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Inovalon to be acquired by equity consortium led by Nordic Capital including Insight Partners for $7.3 billion

Nordic Capital
  • Stockholders to Receive $41.00 Per Share in Cash 

Inovalon (Nasdaq: INOV), a leading provider of cloud-based platforms empowering data-driven healthcare, today announced that it has entered into a definitive agreement to be acquired by an equity consortium led by Nordic Capital, and joined by Insight Partners, as lead co-investor, 22C Capital, and Inovalon founder and Chief Executive Officer Keith Dunleavy, M.D. and certain Class B stockholders of Inovalon in an all-cash transaction with an enterprise value of approximately $7.3 billion.

Under the terms of the agreement, Inovalon stockholders will receive $41.00 per share in cash for each share of Class A Common Stock or Class B Common Stock, representing a 25.3% premium over the closing price of Inovalon Class A Common Stock on July 26, 2021, the last unaffected trading day prior to media speculation regarding a potential transaction, and a 24.4% premium over the volume-weighted average price of the Company’s shares over the 30 trading days leading up to the unaffected trading day.

The independent members of the Inovalon Board of Directors, acting on the unanimous recommendation of a special committee of independent directors that led the consideration of alternatives and the negotiation of the terms of the transaction, unanimously approved the agreement, which is subject to a number of customary conditions, including a vote of each of the Class A and Class B stockholders voting separately. In addition, the transaction is subject to approval by a majority of the voting power of the Class A and Class B stockholders voting together as a single class, excluding Dr. Dunleavy, certain other Class B stockholders who are providing equity capital for the transaction and their affiliates. Dr. Dunleavy was not a member of the Special Committee and recused himself from all relevant Board discussions and from the Board vote regarding the transaction.

Upon completion of the transaction, Inovalon will become a private company with greater flexibility to focus on strategies that drive innovation and global market development. Keith Dunleavy, M.D., will continue to be a substantial shareholder in the Company, serve on the Board of Directors, lead Inovalon as CEO, and the Company will maintain its headquarters in Bowie, Maryland.

 “The Inovalon Board regularly evaluates opportunities to enhance stockholder value. Today’s announcement is the culmination of a thorough process of evaluating strategic alternatives and represents a compelling opportunity to deliver immediate and more certain cash value to stockholders at a significant premium,” said William J. Teuber, Jr., Lead Independent Director of the Board and chair of the Special Committee. “During our evaluation it became clear that not only is the consortium led by Nordic Capital offering our shareholders compelling value, they also have a deep appreciation for Inovalon’s cloud-based platforms and data capabilities, as well as an appreciation for the people, mission, and the value impact of the Company.”

“For more than two decades, Inovalon has developed technologies that enable the connectivity, aggregation, and analysis of healthcare data to empower better clinical outcomes and economics across the healthcare ecosystem,” said Keith Dunleavy, M.D., Inovalon’s founder, chief executive officer, and chairman of the board. “We are excited to enter the next chapter in Inovalon’s journey together with such great partners as Nordic Capital, Insight Partners, and 22C Capital. Their significant experience in the areas of software, data, and healthcare is key. This, together with their longer-term focus, operational experience, and international perspective, is an exciting combination for what we see in front of us. We look forward to continuing our mission, together with our greatly appreciated customers, to empower data-driven healthcare.”

 “As a leading healthcare and technology investor, Nordic Capital has long admired Inovalon’s leadership across the healthcare ecosystem and its cloud-based tools leveraging advanced data analytics to meaningfully empower its customers and the patients they serve,” said Fredrik Näslund, Partner, Nordic Capital Advisors. “As data-driven insights become even more important in improving healthcare, Nordic Capital and its co-investors are committed to supporting Inovalon in continuing to deliver high-value solutions to customers and look forward to partnering with Keith and the Inovalon team in this next phase of the Company’s growth journey.”

 “At Insight Partners, we work with healthcare IT leaders who define and grow their markets through world-class software, data and innovation,” said Deven Parekh, Managing Director at Insight Partners. “We are excited to support Inovalon, a market leader with a long history of serving customers with powerful data technology as they continue to transform the healthcare ecosystem.”

Approvals and Timing

The Inovalon Board of Directors formed a Special Committee composed entirely of independent and disinterested directors to conduct a thorough review of strategic alternatives. The Special Committee led negotiations with the assistance of independent financial and legal advisors. Following the Special Committee’s unanimous recommendation, the independent members of the Inovalon Board unanimously approved the merger agreement with an entity established by the equity consortium led by Nordic Capital and co-led by Insight Partners, and recommend that Inovalon stockholders adopt and approve the merger agreement and the transaction.

