Archives

CDPQ acquires 25% of UK’s First Hydro Company from Brookfield

Cdpq
Investment in a critical national infrastructure providing 76% of the United Kingdom’s total pumped hydro storage capacity

CDPQ, a global investment group, today announced it has entered into an agreement with Brookfield Asset Management (NYSE: BAM, TSX: BAM) and its institutional partners, including its listed affiliate Brookfield Renewable (NYSE: BEP, BEPC; TSX: BEP.UN, BEPC) (together “Brookfield”), to acquire its 25% stake in First Hydro Company, a critical electricity generation and storage facility in the United Kingdom. Engie is the majority shareholder who owns the remaining 75% of the company.

Responsible for the management and operation of two power plants at Dinorwig and Ffestiniog in the Snowdonia region of Wales, First Hydro offers a capacity of more than 2,000 MW, representing 76% of the total pumped hydro storage in the United Kingdom, making it a critical infrastructure to face the country’s increasing needs of grid flexibility and stability.

“First Hydro is playing a critical role in helping the United Kingdom manage its national electricity system and meet its net zero commitment by providing renewable electricity and storage capabilities,” said Emmanuel Jaclot, CDPQ’s Executive Vice-President and Head of Infrastructure. “This investment marks CDPQ’s first foray into pumped hydro storage, and we are delighted to join forces with Engie, a longstanding partner for CDPQ and a world leader in the energy sector.”

“We are pleased to have supported First Hydro throughout our ownership period including securing its long-term future through active management of the business. First Hydro will continue to provide considerable renewable power to the U.K. long into the future,” said Ignacio Gomez-Acebo, Managing Director at Brookfield.

Financial close is expected by end of 2024, subject to customary closing conditions and relevant consents and approval.

About CDPQ

At CDPQ, we invest constructively to generate sustainable returns over the long term. As a global investment group managing funds for public pension and insurance plans, we work alongside our partners to build enterprises that drive performance and progress. We are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at June 30, 2024, CDPQ’s net assets totalled CAD 452 billion. For more information, visit cdpq.com, consult our LinkedIn or Instagram pages, or follow us on X.

CDPQ is a registered trademark owned by Caisse de dépôt et placement du Québec and licensed for use by its subsidiaries.

About Brookfield Asset Management

Brookfield Asset Management Ltd. (NYSE: BAM, TSX: BAM) is a leading global alternative asset manager with approximately $1 trillion of assets under management. We invest client capital for the long-term with a focus on real assets and essential service businesses that form the backbone of the global economy. We offer a range of alternative investment products to investors around the world — including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors.

Brookfield operates Brookfield Renewable Partners (NYSE: BEP, TSX: BEP), one of the world’s largest publicly traded platforms for renewable power and sustainable solutions. Our renewable power portfolio totals over 34,000 megawatts and our development pipeline stands at approximately 200,000 megawatts. Our portfolio of sustainable solutions assets includes our investments in Westinghouse (a leading global nuclear services business) and a utility and independent power producer with operations in the Caribbean and Latin America, as well as both operating assets and a development pipeline of carbon capture and storage capacity, agricultural renewable natural gas and materials recycling.

– 30 –

For more information

Categories: News

Tags:

KKR Completes Acquisition of Geospatial Software Business IQGeo

KKR

London, 24 September 2024 – KKR, a leading global investment firm, today announced the completion of its acquisition of IQGeo, a geospatial software developer headquartered in the U.K. KKR will combine its extensive technology and telecoms expertise to invest in the growth of the business by supporting international expansion, broadening its product range and strengthening its customer relationships.

KKR has acquired IQGeo for £333m and will be building on the company’s strong revenue growth. Over the past five years the IQGeo share price increased by more than 900% and revenues grew from approximately £10m in 2018 to over £44m in 2023. IQGeo’s geospatial software and services support leading operators within the telecoms and utilities sectors to design and operate fibre and electricity networks. It is well positioned for ongoing growth within industries driven by rapidly increasing demand for fibre rollout, as well as the transformation of electricity grid infrastructure and the impact of increasing electrification.

Through investment in technology and organizational processes, IQGeo will scale its key operational areas, including sales and corporate development, to sustain its commercial momentum. KKR brings combined expertise from its investment through both its Global Impact and Next Generation Technology funds to help support IQGeo in this next stage of growth. IQGeo will also draw on KKR’s network to strengthen its relationships with customers deploying fibre and developing grid infrastructure, as well pursue further organic and inorganic expansion opportunities to grow internationally and expand the product range available to its customers.

Commenting on the Acquisition, Richard Petti, CEO of IQGeo, added:

“We are committed to the success of our customers and our employees. Thanks to them, we have built a thriving business that delivers award-winning innovative software for the telecommunication and utility industries worldwide. I also want to recognise the support of our investors in building the business and this acquisition is a milestone achievement for the company and the valuation makes clear the extent of our success. Partnering with KKR now gives us an even greater opportunity to accelerate investment in our people, processes, and products and increase our ability to respond to market momentum. It’s also important to us that there is close cultural alignment between KKR’s Global Impact and Technology Growth funds with IQGeo’s focus on innovation and mission to bridge the digital divide and build the net-zero energy networks of the future. Their investment will underpin the next phase of growth of IQGeo’s exciting journey.”

Commenting on the Acquisition, Rami Bibi, Managing Director and Head of EMEA for KKR Global Impact, said:

“In our view, IQGeo is unique in its support for continued global efforts addressing the digital divide and transforming grid infrastructure, which is aligned with KKR’s strong focus of investing behind grid electrification for net-zero goals. To capitalise on the global growth potential ahead, increased investment and an acceleration of IQGeo’s strategy are imperative, and private ownership under KKR will help facilitate this.“

Patrick Devine, Managing Director on the Tech Growth team at KKR, added:

“KKR’s global platform and track record of scaling leading software businesses, combined with our experience of investing in telecom and grid networks gives us the right tools and capability to support IQGeo, and we look forward to working closely with its management team to capitalise on the long-term opportunity ahead.“

This investment builds on KKR’s track record as a major global investor in telecoms and sustainability capabilities, particularly fibre deployment and the electricity grid infrastructure. This includes investing over US$21.6 billion in technology-focused growth companies since 2014, having built a dedicated global team with deep technology growth equity expertise, as well as the Global Impact Strategy established in 2018 to take a focused and differentiated private equity investment approach and offer the potential for attractive risk-adjusted return opportunities in the global impact space.

