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Intact to acquire RSA’s Canada, UK and international operations with CDPQ’s support

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Intact Financial Corporation will invest $1.5 billion in technology in Quebec over five years

Intact Financial Corporation (TSX: IFC) today announced that, together with Tryg A/S (Tryg), it has reached an agreement for the acquisition of RSA Insurance Group plc (RSA). Pursuant to the transaction, IFC will, with the support of Caisse de dépôt et placement du Québec (CDPQ), acquire RSA Group’s Canada, UK and International operations and co-own RSA Group’s Danish business with Tryg. To support its customer driven digital strategy and the growth resulting from the acquisition and integration of these operations, IFC will invest $1.5 billion in technology in Quebec over the next five years. This acquisition will also significantly increase the role and influence of several strategic teams based in Quebec, consolidate IFC’s significant economic impact in the province, and increase that impact through these additional investments.

“Intact Financial Corporation has its roots in Quebec,” said Charles Brindamour, CEO of Intact Financial Corporation. “While our success now extends well beyond Quebec’s borders, we still run a significant portion of our North American operations there. With the support of CDPQ, our acquisition of RSA will create additional demands and opportunities for the teams supporting our global operations; coupled with our future tech investments, this will provide a significant and lasting boost to the expansion of our strategic teams based in Quebec.”

“We’ve been partners with Intact Financial Corporation for over 10 years,” said Charles Emond, President and CEO, CDPQ. “Our investment has yielded positive returns for our depositors, thanks to the company’s strong track record of successfully integrating the companies they have acquired. We’re delighted to support this new acquisition, which will provide new growth opportunities for IFC, strengthen its leading position in Canada, and have a significant impact in Quebec’s financial and technology sectors.”

Additional investments in cutting-edge tech sectors

IFC’s growth is based on a long tradition of innovation and investments in technology that will accelerate with the acquisition of RSA. IFC will invest $1.5 billion over the next five years to support and grow the work of its digital, tech and AI development labs and software engineering teams. These Quebec-based teams will expand their scope and responsibilities as a result of the company’s growth and international operations, and to do this they will be hiring new talent. Over the next five years, more than 1,500 Quebec experts in user experience, design, mobile and software engineering, cybermetrics, machine learning and AI will work on developing and improving the digital customer experience, in addition to using technology to improve the efficiency of the company’s global operations.

Quebec talent driving growth for Intact and the Quebec economy

A number of IFC’s core operations are based in and directed from Quebec. The company has major teams that not only serve Quebecers, but also the rest of Canada and divisions across North America. Most of these teams will see their operations expand as the company’s international growth creates additional demands.

This includes the Intact Investment Management team, which will lead the company’s global investment operations and see its assets under management grow from $20 billion to $40 billion.

These expanded responsibilities for the Quebec-based teams will also enable IFC to act as a talent accelerator by providing even more high-calibre job opportunities for the next generation of Quebec university graduates, particularly in the actuarial, finance, technology and AI sectors.

IFC: A major employer rooted in the local economy

Since its beginnings in Quebec in 1907 (for the legacy company of Intact Insurance) and 1955 (for belairdirect), IFC has continued to grow steadily across the province in terms of its number of employees, investment, market share and community engagement.

IFC in Quebec today:

  • Over 5,000 employees in its Montreal, Anjou, Québec and Saint-Hyacinthe offices
  • Nearly one in three Quebecers and nearly one in four companies are insured through our Intact Insurance and belairdirect banners
  • More than 530 property and casualty insurance broker partners of all sizes located across Quebec
  • $1.6 billion in claim payments to Quebec customers, contributing to the province’s economic vitality by mobilizing the home restoration and renovation and automotive repair industries
  • Collaboration with several major Quebec universities, including Université Laval, Polytechnique, Université de Sherbrooke, ETS and and the Institut de valorisation des données (IVADO), a collaboration between HEC Montréal, Polytechnique Montréal and Université de Montréal.

About Intact Financial Corporation

Intact Financial Corporation (TSX: IFC) is the largest provider of property and casualty (P&C) insurance in Canada and a leading provider of specialty insurance in North America, with over CAD$11 billion in total annual premiums. The Company has approximately 16,000 employees who serve more than five million personal, business and public sector clients through offices in Canada and the U.S.

In Canada, Intact distributes insurance under the Intact Insurance brand through a wide network of brokers, including its wholly-owned subsidiary BrokerLink, and directly to consumers through belairdirect. Frank Cowan Company, a leading MGA, distributes public entity insurance programs including risk and claims management services in Canada.

In the U.S., Intact Insurance Specialty Solutions provides a range of specialty insurance products and services through independent agencies, regional and national brokers, and wholesalers and managing general agencies. Products are underwritten by the insurance company subsidiaries of Intact Insurance Group USA, LLC.

About CDPQ

Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and para-public pension and insurance plans. As at June 30, 2020, it held CA$333.0 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. For more information, visit www.cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.

Cautionary note about forward-looking statements

Certain of the statements included in this press release constitute forward-looking statements. They include statements relating to, among other things, IFC’s offer to acquire RSA, its integration and growth plans, and its investment and hiring intentions in Quebec and in the digital, technology, AI development and software engineering sectors over the next five years. Forward looking statements often use words such as “believe”, “expect”, “estimate”, “intend”, “anticipate” and words of a similar meaning. Although the forward-looking statements are based upon what management believes to be reasonable assumptions, IFC cannot assure investors that actual results will be consistent with these forward-looking statements. Investors should not rely on forward-looking statements to make decisions, as they are subject to risks and uncertainties about IFC and are dependent on many factors, some of which are outside of IFC’s control. Investors should ensure the preceding information is carefully considered when reviewing forward-looking statements contained herein. The Company and management have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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KKR Invests in Argenta to Accelerate Future Growth

KKR

November 18, 2020

LONDON & NEW ZEALAND–(BUSINESS WIRE)– KKR, a leading global investment firm, announced today that it has agreed to acquire Argenta, a leading animal health-focused pharma services platform, from the Tomlinson Group, who will continue to retain a significant ownership stake in the company. Financial details of the transaction, which is subject to customary regulatory approvals, were not disclosed.