The transaction is expected to close in late 2021 or early 2022, subject to the satisfaction of customary closing conditions, including the stockholder approvals described above and the receipt of U.S. antitrust approval. The transaction is not subject to a financing condition.

Advisors

J.P. Morgan Securities LLC is serving as financial advisor to Inovalon, and Latham & Watkins LLP is serving as legal advisor to Inovalon and the Special Committee of the Board of Directors of Inovalon. Evercore is serving as financial advisor to the Special Committee. Goldman Sachs is acting as lead financial advisor to Nordic Capital and Insight Partners. Citigroup is also advising Nordic Capital and Insight Partners, and Kirkland & Ellis LLP is serving as legal advisor. Willkie Farr and Gallagher LLP served as legal advisor to Insight Partners.

About Inovalon

Inovalon is a leading provider of cloud-based platforms empowering data-driven healthcare. Through the Inovalon ONE® Platform, Inovalon brings to the marketplace a national-scale capability to interconnect with the healthcare ecosystem, aggregate and analyze data in real time, and empower the application of resulting insights to drive meaningful impact at the point of care. Leveraging its Platform, unparalleled proprietary datasets, and industry-leading subject matter expertise, Inovalon enables better care, efficiency, and financial performance across the healthcare ecosystem. From health plans and provider organizations, to pharmaceutical, medical device, and diagnostics companies, Inovalon’s unique achievement of value is delivered through the effective progression of “Turning Data into Insight, and Insight into Action®.” Supporting thousands of customers, including all 25 of the top 25 U.S. health plans, all 25 of the top 25 global pharma companies, 24 of the top 25 U.S. healthcare provider systems, and many of the leading pharmacy organizations, device manufacturers, and other healthcare industry constituents, Inovalon’s technology platforms and analytics are informed by data pertaining to more than one million physicians, 584,000 clinical facilities, 338 million Americans, and 63 billion medical events. For more information, visit www.inovalon.com.

About Nordic Capital

Nordic Capital is a leading private equity investor with a resolute commitment to creating stronger, sustainable businesses through operational improvement and transformative growth. Nordic Capital focuses on selected regions and sectors where it has deep experience and a long history. Focus sectors are Healthcare, Technology & Payments, Financial Services, and selectively, Industrial & Business Services. Key regions are Europe and globally for Healthcare and Technology & Payments investments. Since inception in 1989, Nordic Capital has invested more than EUR 17 billion in close to 120 investments. The most recent funds are Nordic Capital Fund X with EUR 6.1 billion in committed capital and Nordic Capital Evolution Fund with EUR 1.2 billion in committed capital, principally provided by international institutional investors such as pension funds. Nordic Capital Advisors have local offices in Sweden, the UK, the US, Germany, Denmark, Finland and Norway. For further information about Nordic Capital, please visit www.nordiccapital.com.

“Nordic Capital” refers to any, or all, Nordic Capital branded funds and vehicles and associated entities. The general partners and/or delegated portfolio manager of Nordic Capital’s funds and vehicles are advised by several non-discretionary sub-advisory entities, any or all of which are referred to as “Nordic Capital Advisors”.

About Insight Partners

Insight Partners is a leading global venture capital and private equity firm investing in high-growth technology and software ScaleUp companies that are driving transformative change in their industries. Founded in 1995, Insight Partners has invested in more than 400 companies worldwide and has raised through a series of funds more than $30 billion in capital commitments. Insight’s mission is to find, fund, and work successfully with visionary executives, providing them with practical, hands-on software expertise to foster long-term success. Across its people and its portfolio, Insight encourages a culture around a belief that ScaleUp companies and growth create opportunity for all. For more information on Insight and all its investments, visit www.insightpartners.com or follow us on Twitter@insightpartners.

About 22C Capital

22C Capital is a private investment firm committed to delivering capital and critical resources to companies operating at the intersection of technology enablement and data analytics adoption. The firm has a dedicated focus on the business services, healthcare and financial services sectors. 22C partners with world-class management teams to build companies that are leaders in their respective markets. The firm’s operational and technology resources, including its affiliated data science organization, deliver practical, real-world support to help convert businesses’ challenges into opportunities and unlock their full potential.

