Boss Insights – Weekly M&A Round Up – 31st May 2019
SafeCharge to Be Bought by Nuvei for $889 Million
Nuvei Corporation, a Canada-based payment technology network, will acquire payment technology company SafeCharge International for $889 million in cash, or $5.55 for each SafeCharge share. SafeCharge, which is listed on the London Stock Exchange, employs some 380 people in Tel Aviv, London, Amsterdam, Hong Kong, and other branch locations. The company specializes in online payment processing, smart payment and risk-management technologies. Its 2018 revenues were a reported $138.5 million, and its transaction turnover totaled almost $14 billion. Controlling shareholder Teddy Sagi will receive $570m for his stake in the company. Sagi said: “I am very proud that SafeCharge has attracted the interest of an international investor of the calibre of Nuvei. SafeCharge is an excellent payments and technology company with strong growth potential and talented employees and management.”
Krm22 Acquires Object+ To Expand Its Market Risk Management Offering
London – 30th May 2019 – KRM22, the technology and software company, focused on risk management in capital markets, has announced that it has signed a definitive agreement to acquire Object+, a risk management and post-trade services technology company for capital markets firms. Based in the Netherlands with offices in Amsterdam and Chicago, Object+ services global banking and trading firms across Europe, North America and Asia. The acquisition represents another milestone in the evolution of KRM22’s risk management offering. Object+ CEO, Martin van Aalderen, will remain with the KRM22 Group. Keith Todd, Chairman and CEO at KRM22, commented: “This acquisition is a further strategic step towards the development of our Global Risk Platform, bringing strong post-trade execution and market gateway expertise which is complementary to our existing market risk offering. Our focus is to provide applications which help our customers reduce the cost and complexity of risk management at their firms and believe that this acquisition will help us to build even greater momentum in the market.”
Genstar Capital Acquires Prometheus Group for Over $1 Billion
San Francisco – 30th May 2019 - Genstar Capital, a private equity firm focused on investments in targeted segments of the software, industrial technology, healthcare and financial services industries, has announced the acquisition of Prometheus Group from Francisco Partners for over $1 billion. Eric Huang, Chief Executive Officer and founder of Prometheus, will remain a significant shareholder in the company, and Francisco Partners will retain a minority investment. Eli Weiss, Managing Director of Genstar, said, “We have invested extensively in software solutions providers similar to Prometheus, and their reputation as a leader in the plant maintenance technology sector is well deserved. Eric and his team have built an integrated easy-to-use platform, and their solutions help transform plant maintenance operations. Prometheus aligns well with our previous investments, and we are excited to work with Eric and his team to help further expand the solutions portfolio and target acquisitions that will broaden the company’s suite of services.”
Citadel Group to Acquire systems integrator Noventus for $5.7 million
Canberra, Australia - 30th May 2019 - The deal will expand Citadel's defence and national security capabilities with Noventus' expertise in project management. Citadel chief executive Darren Stanley said: “Citadel has a successful track record of acquiring strategic bolt-on businesses that are readily integrated into the group in order to provide additional customer-centric solutions, leveraging our significant software engineering expertise. The acquisition of Noventus is consistent with our traditional approach to acquisitions and increases the scale of Citadel’s DNS offering, which remains a key industry focus of the group. With proven systems integration capabilities, Noventus will reinforce our position as a leading supplier to the defence and national security vertical.” Citadel already has extensive experience in the defence sector, managing, Australia’s largest enterprise content management solution, which holds over 500 million secure files, reports, personnel records and operational information.
Palo Alto Networks Announces Intent to Acquire Two Companies to Extend Its Cloud Security Leadership
Santa Clara, California – 29th May 2019 - Palo Alto Networks, a global cybersecurity company, has announced that it has entered into definitive agreements to acquire Twistlock, a container security company, and PureSec, an organisation that specialises in serverless security, to extend its Prisma™ cloud security strategy. These proposed acquisitions will further advance the company’s ability to offer the most complete and comprehensive cloud security suite. Prisma, used by approximately 9,000 customers worldwide, helps enable a secure journey to the cloud by providing organizations with visibility across the entire cloud environment while consistently governing access, protecting data, and securing applications regardless of location. With the additions of Twistlock and PureSec to the Prisma cloud security suite, Palo Alto Networks will be uniquely positioned to secure today’s modern applications throughout the entire life cycle, enabling organizations to deliver innovations that are secure, reliable, and scalable.
Global Payments and TSYS Combine to Form Leading Pure Play Payments Technology Company
Atlanta & Columbus, Ga. - Global Payments a worldwide provider of payment technology and software solutions, and TSYS, a global payments provider offering innovative solutions across the issuing, merchant and consumer segments, have announced that they have entered into a definitive agreement to combine in an all-stock merger of equals. The transaction creates the premier payments technology company at scale in the largest and most attractive financial technology markets worldwide. Jeff Sloan, Chief Executive Officer of Global Payments, said: “This transformative partnership accelerates our technology-enabled, software-driven payments strategy and provides exposure into attractive and complementary businesses, while enhancing our financial strength and flexibility.”
Pantheon Acquires StagingPilot To Extend WebOps Offering
San Francisco, CA – 29th May 2019) - Pantheon, a website operations platform (WebOps) for agile marketers and developers has announced the acquisition of StagingPilot. Incorporating StagingPilot’s website update automation is a significant expansion to the Pantheon WebOps offering. StagingPilot currently automates millions of checks monthly, all of which will be available to Pantheon customers. “We are very proud to be adding StagingPilot to our arsenal of top shelf offerings available to our customers,” said Zack Rosen, Pantheon CEO and Co-Founder. “StagingPilot has developed an incredible and valuable product that aligns with the vision of Pantheon, and we couldn’t be happier to join forces and continue to provide high quality service.”