Founded in 2006, Argenta is the leading, fully integrated contract research organization (CRO) and contract manufacturing organization (CMO) specialized in animal health. Argenta’s global team of industry-leading scientists, veterinarians, and experts are solely focused on serving and partnering with the world’s top animal health companies.

Argenta has grown significantly with the support of the Tomlinson Group who first invested in the company in 2011. Starting as a single New Zealand based manufacturing business, Argenta has today developed into a globally significant CRO and CMO with a footprint covering New Zealand, the U.S. and the U.K., serving the top 4, and 8 of the top 10, animal health companies. With the support of KKR, Argenta plans to continue the rapid development of the business, building global leadership positions within chosen markets, with a particular focus on growth in the U.S and Europe.

“I am very pleased to welcome KKR as a valued partner to the Argenta team and to our strategy of bringing innovative animal health products to market on a global scale. Our fast-moving customers have high expectations and KKR’s investment will propel Argenta forward so we can continue to meet these expectations by bringing new capabilities and growth opportunities. At the core of Argenta is collaboration: among our team, with our customers and now with KKR. Together, we will continue to deliver the best animal health technologies and services possible,” said Ben Russell, CEO of Argenta.

“KKR will enable Argenta to continue its growth strategy, accelerate some of the many options available to deepen its already strong relationships with animal health customers and build on the vision for Argenta as a global animal health service company established by its Founder, Doug Cleverly, in 2006. The Tomlinson Group remains a committed shareholder and is looking forward to working with KKR to accelerate Argenta’s Molecule to Market strategy and continue widening the breadth of services for our customers,” said Greg Tomlinson at the Tomlinson Group.

“We are excited to be working with Greg, Ben and Argenta’s impressive management team. We believe there is a significant opportunity ahead to build Argenta into the leading global end-to-end pharma services platform dedicated to animal health. We look forward to leveraging KKR’s global network and experience across pharma services and animal health to support Argenta’s plans for future growth,” said Kugan Sathiyanandarajah, Director at KKR and Head of Europe for KKR’s Health Care Strategic Growth investing efforts, and Johnny Kim, Principal at KKR.

For KKR, the investment is being funded through the firm’s Health Care Strategic Growth Fund, which is focused on investing in high-growth health care companies for which KKR can be a unique partner in helping reach scale. KKR has established a strong track record of supporting health care companies, having invested approximately $14 billion across the sector since 2004.

Argenta was advised on the transaction by Stonehaven Consulting AG, a global consulting firm focused on animal health.

About Argenta

Founded in 2006 in New Zealand, Argenta’s talented, diverse and committed employees work on a daily basis to deliver excellence in animal health to customers around the world. With research and GMP manufacturing operations in New Zealand, the United States and the United Kingdom, Argenta holds a unique position as the only combined global contract research organization (CRO) and contract manufacturing organization (CMO) dedicated to animal health. Argenta operates from “Molecule to Market” in partnership with customers of all sizes from all corners of the world, supporting their Research & Development, clinical research, regulatory, scale up and manufacturing needs along their veterinary product development journey. For more information about Argenta, please visit www.argentaglobal.com

About KKR

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, credit and real assets, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

Media Contacts:
For KKR Americas:
Cara Major or Miles Radcliffe-Trenner
212-750-8300
media@kkr.com

For KKR International:
Alastair Elwen or Alice Neave
Finsbury
+44 (0)20 7251 3801
kkr@finsbury.com

For Argenta
Annemieke de Keijzer
+1 732-439-3446
globalcommunications@argentaglobal.com

Source: KKR

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Deutsche Börse acquires leading governance, ESG data and analytics provider ISS

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  • Deutsche Börse to acquire majority stake in Institutional Shareholder Services (ISS) in partnership with current management and Genstar Capital, based on an ISS valuation of USD 2,275 million (EUR 1,925 million) for 100%
  • Move positions Deutsche Börse as a leading global provider of ESG data and analytics
  • High complementarity of ISS’ data and research businesses with Deutsche Börse Group’s businesses along the entire value chain, creates additional growth opportunities on both sides
  • ISS remains autonomous within the Group to ensure independence of its data and research
  • Current CEO Gary Retelny continues to lead ISS

FRANKFURT, Germany, NEW YORK and SAN FRANCISCO, Nov. 17, 2020—Deutsche Börse AG, Institutional Shareholder Services Inc. (ISS) and Genstar Capital LLC announced today that Deutsche Börse will acquire a majority share of approximately 80% in ISS, valuing ISS at USD 2,275 million (EUR 1,925 million) for 100% of the business (cash and debt free). Genstar Capital and current management will continue to hold a stake of approximately 20%. The transaction is expected to close in the first half of 2021 subject to customary closing conditions and regulatory approvals.

This partnership of a global market infrastructure provider with a leading corporate governance, ESG, data and analytics provider forms an excellent foundation to fully realise opportunities for future growth in ESG-based investing globally. With this transaction, Deutsche Börse strongly commits to one of the key megatrends in the industry that will fundamentally change the investment space over the coming years. ISS’ unique ESG and data expertise will allow Deutsche Börse to emerge as a leading global ESG data player.