Additional Information and Where to Find It

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. This communication may be deemed to be solicitation material in respect of the proposed transaction involving Inovalon Holdings, Inc. (“Inovalon”) and affiliates of Nordic Capital. In connection with the proposed transaction, Inovalon intends to file with the Securities and Exchange Commission (the “SEC”) and furnish to stockholders a proxy statement. This communication is not a substitute for the proxy statement or any other document that Inovalon may file with the SEC or send to its stockholders in connection with the proposed transaction. INVESTORS AND STOCKHOLDERS OF INOVALON ARE URGED TO READ THE PROXY STATEMENT AND OTHER RELEVANT MATERIALS WHEN THEY BECOME AVAILABLE BEFORE MAKING ANY VOTING OR INVESTMENT DECISION WITH RESPECT TO THE PROPOSED TRANSACTION BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT INOVALON AND THE PROPOSED TRANSACTION. The materials to be filed by Inovalon will be made available to Inovalon’s investors and stockholders at no expense to them and copies may be obtained free of charge on Inovalon’s website at www.inovalon.com. In addition, all of those materials will be available at no charge on the SEC’s website at www.sec.gov.

Inovalon and its directors, executive officers, other members of its management and employees may be deemed to be participants in the solicitation of proxies of Inovalon stockholders in connection with the proposed transaction under SEC rules. Investors and stockholders may obtain more detailed information regarding the names, affiliations and interests of Inovalon’s executive officers and directors in the solicitation by reading Inovalon’s proxy statement for its 2021 annual meeting of stockholders, the Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and the proxy statement and other relevant materials that will be filed with the SEC in connection with the proposed transaction when they become available. Information concerning the interests of Inovalon’s participants in the solicitation, which may, in some cases, be different than those of the Inovalon’s stockholders generally, will be set forth in the proxy statement relating to the proposed transaction when it becomes available.

 

Forward-Looking Statements

All statements and assumptions in this communication that do not directly and exclusively relate to historical facts could be deemed “forward-looking statements.” Forward-looking statements are often identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “may,” “could,” “should,” “forecast,” “goal,” “intends,” “objective,” “plans,” “projects,” “strategy,” “target” and “will” and similar words and terms or variations of such. These statements represent current intentions, expectations, beliefs or projections, and no assurance can be given that the results described in such statements will be achieved. Forward-looking statements include, among other things, statements about the potential benefits of the proposed transaction; the prospective performance and outlook of Inovalon’s business, performance and opportunities; the ability of the parties to complete the proposed transaction and the expected timing of completion of the proposed transaction; as well as any assumptions underlying any of the foregoing. Such statements are subject to numerous assumptions, risks, uncertainties and other factors that could cause actual results to differ materially from those described in such statements, many of which are outside of Inovalon’s control. Important factors that could cause actual results to differ materially from those described in forward-looking statements include, but are not limited to, (i) the ability to obtain the requisite approval from stockholders of Inovalon; (ii) uncertainties as to the timing of the proposed transaction; (iii) the risk that the proposed transaction may not be completed in a timely manner or at all; (iv) the possibility that competing offers or acquisition proposals for Inovalon will be made; (v) 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 (or any conditions, limitations or restrictions placed on such approvals); (vi) 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 Inovalon to pay a termination fee or other expenses; (vii) the effect of the pendency of the proposed transaction on Inovalon’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; (viii) risks related to diverting management’s attention from Inovalon’s ongoing business operations or the loss of one or more members of the management team; (ix) the risk that stockholder litigation in connection with the proposed transaction may result in significant costs of defense, indemnification and liability; (x) various risks related to health epidemics, pandemics and similar outbreaks, such as the COVID-19 pandemic, which may have material adverse effects on Inovalon’s business, financial position, results of operations and/or cash flows; (xi) failure to comply with numerous laws, regulations and rules, including regarding employment, anti-bribery, foreign investment, tax, privacy, and data protection laws and regulations; (xii) problems or delays in the development, delivery and transition of new products and services or the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; (xiii) failure of third parties to deliver on commitments under contracts with Inovalon; (xiv) misconduct or other improper activities from Inovalon’s employees or subcontractors; (xv) failure of Inovalon’s internal control over financial reporting to detect fraud or other issues; (xvi) failure or disruptions to Inovalon’s systems, due to cyber-attack, service interruptions or other security threats; (xvii) uncertainty from the expected discontinuance of the London Interbank Offered Rate and transition to any other interest rate benchmark; and (xviii) other factors as set forth from time to time in Inovalon’s filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2020, as may be updated or supplemented by any subsequent Quarterly Reports on Form 10-Q or other filings with the SEC. Readers are cautioned not to place undue reliance on such statements which speak only as of the date they are made. Inovalon does not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date of this communication or to reflect the occurrence of unanticipated events except as required by law.

 

Contacts:

Inovalon
Kim E. Collins, Senior Vice President, Corporate Communications
kcollins@inovalon.com
Phone: +1-301-809-4000 x1473

Nordic Capital
Katarina Janerud, Communications Manager, Nordic Capital Advisors
katarina.janerud@nordiccapital.com
Phone: +46 8 440 50 50

US media contact – Brunswick Group
NordicCapital@brunswickgroup.com

Insight Partners
Nikki Parker, Senior Vice President Marketing & Communications
Phone: +1 571 353 4273
nparker@insightpartners.com

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True exits data-driven marketing tool Spirable

True

Global sports tech and data company Genius Sports has acquired data-driven marketing tool Spirable.