About KKR:

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

About IQGeo:

Telecommunication, fiber, and utility operators are “Building better networks” with IQGeo’s award-winning geospatial network management software. The ability to powerfully model any network requirement, integrate every system and data source, and support field and office teams with continual innovation is helping operators create the networks of the future. Our solutions ensure greater cross-team collaboration and process efficiency throughout the network lifecycle, from planning and design to construction, operations, and sales.

Whether it’s highly competitive fiber and 5G broadband rollouts or complex utility grid modernization projects, customers trust IQGeo’s Integrated Network and Adaptive Grid solutions. We partner with large multinationals and smaller regional operators to deliver the digital innovation they need to accelerate time-to-revenue, increase network resilience, improve operational safety, and deliver ROI. www.iqgeo.com

Media contacts

KKR

Alastair Elwen/ Jack Shelley

FGS Global

KKR-LON@fgsglobal.com

44 (0) 20 725 13801

IQGeo

Steve Tongish – CMO

enquiry@iqgeo.com

+44 1223 606 655

 

Download PDF

Categories: News

Auditboard and Hg featured in Business Insider

HG Capital

                    

  • AuditBoard agreed to a $3 billion acquisition by private equity firm Hg.

  • Startups are increasingly turning to private equity as IPOs and exits decline in Silicon Valley.

  • Private equity offers quick liquidity and strategic support, appealing to cash flow-positive firms.

Not 24 hours after Scott Arnold left a Morgan Stanley conference, where he had gone to drum up investor enthusiasm for AuditBoard, the startup he ran, an unexpected email hit his inbox as it weighed an IPO.

European private equity firm Hg expressed interest in buying a majority stake in the enterprise software company.

“It was like getting an email that says, ‘I want to marry your daughter,’” said Arnold, who is a father. He added, “If somebody is serious enough to say that, I’m going to take the meeting.”

In a span of just two months, Hg put a ring on it. AuditBoard reached an agreement to be acquired in a deal valued at over $3 billion by Hg.

Private equity is hoovering startups as exits have tumbled in Silicon Valley. The biggest startup players are holding off on market debuts. Corporates are unwilling or unable to cut deals. PitchBook data shows the transaction value of this year’s IPOs and mergers and acquisitions is tracking towards $98 billion, an 86% nosedive from 2021.

For startups, private equity represents a deep-pocketed buyer willing to move quickly, pay a premium, and potentially help the business by tapping into complementary companies in their portfolio. A sale also gives shareholders a fast pass to liquidity, unlike an IPO that restricts insiders from selling their shares during a lockup period.

AuditBoard is the kind of startup that private equity goes gaga over. The company helps audit and risk teams stay on task by providing software that simplifies reporting and data This startup ditched plans to go public and sold to a private equity firm for $3 billion. Founded in 2014 by Daniel Kim and Jay Lee, AuditBoard is used by over 2,000 enterprises, including nearly half of the Fortune 500. It’s been cash flow positive for a decade and was generating $200 million in annual recurring revenue in February, Fortune reported.

  

When Hg director Alex Johnson wrote to Arnold in March, it wasn’t the first time the firm had come knocking. Johnson had asked Battery Ventures principal Dallin Bills to arrange a meeting with Arnold in 2022. But Arnold said thanks, but no thanks. The company was on a growth tear, Arnold said, as enterprises looked to beef up security and compliance measures in the fallout of a pandemic, a global supply chain crisis, and costly cyberattacks.

“We were heads down on execution,” Arnold said, “and frankly we didn’t need the money.” The company’s last funding round was a Series B led by Battery Ventures in 2018, though it had allowed insiders to sell shares to new investors, Dragoneer and Tiger Global.

The next time Hg connected, Arnold was in a different mindset. He had discussed with his board going public to give returns to investors and life-changing money to employees. The company assembled a pitch deck and showed it off to investors at Morgan Stanley’s tech, media, and telecom conference in San Francisco in March.

Many founders dream of a splashy IPO, but Arnold said being a public company boss was “not a bucket list item.” As an executive at Shutterfly, before it went private in 2019, he saw how the pressures of quarterly earnings could shift focus from long-term value to short-term stock market gains. He also valued AuditBoard’s nimble, five-member board for its quick decision-making.

He went into his first meeting with Hg with two demands, which he credits to board director Roxanne Oulman’s wise counsel. If Hg wanted to buy AuditBoard, it had to buy the whole company. The initial email had said a majority stake which could mean as little as 51%. And Hg would have to pay at the top of the range of multiples they had paid for similar businesses.

“I’m sitting across the table from Nic [Humphries — Hg’s senior partner and executive chairman], and he said yes and yes,” Arnold said. “So this was serious.”

 

Arnold then delivered the pitch deck that he had shown to public market investors just weeks before. The second slide highlighted the company’s stickiness with customers.

AuditBoard has a gross retention rate — a measure of how much annual recurring revenue is retained from existing customers over a year — of more than 95%. This made growth easier, Arnold explained because customers were able and willing to purchase additional products.

The company grew annual recurring revenue by 40% in 2023, an impressive feat during a dramatic pullback in software spending across industries.

Two days after its first meeting with Hg, AuditBoard hired Goldman Sachs to run a market check. The startup met with between five to nine, handpicked private equity firms and corporates.

“We ended up with a crazy number of people that were bidding something with a three in front of it,” said Arnold, meaning billions. “And so the board was in a really cool decision dimension.”

