Lower Middle Market. Higher Expectations

94% 400+ $11.6 billion Lower middle market. Higher expectations. deals as lead/ transactions closed commitments co-lead arranger issued to date Twin Brook Capital Partners is a direct lending fi nance company focused since Q4 2014 inception on providing cash-fl ow based fi nancing solutions to private equity-owned companies with EBITDA between $3 million and $50 million, with an emphasis on companies with $25 million of EBITDA and below.

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JUST BUY IT. Retail relies intensely on tech for everything from predicting what customers want to delivering orders quickly. The current trend is to ﬁ nd a company that offers what’s needed – and acquire it

CV1_MAJ1119.indd 1 11/1/19 10:48 AM WHAT’S THE DEAL WITH DUANE MORRIS? THAT NAME KEEPS POPPING UP MORE AND MORE AS DEAL COUNSEL

Representative Private Equity, M&A and Financing Deals

$750 MILLION $110 MILLION $1.6 BILLION $292 MILLION Sale of leading private Acquisition of Memcor® All-stock merger - largest Secondary fundraise label oral care company, ultrafiltration and U.S. public cannabis for Europe’s most Ranir Global Holdings, to membrane biofiltration deal to date - with MPX valuable fintech startup NYSE-listed Irish pharma technologies from Evoqua Bioceutical Corp. (CSE: TransferWise Ltd., representing growth manufacturer Perrigo for Water Technologies Corp MPX) for Canadian-listed for capital investor

$447.5 MILLION $250 MILLION $361 MILLION $2.585 BILLION Senior secured PIK Reverse takeover of Investment into Covetrus, Senior secured revolving credit facility with toggle notes and Series Lineage Grow Company Inc., a combination of a Bank of America as A convertible preferred (CSE: BUDD) for California spinout of Henry Schein, administrative agent to Axar Capital for cannabis company FLRish, Inc. Inc. (NASDAQ: HSIC) and (dba Harborside) for NYSE-listed NYSE-listed cemetery Vets First Choice for leader

$285 MILLION $750 MILLION $150 MILLION Debt restructuring and Syndicated financing Syndicated financing to a equity transfer for Atlantic Sale to Midwest private with JPMorgan Chase major insurance brokerage City’s Ocean Resort Casino equity firm for leading Bank as administrative for this subsidiary of for first-lien lenders supply chain solutions agent for Wintrust Financial Winthrop Capital Partners, provider to consumer the Witkoff Group and packaged goods industry

$200 MILLION $37 MILLION $80 MILLION Acquisition of Acquisition of Trident Structured renewable Asset acquisition and Singapore-listed University International, energy investment strategic partnership with global electronics a regionally accredited in Vietnam for this vaccine leader for manufacturer PCI Ltd. university, by an affiliate leading Asia-Pacific Paragon Gene Therapy independent renewable for private equity firm of NASDAQ-listed unit of NYSE-listed energy company

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0C2_MAJ1119 2 10/31/2019 10:16:24 AM Contents November/December 2019 | VOL. 54 | NO. 10

Cover Story 20 JUST BUY IT. Retailers rely on tech for everything from predicting what customers want to delivering orders quickly. The trend is to identify targets that provide innovations - and acquire them.

Private Equity Perspective 18 Making a difference Philanthropy has become a focus for many top PE investors, and their firms are encouraging employees to give back to their communities.

The Buyside 19 Flying high Software companies that offer rewards and travel plans to help airlines gain customers are becoming targets.

Q&A 33 Apttus CEO talks strategy “We are looking to add to the company,” says chief executive Frank Holland. “We have begun mapping out Watercooler the market looking for the best fit.”

6 10 KPS moves forward with new funds All about the customer Data The PE firm has raised $7 billion in Mastercard buys SessionM and Movis- 36 capital, including funds for special ta purchases Natural Insight in deals Completed deals situations and mid-cap deals. to help retailers enhance service. Cox’s purchase of Rivian Automotive 8 12 among the deals that recently closed. Closer look at numbers New beginnings Apartments.com owner CoStar PE firm Hicks Equity backs MLB- buys STR to offer more data focused agency Gem Agency by part- and analytics to hotel investors. nering with agent Greg Genske. People Moves 10 14 34 New age of medical care KKR raises tech fund New hires Amazon buys telemed provider The firm is raising its second fund Geoff Baird gets hired by LLR Part- Health Navigator, marking the dedicated to investments in TMT as it ners. Natalya Michaels joins Mid- company’s second medical-related further expands beyond the mega- Ocean Partners. Shea Goggin joins deal. deals that made its reputation. Houlihan Lokey.