Spirable is a platform that enables businesses to create, automate, distribute and optimise data-driven video marketing, at scale, and was a trailblazer in facilitating the automated personalisation of video marketing when it was founded in 2015 by brothers Dave and Ger O’Meara.

As the company’s first investor, True has supported Spirable from its early days, providing office space at True’s Innovation Hub in London, as well as support and notably, introductions to leading global retailers, consumer brands and executives from across the True Live Network.

Matt Truman CEO and Co-founder of True said: “We invest in people! Dave and Ger represented everything we look for in people at such an early stage. I am delighted that as their first investors True has been able to play a small part in their huge success over the last five years, through the relevant introductions we’ve made from our unique network and more. We look forward to seeing the business grow from here. For True, this is another significant exit for our growth fund and a strong demonstration of True’s ability to be more helpful to entrepreneurs and management teams.”

Co-founder and CEO of Spirable Ger O’Meara says: “The team at True were early believers in our vision and became our very first investors. They have supported us with funding, sound advice and introductions to major retail brands right along the journey, including DIAGEO and Boots, as well as to growing businesses such as Ribble from their Portfolio. Dave and myself are very grateful for the big role that True has played in Spirable’s journey to date.”

Genius Sports are the official data, technology and media partner to hundreds of organisations globally, and will enhance the Spirable offering through access to official sports data and HTML5 programmatic technology.

Spirable will continue to operate under the Spirable brand, with the same team, innovative product and brilliant service, but with the additional benefit of a world-class data and technology company.  Read more about the acquisition here.

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Audax Private Equity Celebrates 1,000th Add-on Acquisition

Audax Group

Audax Private Equity (“Audax”) today announced that it has completed its 1,000th add-on acquisition across more than 140 platform investments in six industries: business services, consumer, healthcare, industrial services & technology, software & technology, and financial services.

Audax was established over two decades ago with a goal of creating a purpose-built organization with trusted relationships. Audax Private Equity is a pioneer of the Buy & Build strategy, which it has successfully executed over the course of the firm’s six flagship private equity funds and across various market conditions and financial cycles. The firm averages seven add-on investments per each platform investment. Further, the firm contributes extensive capabilities and experience in organic revenue acceleration, operational improvements, and capital market efficiencies.

NEWS ARCHIVE

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Mr Marvis takes the next step with Capital A

Capital-A

The Amsterdam based menswear brand Mr Marvis set-up a partnership with Capital A Investment Partners

The Amsterdam based direct-to-consumer menswear brand, known for its range of colourful men’s shorts and trousers, set-up a partnership with Capital A Investment Partners to accelerate its growth.

Mr Marvis already has seen strong growth in recent years following several successful product introductions. Mr Marvis also saw an increasing appreciation of its slow fashion concept in its home market, The Netherlands, as well as abroad.

“Both the MR MARVIS brand and our products are valued by our customers because of the focus on quality and consistency. Above that, our collection only expands, resulting in customers coming back for the same product as well as for newly launched products. You can expect a lot more from us in the coming years, in all seasons” – Steven Vrendenbarg (Founder)

Together with Capital A, Mr Marvis will further professionalise and further accelerate its growth in Europe following a strategy both Mr Marvis and Capital A fully believe in.

“In order to realise our accelerated growth plan, a solid and reliable investment partner was looked for. We feel fortunate to have found Capital A as such a party. With this collaboration we aim to further accelerate our growth ambitions based on the MR MARVIS legacy.” – David Sipkens (Founder)

“Working with the highly entrepreneurial MR MARVIS team and ensuring a solid financial basis for this fundamentally strong company is a match made in heaven. As an investor, we have a keen interest in fast growing companies led by strong management teams. MR MARVIS is a perfect example of such a setting, and we are delighted and very proud to be able to support them in realising even more ambitious goals in the near future to let this wonderful brand grow.” – Arne Hamers (Capital A)

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The deal-by-deal team enters a partnership with management of 99x

(Oslo, 16 August 2021) A company funded by a group of reputable tech investors and managed by Fredrik Bysveen and Fredrik Kongsli, has entered into an agreement to acquire a majority stake in 99x, a fast-growing software engineering company, to satisfy the growing demand for software developers in Scandinavia and Europe.
99x employs more than 350 software engineers in Sri Lanka and specializes in building high-quality, digital products on behalf of clients in Scandinavia and Europe. 99x has grown steadily since its inception and accelerated its growth with an average annual growth rate of 30 percent in the past three years. The company reported revenues of NOK 106m in 2020.