ISS’ more than 4,000 clients include many of the world’s leading institutional investors who rely on ISS’ objective and impartial governance and ESG data and research, as well as public companies focused on ESG and governance risk mitigation as a shareholder value enhancing measure. This transaction will bring a strengthened capital structure to ISS and the ability to further accelerate organic and inorganic growth initiatives for the benefit of ISS’ clients while leveraging the infrastructure of Deutsche Börse and, in particular, its global index franchise. After the closing, ISS will continue to operate with the same editorial independence in its data and research organisation that is in place today. The current executive leadership team with CEO Gary Retelny will co-invest in the transaction and will also lead the business of ISS after the closing.

The businesses of ISS and Deutsche Börse are highly complementary and offer the potential for revenue synergies along the Group’s entire value chain: the partnership of ISS with the leading index and analytics capabilities of Qontigo, which is also part of the Group, will open opportunities for ESG growth on both sides. Further linkages along the value chain include ISS’ data distribution, which will benefit from the leading position of the Group’s post-trading services provider Clearstream in the investment funds space. In total, revenue synergies are expected to result in EUR 15 million additional EBITDA by 2023. ISS brings unique access to the buyside with more than 2,000 asset managers, including the global top 10. Moreover, ISS’ strong footprint in the US complements well with Deutsche Börse’s leading position in Europe.

This transaction is the logical next step in Deutsche Börse’s pre-trade growth strategy. It complements last year’s creation of Qontigo, formed from the combination of the analytics capabilities of Axioma with Deutsche Börse’s existing STOXX and DAX index businesses. As a leading ESG-focused provider of high-quality data, analytics and insight, ISS has attractive growth rates. In 2020, ISS is expected to generate net revenue of more than USD 280 million (pro-forma IFRS) and an adjusted EBITDA margin of approximately 35% pre-transaction effects, which has further operating leverage potential. Net revenue of ISS is expected to grow organically at a rate of more than 5% on average per annum until 2023. Deutsche Börse will report ISS’ financial performance as a separate pre-trading segment within the Group.

Theodor Weimer, CEO of Deutsche Börse AG, commented on the acquisition of ISS: “ISS is a very successful company with a high reputation worldwide as a global market leader in providing data, analytics and insights to investors and companies as well as governance services. It is one of the leading ESG providers. Its ESG expertise and data capabilities perfectly link to Deutsche Börse’s business model along our entire value chain. Together, ISS and Deutsche Börse have complementary ingredients to become one of the globally leading ESG players of the future. We have been deeply impressed by the culture and the leadership team of ISS. We look forward to partnering with ISS and working together to support the company’s continued business growth and jointly drive forward Deutsche Börse’s strategy.”

Stephan Leithner, Member of the Executive Board of Deutsche Börse AG, responsible for the Pre- and Post-Trading businesses, added: “ISS combines an emphasis on global corporate governance with an increasing focus on a broader definition of ESG standards, where Europe currently plays a trendsetter role. In this sense, we see our future partnership as a perfect combination to drive innovation and deliver the best expertise for ISS’ traditional investor clients and Deutsche Börse’s financial intermediary clients. As a neutral market infrastructure provider, Deutsche Börse is a natural candidate to provide these kinds of services.”

Gary Retelny, ISS President and CEO, said: “Deutsche Börse’s market-leading brands and solutions align very well with ISS’ offerings within our governance, ESG, index and market intelligence businesses. We believe that the potential combination of ISS’ ESG data and STOXX’ indices will offer clients new, powerful and innovative solutions with unique data sets that meet their evolving investment needs. We at ISS look forward to partnering with Deutsche Börse, along with Genstar Capital, as we continue to build upon the success of our diversified businesses around the world. As we have for more than 35 years, we remain committed to ensuring the provision of the highest quality research, data, analytics, and insight to our clients globally.”

Genstar Capital Managing Director, Tony Salewski, said: “Gary and the ISS management team have built a market-leading data and governance platform through innovative product development and impactful acquisitions, and we appreciate the partnership we have had with them over the past three years. As we continue as investors in ISS, we are excited by the value that Deutsche Börse will bring and our shared commitment to further accelerate ISS’ growth.”

About Deutsche Börse

As an international exchange organisation and innovative market infrastructure provider, Deutsche Börse Group ensures markets characterised by integrity, transparency and stability. With its wide range of products, services and technologies, the Group organises safe and efficient markets for sustainable economies.

Its business areas extend along the entire value chain in exchange trading, including the admission, trading and clearing, and custody of securities and other financial instruments, the dissemination of market data, as well as the management of collateral and liquidity. As a technology company, the Group develops state-of-the-art IT solutions and offers IT systems all over the world.

With more than 6,500 employees, the Group has its headquarters in the financial centre of Frankfurt/Rhine-Main, as well as a strong global presence in 38 locations such as Luxembourg, Prague, London, New York, Chicago, Hong Kong, Singapore, Beijing, Tokyo and Sydney.

For more information, please visit www.deutsche-boerse.com.

Media Contacts:
Ingrid Haas, Head of Group Communications & Marketing
+49 69 211-1 32 17
ingrid.haas@deutsche-boerse.com

Christina Vogt, Head of Pre- and Post-Trading Communications
+49 69-2 11-1 78 54
christina.vogt@deutsche-boerse.com

Patrick Kalbhenn, Group Spokesperson
+49 69-2 11-1 47 30
patrick.kalbhenn@deutsche-boerse.com

About ISS

Founded in 1985, Institutional Shareholder Services group of companies (ISS), empowers investors and companies to build for long-term and sustainable growth by providing high-quality data, analytics and insight. ISS is today a global leading provider of corporate governance and responsible investment solutions, market intelligence and fund services and events and editorial content for institutional investors and corporations globally. Clients rely on ISS’ expertise to help them make informed investment decisions.

ISS currently has more than 2,000 employees worldwide across more than 30 global offices in 15 countries. Its more than 4,000 clients include many of the world’s leading institutional investors who rely on ISS’ objective and impartial ESG and governance research, market intelligence and fund services and data and analytics as well as public companies focused on ESG and governance risk mitigation as a shareholder value enhancing measure.