TheMiddleMarket.com November/December 2019 Mergers & Acquisitions 1

001_MAJ1119 1 10/31/2019 5:49:18 PM Inside Word November/December 2019 | VOL. 54 | NO. 10

Shopping trip TheMiddleMarket.com 1 STATE STREET PLAZA, 27TH FLOOR NEW YORK, NY 10004-1505 • (212) 803-8200 Retailers are investing heavily in 7 technologies to EDITOR-IN-CHIEF Mary Kathleen Flynn help them with everything from predicting what MANAGING EDITOR Demitri Diakantonis customers want to delivering products quickly CONTRIBUTING EDITORS Keith Button, Danielle Fugazy GROUP EDITORIAL DIRECTOR, It’s been 25 years since Jeff Bezos launched Ama- BANKING AND CAPITAL MARKETS zon.com Inc. (Nasdaq: AMZN) as an online bookstore Richard Melville

in 1994. Since then, Amazon has grown into one of EXECUTIVE DIRECTOR, CONTENT OPERATIONS the most influential companies in the world. Often AND CREATIVE SERVICES Michael Chu led by Amazon, the retail industry has transformed SR. ART DIRECTOR Nick Perkins itself dramatically, thanks to the power of the Inter- net and related innovations. VICE PRESIDENT, CAPITAL MARKETS Harry Nikpour (212) 803-8638 Technology continues to play an essential role in SENIOR MARKETING MANAGER enabling retailers to meet the exacting demands of Jamie Billington consumers and to predict their future behavior. While many companies in the CHIEF EXECUTIVE OFFICER �� Gemma Postlethwaite sector deploy extensive R&D operations to stay on the cutting edge, acquisi- CHIEF FINANCIAL OFFICER �� Debra Mason tions of tech providers often provide the fastest and best path. CHIEF STRATEGY OFFICER �� Jeff Mancini

The costs of not delivering a good customer experience or the right prod- CHIEF REVENUE OFFICER ��Dave Colford

uct mix are high, as the mounting body count in the retailer space demon- CHIEF CONTENT OFFICER �� David Evans

strates. “There is very little room for error, and those who aren’t operating VP, PEOPLE & CULTURE ��Lee Gavin efficiently and responding to the market quickly will not survive,” says Steven Agran, managing director at Carl Marks Advisors merchant bank. LICENSING AND REUSE OF CONTENT: Embracing technology has become a key piece of many retailers’ invest- Contact our official partner, Wright’s Media, about available usages, license and reprint fees, and award seal artwork ment and acquisition strategies. “The shift to a services economy has led to at [email protected] or (877) 652-5295 for more information. Please note that Wright’s Media is the only authorized company that we’ve partnered with for a reduction in many traditional forms of corporate investment in favor of the SourceMedia materials. software and equipment needed to support consumer demand,” said Paula Campbell Roberts, director of KKR & Co.’s (NYSE: KKR) global macro and as- CUSTOMER SERVICE set allocation team, in a recent report. [email protected] or (212) 803-8500 In our cover story, we take a look at 7 technologies those companies and

other retailers are investing in through M&A: The Internet of Things enables Mergers & Acquisitions Vol. 54/No. 10 (ISSN 0026-0010) enhanced personalization, such as custom drive-thru menus. Artificial intelli- is published monthly with combined issues in July/August and November/December by SourceMedia, One State gence applications predict customers’ needs. Modern data centers and ware- Street Plaza, 27th Floor, New York, NY 10004-1505. Yearly subscription is $1,995; $2035 for one year in all other houses fill orders quickly. Robots assist with sorting and packing consumer countries. Periodical postage paid at New York, NY and U.S. additional mailing offices. POSTMASTER: Send address goods. Voice- and text-assisted technology provides customers with hands- changes to Mergers & Acquisitions / SourceMedia, One State Street Plaza, New York, NY 10004. For subscriptions, free shopping experiences. Analytics give retailers a better understanding of renewals, address changes and delivery service issues contact our Customer Service department at (212) 803- consumer behavior and habits. Mobile payment processing provides consum- 8500 or email: [email protected]. This publication is ers with on-the-go convenience. designed to provide accurate and authoritative information regarding the subject matter covered. It is sold with McDonald’s Corp. (NYSE: MCD), Nike Inc. (NYSE: NK) and Walmart Inc. the understanding that the publisher is not engaged in rendering financial, legal, accounting, tax, or other (NYSE: WMT) are some of the companies leading the way. M&A professional service. Mergers & Acquisitions is a registered trademark used herein under license. © 2019 Mergers & – Mary Kathleen Flynn Acquisitions and SourceMedia, Inc. All rights reserved.

