Category Archives: News

Nutanix Announces $750 Million Investment From Bain Capital Private Equity to Support Growth Initiatives

BainCapital

SAN JOSE, CA, August 27, 2020 – Nutanix (NASDAQ: NTNX), a leader in enterprise cloud computing, today announced that Bain Capital Private Equity will make an investment of $750 million in Convertible Senior Notes to support the Company’s growth initiatives.

“Bain Capital Private Equity has deep technology investing experience and a strong track record of helping companies scale,” said Dheeraj Pandey, Chairman, Co-Founder and CEO of Nutanix. “Bain Capital Private Equity’s investment represents a strong vote of confidence in our position as a leader in the hybrid cloud infrastructure (HCI) market and our profound culture of customer delight.”

Nutanix Announces $750 Million Investment From Bain Capital Private Equity to Support Growth Initiatives

“Nutanix is executing on a compelling vision for a differentiated hybrid cloud platform that provides flexible environments and is easily paired with other cloud platforms,” commented David Humphrey, a Managing Director at Bain Capital Private Equity. “We look forward to working closely with the Board and the management team to build on Nutanix’s leadership position and realize its strong vision for the future,” added Max de Groen, a Managing Director at Bain Capital Private Equity. In connection with the investment, Humphrey and de Groen will join the Nutanix Board of Directors following the close of the transaction, which is expected to occur in late September 2020.

“We are pleased to establish this partnership with Bain Capital Private Equity and look forward to the contributions Dave and Max will make as new board members to build on Nutanix’s success,” concluded Ravi Mhatre, Lead Independent Director.

Bain Capital Private Equity has deep experience in the technology sector, having made investments in a wide range of companies including Applied Systems, BMC Software, CentralSquare Technologies, KIOXIA (formerly known as Toshiba Memory Corp.), NortonLifeLock Inc., Rocket Software, Symantec, Viewpoint Construction Software, Vertafore, Waystar, and Zelis.

Under the terms of the investment, Bain Capital Private Equity will purchase $750 million in aggregate principal amount Convertible Senior Notes (the “Notes”). The Notes will have an initial conversion price of $27.75 per share of the Company’s Class A Common Stock, subject to customary anti-dilution and other adjustments. The initial conversion price of $27.75 represents a 30.6% premium to Nutanix’s volume-weighted average price (VWAP) over the trailing five (5) trading day period prior to Bain Capital Private Equity’s signing of the definitive agreement to acquire the Notes. In addition, at the 12-month anniversary of the original issuance of the Notes, depending on the achievement of financial milestones, the conversion price may be subject to an additional, one-time adjustment, to an amount in the range of $25.25 to $27.75 per share. The Notes will mature on September 15, 2026, unless earlier repurchased, redeemed or converted. The Notes bear 2.5% interest per year, with such interest to be paid in kind on Notes held by Bain Capital Private Equity through an increase in the principal amount of the Notes. In connection with this transaction, Nutanix’s Board has authorized the repurchase of up to $125 million of its Class A common shares that are intended to offset the dilutive effect of any shares the Company may issue to settle the potential conversion of the Notes.

Additional information regarding this announcement may be found in a Form 8-K that will be filed today with the U.S. Securities and Exchange Commission.

In separate press releases issued today, Nutanix announced a CEO succession plan and financial results for the fiscal fourth quarter and fiscal year 2020. These announcements are available on the Nutanix Investor Relations website at ir.nutanix.com.

Goldman Sachs & Co. LLC is serving as exclusive financial advisor to and sole placement agent for Nutanix.

About Nutanix

Nutanix is a global leader in cloud software and a pioneer in hyperconverged infrastructure solutions, making computing invisible anywhere. Organizations around the world use Nutanix software to leverage a single platform to manage any app at any location for their private, hybrid and multicloud environments. Learn more at www.nutanix.com or follow us on Twitter @nutanix.

About Bain Capital Private Equity

Bain Capital Private Equity (www.baincapitalprivateequity.com) has partnered closely with management teams to provide the strategic resources that build great companies and help them thrive since its founding in 1984. Bain Capital Private Equity’s global team of approximately 240 investment professionals creates value for its portfolio companies through its global platform and depth of expertise in key vertical industries including healthcare, consumer/retail, financial and business services, industrials, and technology, media and telecommunications. Bain Capital Private Equity has 20 offices on four continents. The firm has made primary or add-on investments in more than 875 companies since its inception. In addition to private equity, Bain Capital Private Equity invests across asset classes including credit, public equity, venture capital and real estate, managing approximately $100 billion in total and leveraging the firm’s shared platform to capture opportunities in strategic areas of focus.