For more information, please visit www.issgovernance.com.

Media Contact:
Subodh Mishra, Managing Director
+1 301-556-0500
subodh.mishra@issgovernance.com

About Genstar Capital

Genstar Capital is a leading private equity firm that has been actively investing in high quality companies for over 30 years.  Based in San Francisco, Genstar works in partnership with its management teams and its network of strategic advisors to transform its portfolio companies into industry- leading businesses.  Genstar currently has approximately $19 billion assets under management and targets investments focused on targeted segments of the financial services, healthcare, industrial and software industries.

Media Contact:
Chris Tofalli, Chris Tofalli Public Relations
+1 914-834-4334
chris@tofallipr.com

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Construction material startup Betolar raised €2M

Voima Ventures

Next generation construction material startup Betolar paves the carbon neutral way for the cement and concrete industries. Betolar is a material technology company specialised in geopolymer-based, low carbon construction materials for the construction industry. The company closed a €2M funding round led by Voima Ventures, and joined by Taaleri Investments Ltd and Valve Ventures.

Kannonkoski, Finland. Increasing CO2 levels are affecting nature, lives and economies with growing urgency. One of the biggest single contributors to these numbers is the use of cement as a construction material. In fact, cement produces more CO2 emission than the aviation industry (1,2). For decades the construction industry has not been able to answer the urgent need to decrease the CO2 emissions. Now, Betolar is changing that.

Betolar is transforming the construction industry by aiming to eliminate cement with their geopolymer technology while turning industrial side streams into value. They are offering a scalable AI empowered alternative construction material production with up to 80% less carbon emissions compared to using traditional cement. Betolar can also reduce the need for virgin raw materials by replacing aggregates with industrial side streams.

Betolar has developed new types of different binders, where by-products from the metal, mining and energy industries can be used. The company is selling solutions in three key application areas: concrete products, ready-mixed concrete, and soil stabilization. These solutions consist of the company’s license-based recipe and material technology and additives needed in the production. The company has extensive knowledge in material physics and advanced analytics knowhow which brings the team strong competitive advantage in the construction industry.

Betolar has developed and piloted its solutions with various industrial partners in Finland, Sweden and Estonia, with the longer-term aim to expand into Asia, where consumption and construction is considerably higher. For example in India alone cement consumption is s two times that of Europe’s (3).

“There has been a strong pull for low carbon construction materials in Asia and we are currently preparing our entry to multiple markets.”, says the CEO of Betolar, Matti Löppönen.

Betolar raised a €2M funding round from deep tech fund Voima Ventures as the lead investor, joined by Taaleri and Valve Ventures. With the new funding, Betolar is looking to  start the commercialization of the product to global markets.

“Betolar’s technology is truly challenging the carbon footprint and quality expectations we have for the construction industry and in particular the cement or concrete being used today. Climate change is a pressing matter, and together with Betolar’s industrial partners we are looking forward to being part of making the carbon friendly and new circular economy based construction industry a reality. The global potential is huge, not only for Betolar but for the whole industry and circular ecosystem.”, says Inka Mero, Managing Partner of Voima Ventures.

“When Betolar succeeds they will achieve both excellent financial profit and significant environmental improvements through decreased CO2 emissions and raw material use. Thus, it excellently meets Taaleri Impact’s investment criteria. We are happy to be involved in this round.”, says Pekka Samuelsson, Investment Director of Taaleri Impact Investments.

About Betolar

Betolar is a construction material startup turning various industrial side streams into environmentally friendly and low carbon construction materials. These materials have a carbon footprint that is up to 80 per cent smaller than conventional cement-based concrete. At the same time, Betolar enables industrial waste stream producers a way to turn their waste into value and thus accelerate the transition towards sustainable construction and a circular economy.
www.betolar.com

About Voima Ventures

Voima Ventures is a €40M deep tech fund that invests purely in startups with deep tech and scientific backgrounds. Voima Ventures’ mission is to solve major global problems by combining science, entrepreneurship, and capital. Industry domains include bio and new materials, medical technologies and life sciences, imaging and optics, IoT and electronics, robotics, software & ICT and AI. In addition, Voima Ventures is managing a portfolio of VTT Ventures with 20 prominent deep tech companies including Solar Foods, Paptic, and Dispelix. Cornerstone investors are VTT Technical Research Centre of Finland and European Investment Fund (EIF), backed by Finnish private and institutional investors.

References

1. Huang, Lizhen, et al. “Carbon emission of global construction sector.” Renewable and Sustainable Energy Reviews 81 (2018): 1906-1916. Available from: <URL:https://www.sciencedirect.com/science/article/abs/pii/S1364032117309413>

2. Air Transport Action Group (2020). Key Facts & Figures. Available from: <URL:https://www.atag.org/facts-figures.html>

3. The European Cement Association (2020). Key Facts & Figures. Available from: <URL:https://cembureau.eu/about-our-industry/key-facts-figures/>

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Clearlake Capital Acquires Insurance Software Leader Zywave And Announces Strategic Acquisition Of Advisen

Aurora Capital

SANTA MONICA, Calif. and MILWAUKEE, Nov. 17, 2020 /PRNewswire/ — Clearlake Capital Group, L.P. (together with its affiliates, “Clearlake”) today announced that it has completed its acquisition of Zywave, Inc. (“Zywave”) and has also acquired Advisen Ltd. (“Advisen”), further establishing the new platform as the leading software-as-a-service (SaaS) provider of front office insurance solutions. Aurora Capital Partners (“Aurora”), previously the majority owner of Zywave, is investing alongside Clearlake in the transaction. The combined company will be led by Jason Liu, Chief Executive Officer (CEO) at Zywave. Financial terms were not disclosed.