2 Mergers & Acquisitions November/December 2019

002_MAJ1119 2 10/31/2019 5:47:53 PM You manage the deal. We’ll manage the escrow.

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003_MAJ1119 3 10/31/2019 10:16:24 AM What’s going on @TheMiddleMarket.com

www.themiddlemarket.com

Special reports Conversations Data

Rising Stars Apttus CEO shares trategy 2019 on pace Looking for a glimpse of the future Prior to its sale to Thoma Bravo, Apt- Overall M&A activity in the third of private equity? Check out these tus was once on track for an IPO and, quarter saw $600 billion worth of deals interviews with the up-and-coming at another point, thought Salesforce closed, according to PitchBoook. So far dealmakers named by Mergers & would be a logical buyer. Apttus CEO in 2019, more than 8,000 deals have Acquisitions as the 2019 Rising Stars Frank Holland talks to Mergers & Ac- closed, worth about $1.6 trillion. Com- of Private Equity. They are shaping the quisitions about the company’s future. pleted deals include Cox Automotive’s industry’s future. purchase of Rivian.

4 Mergers & Acquisitions November/December 2019

004_MAJ1119 4 10/31/2019 5:50:49 PM Gain way.

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005_MAJ1119 5 10/31/2019 10:16:27 AM Watercooler

PE firms like logistics

ICV bets on fragmented transportation sector for deals

ICV Partners has invested in Horizon Air Freight, a freight forwarder and logistics company for the marine industry. HAF manages and consolidates marine spare parts inventory and arranges for delivery of parts and supplies to customer vessels. “Given the fragmented nature of the industry we expect to make strategic acquisitions that broaden our reach and capabilities so HAF can continue to provide best in class service to shipping companies and cruise lines worldwide,” says ICV managing director Zeena Rao. ICV focuses on investing in businesses that have up to

LIFE FITNESS Plan for the bigger picture. KPS moves forward with new funds With our attention to the details. Together, we’re your advantage. The PE firm recently invested in exercise machine maker Life Fitness With Investment Services, our proven commitment to integrity means you can trust us to help you safely reach your unique goals. Our expertise, powerful By Demitri Diakantonis and Mary Kathleen Flynn decision-making tools and scalable solutions are tailored to make it easier for you to think bigger. KPS Capital Partners has raised two are complex. KPS co-founders Michael tunities that we have not been able Get to know Investment Services at usbank.com/investmentservices. new funds worth a total of $7 billion. Psaros and David Shapiro mention: to capitalize on due to size as our The firm raised $6 billion for its fifth “We are proud of our ability to cre- flagship funds have grown,” says KPS INVESTMENT SERVICES special situations fund. KPS focuses ate real value by seeing value where co-managing partner Raquel Palmer. CORPORATE TRUST | CUSTODY | FUND SERVICES on the automotive, basic materials, other investors do not, buying right “We were tremendously successful branded consumer, healthcare and and making businesses better, across in this market in the past and are manufacturing sectors, by investing decades, industries, and financial, excited to return, now with our entire in companies that are experiencing a business and economic cycles.” firm’s material resources and global period of transition or are challenged In addition, KPS raised its first platform.” Investment products and services are: by the need to effect immediate and mid-cap fund at $1 billion. The latter In 2019, KPS acquired Howden, a NOT A DEPOSIT • NOT FDIC INSURED • MAY LOSE VALUE • NOT BANK GUARANTEED • significant change. will make equity investments that are provider of gas handling products; NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY KPS pursues opportunities where a under $100 million and are deemed metal parts maker Tower International; U.S. Bank is not responsible for and does not guarantee the products, services, company’s immediate future appears too small for the special situations and the Life Fitness brand from Bruns- performance or obligations of its affiliates. ©2019 U.S. Bank 071019 215902 troubled or uncertain or the solutions fund. “KPS Mid-Cap will enable us to wick Corp. Kirkland & Ellis advised KPS to its operational or financial problems pursue attractive investment oppor- on the two fundraises.