The board considered the offers on three axes: price, timing, and certainty. Hg won out in each. It increased a previous verbal offer by $100 million. Hg was willing to sign an agreement within a day. And it provided certainty that it would get the deal done by agreeing to backstop the full amount, meaning the acquisition wasn’t contingent on Hg’s ability to secure debt financing.

“That was a huge, huge and gutsy move on his part,” Arnold said of Humphries, “that further affirmed that he was really committed to making this happen.”

  

Arnold was in Paris on a sales call when he signed the agreement to be acquired. The sale price came in at $3 billion, over 20 times Auditboard’s valuation when it raised its Series B. The transaction also included a payout to employees.

For startup employees, hearing “buyout” may cause panic with visions of cost cutting and head count reductions. Private equity’s push for efficiency and eventual profit has been known to get ugly. However, Arnold believes he’s found a champion in Hg.

“It’s not that Hg doesn’t care what our results are on a quarterly basis. They care very much, but they care very much in the context of a much longer-term value creation view and strategic perspective,” Arnold said. “I love that. That was one of the things that we really cared about.”

Categories: News

EQT Active Core Infrastructure fund holds final close

eqt

Total fee-generating commitments for the Fund amount to USD 3.2 billion (EUR 2.9 billion), including fee-generating co-investments of USD 0.3 billion (EUR 0.3 billion)

EQT Active Core Infrastructure is a longer-hold strategy with a focus on downside protection, and applies EQT’s active ownership approach and value creation playbook to core infrastructure companies in Europe and North America

The Fund has already made three highly thematic investments that align with the strategy’s investment criteria and core focus

EQT is pleased to announce that the EQT Active Core Infrastructure fund (or the “Fund”) has held its final close. Total fee-generating commitments for the Fund amount to USD 3.2 billion (EUR 2.9 billion), including fee-generating co-investments of USD 0.3 billion (EUR 0.3 billion).

Applying the global platform’s active ownership approach, industry insights, and local market access, Active Core Infrastructure seeks to leverage EQT’s 15-year track record of building strong and resilient infrastructure businesses for the future. It invests in companies that provide essential services to society and aims to offer an attractive risk-return proposition based on stable cash yield generation, inflation protection, low volatility, and a long-term value creation opportunity.

The Fund is backed by a well-diversified global investor base consisting of blue-chip clients, including pension funds, insurance companies, sovereign wealth funds, family offices, and private wealth platforms.

Alex Greenbaum, Partner and Head of EQT Active Core Infrastructure, said: “We have an exciting deal pipeline of attractive, thematic investment opportunities ahead of us, and are pleased to have already partnered with three businesses that share our vision to deliver long-term, sustainable growth. We see significant potential in core infrastructure against the current macroeconomic outlook, with the possibility to acquire high quality assets while creating value using our proven active ownership approach, and I am excited to further scale the strategy in the years ahead.”

The Fund has capitalised on the higher interest rate environment of the last two years and has invested across three thematically sourced, high-quality, and downside-protected companies, which demonstrate strong value creation potential:

  • Ocea Group, a provider of smart water and heat sub-metering infrastructure in France
  • Radius Global Infrastructure, an owner and operator of critical digital infrastructure sites globally
  • Tion Renewables, a renewable energy producer and operator with a diversified portfolio of utility-scale solar, wind and battery storage across the European Union and the United Kingdom

Management fees for the Fund, which is currently less than half invested, are charged on invested capital. Stated co-investment amounts are invested capital which is fee generating.

Contact

EQT Press Office, press@eqtpartners.com

About

About EQT
EQT is a purpose-driven global investment organization focused on active ownership strategies. With a Nordic heritage and a global mindset, EQT has a track record of almost three decades of developing companies across multiple geographies, sectors and strategies. EQT has investment strategies covering all phases of a business’ development, from start-up to maturity. EQT has EUR ‌​​246​‌ billion in total assets under management (EUR ‌​​‌133 billion in fee-generating assets under management), within two business segments – Private Capital and Real Assets.

With its roots in the Wallenberg family’s entrepreneurial mindset and philosophy of long-term ownership, EQT is guided by a set of strong values and a distinct corporate culture. EQT manages and advises funds and vehicles that invest across the world with the mission to future-proof companies, generate attractive returns and make a positive impact with everything EQT does.

The EQT AB Group comprises EQT AB (publ) and its direct and indirect subsidiaries, which include general partners and fund managers of EQT funds as well as entities advising EQT funds. EQT has offices in more than 25 countries across Europe, Asia and the Americas and has more than 1,800 employees.

More info:www.eqtgroup.com

Follow EQT onLinkedIn,X,YouTube andInstagram

 

 

Categories: News

Tags:

EQT Welcomes Sixth Street as Strategic Investor in EdgeConneX

eqt

Sixth Street to acquire minority interest in EdgeConneX

Broadened investor base adds new resources and expertise, supporting EdgeConneX’s long-term ambition as a leading global data center and AI infrastructure provider

EQT and Sixth Street are pleased to announce that the EQT Infrastructure IV and EQT Infrastructure V funds (“EQT Infrastructure”) have signed an agreement to sell a minority stake in EdgeConneX to funds managed by Sixth Street. Having been invested in the company since 2020, EQT Infrastructure will remain the largest shareholder following the closing of the transaction.

EdgeConneX is a leading global provider of data center capacity focused on energy-efficient and sustainable designs optimized for AI and large-scale cloud deployments. Since 2020, EdgeConneX has more than tripled its built data center capacity and expanded its reach into Asia, Latin America and new European markets. Today, EdgeConneX has a global footprint of 80 data centers in operation or development in more than 50 markets across North America, Europe, APAC and South America.

The stake sale marks a strategic milestone in EdgeConneX’s journey, welcoming a strategic partner to help accelerate the company’s ability to deliver capacity and cutting-edge solutions to its customers.