“99x is a rapidly growing business with extremely high customer satisfaction. Until now, the company’s growth has been organic, without substantial business development presence in Scandinavia. The company’s next step is to build up a stronger presence in Norway, including initiating an active M&A strategy. We are proud of the reputable tech investors we have brought onboard to help 99x accelerate its already strong development,” says Fredrik Bysveen, partner and board member of 99x.

Among the investors that are part of the consortium is Northzone founder Karl Christian Agerup; former CEO of Get, Gunnar Evensen; founder of StartupLab and Founders Fund, Alexander Woxen; and Norwegian investment firm Watrium.

Investor and chairman of 99x, Dag Honningsvåg, reduces his ownership from 20 to 10 percent in the transaction and continues as chairman of the company he has been instrumental in developing in recent years.

“After exploring multiple approaches, we determined the best way forward was to establish a European office and raise additional capital to grow through acquisitions, both in terms of access to markets as well as to add capacity. We already have a large software engineering team, but our objective is to grow this further to offer even greater software development capacity to our customers in Norway and Europe,” says Dag Honningsvåg, chairman of 99x.
99x’s founder and CEO, Mano Sekaram, continues as CEO, board member and shareholder of the company.

“This is a significant milestone for all our employees and for the Sri Lankan IT industry. We can take pride in a Sri Lankan company being able to win the confidence and trust of such reputed Scandinavian investors,” says Mano Sekaram.

Contact:
Fredrik Bysveen, Partner and board member of 99x
Telephone: +47 98 22 85 68

Dag Honningsvåg, Chairman 99x
Telephone: +47 90 74 48 10

The buyer was advised by DLA Piper and PwC.

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Managed cloud services group continues growth: Waterland portfolio company Skaylink partners with BTT Cloud

Waterland

With support from Waterland Private Equity (“Waterland”), the cloud service provider Skaylink continues its growth. BTT Cloud, a leading provider of modern cloud infrastructure services, has partnered with the fast-growing Skaylink. The sellers of the majority share in BTT Cloud is its founder and managing director, who will remain with the company in his current position and will reinvest in Skaylink as well. Further financial details of the transaction were not disclosed.

BTT Cloud, based in Vilnius, Lithuania, is one of the leading European providers of modern cloud infrastructure services. The company supports customers throughout Europe during the implementation, operation and maintenance of private and public cloud environments. Due to continuously developing its proprietary solutions, BTT offers a broadly diversified range of services in the field of semi-automated cloud operation. Particularly in the area of Managed AWS (Amazon Web Services), BTT is one of the fastest-growing specialists. In addition, the company has comprehensive expertise in the Microsoft Azure and Google Cloud platforms.

The partnership enables Skaylink to expand its service capacities in the area of management and migration of cloud infrastructures, opening up an additional, highly attractive market for attracting new talent and expertise. Due to BTT’s know-how in the area of Google Cloud, Skaylink will also be able to support its clients in all three leading public cloud environments, thereby completing its service offering. As a result of the partnership, Skaylink will be able to take the next step in its journey towards becoming the leading provider of managed cloud services for enterprise and SME client based in the German-speaking DACH region.

“There are only a few companies able to operate highly complex cloud infrastructures using a platform-agnostic approach, with Skaylink being one of them. That is why we are very happy to have them as a partner on the way towards becoming the leading managed cloud service provider in Europe”, says Donatas Zaveckas, Managing Director at BTT Cloud.

“In the European market for cloud services, BTT is strongly positioned with an experienced team, which both shares our entrepreneurial ideas and aims to embrace a clear ‘Service First’ culture. We are seeing a number of opportunities to leverage this new partnership to expand our joint customer base and greatly improve our service portfolio through expansions”, says Gerald Jenner, Member of the Executive Committee at Skaylink.

“The partnership with BTT Cloud ideally complements the Skaylink service portfolio in the field of Google Cloud, thereby accessing a new, highly attractive market for IT experts. The high-quality standards of BTT’s cloud engineers have convinced us from the very beginning that the company is the ideal strategic expansion for Skaylink”, says Dr. Gregor Hengst, Partner at Waterland.

In 2020, the private equity investment group acquired a majority share in Skaylink. Since, Waterland has supported Skaylink and its managed cloud services platform in their organic and inorganic growth ambitions. In July 2021, the acquisition of root360, a leading German provider of Managed AWS, formed another important aspect of the long-term buy-&-build strategy for Skaylink, which today employs a staff of more than 500 at locations in Germany, Romania, Brazil, with about 70 more now in Lithuania.