Zywave (PRNewsfoto/Clearlake Capital Group)
Zywave is a market-leading provider of cloud-based insurance distribution software, offering expansive digital solutions to strengthen and grow insurance businesses. Zywave’s mission critical software solutions help insurance brokerages manage customer relationships by streamlining sales and renewal processes, quote delivery, content generation, and data tracking and analytics.

Advisen is a leading provider of software and data solutions to the commercial property and casualty insurance market. Advisen’s proprietary data sets and applications focus on large, specialty risks offering information, analytics, ACORD messaging gateway, news, research, and events, connecting commercial brokers, insurance carriers and insurance organizations worldwide.

“Clearlake and Aurora’s investment positions Zywave to accelerate organic growth while increasing the pace of our inorganic activity, evidenced by the acquisition of Advisen,” said Mr. Liu of Zywave. “With Clearlake and Aurora’s operational support and financial backing, including implementing Clearlake’s O.P.S.® playbooks, we are in a great position to extend our leadership in delivering end-to-end solutions to insurance professionals globally.”

“The combination of Zywave and Advisen creates a unique software platform for the broader insurance market as stakeholders look to digitize mission critical workflows within their day-to-day operations,” said Behdad Eghbali, Co-Founder and Managing Partner, and Prashant Mehrotra, Partner, of Clearlake. “Zywave has created a differentiated SaaS product platform that will be strengthened by Advisen’s loss and policy data to enable smarter business decisions for insurance customers.”

“We are excited to support Zywave alongside Clearlake in the company’s next chapter of growth,” said Josh Klinefelter, Partner, and Rob Fraser, Partner, of Aurora. “Zywave is well positioned to continue building on its strong leadership position in front office software solutions, both organically and through accelerated add-on acquisition activity.”

William Blair & Company served as financial advisor to Zywave and Aurora. Houlihan Lokey served as financial advisor to Advisen.

About Zywave

Zywave leads the insurance tech industry, fueling business growth for its partners with cloud-based sales management, client delivery, content and analytics solutions. Offering a technology platform embedded with robust data and the most comprehensive content portfolio available, we empower smarter business decisions throughout the entire customer lifecycle. More than 6,000 brokerages worldwide—including all of the top 100 U.S. insurance firms—use Zywave solutions to enhance client services, achieve business growth and promote greater health, wellness and safety. Additional information can be found at www.zywave.com.

About Advisen

Advisen is the leading provider of data, media, and technology solutions for the commercial property and casualty insurance market. Advisen’s proprietary data sets and applications focus on large, specialty risks. Through Web Connectivity Ltd., Advisen provides messaging services, business consulting, and technical solutions to streamline and automate insurance transactions. Advisen connects a community of more than 200,000 professionals through daily newsletters, conferences, and webinars. The company was founded in 2000 and is headquartered in New York City, with offices in the US and the UK. Visit www.advisenltd.com to learn more.

About Clearlake

Clearlake Capital Group, L.P. is a leading investment firm founded in 2006 operating integrated businesses across private equity, credit and other related strategies. With a sector-focused approach, the firm seeks to partner with world-class management teams by providing patient, long-term capital to dynamic businesses that can benefit from Clearlake’s operational improvement approach, O.P.S.® The firm’s core target sectors are industrials, technology and consumer. Clearlake currently has approximately $25 billion of assets under management and its senior investment principals have led or co-led over 200 investments. The firm has offices in Santa Monica and Dallas. More information is available at www.clearlake.com and on Twitter @ClearlakeCap.

About Aurora

Aurora Capital Partners is a leading private equity firm focused principally on control investments in middle-market companies with leading market positions, stable industry dynamics, attractive business model characteristics and actionable opportunities for growth in partnership with management. Aurora provides unique resources to its portfolio companies through its Strategy & Operations Program and its team of experienced operating advisors. Aurora’s investors include leading public and corporate pension funds, endowments and foundations active in private equity investing. For more information about Aurora Capital Partners, visit www.auroracap.com.

Clearlake Media Contact:
Lambert & Co.
Jennifer Hurson
845-507-0571
jhurson@lambert.com

Zywave Media Contact:
April Larsen
414-918-0547
april.larsen@zywave.com

Aurora Media Contact:
ASC Advisors
Steve Bruce
203-992-1230
sbsruce@ascadvisors.com

Taylor Ingraham
203-992-1230
tingraham@ascadvisors.com

SOURCE Clearlake Capital Group

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Paddle Raises $68 Million Series C to Power Next Wave of B2B SaaS Companies

FTV Capital

Revenue Delivery Platform leader backed by FTV Capital, Kindred, Notion and 83North

LONDON–(BUSINESS WIRE)–Paddle, the Revenue Delivery Platform for B2B Software-as-a-Service (SaaS) companies, today announces it has raised $68 million (£52 million) in Series C funding. The most recent investment was led by FTV Capital, a sector-focused growth equity investor in innovative companies in enterprise technology and services, financial services, payments and transaction processing, with participation from Kindred Capital, Notion Capital and 83North. This brings the total investment raised to date by Paddle to $93 million (£72 million). The funding will be used for continued expansion in the US and globally, as well as further investments in the company’s product, engineering, sales and marketing teams.

Paddle was founded in 2012 by British co-founders Christian Owens and Harrison Rose, with a vision of providing a complete solution to help software companies sell their products. The Paddle team has grown to 140 employees, and Paddle’s Revenue Delivery Platform today serves over 2,000 software companies in 245 countries and territories globally, empowering them to respond to every growth opportunity across customer acquisition, renewals and expansion.

Powerful market forces are reshaping the software industry, particularly the SaaS market, which is predicted to be worth over $105 billion in 2020. Many SaaS companies have seen demand surge during the Covid-19 pandemic as businesses and consumers became increasingly reliant on digital products and services. In fact, Paddle has seen sales by existing sellers accelerate during the pandemic, with particularly strong demand for software that supports distributed teams and collaboration, from VPNs to video calling.