Forward-Looking Statements

This press release contains express and implied forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, but not limited to, statements regarding: the investment by Bain Capital Private Equity in the Company, as described herein, including the Company’s plans for the use of the proceeds and the timing thereof, as well as any expected benefits thereof on the Company’s leadership and governance structure, future financial and operating performance, capital position, market share, and growth prospects; the expected appointment of new directors to the Company’s Board, including the timing and benefits thereof; any potential adjustments to the conversion price of the Notes; the Company’s plans to repurchase stock to offset the dilutive effect of the investment; and the Company’s business plans, initiatives and objectives and its ability to execute such plans, initiatives and objectives in a timely manner, as well as the benefits and impact of such plans, initiatives and objectives. These forward-looking statements are not historical facts and instead are based on the Company’s current expectations, estimates, opinions, and beliefs. Consequently, you should not rely on these forward-looking statements. The accuracy of such forward-looking statements depends upon future events and involves risks, uncertainties, and other factors, including factors that may be beyond the Company’s control, that may cause these statements to be inaccurate and cause its actual results, performance or achievements to differ materially and adversely from those anticipated or implied by such statements, including, among others: failure to successfully close or realize the full benefits of the above-described investment, or unexpected difficulties or delays in successfully closing or realizing the full benefits of such investment; failure to successfully implement or realize the full benefits of, or unexpected difficulties or delays in successfully implementing or realizing the full benefits of, the Company’s business plans, initiatives and objectives; failure to attract new and retain existing end-customers; failure to timely and successfully meet the needs of the Company’s customers; delays in or lack of customer or market acceptance of the Company’s new products, services, product features or technology; failure to meet expectations regarding the Company’s platform, products, services and technology; the timing, breadth, and impact of the COVID-19 pandemic, including the actions the Company has taken to manage operating expenses in response thereto, on the Company’s business, operations, and financial results, as well as the impact of the pandemic on the Company’s customers, partners, and end markets; the failure to build strong leadership or manage the Company’s business and any future growth effectively; and other risks detailed in Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2020, filed with the U.S. Securities and Exchange Commission, or the SEC, on June 4, 2020. Additional information will also be set forth in Company’s Annual Report on Form 10-K that will be filed for the fiscal year ended July 31, 2020, which should be read in conjunction with this press release. The Company’s SEC filings are available on the Investor Relations section of the Company’s website at ir.nutanix.com and on the SEC’s ir.nutanix.com and on the SEC’s website at www.sec.gov. These forward-looking statements speak only as of the date of this press release and, except as required by law, the Company assumes no obligation, and expressly disclaims any obligation, to update, alter or otherwise revise any of these forward-looking statements to reflect actual results or subsequent events or circumstances.

© 2020 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix logo, and all Nutanix product and service names mentioned herein are registered trademarks or trademarks of Nutanix, Inc. in the United States and other countries. All other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).

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GP Bullhound completes a follow-on investment in Challengermode

Gp Bullhound

GP Bullhound completes a follow-on investment in Challengermode
Challengermode Robel Web

Making esports accessible to everyone

26 August 2020
Founded in 2014 Challengermode has swiftly secured its position as one of the leading providers of the operating infrastructure powering esports and online tournaments. The company has grown impressively, having hosted millions of competitions and has become a regular place for gamers to congregate, practice and compete in esports.

Challengermode successfully closed an external financing round of $12m led by eWTP Innovation Fund, the global investment arm of the Alibaba Group, with additional support from GP Bullhound, Telia Ventures, Back in Black and football legend Zlatan Ibrahimovic.

 

Hampus Hellermark of GP Bullhound, said: “We have a strong vision for the future of esports and believe Challengermode has a unique opportunity to be a driving force in making that vision a reality. We are excited to continue to support Robel and the team on their quest to make esports accessible to everyone.”

 

“We are very excited to close this new financing round with the support of a strong set of investors who share our vision for esports. With the additional backing, we’re able to double down on our core mission of delivering the best competitive gaming experience to each and everyone’s home, in any game,” commented Robel Efrem, CEO of Challengermode.

GP Bullhound completed its first investment in Challengermode in 2018 through Fund IV, which focuses on growth stage businesses in the software, digital media, marketplaces and fintech sectors. Previous investments include Ravenpack, Slack, Klarna, Unity, Glovo and Believe.
Enquiries

For enquiries, please contact:

Joakim Dal, Partner

joakim.dal@gpbullhound.com Hampus Hellermark, Associate

hampus.hellermark@gpbullhound.com

About GP Bullhound

GP Bullhound is a leading technology advisory and investment firm, providing transaction advice and capital to the world’s best entrepreneurs and founders. Founded in 1999, the firm today has offices in London, San Francisco, Stockholm, Berlin, Manchester, Paris, Hong Kong, Madrid and New York. For more information, please visit www.gpbullhound.com.