6 Mergers & Acquisitions November/December 2019 TheMiddleMarket.com

006_MAJ1119 6 10/31/2019 5:49:33 PM Watercooler Watercooler

$300 million in revenue and $40 million in Ebitda. “ICV has PE firms like logistics successfully invested in logistics companies similar to ours, they understand our business model, and their experience ICV bets on fragmented transportation will be extremely valuable as we seek ways to better serve sector for deals our existing and future customers,” adds HAF CEO Steve Leonidis. “We are now well-positioned to take advantage of ICV Partners has invested in Horizon Air Freight, a freight the fragmented nature of our industry to win new customers forwarder and logistics company for the marine industry. HAF and enter into new markets.” manages and consolidates marine spare parts inventory and PE firms are betting on the growth of the logistics sector arranges for delivery of parts and supplies to customer vessels. as customers seek faster delivery times and businesses look “Given the fragmented nature of the industry we expect to to ramp up their last-mile services. Earlier in 2019, ATL Part- make strategic acquisitions that broaden our reach and ca- ners, which focuses on transportation and logistics, raised its pabilities so HAF can continue to provide best in class service second fund at $575 million. ATL has made two investments to shipping companies and cruise lines worldwide,” says ICV out of the second fund in Pilot Freight Services and Rock-It- managing director Zeena Rao. Cargo. DLA Piper advised ICV. BB&T Capital Markets and ICV focuses on investing in businesses that have up to Holland & Knight advised HAF.

TheMiddleMarket.com November/December 2019 Mergers & Acquisitions 7

007_MAJ1119 7 10/31/2019 5:49:34 PM Watercooler

Consolidating ingredients

PE firms are looking for food ingredients to back

One Rock Capital Partners is buying Innophos Holdings (Nasdaq: IPHS) for $932 million. Innophos is a producer of ingredients for food and beverage, health and nutrition and industrials products. “We remain confident that our trans-

ADOBE STOCK POPCHIPS formational strategy is the right path forward for Innophos; however, executing Closer look at numbers Investors crave chips on this strategy in an increasingly volatile macroeconomic and complex finan- CoStar wants to offer more data to VMG formed Velocity Snack Brands to cial environment as a small-cap public hotel investors buy better-for-you brands company remains challenging and could take longer than initially expected,” says Real estate data and website company CoStar Group Inc. Consumer-focused private equity firm VMG has acquired Innophos CEO Kim Ann Mink. (Nasdaq: CSGP) is buying hotel analytics firm STR for $450 better-for-you snacks brand Popchips from Verlinvest. “Innophos’ innovative ingredient million. CoStar owns apartment websites: Apartments.com, Popchips, founded in 2007, makes mostly potato chips that solutions are used by world-leading ApartmentFinder.com, ForRent.com and ApartmentHome- aren’t fried under its namesake, Nutter Puffs and Yes Peas brands across a wide range of attrac- Living.com. STR collects data from more than 65,000 hotels brands. tive food, health, nutrition and industri- and distributes over 1.2 million reports monthly. CoStar M&A activity in the better-for-you food sector is robust as al markets,” says One Rock managing currently offers information on 4,500 hotels for sale, but the consumer look to eat healthier. partner Tony Lee. “The Company has a company says STR has more detailed analytics including: The deal coincides with VMG creating snacks platform strong foundation and a transformative occupancy rates, average room rates, revenue per available Velocity Snack Brands. The latter will be led by CEO Amit growth strategy.” room and forecasts. Pandhi, who was most recently president and CEO of Arctic Private equity firms are looking for “We believe that the combination of the two companies’ Zero, a better-for-you frozen desserts brand. VSB will focus food ingredients to back, betting on offerings will allow us to create valuable new and improved on the salty, sweet and nutrition bar categories. VSB was growth opportunities in the sector. The tools for investors, lenders, and service providers for use in formed in 2019. Riverside Co. has created an advisory developing, financing, valuing, and selling hotel properties,” “Building platforms in categories where VMG has been board to help the firm find deals in the CoStar says in a release. actively investing for nearly 15 years has been something food flavors and ingredients industry, In addition, the two companies say there are global we have been contemplating for some time and we are saying: Increasing consumer demand growth opportunities. STR sells data to about 15,000 out of thrilled to kick off our first consumer products platform related to better-for-you and clean 350,000 hotels outside the U.S. “CoStar brings leading tech- with Popchips as a partner,” says VMG general partner label food and beverage products is nologies, analytics and sales capabilities that we believe will Wayne Chu. enabling best-in-class flavor and spe- enable STR to accelerate growth and increase the value and Pandhi adds: “With Popchips as our anchor acquisition, cialty ingredient companies to further insights we provide to our hospitality clients,” says STR CEO we plan to grow brands that meet consumer demand and differentiate themselves driven by Amanda Hite. make better-for-you food more accessible.” Pandhi currently curated innovations.” Lazard and Baker Demand for real estate software is rising, as firms rely on serves as a board member for Dang Foods, Bright Foods Botts LLP are advising Innophos. RBC more on technology to assist them in managing their deals and Nutista. Advisors to the sellers include: Barclays and Capital Markets and Latham & Watkins and properties Morrison Foerster. are advising One Rock.

