 billion-asset Two River. The company also agreed to buy the $783 million-asset Country Bank for $102.2 million in stock. Read the full story: OceanFirst to enter New York, near $10B in assets with two acquisitions.
Cybersecurity company McAfee is acquiring cloud security firm NanoSec. McAfee says the purchase will expand its services in its MVision business, as more businesses look to reduce the risks of cyber threats.
Groupon (Nasdaq: GRPN) has acquired Presence AI, which offers communications tools that allows chat messaging between customers and businesses. Groupon says more customers prefer more chat-based communications than phone calls.
Extreme Networks Inc. (Nasdaq: EXTR) has completed its $210 million acquisition of cloud networking company Aerohive Networks.
For more deal announcements, see Weekly wrap: Liberty Tax, New Media, Roper.
For more on fundraising, see PE fundraising scorecard: Chicago Pacific, Cresset, Crossplane, Graycliff.
Looking for a glimpse of what’s to come in the private equity industry? Meet the 10 dealmakers named by Mergers & Acquisitions as the 2019 Rising Stars of Private Equity:
Austin Collier, Branford Castle Partners
Kevin Cunningham, LNC Partners
Shawn Domanic, Sterling Partners
Stephen Jeschke, GTCR
Danielle Lalli, Huron Capital
Jason Mironov, TA Associates
James Oh, Transom Capital Group
Sophia Popova, Summit Partners
Pavan Tripathi, Bregal Sagemount
Christine Wang, Francisco Partners
The Rising Stars share a common set of core values. They are passionate about building companies. They are naturally curious and interested in changing things for the better. They enjoy working with portfolio company managers, investment bankers and other deal team members. They appreciate the responsibility and autonomy their firms have given them. They are grateful for the leaders who have helped shape their careers, and they are generous with their own time when it comes to nurturing the next generation. As the PE industry goes through a generational shift and many firm founders retire, it's well worth getting to know these emerging leaders. 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.
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Dealmaking in August began with a bang, as the London Stock Exchange Group Plc agreed to snap up Refinitiv in a $27 billion blockbuster deal. And M&A was hopping in July, with observers predicting the third quarter will be an active one. Meanwhile, here is a table of middle-market deals that closed in the first half of the year, including 3M Co.'s (NYSE: MMM) purchase of MModal's technology business; Apollo Global Management LLC's (NYSE: APO) acquisition of Smart & Final Stores; and KPS Capital Partners' purchase of Brunswick Corp.'s (NYSE: BC) fitness business. For more see, 3M's purchase of MModal's tech business a highlight of H1 dealmaking.
Alex Rodriguez is best known as the New York 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 League fullback 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.
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 seller’s 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.
Organizations in industries, ranging from manufacturing to healthcare, are using M&A to add automated technology in their processing systems. Advances in robotic technology are making it possible to complete more complex tasks at higher speeds and with improved control and outcomes. Read the full story: Accelerating automation through M&A.
Excelled. Innovated. Inspired. That’s what the eight winners of Mergers & Acquisitions’ 12th Annual M&A Mid-Market Awards did in 2018. Our awards honor the leading dealmakers and deals that set the standard for transactions in the middle market. In addition to Nike, award winners include: Fortive, TA Associates, the Riverside Co., Harris Williams, Monroe Capital, Goodwin and Luminate Capital Partners' Hollie Haynes. Read our full coverage: Meet the winners of the M&A Mid-Market Awards: Nike, Fortive, TA, Harris Williams.
The Association of Asian American Investment Managers (AAAIM) is holding its annual conference from Sept. 4-5 at Convene at 730 Third Avenue in New York.
The Great Lakes ACG Capital Connection is being held at the Westin Book Cadillac Detroit Hotel in Detroit from Sept. 4-6.
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.
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.