GP Bullhound Fund V
Following the successful strategy of its predecessor funds, GP Bullhound Fund V recently held its first close of €125m, focusing on growth-stage businesses in the software industry. Read more here.

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Adelis portfolio company SSI Diagnostica acquires US-based CTK Biotech, creating global rapid diagnostics powerhouse

Adelis Equity

Since being acquired by Adelis Equity Partners Fund I AB (Adelis) in 2016, SSI Diagnostica has seen strong progress in its In Vitro Diagnostics (IVD) business, particularly internationally. To further accelerate its growth, SSI Diagnostica is acquiring the US-based IVD company CTK Biotech. The combination of the companies will create a global powerhouse within respiratory and tropical disease rapid diagnostics. The joint company will have very strong manufacturing and R&D capabilities as exemplified by its response to the Covid 19 health crisis. In connection with the transaction a CEO change will take place.

CTK Biotech is an IVD business that manufactures and distributes rapid diagnostic tests with a focus on the Latin American, Asian and African markets. The company is headquartered in San Diego and has a sizeable, state-of-the art manufacturing plant in Beijing. The business generated sales of USD 26 million in 2019 and expects to grow significantly in 2020.

”CTK Biotech is very good at new product development as exemplified by its response to the Covid 19 health crisis and its manufacturing is best-in-class with high efficiency and high quality. In addition, our combined global distribution network will be very strong,“ says incoming CEO at SSI Diagnostica, Søren Skjold Mogensen, currently Chief Commercial Officer of the firm. Departing CEO Patrik Dahlen adds: “This acquisition has been long in the making. We have been looking for a partner with a strong presence in rapid testing of infectious diseases, and with technology and know-how within monoclonal antibodies. In CTK we have found the perfect match. Our businesses complement each other particularly well.” Upon stepping down as CEO in connection with the transaction, Patrik Dahlen will join the Board of Directors of the joint company.

Rasmus Molander at Adelis remarks: “We have been very pleased with SSI Diagnostica’s development throughout our ownership. We have significant life science know-how in the Nordic region, but only few international success stories within the diagnostics area. With SSI Diagnostica’s acquisition of CTK Biotech, we are creating an international growth business with estimated sales of more than DKK 600 million in 2020 that can develop into a success story of its own”.

CEO and co-founder of CTK Biotech, Dr. Catherine Chen says: “We are pleased and excited about joining forces with SSI Diagnostica. It is a well-known firm with a long history and a strong foundation in infectious disease research. We are proud of having built CTK Biotech into an international diagnostics business. My two partners, Dr. Wushan and Dr. Pandi, and I have worked hard to reach this point.” Dr. Chen will take the role of Chief Scientific Officer of the joint company and also join its Board of Directors. CTK Biotech has developed one of the most accurate rapid Covid-19 antibody tests available today, providing a test response in just 15 minutes. The firm has development underway of additional Covid-19 tests, including antigen and PCR.

The transaction is subject to customary regulatory approvals.

For further information:

Rasmus Molander, Adelis Equity Partners, +46 70 823 74 33, rasmus.molander@adelisequity.com

SSI Diagnostica

SSI Diagnostica was previously an independent business unit under Statens Serum Institut (SSI) in Denmark, a public enterprise under the Danish Ministry of Health.

SSI Diagnostica is a leading Nordic based manufacturer and distributor of in vitro diagnostic products servicing microbiological laboratories and pharma companies globally. Internationally, SSI Diagnostica sells high quality antisera, rapid tests, and other diagnostic products. The Company is located in Hillerød and employs more than 110 people.

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

Adelis Equity Partners

Adelis is an active partner in creating value at mid-sized Nordic companies. Adelis was founded with the goal of building the leading middle market private equity firm in the Nordics. Since raising its first fund in 2013, Adelis has been one of the most active investors in the Nordic middle-market, acquiring 23 companies and making more than 70 add-on acquisitions. Adelis now manages approximately €1 billion in capital. For more information please visit www.adelisequity.com.

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Pace Analytical® Acquires Emerson Resources, Inc. Adding Clinical Trial Material Production Capabilities

Aurora Capital

MINNEAPOLIS (PRWEB) AUGUST 25, 2020

Pace Analytical® Services, LLC, the largest American-owned laboratory network providing environmental and life sciences analytical information and services, today announced that it has acquired Emerson Resources, Inc., a pharmaceutical contract development and manufacturing organization (CDMO) specializing in dosage form development and clinical trial material manufacturing.

“Adding Emerson Resources to our portfolio allows Pace Life Sciences to further support our pharmaceutical and biopharmaceutical clients from early-stage research and development through phase 2 clinical trial material manufacturing”, comments Eric Roman, CEO of Pace Analytical®. “For clients, this means seamless support through each critical milestone in bringing a new drug to market”.