8 Mergers & Acquisitions November/December 2019 TheMiddleMarket.com

008_MAJ1119 8 10/31/2019 5:49:38 PM Watercooler

Consolidating ingredients

PE firms are looking for food ingredients to back

POPCHIPS formational strategy is the right path forward for Innophos; however, executing Investors crave chips on this strategy in an increasingly volatile macroeconomic and complex finan- VMG formed Velocity Snack Brands to cial environment as a small-cap public buy better-for-you brands company remains challenging and could take longer than initially expected,” says Consumer-focused private equity firm VMG has acquired Innophos CEO Kim Ann Mink. better-for-you snacks brand Popchips from Verlinvest. “Innophos’ innovative ingredient Popchips, founded in 2007, makes mostly potato chips that solutions are used by world-leading aren’t fried under its namesake, Nutter Puffs and Yes Peas brands across a wide range of attrac- brands. tive food, health, nutrition and industri- M&A activity in the better-for-you food sector is robust as al markets,” says One Rock managing consumer look to eat healthier. partner Tony Lee. “The Company has a The deal coincides with VMG creating snacks platform strong foundation and a transformative Velocity Snack Brands. The latter will be led by CEO Amit growth strategy.” Pandhi, who was most recently president and CEO of Arctic Private equity firms are looking for Zero, a better-for-you frozen desserts brand. VSB will focus food ingredients to back, betting on on the salty, sweet and nutrition bar categories. VSB was growth opportunities in the sector. The formed in 2019. Riverside Co. has created an advisory “Building platforms in categories where VMG has been board to help the firm find deals in the actively investing for nearly 15 years has been something food flavors and ingredients industry, we have been contemplating for some time and we are saying: Increasing consumer demand thrilled to kick off our first consumer products platform related to better-for-you and clean with Popchips as a partner,” says VMG general partner label food and beverage products is Wayne Chu. enabling best-in-class flavor and spe- Pandhi adds: “With Popchips as our anchor acquisition, cialty ingredient companies to further we plan to grow brands that meet consumer demand and differentiate themselves driven by make better-for-you food more accessible.” Pandhi currently curated innovations.” Lazard and Baker serves as a board member for Dang Foods, Bright Foods Botts LLP are advising Innophos. RBC and Nutista. Advisors to the sellers include: Barclays and Capital Markets and Latham & Watkins Morrison Foerster. are advising One Rock.

TheMiddleMarket.com November/December 2019 Mergers & Acquisitions 9

009_MAJ1119 9 10/31/2019 5:49:43 PM Watercooler ADOBE STOCK BLOOMBERG NEWS New age of medical care All about the customer

Amazon buys telemed provider Health Mastercard, Movista, make deals to Navigator help retailers enhance service

Amazon.com Inc. (Nasdaq: AMZN) has bought digital Mastercard (NYSE: MA) is buying customer loyalty technolo- healthcare company Health Navigator, marking Amazon’s gy company SessionM. Airlines, retailers and restaurants use second medical-related deal. The company bought online SessionM’s software to create stronger customer relation- pharmacy PillPack in 2018 in a deal that put Amazon in a ships. The addition of SessionM will increase Mastercard’s better position to compete against drugstore chains, drug ability to help brands deliver personalized, real-time offers distributors and pharmacy benefit managers. based on data. Businesses are seeking to reinvent their Health Navigator was founded in 2014 by CEO David loyalty programs to better serve consumers who have high Thompson, who is known for developing Schmitt-Thompson, demands such as personalization, and are using acquisitions which became the standard way for nurses and medical to help. professionals to guide patients to the right place, usually “Consumers’ expectations about their experiences with through call centers. Health Navigator works with compa- brands are changing,” says Francis Hondal, president, loy- nies like Microsoft Corp. (Nasdaq: MSFT) to offer services alty and engagement at Mastercard. “We believe that the such as remote diagnoses, and with triage, in helping pa- future of loyalty needs to be re-imagined to enable seam- tients figure out whether to stay at home, see a doctor or go less digital experiences, and SessionM’s consumer-centric straight to the emergency room. capabilities will help us broaden our value to marketers Health Navigator will join Amazon Care, which is de- across sectors in exciting new ways.” signed to serve as a medical benefit for employees and In another retail technology-related deal, Movista has helps provide care virtually, through a video visit and with acquired competitor Natural Insight in a deal backed by home visits if additional care is needed. Level Equity. The two companies offer retailers software that “The service eliminates travel and wait time, connecting provides information such as scheduling, project manage- employees and their family members to a physician or nurse ment, ordering, training and logisitics to help companies im- practitioner through live chat or video, with the option for prove in-store experiences. “In today’s rapidly evolving retail in-person follow up services from a registered nurse ranging environment, customer experience is critical,” says Movista from immunizations to instant strep throat detection,” an CEO Stan Zylowski. “Physical stores have to look great and Amazon spokesperson told CNBC. products have to be where expected.”