“With this transaction, EQT believes EdgeConneX is well-equipped to deliver scalable, high-performance data center solutions that will power the next generation of AI,” said Jan Vesely, Partner within EQT Infrastructure’s Advisory Team. “As AI continues to drive significant changes and create new opportunities across industries, EQT remains committed to being at the forefront of developing the required datacenter, connectivity and energy infrastructure needed for AI and to ensuring that EdgeConneX and our partners across EQT Infrastructure will continue to capitalize on this powerful industry tailwind.”

Sixth Street’s investment is a result of cross-platform collaboration between the firm’s dedicated digital infrastructure and global real estate platforms, which offer scaled capital solutions for companies and assets across their respective sectors.

“We’re pleased to bring our team’s deep experience in digital infrastructure and real estate asset investing to this partnership and join EQT in supporting EdgeConneX’s strategic growth,” said Julian Salisbury, Co-Chief Investment Officer at Sixth Street. “EdgeConneX is well-positioned for future success with the scale, high-quality performance, and expanding capabilities required to meet the increasing global demand for data center capacity and services.”

The transaction is subject to customary conditions and approvals and is expected to close in Q4 2024.

Morgan Stanley & Co. LLC served as lead financial advisor, Goldman Sachs served as financial advisor and Simpson Thacher & Bartlett provided legal counsel to EQT Infrastructure. Centerview Partners LLC served as exclusive financial advisor and Debevoise & Plimpton provided legal counsel to Sixth Street.

Contact

EQT Press Office, press@eqtpartners.com

Sixth Street Press Office, media@sixthstreet.com

About

About EQT

EQT is a purpose-driven global investment organization with EUR 246 billion in total assets under management (EUR 133 billion in fee-generating assets under management), within two business segments – Private Capital and Real Assets. EQT owns portfolio companies and assets in Europe, Asia-Pacific and the Americas and supports them in achieving sustainable growth, operational excellence and market leadership.

More info: www.eqtgroup.com
Follow EQT on LinkedIn, X, YouTube and Instagram

About Sixth Street

Sixth Street is a global investment firm with over $80 billion in assets under management and committed capital. Sixth Street uses its long-term flexible capital, data-enabled capabilities, and One Team culture to develop themes and offer solutions to companies across all stages of growth. Founded in 2009, Sixth Street has more than 650 team members including over 200 investment professionals operating around the world. For more information, follow Sixth Street on social media and visit www.sixthstreet.com.

About EdgeConneX

Backed by EQT Infrastructure, part of the global investment organization EQT, EdgeConneX provides a full range of sustainable data center solutions worldwide. We work closely with our customers to offer choices in location, scale, and type of facility, from Hyperlocal to Hyperscale. EdgeConneX provides anytime, anywhere, and any scale data center services for a diverse portfolio of industries, including Cloud, AI, Content, Networks, and more. With a mission predicated on taking care of our customers, our people, and our planet, EdgeConneX strives to Empower Your Edge.

More info: www.edgeconnex.com

Categories: News

Tags:

EQT to sell Dunlop Protective Footwear

eqt

The EQT Mid Market Europe fund has agreed to sell Dunlop to Gilde Equity Management

During EQT’s ownership, Dunlop has enhanced its US go-to-market approach, cemented its sustainability credentials, and made substantial investments in its digital platform

EQT is pleased to announce that the EQT Mid Market Europe fund (“EQT”) has agreed to sell its majority stake in Dunlop Protective Footwear (“Dunlop or the “Company”) to Gilde Equity Management (“GEM”). Dunlop is a leading global manufacturer of protective wellington boots, sold via distributors to mainly professional customers. Financial details have not been disclosed.

Headquartered in Raalte, the Netherlands, Dunlop serves professionals in the Agriculture & Fishery, Food Processing, Functional Leisure, Industry, and Oil, Gas & Mining sectors. Dunlop’s high-performance boots guard workers from slips, trips and falls, while providing comfort and functionality in harsh operating environments. With over 400 employees and production sites in the Netherlands, Portugal, and the US, Dunlop serves customers in over 50 countries.

EQT acquired Dunlop in June 2018. During EQT’s ownership, Dunlop has enhanced its go-to-market approach in the US, cemented its sustainability credentials, and made substantial investments in its digital platform. The Company has also significantly expanded its e-commerce business (both directly and indirectly) and achieved EcoVadis Gold for the 3rd year in a row.

Floris van Halder, Managing Director within the EQT Private Equity advisory team, said: “Dunlop is a true example of innovation and sustainability leadership, empowering the doers and makers of the world to get their job done safely. We want to thank the management team and all the employees of Dunlop for their commitment and hard work over the past years.”

Maurice Hansté, CEO of Dunlop, said, “We would like to thank EQT for supporting us as responsible owners and helping us navigate the uncertain market environment over the last few years. Together, we have further professionalized Dunlop, enhanced our US go-to-market approach, and expanded our e-commerce platform. Today, we are well-equipped to continue on our growth journey with our new owners and dedicated colleagues. We look forward to continue working with our distribution partners and suppliers to deliver high-quality, safe, durable, and comfortable products to the end-customers.”

The transaction is subject to customary conditions and approvals.

Contact
EQT Press Office, press@eqtpartners.com

About

About EQT
EQT is a purpose-driven global investment organization with EUR 246 billion in total assets under management (EUR 133 billion in fee-generating assets under management), within two business segments – Private Capital and Real Assets. EQT owns portfolio companies and assets in Europe, Asia-Pacific and the Americas and supports them in achieving sustainable growth, operational excellence and market leadership.

More info: www.eqtgroup.com
Follow EQT on LinkedIn, X, YouTube and Instagram

About Dunlop Protective Footwear
Dunlop Protective Footwear is the global leader in high-performance safety boots for professionals. As a trusted name in the personal protective equipment industry, Dunlop sets the standard for safety, durability and comfort. With proprietary manufacturing technology and a globally recognized brand, Dunlop delivers premium-quality safety boots that workers rely on every day. Dunlop is globally active in over 50 countries and has production facilities in the Netherlands, Portugal, and the US.