Waterland has extensive experience in the fields of digitalization and modern IT infrastructure through its investments in several European countries. In the German-speaking region, Waterland has already invested in companies such as netgo (IT provider), Serrala (payment software), Netrics (cloud and ICT services) and GOD (enterprise IT and software solutions) as well as in Enreach (unified communications solutions), amongst others.

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Their common objective is for Schenk to play an important role in the creation of a sustainable and future-proof logistics network by building on its leading ESG position in the Western European transportation market.

Argoswityu

Papendrecht (The Netherlands), Brussels (Belgium) – 16th of August 2021 – Argos Wityu, a pan-European private equity fund has reached an agreement with Harry and Arjan Schenk to acquire a majority stake in the company that carries their name as its current shareholders. Via this investment, Argos will help the Schenk brothers to realize a stable shareholder and management transition for the company. The acquisition marks Argos’ first investment by Fund VIII and highlights the strong commitment Argos has towards ESG[1] in this Fund.

Since its inception in 1925 by the Schenk family, the company transformed from a sand and gravel transport company into a logistical partner specialized in complex gas and liquid logistical services. With Harry and Arjan Schenk, 3rd generation, taking over the leadership by the end of the 1980s, the company diversified away from a pure road transporter of fuels into a logistical service provider for industrial gases, LNG, chemicals, fuels, lubricants, LPG, bitumen, and liquid food products which require complex handling requirements. In doing so, the group has already anticipated and included in its strategy for a number of years an increasing importance of sustainability and can now claim a market leading position in this respect. Both Argos and the Schenk brothers have taken up a strong commitment to continue to build upon and further enforce Schenk’s position as an enabler of a sustainable logistical world.

Schenk, strategically located in the heart of the ARRRA[2] region, has grown to an organization employing more than 1.600 employees and generating over €200m in revenues. Out of its offices in The Netherlands, Belgium, Luxembourg and Germany, the company manages a dense network of last-mile connections serviced by a large fleet of 900 modern trucks and tank trailers, on top of providing intermodal services out of its Netherlands offices with its fleet of tank containers. Efficiency and outstanding quality has always been at the heart of Schenk’s services which has resulted in long-term customer relationships in all of its product segments.

Having successfully led the company for over 30 years, Harry and Arjan Schenk look forward to paving the way for a transition in a stable environment while continuing to grow the activity in current and new product segments and adding adjacent logistical services. Harry and Arjan have selected Argos Wityu for their experience in shareholder and management transitions in long-standing family businesses, their strong focus on ESG and to support the company in densifying its network organically and via an international buy-and-build program. They will retain a significant stake in the company and will continue in their roles as co-CEO to ensure continuity until a suitable successor has been identified. The transaction is still subject to the approval of the Dutch market authorities and the works council.

Harry Schenk, co-CEO and shareholder said: “We are convinced that we found a strong partner in Argos Wityu to maintain our market leading position while continuing to shape the ongoing consolidation in the market. Both put us in a strong position for the current energy transition and associated investments. With the help of Argos, we also want to continue to invest in the sustainability of our fleet in the coming years and to continue to provide our customers with the service they are accustomed to. We are delighted to be able to take this new step in the history of our family business together with Argos Wityu, the management team and our employees.”

Maarten Meijssen, Partner at Argos Wityu added “We have the utmost respect for the company and organization that Harry and Arjan have developed together with the management team and all employees of Schenk. They have always kept their eyes on long term trends while putting in place an organization that serves their clients with the highest level of quality every day. We feel privileged and consider it a big responsibility to join Harry and Arjan in making a successful transition and will do everything to continue to confirm the strong reputation that Schenk has today. For Argos, this is a unique opportunity to invest in a sustainable future of logistics.”

Argos Wityu team: Gilles Mougenot, Maarten Meijssen, Arne Louwagie, Julie Wouters

Buyer advisors

Legal – Houthoff (Bram Caudri, Ivar Brouwer, Britt Oerlemans)

Financial – Deloitte Transaction Advisory (Corjan Kuip, Bart Beemster, Jens Noppe)

Pension – Deloitte (Frans Heijs, Stella Evers)

Commercial – Arthur D. Little (Martijn Eikelenboom, Marc de Pater)

Tax – JSA Tax (NL) (Ronald Braxhoofden, Ronald van de Merwe, Anne Joritsma) / Finvision (BE) (Philip Haagdorens, Alix Stockman, Aurélie Godschalx) / GKK Partners (DE) (Dr. Michael Hoheisel, Maren Röhr)

Insurance – Aon (Richard Stemerdink, Ingrid van Bussel)

Environmental – Tauw (Hans Nieuwenhuis, Monica Martens)