10 Mergers & Acquisitions November/December 2019

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011_MAJ1119 11 10/31/2019 10:16:27 AM Watercooler GETTY IMAGES BLOOMBERG NEWS New beginnings Sports gaming deals

PE firm Hicks Equity backs MLB- FanDuel owner buys the PokerStars focused agency brand

Major League Baseball agent Greg Genske has partnered Flutter Entertainment Plc is buying The Stars Group Inc. in a with Hicks Equity Partners to launch Gem Agency. The PE $6 billion all-share deal to create the world’s biggest online firm teamed up with family office Proficio Capital Partners. gaming group and take advantage of opportunities in the Hicks Equity is the private equity arm of the Hicks family of- U.S. after the Supreme Court legalized sports betting. fice, which is led by former Texas Rangers owner Tom Hicks. Sports gaming M&A is taking off, as more states are al- Gem Agency says it will “serve as a new model in the lowing sports betting. area of athlete representation, by focusing on a select num- Flutter owns the FanDuel fantasy sports site and Stars ber of exclusive clients and providing them with individual- owns the PokerStars brand. The latter has partnerships with ized and best-in-class services.” The firm’s client list includes: casinos including Reno, Nevada’s Eldorado Resorts Inc. and Roberto Osuna of the Houston Astros; Justin Turner of the recently signed a deal with Fox Sports. Los Angeles Dodgers (pictured) and Tommy Pham of the “The combination will turbocharge our existing four- Tampa Bay Rays. pillar strategy and provide world-class capabilities across “The baseball industry is healthy and lucrative economi- sports betting, gaming, daily fantasy sports and poker, as cally, but, today more than ever, major tensions exist in the well as greater geographical and product diversification,” negotiating relationships between teams and players,” says says Flutter CEO Peter Jackson. Sports betting is rapidly Genske. “Gem desires to provide a select number of clients gaining traction in the U.S., and that is spurring mid-market with precedent-setting contracts, personalized care and at- deals. “The combination with Flutter will further enhance our tention to help them maximize their earnings and serve their company’s core strengths, and position us strongly for the interests in a comprehensive and first-class fashion.” future in this rapidly evolving industry,” says Star CEO Rafi Prior to launching Gem Agency, Genske founded Legacy Ashkenazi. Sports Group and served as its president and lead negotia- Goldman Sachs (NYSE: GS) and PJT Partners were finan- tor from 2004 until 2018. During that time, Genske negoti- cial advisers to Flutter. Barclays Plc, Moelis & Co (NYSE: MC), ated over $4 billion in player contracts. BMO Capital Markets and Jones Day advised Stars.

12 Mergers & Acquisitions November/December 2019

012_MAJ1119 12 10/31/2019 5:49:48 PM 013_MAJ1119 13 10/31/2019 10:16:31 AM Watercooler CAMERON’S COFFEE ADOBE STOCK Brewing coffee KKR raises tech fund

Grupo Nutresa expands in the U.S. by Investors aim to bolster returns by buying Cameron’s Coffee going after startups