More info: https://www.dunlopboots.com/

About Gilde Equity Management
Gilde Equity Management is an independent private equity firm that invests in mid-sized and large companies that are rooted in the Benelux and have strong international growth aspirations. Founded in 1982, the firm draws on its extensive network and expertise to support companies in realizing their full potential. Gilde Equity Management manages over EUR 2.0 billion in assets.

More info: https://www.gembenelux.com/en/

Categories: News

Tags:

Smartsheet to be Acquired by Blackstone and Vista Equity Partners for $8.4 Billion

Blackstone

Smartsheet Shareholders to Receive $56.50 Per Share in Cash
 
Purchase Price Represents a 41% Premium to the 90-Day VWAP of the Unaffected Share Price

BELLEVUE, Wash., September 24, 2024 – Smartsheet (NYSE:SMAR) (“Smartsheet” or the “Company”), the enterprise platform for modern work management, today announced that it has entered into a definitive agreement to be acquired by funds managed by Blackstone and Vista Equity Partners (the “Buyers”) in an all-cash transaction valued at approximately $8.4 billion.

Under the terms of the agreement, the Buyers would acquire all the outstanding shares held by Smartsheet shareholders for $56.50 per share in cash upon the closing of the proposed transaction. This price represents a premium of approximately 41% to the volume weighted average closing price of Smartsheet stock for the 90 trading days ending on July 17, 2024, the last full trading day prior to media reports regarding a possible sale transaction involving the Company, and a 16% premium to the highest closing stock price over the last 12 months ending July 17, 2024.

“For more than a decade, we have built a thriving community of employees, partners, and customers, each focused on building and benefiting from Smartsheet’s industry-leading work management platform. Our next phase of growth and customer success is underway, and we look forward to partnering with Blackstone and Vista Equity Partners to accelerate our vision of modernizing work management for enterprises, globally,” said Mark Mader, CEO of Smartsheet. “This transaction is a testament to our employees’ outstanding work in serving customers and partners, and building an enterprise-grade, market-leading platform. As we look to the future, we are confident that Blackstone and Vista’s expertise and resources will help us ensure Smartsheet remains a great place to work where our employees thrive, while driving innovation and delivering even greater value for customers and stakeholders.”

Martin Brand, Head of North America Private Equity and Global Co-Head of Technology Investing at Blackstone, and Sachin Bavishi, a Senior Managing Director at Blackstone, said, “Across increasingly distributed, cross-functional and global workforces, Smartsheet’s innovative and market-leading solutions are mission-critical in helping teams collaborate at scale to achieve superior results. We are excited to partner with Smartsheet’s management team to drive long-term growth by leveraging our and our partner Vista’s combined scale and resources to accelerate investments in the next generation of work management solutions.” Blackstone will invest in Smartsheet through its flagship private equity vehicle and its private equity strategy for individual investors.

“Modern enterprises rely on Smartsheet’s simple and scalable solutions to manage a diverse range of business-critical processes every single day because they enable seamless collaboration, enhanced productivity and faster and more informed decision-making,” said Monti Saroya, Co-Head of Vista’s Flagship Fund and Senior Managing Director, and John Stalder, Managing Director at Vista. “We look forward to partnering closely with Blackstone and Smartsheet to support its ambitious goal of making its platform accessible for every organization, team and worker relying on collaborative work to achieve successful outcomes.”  Vista is a leading global investment firm focused exclusively on enterprise software, data and technology-enabled businesses.

Additional Transaction Terms
The merger agreement for the transaction includes a 45-day “go-shop” period that expires on November 8, 2024. During this period, Smartsheet and its advisors will be permitted to actively solicit alternative acquisition proposals from certain third parties, and potentially enter into negotiations with other parties that make alternative acquisition proposals. The Smartsheet Board of Directors will have the right to terminate the merger agreement to accept a superior proposal, subject to the terms and conditions of the merger agreement. There can be no assurance that this “go-shop” process will or will not result in a superior proposal, and Smartsheet does not intend to disclose related developments unless and until it determines that such disclosure is appropriate or otherwise required.

The transaction is currently expected to close in the fourth quarter of Smartsheet’s fiscal year ending January 31, 2025, subject to the approval of Smartsheet’s shareholders, the satisfaction of required regulatory clearances and other customary closing conditions. The Smartsheet Board of Directors unanimously approved the merger agreement and recommends Smartsheet shareholders vote their shares in support of the transaction at a special meeting of shareholders to vote on the transaction.

Upon completion of the transaction, Smartsheet’s Class A common stock will no longer be listed on any public market and Smartsheet will become a privately held company. The Company will continue to operate under the Smartsheet name and brand.

Advisors
Qatalyst Partners is acting as exclusive financial advisor to Smartsheet. Fenwick & West LLP is acting as legal counsel to Smartsheet.

Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC are acting as financial advisors and Kirkland & Ellis LLP and Simpson Thacher & Bartlett LLP are acting as legal counsel to Blackstone and Vista Equity Partners.

About Smartsheet
Smartsheet is the modern enterprise work management platform trusted by millions of people at companies across the globe, including approximately 85% of the 2024 Fortune 500 companies. As a pioneer and market leader in this category, Smartsheet delivers powerful solutions fueling performance and driving the next wave of innovation. Visit www.smartsheet.com to learn more.

About Blackstone
Blackstone is the world’s largest alternative asset manager. We seek to deliver compelling returns for institutional and individual investors by strengthening the companies in which we invest. Our more than $1 trillion in assets under management include global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries and hedge funds. Further information is available at www.blackstone.com. Follow @blackstone on LinkedIn, X (Twitter), and Instagram.