However, SaaS companies are also facing unprecedented competition in an environment where they live or die by customer acquisition costs and their ability to maintain customer loyalty. They have the opportunity to compete and sell in any market in the world, but to do so must manage payments and operations in multiple markets, and navigate an increasingly complex web of international and local tax and data regulations.

As a result, scaling up is no longer just about focusing on building the right product and having the right go-to-market strategy. High-velocity SaaS companies are shifting their focus to a third powerful growth lever, Revenue Delivery, to drive hyper-scale growth by optimising Net Dollar Retention (NDR). Unfortunately, existing revenue delivery infrastructure isn’t ready for the scale and ambition of today’s software companies and businesses are stuck trying to force-fit integrations between legacy payment gateways, billing engines, subscription management tools, and multiple tax, compliance and data governance systems. This is a huge drain on time and resources that can severely limit SaaS companies’ ability to scale.

Paddle’s Revenue Delivery Platform makes it easy for SaaS companies to respond faster and more precisely to every growth opportunity for their business. A single unified platform, Paddle integrates checkout, payment, subscription management, and financial compliance; meaning sellers on the platform can activate new business models instantly, enter new markets with ease, turn on new offerings with one-click, and enable friction-free renewals. This modern approach to revenue delivery empowers CEOs to make informed business decisions quickly and confidently, and frees up teams to focus on the core business rather than operational headaches. Ultimately, using Paddle enables businesses to optimise NDR and deliver business impact that outperforms expectations.

Paddle has seen incredible demand to date, recording an average annual revenue growth of over 175% over the last four years and doubling in the last year alone.

Christian Owens, CEO and co-founder of Paddle, said:

“The beauty of the SaaS model is that if you build a great product, you can sell it to anyone, anywhere in the world. Unfortunately, it is rarely that simple. We created Paddle because we’ve seen first hand the things that limit the growth of a SaaS company often have very little to do with the quality of your product. Dealing with payments, managing subscriptions, localising checkouts in multiple languages and handling tax and compliance across dozens of markets is hugely complex and each of these challenges makes it harder for businesses to scale quickly. Our Revenue Delivery Platform has been built to remove all of this friction for B2B SaaS companies, empowering them to increase NDR by responding faster to every growth opportunity. We’re excited to continue our own growth with this investment and look forward to maintaining momentum in the months and years ahead.”

Kyle Griswold, partner, who led the investment for FTV Capital, added:

“We are witnessing a systemic shift within software, with the ‘growth at any cost’ mindset gradually being replaced by a realisation that businesses must scale more efficiently and with clearer purpose. We’ve been extremely impressed with Christian and Harrison’s ambition and Paddle’s growth to date and we believe they are defining a new category with Paddle’s Revenue Delivery Platform — one that will be critical to helping companies adapt to change while empowering them to take advantage of the huge acceleration in demand for digital products. With more than two decades investing in the SaaS and payments sectors, FTV will bring the best of our domain expertise to accelerate Paddle’s exciting growth.”

About Paddle
The Paddle Revenue Delivery Platform for B2B SaaS companies powers growth across acquisition, renewals and expansion. With Paddle, companies are finally able to transform their revenue delivery infrastructure into a strategic growth lever to respond faster and more precisely to every opportunity. Paddle has 140 talented employees serving over 2,000 software sellers in 245 countries and territories globally. Backed by investors including FTV Capital, Kindred, Notion, and 83North, Paddle aims to define the next wave of B2B SaaS leaders. Visit www.paddle.com or www.twitter.com/PaddleHQ for more information.

About FTV Capital
FTV Capital is a growth equity investment firm that has raised nearly $4 billion to invest in high-growth companies offering a range of innovative solutions in three sectors: enterprise technology and services, financial services, and payments and transaction processing. FTV’s experienced team leverages its domain expertise and proven track record in each of these sectors to help motivated management teams accelerate growth. FTV also provides companies with access to its Global Partner Network®, a group of the world’s leading enterprises and executives who have helped FTV portfolio companies for two decades. Founded in 1998, FTV Capital has invested in more than 120 portfolio companies, including CloudFactory, Derivative Path, EBANX, Enfusion Systems, InvestCloud, Liberis, ReliaQuest, Riskalyze, Sunlight Financial, Sysnet, Tango Card, Vagaro, VPay and successfully exited companies including Empyrean Benefits (acquired by Securian Financial), ExlServices (IPO), Fleet One (acquired by WEX), Globant (NYSE IPO), Health Credit Services (acquired by Ally Financial), MedSynergies (acquired by Optum), Mu Sigma (acquired by shareholders), and WorldFirst (acquired by Ant Financial). FTV has offices in San Francisco and New York. For more information, please visit www.ftvcapital.com.

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Convex Group Raises $1 Billion of Additional Capital

Onex

Convex is Well-Positioned to Capitalize on Insurance Market Opportunity –
Toronto,November 17,2020 –Onex Corporation(“Onex”) (TSX: ONEX) and its affiliated funds(the “Onex Group”), along with GIC, announced that they and a consortium of existing and newco-investors have committed to invest$1 billion in Convex Group Limited (“Convex”or the“Company”).This capital raise is subject to customary regulatory approvals.

Convex is a specialty insurer and reinsurer focused on complex risks that launched with $1.7 billion of committed capital in April of 2019.