Food processor Grupo Nutresa SA has acquired Cam- KKR & Co. (NYSE: KKR) has gathered more than $2 bil- eron’s Coffee from Goldner Hawn for $113 million. The deal lion to invest in fast-growing technology companies as expands Grupo Nutresa’s U.S. presence, which the company it further expands beyond the mega-deals that made its calls “one of the largest and most dynamic coffee markets reputation. in the world.” The firm is raising its second fund dedicated to growth- The acquisition will generate new avenues of growth equity investments in technology, media and telecommu- for Nutresa, by connecting the sales network, production nications, according to Bloomberg News. The fund, which capabilities, and the Cameron’s brand with the scale and is expected to close by year’s end, is about triple the size resources of Grupo Nutresa in the U.S.. of the debut vehicle: the KKR Next Generation Technology Cameron’s is a producer of branded and private-label Growth Fund raised $714 million in 2016. single-serve coffee pods, bagged whole bean and ground KKR’s fundraising haul comes as big buyout shops are coffee and bulk whole bean coffee mainly for the grocery increasingly targeting startups, aiming to bolster returns sector focusing on the Midwest region. The company has with faster-growing firms. TPG was one of the first private about $72 million in annual sales. equity firms to raise an earlier-stage growth fund more than Grupo Nutresa CEO Carlos Ignacio Gallego says: “This a decade ago, betting on companies such as Airbnb Inc. acquisition is a new step in Grupo Nutresa’s international- and Uber Technologies Inc. ization process and is aligned with our objective of im- KKR invested in companies including cybersecurity proving the quality of life of consumers through conscious firm KnowBe4 Inc., OneStream Software LLC and Lyft Inc. brands, affordable products and innovative, differentiated through its first growth fund. David Welsh oversees tech, value propositions.” media and telecom growth equity within KKR’s private eq- Grupo Nutresa, based in Medellin, Colombia, is a diversi- uity platform. The New York-based firm had $206 billion in fied food processing company that sells cold cuts, biscuits, assets under management as of June 30. chocolates, ice cream and pasta. Piper Jaffray (NYSE: PJC) Other PE firms raising funds include: Thoma Bravo, which advised Goldern Hawn. The buyer was advised by Tully & is looking to raise $15 billion by 2020, according to Bloom- Holland, Nixon Peabody and EY. berg News.

14 Mergers & Acquisitions November/December 2019

014_MAJ1119 14 10/31/2019 5:49:52 PM The 23rd Annual Winter Conference AM&AA brings the world of middle-market mergers and acquisitions to Arizona this January. Don’t miss the opportunity to network with hundreds of decision-makers from M&A advisors and capital providers with a combined $1 billion in transactional buying power over the next year. This is a must attend event to acquire more connections, and close more deals. REGISTER NOW AND RECEIVE $100 OFF. CODE: MA100 Visit: amaaconference.com The Alliance of M&A Advisors® (AM&AA) is a premier international organization serving the educational and transactional support needs of middle market M&A professionals worldwide. AM&AA connects CPAs, attorneys, and experienced corporate and institutional sellers and buyers of businesses ranging broadly from $5 million to $500 million in transaction value.

015_MAJ1119 15 10/31/2019 10:16:31 AM 19_1021_Ad_r1.indd 3 10/25/19 4:25 PM Watercooler VIVINT RIVIAN Home security Cox invests in electric cars

Vivint offers cloud-based technology, The auto website owner backs Rivian to such as cameras emphasize environmental commitment

Vivint Smart Home, a maker of home security and monitor- Joining previous investors Amazon.com (Nasdaq: AMZN) ing systems, is merging with special purpose acquisition and Ford Motor Co. (NYSE: F), Cox Automotive has in- company Mosaic Acquisition Corp. (NYSE: MOSC) in a deal vested $350 million in electric vehicle specialist Rivian. Cox valued at $5.6 billion. The Blackstone Group Inc. (NYSE: BX) owns automotive-related websites Autotrader, Dealer.com, is investing $100 million in Vivint and Fortress Investment Dealertrack and Kelley Blue Book. Group (NYSE: FIG) is investing $125 million. Following the “We are excited by Rivian’s unique approach to building merger, Mosaic will be renamed “Vivint Smart Home Inc.” an electrified future and to be part of the positive impact its After the deal closes, Blackstone and other existing Vivint products will bring to our roads and the world around us,” investors will own about 78 percent of the combined com- says Sandy Schwartz, president of Cox Automotive. “This pany. Vivint offers cloud-based home technology, monitor- investment complements Cox Automotive’s own commit- ing and security products such as smoke detectors, smart ment to environmental change through our Cox Conserves locks and cameras. The company has 1.5 million subscribers efforts.” across 98 percent of U.S. zip codes. In addition to the investment, the two companies said “As the smart home market rapidly expands globally, they will explore partnership opportunities in service opera- Vivint is in the early stage of a massive opportunity and is tions, logistics, and digital retailing. Rivian, which will remain ready to create the future of how we live and interact with an independent company, has developed electric vehicle our homes,” says Vivint CEO Todd Pederson. technology that was originally designed on skateboards. Advisors to Vivint include: J.P. Morgan Securities (NYSE: The company’s off-road electric SUVs target consumers who JPM), Evercore (NYSE: EVR), Blackstone Capital Markets like outdoor adventures, such as camping. and Simpson Thacher & Bartlett LLP. Advisors to Mosaic “We are building a Rivian ownership experience that include: Deutsche Bank Securities, Goldman Sachs & Co. matches the care and consideration that go into our ve- (NYSE: GS), Morgan Stanley & Co. (NYSE: MS), RBC Capital hicles,” adds RJ Scaringe, founder and CEO. “As part of this, Markets LLC and Paul, Weiss, Rifkind, Wharton & Garrison we are excited to work with Cox Automotive in delivering a LLP. The advisor to Fortress is Fried, Frank, Harris, Shriver & consistent customer experience across our various touch- Jacobson LLP. points.” Wachtell, Lipton, Rosen & Katz advised Cox. M&A