About Vista Equity Partners
Vista is a leading global investment firm with more than $100 billion in assets under management as of March 31, 2024. The firm exclusively invests in enterprise software, data and technology-enabled organizations across private equity, permanent capital, credit and public equity strategies, bringing an approach that prioritizes creating enduring market value for the benefit of its global ecosystem of investors, companies, customers and employees. Vista’s investments are anchored by a sizable long-term capital base, experience in structuring technology-oriented transactions and proven, flexible management techniques that drive sustainable growth. Vista believes the transformative power of technology is the key to an even better future – a healthier planet, a smarter economy, a diverse and inclusive community and a broader path to prosperity. Further information is available at vistaequitypartners.com. Follow Vista on LinkedIn, @Vista Equity Partners, and on X, @Vista_Equity.

Cautionary Statement Regarding Forward-Looking Statements
This communication may contain forward-looking statements made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, among other things, statements regarding the ability of the parties to complete the proposed transaction and the expected timing of completion of the proposed transaction; the prospective performance and outlook of Smartsheet’s business, performance and opportunities; Smartsheet’s ability to achieve future financial performance results; as well as any assumptions underlying any of the foregoing. When used in this communication, or any other documents, words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “forecast,” “goal,” “objective,” “plan,” “project,” “seek,” “strategy,” “target,” and similar expressions should be considered forward-looking statements made in good faith by Smartsheet, as applicable, and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the beliefs and assumptions of management at the time that these statements were prepared and are subject to risks, uncertainties, and assumptions that could cause Smartsheet’s actual results to differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, risks and uncertainties related to: (i) the ability to obtain the requisite approval from shareholders of Smartsheet; (ii) the risk that the proposed transaction may not be completed in a timely manner or at all; (iii) the possibility that competing offers or acquisition proposals for Smartsheet will be made; (iv) the possibility that any or all of the various conditions to the consummation of the proposed transaction may not be satisfied or waived, including the failure to receive any required regulatory approvals from any applicable governmental entities; (v) the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement, including in circumstances that would require Smartsheet to pay a termination fee or other expenses; (vi) the effect of the pendency of the proposed transaction on Smartsheet’s ability to retain and hire key personnel, its ability to maintain relationships with its customers, suppliers and others with whom it does business, its business generally or its stock price; (vii) risks related to diverting management’s attention from Smartsheet’s ongoing business operations or the loss of one or more members of the management team; (viii) the risk that shareholder litigation in connection with the proposed transaction may result in significant costs of defense, indemnification and liability; (ix) Smartsheet’s ability to achieve future growth and sustain its growth rate; (x) Smartsheet’s ability to attract and retain talent; (xi) Smartsheet’s ability to attract and retain customers (including government customers) and increase sales to its customers; (xii) Smartsheet’s ability to develop and release new products and services and to scale its platform; (xiii) Smartsheet’s ability to increase adoption of its platform through its self-service model; (xiv) Smartsheet’s ability to maintain and grow its relationships with channel and strategic partners; (xv) the highly competitive and rapidly evolving market in which it participates; (xvi) Smartsheet’s ability to identify targets for, execute on, or realize the benefits of, potential acquisitions; and (xvii) its international expansion strategies. Further information on risks that could affect Smartsheet’s results is included in its filings with the SEC, including its most recent Quarterly Report on Form 10-Q and its Annual Report on Form 10-K for the fiscal year ended January 31, 2024, and any current reports on Form 8-K that it may file from time to time. Should any of these risks or uncertainties materialize, actual results could differ materially from expectations. Except as required by applicable law, Smartsheet assumes no obligation to, and does not currently intend to, update or supplement any such forward-looking statements to reflect actual results, new information, future events, changes in its expectations or other circumstances that exist after the date of this communication.

Additional Information and Where to Find It
This communication may be deemed to be solicitation material in respect of the proposed transaction involving Smartsheet Inc. (“Smartsheet”) and affiliates of the Buyers. In connection with the proposed transaction, Smartsheet intends to file with the Securities and Exchange Commission (the “SEC”) and furnish to shareholders a proxy statement seeking Smartsheet shareholder approval of the proposed transaction. This communication is not a substitute for the proxy statement or any other document that Smartsheet may file with the SEC or send to its shareholders in connection with the proposed transaction. INVESTORS AND SHAREHOLDERS OF SMARTSHEET ARE URGED TO READ THE PROXY STATEMENT AND OTHER RELEVANT MATERIALS WHEN THEY BECOME AVAILABLE BEFORE MAKING ANY VOTING DECISION WITH RESPECT TO THE PROPOSED TRANSACTION BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT SMARTSHEET AND THE PROPOSED TRANSACTION. The materials to be filed by Smartsheet will be made available to Smartsheet’s investors and shareholders at no expense to them and copies may be obtained free of charge on Smartsheet’s website at https://investors.smartsheet.com/. In addition, all of those materials will be available at no charge on the SEC’s website at www.sec.gov. Any vote in respect of resolutions to be proposed at Smartsheet’s shareholder meeting to approve the proposed transaction or other responses in relation to the proposed transaction should be made only on the basis of the information contained in the proxy statement.

Participants in Solicitation
Smartsheet and its directors, executive officers, other members of its management and employees may be deemed to be participants in the solicitation of proxies of Smartsheet shareholders in connection with the proposed transaction under SEC rules. Information about the Company’s directors and executive officers is set forth under the captions “Proposal 1–Election of Directors,” “Non-Employee Director Compensation,” “Executive Officers,” “Security Ownership of Certain Beneficial Owners, Directors, and Management,” “Executive Compensation,” “Pay Versus Performance” and “Equity Compensation Plan Information,” sections of the definitive proxy statement for the Company’s 2024 annual meeting of shareholders, filed with the SEC on May 1, 2024, and in the Company’s Current Reports on Form 8-K filed with the SEC on March 14, 2024 and March 22, 2024. Additional information regarding ownership of Smartsheet’s securities by its directors and executive officers is included in such persons’ SEC filings on Forms 3 and 4. These documents may be obtained free of charge at the SEC’s web site at www.sec.gov and on Smartsheet’s website at https://investors.smartsheet.com/.
Information concerning the interests of Smartsheet’s participants in the solicitation, which may, in some cases, be different than those of the Smartsheet’s shareholders generally, will be set forth in the proxy statement relating to the proposed transaction when it becomes available.