Services provided by Emerson Resources are focused on solid oral dosage formulation development and the production of clinical trial materials in support of bringing pharmaceutical and biopharmaceutical products to market. “This acquisition expands the capabilities of Pace Life Sciences to include clinical trial material manufacturing, greatly rounding out our overall service offerings”, adds Greg Kupp, COO of the Pace Analytical® Life Sciences Division. “The production of clinical trial materials requires a robust quality system, deep technical expertise, and the agility to ensure materials are ready for the clinic on time. Emerson is exceptional in these areas and represents a strong addition to the Pace Analytical lab network.”

Emerson Resources principals Jay Signorino, COO and Chip Signorino, CFO, are exiting the family business and have been looking for a buyer with a good cultural fit. “Pace holds the same cultural values and aspirations as Emerson”, notes Jay Signorino. “We believe this will be an easy and beneficial transition for the Emerson team and our customers”.

Over the next six months, Emerson Resources will transition to operating under the Pace Analytical® brand. The Emerson Resources lab is in the Philadelphia, PA area and joins Pace Life Sciences lab locations near Boston, MA, St. Paul, MN, and San Germán, PR. Kupp will oversee the management and operations of all Pace Life Sciences lab locations.

About Emerson Resources
For more than 12 years, Emerson Resources, a premier pharmaceutical development company, has delivered value-added service, ingredients, and expertise to clients in the pharmaceutical and biotech industries. Emerson Resources is a leader in dosage form development, manufacturing cGMP clinical supplies, analytical method development, analytical method validation, release testing, and stability testing. Based in Norristown, Pennsylvania, the Company’s expansive facility features development and analytical laboratories, a cGMP clinical supplies manufacturing plant, and a specialty ingredients excipients manufacturing center. For more information, visit emersonresources.com.

About Pace Analytical®
Pace Analytical® Services, LLC makes the world a safer, healthier place. For decades, we have been the trusted source for quality environmental and life sciences lab testing and analysis and the resource for scientific lab staffing, regulatory, and equipment services. Our work is done in partnership with our clients by providing the science and the data they need to make critical decisions that benefit us all. Pace delivers science better to businesses, industries, consulting firms, government agencies, and more through the largest, American-owned and nationally certified laboratory network. Science matters at PACELABS.com

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ReliaQuest Raises Over $300 Million in Growth Financing Led by KKR

KKR

August 25, 2020

TAMPA, Fla., Aug. 25, 2020 /PRNewswire/ — ReliaQuest, an advanced cybersecurity managed service and intelligence platform for global enterprises, today announced it has raised over $300 million in growth financing in a round led by leading global investment firm KKR, with participation from Ten Eleven Ventures and ReliaQuest founder and CEO Brian Murphy. The investment, which follows $30 million in growth equity from FTV Capital – who partnered with the firm in 2016 – will support ReliaQuest in accelerating the company’s growth initiatives, including international expansion and platform development.

Cybersecurity remains a top concern for enterprises as the complex threat landscape continues to evolve and the global shortage of cyber talent worsens. Many enterprises resort to an increasing number of security technologies, outsourcing to managed security services providers (MSSPs), or a combination of both. As a result, the MSSP market will grow nearly 15% YOY to reach $27.9 billion by the end of 2020, according to IDC. However, companies often fail to realize the value of these options due to poor performance and lack of effectiveness.

To bridge this gap, ReliaQuest developed a fundamentally different approach – providing customers a software platform, called GreyMatter, and a team of highly trained cyber analysts to deliver dramatically improved security effectiveness and efficiency. GreyMatter is the first cloud-native SaaS platform that consolidates, normalizes, and correlates data from customers’ existing cyber technologies, vastly increasing visibility across the enterprise. The platform leverages artificial intelligence and automation, which enable continuous threat detection, threat hunting, and remediation. As a result, customers benefit from a significantly more effective security posture and are able to maximize the value and effectiveness of their existing cybersecurity investments.

“ReliaQuest’s GreyMatter platform is supported by some of the top security talent in the industry, enabling enterprises to increase visibility across cloud and on-premises technologies, allowing them to reduce risk and compromises. The investment from KKR and Ten Eleven is an important step that allows ReliaQuest to continue to scale globally while innovating and accelerating the development of the GreyMatter platform and follows what was a foundational investment from FTV four years ago. The entire ReliaQuest team has worked hard to get where we are, and we are excited about the future as we continue to work alongside our customers to solve one of the largest technical challenges of our time,” said Brian Murphy, founder and CEO of ReliaQuest.