Seller advisors

Sellside M&A advisor – Nielen Schuman (Ernst Berger, Joost Moelker, Joyce van Luit, Oscar Crolla, Steve Nugteren, Joep Houf)

Financial – PwC (Robert du Burck, Michiel Semeijn, Mathieu Cantarella)

Legal – Loyens & Loeff (Harmen Holtrop, Rob Schrooten, Roos van den Berg)

Debt advisory – Nielen Schuman (Ger van der Linden)

[1] Environmental, Social and Governance

[2] Antwerp Rotterdam Rhein Ruhr Area

Contacts

Media : Cécile Hisette
+ 32 473 36 14 11
info@cecili-z.be

Argos Wityu
Coralie Cornet
Head of Communications
ccc@argos.fund
+33 6 14 38 33 37

Harry en Arjan Schenk
CEO Schenk Tanktransport
info_nl@schenk-tanktransport.eu
+31 78 6442 150

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EQT Private Equity sells Utimaco, a global leader in cybersecurity solutions

eqt
  • EQT Private Equity to sell Utimaco, one of the global leading providers of mission-critical professional cybersecurity and data intelligence solutions for regulated critical infrastructures
  • Together with EQT, Utimaco has executed an impressive innovation, growth and M&A strategy, including five add-ons in the US, UK, Spain, and Germany and transformed into one of the leading integrated European cybersecurity champions with global reach
  • Under EQT’s ownership, Utimaco has close to tripled its revenues and is expected to generate more than EUR 100 million for the fiscal year of 2022

EQT is pleased to announce that the EQT Mid Market Europe fund (“EQT Private Equity”) has agreed to sell Utimaco Verwaltungs GmbH (“Utimaco” or the “Company”) to SGT Capital LLC (“SGT”), a global alternative asset manager with offices in Germany and Singapore.

Headquartered in Aachen, Germany, and Campbell, CA, US, Utimaco is the leading platform provider of trusted cybersecurity and compliance solutions and services. The Company provides on-premises and cloud-based hardware security modules, as well as key management solutions and data intelligence solutions for regulated critical infrastructures. Utimaco has more than 470 employees around the globe and with its focus on protecting data, identities and critical infrastructures against cyber-crime, the Company is a crucial force in contributing to making the world and societies a safer place.

Together with EQT Private Equity, Utimaco has executed an impressive innovation, growth and M&A strategy. In addition to strong organic growth, the Company has completed five strategic add-ons in the US, UK, Spain, and Germany and transformed into one of the global leading integrated European cybersecurity champions with strong capabilities in high-growth areas. Under EQT’s ownership, Utimaco has close to tripled its revenues, while maintaining its unique focus on R&D, innovation, and customer satisfaction.

Florian Funk, Partner within EQT Private Equity’s Advisory Team, said: “Utimaco plays a crucial role in fighting cyber-crime making the world a safer place and we are extremely proud of having supported Utimaco on its mission to create trust in the digital society, as cyber terrorism and data abuse is growing in complexity, sophistication and frequency. We would like to thank all employees for this exciting journey – We are convinced that Utimaco will continue its successful path with its new majority owner and are happy to stay invested as a minority owner.”

Stefan Auerbach, CEO of Utimaco, said: “In the last years, we have built a global platform leader for trusted cybersecurity solutions, providing the highest level of security and compliance to the world’s largest corporates and governments. With EQT’s support, we have been able to transform the business and accelerate growth by making substantial investments. The collaboration with the EQT team and the board has been fantastic, and we would like to thank you all for the great partnership and look forward to the next phase of growth together with SGT.”

Joseph Pacini, Co-Managing Partner of SGT Capital, said: “Utimaco is the clear market leader in global cybersecurity as well as data intelligence solutions and has executed an impressive innovation, growth and M&A strategy. We look forward to working with Stefan Auerbach and the entire Utimaco team as well as EQT Private Equity going forwards.”

The transaction is subject to regulatory conditions and approvals and is expected to close in Q4 2021. The parties have agreed not to disclose the transaction value. EQT Private Equity was advised by Moelis & Company (financial advisor), Freshfields Bruckhaus Deringer (legal), PWC (financial, tax) and Strategy& (commercial).

Contact
EQT Press Office, press@eqtpartners.com, +46 8 506 55 334

About EQT
EQT is a purpose-driven global investment organization with more than EUR 67 billion in assets under management across 26 active funds. EQT funds have portfolio companies in Europe, Asia-Pacific and the Americas with total sales of approximately EUR 29 billion and more than 175,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

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

About Utimaco
Utimaco is a global platform provider of trusted Cybersecurity and Compliance solutions and services with headquarters in Aachen (Germany) and Campbell, CA (USA). UTIMACO develops on-premises and cloud-based hardware security modules and key management solutions as well as data intelligence solutions for regulated critical infrastructures. Utimaco is one of the world’s leading manufacturers in both of these market segments. 470+ employees around the globe create innovative solutions and services to protect data, identities and communication networks with responsibility for global customers and citizens. Customers and partners in many different industries value the reliability and long-term investment security of Utimaco’s high-security products and solutions.