Convex’initial invested capital was raised from the Convex management team, Onex Partners V,PSP Investments and a consortium of co-investors.The additional capital has been committed by the original investors as well as multiple new investors led by GIC.
Bobby Le Blanc, President of Onexand Head of Onex Partners, commented, “Over the pasteighteenmonths, the Convex management team has made significant progress in realizing our original investment thesis, having successfully executed on its recruiting plan,implemented key operational systems and processes, established strong relationships with brokers, and written over$1 billion inpremiums. This momentum, coupled with the favorable P&C insurance market conditions,have further improved the risk-adjusted return opportunity and make us confident in the continued success of the business.”
Stephen Catlin, CEO of Convex,said,“Onex and our existing investor base have provided us with tremendous support in building the business and we welcome the new investor partners,including GIC. We are delighted to have additional capital as this will enable us to takefull advantageof the hardening market.”

Choo Yong Cheen, Chief Investment Officer of Private Equity at GIC,said,“GIC is pleased to partner with Stephen, Paul, and the rest of the Convex team given their tremendous successto dateand long track record of disciplined underwriting. We believe that Convex’ unique valueproposition within complex risk is well-suited for the current market environment. As a long-term investor, we look forward to working alongside Onex and othershareholdersto support the Company as it embarks on its next phase of growth.”

Martin Longchamps, Managing Director, Private Equity at PSP Investments, said, “We are pleased to continue our successful partnership with Onex and Convex by supporting the Company’s accelerated growth strategy. The Convex management team has established an agile, world-class specialty insurer with a strong operational foundation. This transaction is in line with our strategy of making sizeable, direct investments in high-quality companies alongside experienced partners.”
The capital raise includes more than $300 million from the Onex Group, including $200 million from Onex Partners V.

About Convex
Convex Group is a specialty insurer and reinsurer focused on complex risks founded by Stephen Catlin and Paul Brand. With operations in London and Bermuda, Convex occupies a unique position in the insurance industry and combines unrivalled experience, reputation and lessons learned with the freedom and independence of a new balance sheet.

About Onex
Founded in 1984, Onex invests and manages capital on behalf of its shareholders, institutional fainvestors and high net worth clients from around the world. Onex’ platforms include: Onex Partners, private equity funds focused on larger opportunities in North America and Europe; ONCAP, private equity funds focused on middle market and smaller opportunities in North America; Onex Credit, which manages primarily non-investment grade debt through collateralized loan obligations, senior loan strategies and other private credit strategies; and Gluskin Sheff’s wealth management services including its actively managed public equity and public credit funds. In total, Onex has approximately $36.6 billion of assets under management, of which approximately $6.7 billion is its own shareholder capital. With offices in Toronto, New York, New Jersey and London, Onex and its experienced management teams are collectively the largest investors across Onex’ platforms.
The Onex Partners and ONCAP businesses have assets of $36 billion, generate annual revenues of $22 billion and employ approximately 149,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol ONEX. For more information on Onex, visit its website at www.onex.com. Onex’ security filings can also be accessed at www.sedar.com.

Forward-Looking Statements
This press release may contain, without limitation, statements concerning possible or assumed future operations, performance or results preceded by, followed by or that include words such as “believes”, “expects”, “potential”, “anticipates”, “estimates”, “intends”, “plans” and words of similar connotation, which would constitute forward-looking statements. Forward-looking statements are not guarantees. The reader should not place undue reliance on forward-looking statements and information because they involve significant and diverse risks and uncertainties that may cause actual operations, performance or results to be materially different from those indicated in these forward-looking statements. Except as may be required by Canadian securities law, Onex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or other factors. These cautionary statements expressly qualify all forward-looking statements in this press release.

For further information:
Jill Homenuk
Managing Director, Shareholder Relations and Communications
Tel: 416.362.7711

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The deal-by-deal team enters a partnership with management of Sumo

Hercules Capital

(Oslo, 17 November 2020) A company funded by a group of experienced restaurant investors and managed by Fredrik Kongsli and Fredrik T. Bysveen, has entered into an agreement with Sinco AS to acquire Sumo AS, Norway’s largest Asian fusion restaurant chain. With its playful Asian fusion concept, strong brand, and successful restaurants, Sumo represents a strong foundation for further expansion.
Sumo has established 9 successful restaurants in Bergen, Oslo, Stavanger, and Jessheim. The company has created an easy-to-like Asian fusion menu based on high quality ingredients. The company expects to generate a turnover in 2020 of approximately NOK 180 million. Despite the Covid-19 outbreak, Sumo has experienced a solid topline momentum in 2020, proving the strength of the concept and management team.

Simon Simonnæs, the CEO and previous majority owner, will together with other key employees retain 48% ownership after the transaction. “It has been our ambition to accelerate the expansion of Sumo both in Norway and abroad. Together with Kongsli and Bysveen and the highly experienced team of restaurant investors they bring, we will have the competence, capacity, and financial resources to accomplish this ambition over the next few years.”

“We are impressed by the outstanding track record, the strong culture and the enthusiasm in the organization. Sumo has a unique offering that makes people want to return again and again. The food is popular and the people working there are hands-on and genuinely service minded. In addition, Sumo is capturing the takeout trend and has been successful in building a popular brand through social media. We believe Sumo has a large potential for further growth both in Norway and abroad”, says Fredrik Kongsli.

Salsa Bergen AS will also be part of the transaction. Salsa is a successful Latin American restaurant located in Bergen that has rollout potential.

Closing of the transaction took place 17 November 2020.

Contact:
Fredrik Kongsli, Chairman Sumo & Salsa
Telephone: +47 98 01 22 51

Simon Simonnæs, CEO Sumo & Salsa
Telephone: +47 938 89 500

The buyer was advised by DLA Piper and PwC.

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Cinven, KKR and Providence complete the acquisition of Spanish telecommunications operator, MASMOVIL

Cinven

he acquisition of MASMOVIL demonstrates a commitment from the Consortium towards the development of the Spanish telecom market over the coming years.