KKR’s investment in ReliaQuest follows several years of breakout growth and innovation in the cybersecurity market. The company’s revenue has grown more than 450% over the past three years on the strength of relationships with some of the world’s most prominent brands. The company plans to add another 100 employees to its ranks worldwide through the course of 2020, building on an industry-leading employee retention rate of 91% as reflected in major awards such as Fortune Best Workplaces in Technology, Deloitte Technology Fast 500, and Entrepreneur Top Company Cultures.

“With its best-in-class technology, ReliaQuest is helping companies protect their digital footprint, which is more important than ever. As a ReliaQuest customer ourselves, we’ve experienced firsthand how seamless and effective their platform is, and are thrilled to have the opportunity to invest behind it,” said Stephen Shanley, Director at KKR.

Patrick Devine, Principal at KKR, added, “We’re excited to be working with the ReliaQuest team as they continue to scale globally and help organizations secure their environments.”

Ten Eleven General Partner Mark Hatfield added, “In these challenging times, enterprises need powerful, resourceful solutions to manage their cybersecurity operations. ReliaQuest has developed a new approach to this challenge with its GreyMatter platform, giving security teams the ‘superpower’ to see more, detect and investigate faster, and make better decisions. We look forward to partnering with ReliaQuest as they offer enterprises a new way of obtaining advanced cybersecurity protection.”

KKR will be making the investment through its Next Generation Technology Growth Fund II, a fund dedicated to growth equity investment opportunities in the technology space. KKR has established a strong track record of supporting technology-focused growth companies, having invested over $2.7 billion in related investments since 2014. KKR and Ten Eleven Ventures have also supported market-leading cybersecurity companies including Darktrace, KnowBe4, Ping Identity, Cylance, and ForgeRock.

Advisors on the agreement include RBC Capital Markets, Sidley Austin LLP, Kirkland & Ellis LLP, and Latham & Watkins LLP.

About ReliaQuest
ReliaQuest, a global leader in cybersecurity, delivers industry-leading visibility and automation on demand across complex environments with a platform purpose built to protect enterprise environments from security breaches. GreyMatter is the first cloud-native SaaS solution that enables visibility, coordination, and control across the enterprise’s on premise and multi-cloud technologies, unlocking the power of next generation cybersecurity for the modern enterprise. By increasing visibility and threat detection through the platform’s patented universal translator and use of automation and artificial intelligence, GreyMatter saves security teams valuable time and increases effectiveness by enabling automatic and continuous threat detection, threat hunting, and remediation. ReliaQuest is a private company headquartered in Tampa, Fla., with five global locations. In 2016, it received $30 million in growth equity from FTV Capital. For more information, visit www.reliaquest.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.

About Ten Eleven Ventures
Ten Eleven Ventures is the original venture capital firm focused solely on investing in digital security. The firm invests globally and at all stages, from seed to growth (the latter via its Joint Investment Alliance with KKR). Since its founding in 2015, Ten Eleven Ventures has raised nearly $500 million US Dollars and invested in 25 leading cybersecurity companies including Twistlock, Verodin, Cylance, KnowBe4, Darktrace, and Ping Identity. For more information, visit: www.1011vc.com and on Twitter @1011vc.

Media Contacts:

ReliaQuest
Francesca DeAnda
Mission North for ReliaQuest
reliaquest@missionnorth.com

KKR
Kristi Huller, Cara Major or Miles Radcliffe-Trenner
212.750.8300
Media@KKR.com

Ten Eleven Ventures
Megan Dubofsky
917.576.5590
mdubofsky@1011vc.com

SOURCE ReliaQuest

Related Links

http://www.reliaquest.com

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Partners Group-led investor group to sell PCI Pharma Services, a leading global provider of outsourced pharmaceutical services

Partners Group

Partners Group, the global private markets investment manager, has agreed the sale of a majority equity stake in PCI Pharma Services (“PCI” or “the Company”) on behalf of its clients and alongside its investment partners Thomas H. Lee Partners and Frazier Healthcare Partners. Following the sale to private equity firm Kohlberg & Company and Abu Dhabi-based sovereign investor Mubadala Investment Company, Partners Group will retain a meaningful minority equity stake in the Company. The terms of the transaction are not disclosed.

PCI, which is headquartered in Philadelphia, PA, is a global provider of outsourced pharmaceutical supply chain solutions supporting biotechnology and pharmaceutical companies throughout the various stages of drug development and commercialization. Partners Group acquired a majority stake in PCI in June 2016, on behalf of its clients.