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

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80 Acres Farms: $160 million funding round secured to expand operations

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Orange Wings Investments

10 August, 2021|80 Acres Farms|Press Release|80 Acres Farms

80 Acres Farms 70k Grow

80 Acres Farms, a vertical farming producer, has secured $160 million in additional funding in a round led by General Atlantic and joined by Siemens Financial Services, the U.S. financing arm of tech company Siemens.

The company intends to use the capital for continued expansion and product development, building from its current footprint of vertical farms that yield a diverse offering of high-quality produce.

Thriving for impact
Mike Zelkind, CEO of 80 Acres Farms, said: “We are proud of what our team has been able to accomplish and enthusiastic about the road ahead. We are also honored to be supported by such a high-caliber group of strategic investors who are enabling us to continue to lead this evolving and fast-growing industry.” Mike said the investment is a quantum leap for the business to build more farms both nationally and globally.

“80 Acres Farms is building an incredibly exciting vertical farming business that provides high-quality produce through innovative practices,” noted Shaw Joseph, Managing Director of General Atlantic.

Mike Zelkind and Tisha Livingston

Shaw said that with global food consumption increasing and growing threats impacting supply chains and food security, there is a pressing need for healthy, fresh and local foods that are grown in more sustainable and cost-effective ways. He added, “We look forward to working closely with Mike, Tisha and the broader 80 Acres Farms’ team as they scale.”

“The new investment positions the company as the leading proven and profitable technology provider prepared for rapid
expansion,” said Tisha Livingston, CEO of Infinite Acres, and Co-founder of 80 Acres Farms. “In addition, this enables 80 Acres to focus on their operational expertise and deep research and development capabilities beyond leafy greens.”

Combining capital and tech know-how
Jason Thompson, Vice President of Sustainability and Growth Equity at Siemens Financial Services, said, “We are committed to helping scale sustainable vertical farming technology. 80 Acres has demonstrated their ability to build and operate profitable farms.”

According to Jason, Siemens is enthusiastic about the opportunity to support its global expansion with both its capital and technical know-how. Including, their recently established Center of Competence dedicated to supporting companies in realizing their digital transformation.

“We are excited to be partnering with General Atlantic and Siemens to provide growth capital and support to Mike, Tisha and the entire 80 Acres team to help scale their operations within existing and new markets,” said Kayode Akinola, Head of Private Equity Directs at Blue Earth Capital.

New board member
As part of this funding round, Shaw Joseph will join the 80 Acres Farms board. Eli Aheto, former 80 Acres Farms board member, led BeyondNetZero’s contributions to this round. He noted, “I am pleased to be able to continue and grow my support of 80 Acres with this contribution from the BeyondNetZero team. 80 Acres has proven a farm design that is poised to reduce food miles, food waste and the resulting in negative carbon emissions that exist within our food supply chain.”

80 Acres Farms – Romaine

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StatLab Medical Products acquires Pyramid Innovation

Audax Group

StatLab Medical Products (“StatLab”), a leading developer and manufacturer of diagnostic supplies and equipment for the anatomic pathology market, has acquired Pyramid Innovation (“Pyramid”). The acquisition broadens StatLab’s instrument manufacturing capabilities by adding slide and cassette printers. StatLab is a portfolio company of Audax Private Equity and Linden Capital Partners.

Pyramid Innovation was founded in 2013 by Tom Hughes and is based in Sussex, England. Prior to founding Pyramid, Tom and his team developed the first ever automated pathology slide and cassette printers. Today, Pyramid Innovation is a global leader in developing instrumentation that improves the efficiency of pathology laboratory workflow.

“We are excited to welcome Pyramid Innovation into the StatLab family” said Mike Karsonovich, CEO of StatLab. “Partnering with Pyramid positions StatLab as a direct source of high-quality laboratory automation equipment for our U.S. customer base, in addition to expanding our reach into the international market through established channel partners.”

Tom Hughes, Managing Director of Pyramid, adds, “StatLab is an ideal fit as a partner for continued innovation in the field. We look forward to sales of our newly-launched PiSmart Cassette printers and continued investment in the product pipeline – we have more exciting innovations in development to further benefit our customers around the world.”

Pyramid operations will remain in Sussex and continue to be led by Mr. Hughes.

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