Lorca Telecom Bidco SAU, a company indirectly and collectively majority owned by funds or vehicles managed or advised by Cinven, funds or vehicles managed or advised by KKR and funds or vehicles managed or advised by Providence Equity Partners L.L.C. (“Providence”) (jointly “the Consortium”), has successfully completed the acquisition of Spanish telecommunications operator MASMOVIL IBERCOM, S.A. (“MASMOVIL” or “the Group”) having acquired 99.3% of the Group’s outstanding shares. At the tender offer price, MASMOVIL was valued at approximately EUR 5.3 billion.

The Consortium’s support will provide MASMOVIL with the opportunity to accelerate its investment strategy and develop new projects aimed at providing the Group’s customers, who report some of the highest satisfaction rates in Spain, high quality access to MASMOVIL’s networks at a time when the telecommunications sector is becoming increasingly important in the country.

In addition, this transaction aims to continue creating value for the telecommunications market, customers, and employees of the Group, in addition to, delivering a positive impact on people and on the planet – in line with MASMOVIL’s corporate purpose.

Headquartered in Madrid, MASMOVIL is the fourth largest telecommunications operator in Spain, with more than 11 million customers. It provides triple-play fixed-line, mobile and internet services to residential customers, businesses and operators through a number of brands including Yoigo, MASMOVIL, Pepephone, Llamaya, Lebara, Lycamobile and Hits mobile.

The Consortium believes MASMOVIL represents an attractive investment opportunity because of its strong positioning in Spain, the increasing demand for greater quality and value for money in the Spanish telecommunications sector, and the range of growth opportunities available for the business over the medium-term.

Commenting on the transaction, Jorge Quemada and Thomas Railhac, Partners at Cinven, said:

“We are delighted to have completed the acquisition of such a major European business which has become the leading challenger in Spain. The experienced management team has demonstrated its ability to consistently deliver excellent results, even in fast changing environments. MASMOVIL has a highly successful track record and has achieved revenue and double-digit EBITDA growth both organically and through acquisitions and, more recently, through the actions they have taken since COVID-19. We strongly believe MASMOVIL is well positioned in the market for further exciting growth opportunities.”

Iñaki Cobo and Jean-Pierre Saad, Partners at KKR, said:

“We are excited to invest behind one of our core themes, telecommunications and digitalization, and are confident that MASMOVIL is well positioned to continue capturing growth opportunities with its outstanding management team. The investment in MASMOVIL reinforces KKR’s commitment to Spain where we have already deployed almost $6 billion since 2010.”

Robert Sudo, Managing Director at Providence Equity, said:

“As a long-standing investor in MASMOVIL, we continue to see exciting growth opportunities for the business and are pleased Cinven and KKR share our long-term vision for the company. The management team’s proven track record leading the business places MASMOVIL in a strong position to succeed as a private business in a competitive market ripe for consolidation.”

The offer document with all the information about the voluntary tender offer are available on the following website:  https://www.grupomasmovil.com/en/takeover-bid-on-masmovil-group/

Advisors to the Consortium for this transaction, included: Barclays, Deutsche Bank and Morgan Stanley (M&A); Freshfields Bruckhaus Deringer LLP, Paul Weiss, Rifkind, Wharton & Garrison LLP and Uria Menéndez (legal); Analysys Mason and McKinsey (commercial); Deloitte (financial, tax, operations, structuring); and EY (IT).

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Wendel enters the Dow Jones Sustainability (DJSI) World and Europe indices

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Wendel

Wendel has entered the Dow Jones Sustainability World and Europe indices (DJSI), as indicated in the results of the annual S&P Dow Jones Indices study, published on November 13, 2020. As such, the indices have recognized the Group’s ESG (Environment, Social, Governance) performance.

Evaluated on the basis of all of its ESG initiatives, Wendel obtained a score of 71/100, compared with the average in its sector of 30/100. Wendel is currently the only French company in the Diversified Financials sector that is present in the DJSI World and Europe indices.
Launched in 1999, the DJSI includes the best-performing companies in terms of sustainable development out of nearly 3,500 listed companies analyzed worldwide. Every year, the DJSI evaluates companies using its Corporate Sustainability Assessment (CSA) questionnaire. The highest performing 10% of these companies, based on the sustainability criteria defined for each industry, are then integrated into the Dow Jones Sustainability Indices. Specifically, in the Diversified Financials sector, only 17 companies, including Wendel, have been integrated into the DJSI World index out of the 162 companies evaluated this year.

This distinction consecrates our long-standing commitment to corporate social responsibility, which has picked up considerable speed in 2020. “It is an honor for us to be recognized as sustainability leaders in our sector”, said André François-Poncet, Wendel’s Group CEO. “In the first quarter of 2020, Wendel published an ambitious ESG roadmap for itself and the companies in its portfolio. This strategy reflects our two objectives: position Wendel as a leader among investment companies in sustainable development, and encourage the companies in our portfolio to be both exceptional and exemplary. Wendel’s entry into the DJSI World and Europe indices is a just reward for our efforts to make ESG a source of value creation, innovation and differentiation for our companies, in a spirit of continuous improvement.”

In addition, Wendel applauds the performance of Bureau Veritas, a portfolio company since 1995, which is also included in the DJSI World and Europe 2020 indices and this year became the no. 1 company in the professional services sector.

Manjit Jus, Managing Director, Global Head of ESG Research & Data at S&P Global, said, “We congratulate Wendel for its inclusion in the DJSI World and Europe indices. Your DJSI distinction reflects your positioning as a world leader in your industry. With a record number of companies participating in the Corporate Sustainability Assessment 2020 and stricter inclusion rules this year, this recognition honors your company and rewards your active commitment to our Society and to the protection of our planet.”

For more information, please read Wendel’s ESG 2020 brochure, “Building sustainability leaders”, available on Wendel’s website: www.wendelgroup.com

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