During the last four years, Partners Group’s investment and industry value creation teams have worked alongside the Company’s management team to further establish PCI as a strategic partner to the pharmaceutical industry, by expanding in high-growth, high-value capabilities and services categories such as clinical trial services and complex molecule and biologics commercial packaging capabilities. The Board-led value creation strategy also included a focus on operational excellence and digital innovation, culminating in PCI launching a first-of-its-kind digital customer portal. Under Partners Group’s ownership, PCI’s EBITDA increased by 15.6% CAGR.

Partners Group also led a talent transformation, appointing a new management team with a clear vision for the future of the business, and implemented numerous sustainability initiatives, such as establishing best-practice health and safety standards across PCI’s global operations. During the COVID-19 global health crisis, PCI proved itself as an essential partner in the pharmaceutical supply chain, responding with a high degree of flexibility to address urgent customer needs and supporting its pharmaceutical and biotech customers across drug development and commercialization to address the health crisis.

Remy Hauser, Managing Director and Head of Healthcare, Industry Value Creation, Partners Group, states: “We are extremely proud of our work with PCI Pharma Services. Though the last few months have been immensely challenging ones, the COVID-19 pandemic has demonstrated the essential nature of the services that PCI provides to the pharmaceutical and biotech industry. On more than one occasion, PCI was the critical link in the supply chain responsible for ensuring life-saving medicine reached those in need.”

Salim Haffar, Chief Executive Officer, PCI Pharma Services, adds: “It has been a pleasure working with Partners Group to cement PCI’s leading position in the outsourced pharmaceutical services sector. The Partners Group team has offered substantial operational value during the investment period and has been a true partner throughout the COVID-19 pandemic, providing significant additional expertise and resources. With Partners Group’s help, we are proud that PCI has been able to contribute meaningfully to the global response to this virus.”

Sujit John, Member of Management, Private Equity Directs Americas, Partners Group, adds: “We initially identified PCI as a prospective investment via our Thematic Sourcing strategy, based on the strong fundamentals supporting outsourced pharmaceutical services. During our ownership, we were able to add significant value to the business through a combination of operational improvements and bolt-on acquisitions. PCI has a strong growth trajectory ahead and we are excited to contribute to that through our continued investment in the Company.”

Jefferies LLC served as lead financial advisor to PCI and Morgan Stanley & Co LLC served as co-advisor. Goodwin Procter LLP served as legal counsel.

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Welcoming Open Payments to our portfolio

Industriefonden

August 23, 2020

Industrifonden is proud to announce that we have led a 3 MEUR seed round in Swedish FinTech Open Payments. Existing investors Brightly Ventures, Luminar Ventures, and angel investors also participated in the round. The capital will be used to continue to grow the team and establish the platform in the Nordic and European market.

Swedish fintech Open Payments is one of the leading Open Banking platforms in the Nordic region to offer genuine PSD2 API aggregation via a single and secure API. Open Payments is an FSA licensed Payment Institute that provides a cutting edge modular Open Banking Platform that enables businesses to easily and efficiently integrate with banks and other financial services through pure APIs. The platform has allowed third-party providers and business partners to develop their own products and services under their own brand-name and still own their user journey.  The platform supports an ecosystem where third-party providers and business partners will further enhance the development of the platform going forward.

Open Payments is positioned somewhere between the traditional FinTech and BigTech business models. Open Payments is licensed by the FSA to provide financial services, and the platform itself is more towards a BigTech model, with its openness and modularity. The platform not only provide open APIs, but also extensibility, openness and modularization for businesses and developers to build their unique customer offerings.

“Open Payments platform makes it easy for companies to take advantage of the enormous business development potential that Open Banking entails for small and large companies. It is also exciting to find such a strong founding team with long international experience here in the small Swedish market. I look forward to work with a young, agile company that with ingenious technical simplicity gives customers favourable freedom and flexibility in their open banking offerings”, says Anna Ljungdahl, Investment Manager at Industrifonden.

Open Payments has launched its services in Sweden and Finland with a strong customer base that has built their open banking solutions leveraging Open Payments Platform. The company plan to continue expand into more markets cross Nordics and EU by the end of the year.

The founding team of Open Payments consists of Louise Brandt, CCO, who was previously with iZettle where she held several senior positions and CEO Jonas Kjellin, with background from the startup scene in the US and many years at Microsoft. The founding team has combined experience from FinTech and BigTech which defines Open Payments vision and strategy.

“I believe that BigTechs will have a big impact on how we perform financial services in the future, but also requires traditional FinTechs, and by bridging the gap between them, we have a great position to offer our customers a flexible solution”, says Jonas Kjellin, Founder and CEO at Open Payments.

Open Payments last closed a pre-seed investment of 1.3 MSEK in May 2019. With the new funding, Open Payments will continue to grow the team expand the platform to drive and enable Open banking in the Nordic and European markets.