No Offer or Solicitation
This communication is for information purposes only and is not intended to and does not constitute, or form part of, an offer, invitation or the solicitation of an offer or invitation to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of any securities, or the solicitation of any vote or approval in any jurisdiction, pursuant to the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Contacts

For Smartsheet

Investor Relations Contact
Aaron Turner
investorrelations@smartsheet.com

Media Contact
Jennifer Henderson
pr@smartsheet.com

OR

FGS Global
Smartsheet@FGSGlobal.com

For Blackstone
Matt Anderson
(518) 248-7310
Matthew.Anderson@blackstone.com

Mariel Seidman-Gati
(646) 482-3712
Mariel.SeidmanGati@blackstone.com

For Vista Equity Partners
Brian Steel
(212) 804-9170
media@vistaequitypartners.com

Categories: News

Tags:

KKR Closes $4.6 Billion Ascendant Fund

KKR

The Fund is the first of its kind at KKR, targeting the large and fragmented North American middle market

KKR to support implementation of broad-based employee ownership and engagement programs in all control investments in the Fund

NEW YORK–(BUSINESS WIRE)– KKR, a leading global investment firm, today announced the final closing of KKR Ascendant Fund SCSP (“Ascendant” or the “Fund”), a $4.6 billion fund dedicated to investing in middle market businesses in North America. Launched in 2022 as part of KKR’s Americas Private Equity platform, Ascendant is the first KKR vehicle solely focused on opportunities in the middle market. The Fund will target established companies with strong growth potential across seven industry verticals: Consumer, Financial Services, Health Care, Industrials, Media, Software and Tech-Enabled Services. Ascendant is also the first middle-market private equity fund committed to supporting the implementation of employee ownership programs at every majority-owned company in which it invests.

The Fund brings to bear KKR’s extensive and integrated Private Equity platform, breadth of resources, and depth of industry coverage on an attractive segment of the North American middle market. Building upon KKR’s 48-year history of investing in and evaluating companies of all sizes in North America, the Fund marries KKR’s well-honed private equity investment process, value-creation capabilities and deep industry expertise with an experienced investment team to pursue a differentiated offering in the U.S. middle market.

“We are very proud of the strong response we have received from our fundraising efforts and believe that Ascendant is well-positioned to address the robust and attractive opportunities in the North American middle market,” said Pete Stavros and Nate Taylor, Co-Heads of KKR Global Private Equity. “We have long invested in this space in our Americas Private Equity funds and have found that we can harness KKR’s unique resources and expertise in value creation to deliver highly differentiated business outcomes. We wanted to launch a fund dedicated to this segment so that our investors could directly participate in the compelling outcomes we believe we can continue to deliver in the middle market.”

“Broad-based employee ownership and engagement programs are a key part of how KKR creates and maintains value across our portfolio companies. Having seen the great success of these programs in other areas of KKR’s portfolio, we are thrilled that Ascendant will build on that strong foundation,” said Nancy Ford and Brandon Brahm, Co-Heads of KKR’s Ascendant strategy. “These programs, which provide both equity ownership to employees and a strategy to enhance employee engagement, are implemented with the goal of creating aligned interests and enabling all employees to participate in the investment outcomes their work creates.”

To date, Ascendant has invested in six leading North American companies including Alchemer, 123Dentist, Industrial Physics, Potter Global Technologies, mdf commerce and Marmic Fire & Safety.

The Fund, which was oversubscribed and closed at its hard cap, received strong backing from a diverse group of new and existing global investors, including public pensions, family offices, insurance companies and other institutional investors.

Since 2011, KKR has supported companies in implementing broad-based employee ownership programs throughout our portfolio, first in our US Industrials private equity investments and now more broadly across sectors and regions. This strategy is based on the belief that employee engagement is a key driver in building stronger companies. To date, more than 50 KKR portfolio companies have awarded billions of dollars in equity to over 110,000 non-senior management employees.

Debevoise & Plimpton LLP represented KKR as primary fund counsel for this fundraise.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

Media
Liidia Liuksila or Emily Cummings
(212) 750-8300
media@kkr.com

Source: KKR

 

Download PDF

Categories: News

Tags:

H.I.G. Capital Completes the Sale of BIOVECTRA

MIAMI – September 23, 2024 – H.I.G. Capital (“H.I.G.”), a leading global alternative investment firm with $65 billion of capital under management, is pleased to announce the sale of its portfolio company, BIOVECTRA Inc. (“BIOVECTRA” or the “Company”), a leading contract development and manufacturing organization (CDMO) of active pharmaceutical ingredients and intermediates, to Agilent Technologies, Inc. (NYSE: A) for a purchase price of $925 million.

Headquartered in Charlottetown, Prince Edward Island, Canada, BIOVECTRA has approximately 650 employees and eight facilities with over 270,000 square feet of facility space. The Company produces biologics, highly potent active pharmaceutical ingredients, and other molecules for targeted therapeutics.

H.I.G. acquired BIOVECTRA in November 2019 and successfully established the Company as an independent, standalone organization. H.I.G. supported the Company in strengthening the executive management team, successfully completing three major facility build-outs, and growing the sales pipeline significantly while shifting the Company’s business profile to focus more on commercial products. Due to these strategic initiatives, the Company achieved an industry-leading growth profile, resulting in an outstanding outcome for shareholders.

Oliver Technow, BIOVECTRA’s CEO, commented, “Today is a testament to the reputation BIOVECTRA has built as a trusted partner with our marquis roster of clients and to our efforts to continuously grow our service offering, ultimately better serving patients’ lives. We are grateful for H.I.G.’s role in our success these past five years and are excited to further build on this success with Agilent through this synergistic pairing.”

Mike Gallagher, Managing Director at H.I.G., commented, “The BIOVECTRA team has consistently done an exceptional job at executing value-added strategic initiatives, and we have been pleased to support them throughout our partnership to become a leader in the pharma CDMO space. We believe Agilent is a first-class organization that will help BIOVECTRA grow to even greater heights.”