LinkedIn Acquires Drawbridge
San Mateo, CA - 28th May 2019 - LinkedIn has entered into an agreement to acquire Drawbridge inc, a San Mateo-based technology company, to accelerate the capabilities of their Marketing Solutions technology platform and further help businesses reach, engage and convert their professional audiences at scale. We plan to integrate Drawbridge’s technology into our marketing solutions portfolio to help our customers better reach and understand their professional audiences and measure the ROI of their campaigns. Financial terms of the deal were not disclosed.
Absorb Software Acquires Torch LMS, Expanding Global Reach in Learning Technology Market
Calgary, Alberta – 28th May 2019 – Absorb Software, provider of the Absorb Learning Management System and the newly introduced Absorb Infuse, has acquired Torch LMS, a Utah-based SaaS LMS provider. The Torch acquisition is the first of what the company anticipates will be several future acquisitions, as Absorb expands beyond organic growth and further leverages its strategic investment from Silversmith Capital Partners. “Our profitable, organic growth history and strong financial backing empowers us to capitalize on opportunities where they occur. Acquiring Torch LMS is just one example of how we are expanding the reach of our world-class learning technology to a broader universe of customers,” said Absorb CEO, Mike Owens. “We welcome Torch employees and customers to the Absorb family.”
Infosys completes acquisition of majority stake in ABN AMRO’s Stater
Bengalaru, India – 28th May 2019 – IT services organisation, Infosys has announced it has now completed the acquisition of 75% shareholding of ABN AMRO Bank's wholly-owned Stater NV. The proposed acquisition in Stater for 127.5 million euros (about Rs 989 crore) had been announced in March. ABN AMRO will retain the remaining 25 per cent and will continue as a strategic shareholder. On completion of the deal, Infosys expects to strengthen its position as a provider of technology business process management in the mortgage services value chain. The company also aims to improve operational efficiencies and enhance its strategy in helping clients navigate the next digital transformational journeys.
Shiji Group has completed acquisition of MyCheck
Beijing, China - 28th May 2019 - Shiji Group has announced that it has acquired MyCheck, a payment and integration technology provider to the hospitality industry, from the technology venture capital fund of global businessman Eyal Ofer. The deal boosts the company’s growing number of strategic acquisitions in hospitality technology solutions. Since its inception in 2011, MyCheck has grown from being a consumer-facing app providing simple guest navigation and payment services to offering an wholistic platform of digital solutions which – both individually or together – can equip hotels and restaurants with a secure, seamless and powerful engagement experience for their customers. Kevin King, Chief Operating Officer of Shiji, said: “The acquisition of a company like MyCheck, with its mission to offer integrated technology solutions for the hospitality sector, will deliver real value for Shiji as we drive the industry forward to be more technologically connected. Both Shiji clients and MyCheck customers will now benefit from the synergies and greater depth of resources that come from combining the Shiji network with MyCheck’s leading payment solutions.”
Access Completes Six New Acquisitions: Expands Latin American and North American Footprint
Woburn, Mass – 23rd May 2019 – Privately held records and information management (RIM) services provider, Access , has announced the completion of six additional Q1 acquisitions including four companies in North America: Archives Security Inc. in Birmingham, Ala., Rover Records Management’s record storage division in Washington, D.C., Matrix Record Storage, Inc. in Baltimore, Md. and TAB Product’s records storage division in Alberta, Canada. Access has also acquired two companies in Latin America: DocPar in Curitiba, Brazil and Guardadocumentos in Costa Rica. These six new acquisitions expand the geographic footprint for Access in the U.S. and Latin America and are in addition to the previously announced Q1 acquisitions of Docu-Depot in Montreal, Canada, and Montaña & Associates in Denver, Colo.
IBM-Red Hat Deal Awaiting Regulatory Approval
22nd May 2019 - IBM is awaiting approval from European Union (EZU) antitrust regulators for its $34 billion potential acquisition of Red Hat. Earlier this month, the deal received US regulatory approval without any associated conditions. It is expected that the European Union will give its decision on the IBM-Red Hat deal on June 27th. The European Union can either approve the transaction with or without conditions or it can review the agreement. Both companies expect the deal to close in the second half of 2019. In anticipation of the deal going ahead, a week ago, IBM raised $20 billion via the sale of bonds to fund the transaction.
Stemmer Imaging Acquires Infaimon – Adds Bin Picking Tech
Puchheim, Germany – 22nd May 2019 - Stemmer Imaging has bought Spanish firm Infaimon, provider of software and hardware for machine vision and robotics. Stemmer Imaging anticipates the acquisition add revenue of around €18 million, with EBITDA of around €3 million, in the 2019/2020 financial year. Subject to approval by the antitrust authorities, consolidation is planned starting from 1 July 2019. Stemmer Imaging CEO, Arne Dehn, stated: “The Infaimon locations in Brazil and Mexico will give us opportunities to advance into other regions such as the USA in the future. With the acquisition of Infaimon, we are now represented in almost all major European markets. Infaimon meets our requirements for acquisitions in the best possible way: we will immediately broaden our sales network, expand our product and service range with innovative technologies, and gain a high-margin company.”