Read more about Open Payments here https://openpayments.io/

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Montagu fully exits stake in Visma

Montagu

Montagu Private Equity (“Montagu”), a leading European private equity firm, announced today that it has agreed to a full exit of its stake in Visma, a leading provider of business-critical software to private and public enterprises in the Nordic, Benelux and Central & Eastern European regions, to a consortium of new and existing investors.

The transaction is part of a further investment from existing shareholders Hg, GIC and CPPIB, as well as from new shareholders TPG and Warburg Pincus, that will place an enterprise value on Visma of NOK 110 billion (US$ 12.2 billion), making this the largest ever software buyout globally.

Montagu has been an investor in Visma since 2010, reinvesting in 2014 and again in 2017. During that period Visma has grown to become the leading provider of SaaS productivity solutions to businesses across the Nordics, Benelux and Central & Eastern European regions. Since Montagu’s initial investment, the company has completed over 150 add-on acquisitions and achieved annualised revenue growth of over 20%, expanding geographically and developing Visma’s technology offerings in the process.

Visma is the largest provider of cloud-delivered Software-as-a-Service (SaaS) products to European businesses, having strategically invested in SaaS technology for more than a decade. Today Visma has over 11,000 employees, including 4,000 software developers who serve over 1 million business customers.

Ed Shuckburgh, Director at Montagu, commented: “We are proud to have joined and supported Visma’s management team over the past decade in their impressive growth journey. Since our initial investment, the company has expanded to become one of the most successful software businesses in Europe. We wish the team and everyone at Visma well as they embark on this next stage of their journey.”

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Hg leads further majority investment in Visma valued at US$12.2 billion in the world’s largest ever software buyout

HG Capital

  • Hg Saturn 2 will put forward the majority of the new invested capital to acquire a further stake in Visma from a group of current investors including Montagu, who will fully exit the business.
  • New investors, Warburg Pincus and TPG will also invest in the business for the first time, acquiring minority stakes.  Existing investor CPPIB will also acquire an additional stake;
  • The investment will value Visma at an Enterprise Value of NOK 110 billion (US$12.2 billion), making this the largest ever software buyout globally;
  • Visma’s strategy is to improve society through greater productivity.  It does this by providing world-class, mission-critical, Software-as-a-Service (SaaS) to over one million businesses in areas such as accounting, resource planning, payroll, HR and commerce applications;
  • Hg will continue to support this proven strategy, alongside a group of world-class technology investors.

London, UK and Oslo, Norway. 21 August 2020. Hg, Europe’s leading software investor, today announces that the Hg Saturn team and its investors have agreed to a further investment in Visma, a leading provider of business-critical software to private and public enterprises in the Nordic, Benelux and Baltic regions.  Hg will put forward the majority of the new invested capital in a transaction valuing the business at an Enterprise Value of NOK 110 billion (US$12.2 billion), making this the largest ever software buyout globally.

The Hg Saturn 2 Fund will purchase the stake from Montagu, a leading European private equity firm which has been an investor in the business since 2010, and other investors including Hg’s Genesis 7 Fund which will reduce its holding in Visma. Warburg Pincus and TPG will invest in the company for the first time, acquiring minority stakes. Existing investor CPPIB will increase its stake, alongside other current co-investors in the business, including General Atlantic who invested earlier in the year.  Following completion of the transaction, Hg will continue to own a majority (c.54%) stake in Visma, with co-investors GIC, ICG, CPPIB, Warburg Pincus, TPG, General Atlantic and management.

Hg led the original delisting of Visma from the Oslo Stock Exchange in 2006 and has been the lead or co-lead investor in Visma for the last 14 years. During this period Visma has grown to become a leading provider of SaaS productivity solutions to businesses across Northern Europe – the Nordics, Benelux and Central & Eastern European regions.

Visma is a true Software-as-a-Service (SaaS) champion and the largest provider of cloud-delivered SaaS to European businesses. This is the result of an early decision by Visma and Hg to invest in cloud and SaaS technology in 2008.  This early investment has given Visma a leading suite of SaaS products across a number of sectors.  Today Visma has over 11,000 employees, including 4,000 software developers who serve over one million business customers. The success in SaaS has resulted in uninterrupted, year-on-year, revenue and EBITDA growth over the last 15 years of (19% and 23% CAGR respectively).

“For almost 15 years now, Visma has benefited from a supportive and highly knowledgeable private equity investor base, led by Hg. This guidance and know-how in the software sector has enabled us to consistently and significantly expand both our product offering and geographic footprint. This includes a significant investment in SaaS which has strengthened our recurring revenue model.  We continue to invest in world-class technology including new areas of innovation, such as AI and machine learning. We warmly welcome this further support from Hg, General Atlantic and new investors Warburg Pincus and TPG and look forward to continuing Visma’s journey to create a fully online ecosystem for SMBs across Europe.”