Scott Zhu, Managing Director at H.I.G., added, “It has been a privilege to collaborate with Oliver and the entire BIOVECTRA team. Their hard work and commitment have driven exceptional growth, and we are proud to have helped them enhance their capabilities during this pivotal phase. We look forward to following the team’s continued success.”

Moelis & Company LLC, Morgan Stanley & Co. LLC, and RBC Capital Markets, LLC, were financial advisors to H.I.G.

About BIOVECTRA

Headquartered in Charlottetown, Prince Edward Island, Canada, BIOVECTRA is a contract development and manufacturing organization for key ingredients used in branded drugs to treat a broad range of complex diseases. The Company has over 650 employees and eight facilities in Charlottetown, Prince Edward Island and Nova Scotia, with over 270,000 square feet of facility space. Its processes and capabilities are uniquely designed to support its clients from the early stages of clinical development to scale-up and commercial manufacturing. For more information, please visit biovectra.com.

About H.I.G. Capital

H.I.G. Capital is a leading global alternative investment firm with $65 billion of capital under management.* Based in Miami, and with offices in Atlanta, Boston, Chicago, Los Angeles, New York, and San Francisco in the United States, as well as international affiliate offices in Hamburg, London, Luxembourg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro, São Paulo, Dubai, and Hong Kong, H.I.G. specializes in providing both debt and equity capital to middle market companies, utilizing a flexible and operationally focused/value-added approach:

  • H.I.G.’s equity funds invest in management buyouts, recapitalizations, and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
  • H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. also manages a publicly traded BDC, WhiteHorse Finance.
  • H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
  • H.I.G. Infrastructure focuses on making value-add and core plus investments in the infrastructure sector.

Since its founding in 1993, H.I.G. has invested in and managed more than 400 companies worldwide. The Firm’s current portfolio includes more than 100 companies with combined sales in excess of $53 billion. For more information, please refer to the H.I.G. website at hig.com.

*Based on total capital raised by H.I.G. Capital and its affiliates.

Categories: News

Silversmith Capital Partners Welcomes Nine New Investment Team Members

Silversmith Capital Partners, a growth equity firm focused on supporting the best entrepreneurs in technology and healthcare, today announced the addition of nine new team members to the firm including Livia Reuss as Senior Associate, Annie Cory and Alex Sideropoulos as Associates, and Ashanti Greene, Jerry Karalis, Ruben Luthra, Apurva Oak, Dade Ogunmuyiwa, and Edbert Wu as Analysts.

New team members include:

Livia Reuss, Senior Associate

Liv focuses on investments in SaaS & Information Services, particularly within sales, marketing, and customer experience technology. Prior to Silversmith, Liv was an investor at TA Associates where she focused on partnering with entrepreneurs in vertical market software. Before TA, Liv began her career on Morgan Stanley’s power and utilities investment banking team. Liv graduated from Middlebury College with a BA, summa cum laude.

Annie Cory, Associate

Annie focuses on investments in SaaS & Information Services. Prior to Silversmith, Annie was an investor at Summit Partners where she focused on partnering with entrepreneurs in enterprise software. Before joining Summit, Annie began her career on Morgan Stanley’s technology investment banking team. Annie graduated from Princeton University with a BA, magna cum laude, in Public and International Affairs.

Alex Sideropoulos, Associate

Alex focuses on investments in Healthcare IT & Services. Prior to Silversmith, Alex worked in investment banking at William Blair and Citi where he helped advise clients on private capital markets transactions. Alex graduated from Georgetown University with a BBA, summa cum laude, in Finance and Accounting.

Ashanti Greene, Analyst

Ashanti focuses on investments in SaaS & Information Services. Prior to Silversmith, Ashanti worked as an investment banking summer analyst at Morgan Stanley and an investment office intern at the Brown University Endowment. Ashanti graduated from The University of North Carolina at Chapel Hill with a BA in Public Policy and an Economics minor from Duke University.

Jerry Karalis, Analyst

Jerry focuses on investments in SaaS & Information Services. Prior to Silversmith, Jerry worked as a summer analyst at VSS Capital Partners and Constitution Capital Partners. Jerry graduated from the Carroll School of Management at Boston College with a BS in Management and concentrations in Finance and Entrepreneurship, and a minor in Managing for Social Impact and Public Good.

Ruben Luthra, Analyst

Ruben focuses on investments in SaaS & Information Services. Prior to Silversmith, in the summers Ruben worked in business development at Pure Watercraft and as a QMS intern at Icertis. Reuben graduated from Georgetown University with a BBA in Finance and a minor in Science, Technology, and International Affairs.

Apurva Oak, Analyst

Apurva focuses on investments in Healthcare IT & Services. Prior to Silversmith, Apurva conducted research at the Cil Lab of University of California, San Francisco. While there, she focused on drug discovery and disease pathogenesis mechanisms for gastrointestinal diseases. Apurva graduated from California Polytechnic State University, San Luis Obispo with a BS, summa cum laude, in Cellular and Molecular Biology and received a MA in Biotechnology from Columbia University.

Dade Ogunmuyiwa, Analyst

Dade focuses on investments in Healthcare IT & Services. Prior to Silversmith, Dade worked for a summer as an investor at Insight Partners where he covered Healthcare IT and SaaS. Prior to his time at Insight Partners, Dade developed a caregiver navigation platform for Alzheimer’s caregivers.  Dade graduated from The Wharton School at the University of Pennsylvania with a BA in Health and Society with a concentration in Healthcare Markets and Finance.

Edbert Wu, Analyst

Edbert focuses on investments in SaaS & Information Services. Prior to Silversmith, Edbert was a summer investment analyst at Palm Drive Capital, an early-stage venture capital firm in New York, and growth intern at Topline Pro, a startup helping expand the online presence of contractors. Edbert graduated from Harvard University with an AB in Economics, with honors, with a secondary in Government.

Categories: People