Merete Hverven, CEO of Visma.

“Visma is Europe’s biggest success story in cloud software for businesses. This is a result of consistent investment in SaaS technology by Øystein Moan, Merete Hverven and their world-class team.  Today we’re as excited as we’ve ever been about the future prospects of the business. Most recently, Covid19 has demonstrated the power of Visma’s cloud solutions – empowering businesses to stay connected and continue working through the crisis.  We’re also delighted to welcome new investors, who join the other strategic investors already supporting Visma from across the globe.”

Nic Humphries, Senior Partner and Head of the Hg Saturn team.

Advising on the transaction were: on the buy side, Arma Partners (financial adviser), Jefferies (financial adviser), Carnegie Investment Bank (financial adviser), Skadden (M&A legal), Kirkland & Ellis (financing legal), Deloitte (structuring), EY (financial and tax DD), Alvarez & Marsal (operational DD) and OC&C (top-up commercial support). On the sell side, advisors were Goldman Sachs (financial adviser), BofA Securities (financial adviser), ABG Sundal Collier (financial adviser), Linklaters (legal), Wiersholm (Norway legal), Deloitte (financial DD), Crosslake (tech DD) and OC&C (commercial DD).

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Sovos to gain new investment

HG Capital

Sovos to Gain New Investment by Hg Saturn and TA Associates, Fueling Continued Growth as Digital Transformation of Tax Accelerates Worldwide

Global tax software provider Sovos today announced that Hg — a leading global software investor, partner and supporter of the expansion of Sovos for more than four years — will lead a further, majority investment in the company through the Hg Saturn 2 Fund. TA Associates, a leading global private equity firm with more than four decades of software investing experience, will also join as a significant minority investor to support the next wave of Sovos’ growth. Following this new investment, Sovos is poised to continue its geographic expansion, deepen its partner ecosystem, and respond rapidly to emerging tax and regulatory changes around the world.

Sovos has grown substantially since Hg first invested in the company in 2016. Since then, Sovos has acquired more than 10 companies across North America, Latin America and Europe; more than doubled its customer base to 8,000-plus, including half of the Fortune 500 companies; and added more than 1,000 employees working across 10 countries. With the continuity of support from Hg and the added resources and experience from TA Associates, Sovos will advance its initiatives in adjacent segments, as well as the overall growth strategy integral to its mission to Solve Tax for GoodⓇ everywhere its customers do business.

“Hg’s new investment in Sovos is a sign of their confidence in our market, our position and our unique ability to deliver a complete solution for modern tax, including tax determination, continuous transaction control compliance and tax reporting. With the renewed support from Hg and the additional backing of TA Associates, Sovos is ready for the next stage of growth at a crucial time, as the digital transformation of government, technology and business converge.”

Andy Hovancik, CEO, Sovos

“In 2016, Hg invested in the Sovos vision to put tax compliance software where it belongs — in the modern, digital financial core. Since then, Sovos’ team has executed perfectly on a formidable strategy. In addition to strong organic growth generated from a robust recurring revenue model, Sovos has also executed on its targeted acquisition strategy, bringing new entrepreneurial founders into the business. As we move further into a world of digitized tax and regulation, Sovos is a trusted, future-ready solution for its multi-national customers.”

Jonathan Boyes, partner at Hg

“Sovos leads a large, acyclical, global sector driven by increasingly complex tax regimes. Without a global solution, the rise of digital taxation has the potential to disrupt supply chain and finance transformation efforts. Sovos recognized that, and its leadership team has built the regulatory expertise, product innovation and business strategy to address it. We believe Sovos is ready to execute globally, and TA Associates is ready to support the company as it enters this next stage of growth.”

Hythem El-Nazer, managing director at TA Associates

“Sovos has been a cornerstone partnership for Hg as we’ve expanded into the U.S. over the years. The new Hg investment marks a new stage for the business, with Sovos offering an increasingly valuable proposition for customers with complex multinational operations.  We’re absolutely delighted to continue our support for the Sovos team.”

Gero Wittemann, partner and co-lead of Hg’s New York team

The terms of the deal, which is expected to close in the second half of 2020 pending regulatory approvals and closing conditions, were not disclosed. William Blair and Jefferies served as financial advisors to Sovos. Hg (as manager of Saturn 2) was advised by Goldman Sachs and Shea & Company, and TA Associates was advised by Barclays. Skadden and Kirkland and Ellis provided legal counsel and accounting and tax advice was provided by Ernst & Young and Deloitte.

Upon closing of the transaction, Gero Wittemann of Hg and Hythem El-Nazer and Morgan Seigler of TA Associates will be appointed to the Sovos Board of Directors.

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