16 Mergers & Acquisitions November/December 2019

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017_MAJ1119 17 10/31/2019 10:16:33 AM Private Equity Perspective

serve to accelerate and expand those efforts to reach a larger group of talented individuals that can benefit from the organization’s leadership skills training as well as Toigo’s unparalleled mentor and alumni network.” Feliciano is making the donation through the Kwanza Jones & José E. Feliciano Supercharged Ini- tiative, which announced in 2018 that it would donate $1 million to Bennett Col- THE RIVERSIDE CO. lege, an HBCU for women, in Greensboro, North Making a difference Carolina. Many PE firms provide Philanthropy has become a focus for many top PE investors, and opportunities for employ- their firms are encouraging employees to give back ees to make a difference. The Riverside Co., for example, offers a range of By Mary Kathleen Flynn ways to contribute. A group of Riverside employees A year ago, Mergers & Acquisitions pub- Program to pay off the loans that students recently coached students lished The Big Give, an in-depth look at how and parents of the Class of 2019 accumu- from Saint Martin de Porres private equity firms are contributing to their lated to fund a Morehouse education. He High School in Cleveland, communities. Philanthropic efforts have con- announced the gift in May, when he received Ohio, in a business pitch tinued to flourish, fueled by younger Millen- an honorary doctorate from Morehouse. The competition (pictured). The nials seeking to build a better future and by gift is designed to ease the financial strain event was hosted by an mature partners considering the legacy they on the Class of 2019. More than 400 stu- organization called SuitUp, will leave behind. dents, parents, and guardians are expected which provides educational Many top PE investors are focusing on to benefit. competitions that connect philanthropy. One recent example is Robert In another recent gift, Clearlake Capital corporations with schools F. Smith. The founder, chairman and CEO co-founder José E. Feliciano is donating in low-income communities of Vista Equity Partners is contributing $34 $500,000 to the Toigo Foundation, a non- to increase student career million to Morehouse College, an Atlanta- profit organization that supports education awareness and marketable based historically black college or university, and diversity in financial leadership. Toigo skills. Other opportunities or HBCU. Among Morehouse alumni are: civil was formed in 1989, and works with more include participating in rights leader Martin Luther King Jr.; former than 250 organizations that are committed bike races to benefit cancer Atlanta mayor Maynard Jackson; and film- to inclusion. research, working on urban maker Shelton “Spike” Lee. “Toigo has had a significant impact in my farms and stocking food Smith and his family are donating to the career trajectory and in the careers of many pantries. M&A new Morehouse College Student Success others,” Feliciano said. “This donation will

18 Mergers & Acquisitions November/December 2019

018_MAJ1119 18 10/31/2019 5:48:37 PM The Buyside

for airlines, from revenue management, through Flying high offer personalization and optimization, to support- Software companies that offer rewards and travel plans to help ing excellence in retail airlines gain customers are becoming attractive M&A targets channels,” says PROS CEO Andres Reiner. “This acquisi- By Demitri Diakantonis tion accelerates our ability to deliver airlines flexible, configurable retail capa- Travel technol- terms of scope of service with an important bilities yielding an optimal ogy company Sabre and rapidly growing segment of the airline customer experience every Corp. (Nasdaq: industry.” Sabre reached a deal in 2018 to time.” SABR) has acquired buy airline technology company Farelogix The International Air airline software for $360 million. Farelogix provides software Transport Association pre- provider Radixx for that allows airlines to create personalized dicts that passenger growth $110 million. Radixx offers for customers. will double in the next 20 offers passenger Sabre is not the only company looking years. PROS says airlines service systems and to increase its travel tech offerings. In 2019, want to take ownership of Internet booking PROS (NYSE: PRO) bought Travelaer SAS, a the entire travel journey by engines for low-cost carriers (LCCS). digital services firm for the airline sector that converting window shoppers Orlando-based Radixx, founded in 1993, helps customers with online booking and into booked customers. was built to leverage the technology indus- other travel-related needs. PROS says the “To meet travelers’ try’s rapid advances with a focus on cloud- acquisition will help its airline clients be more changing expectations while based airline services that can be deployed flexible and improve their customer experi- increasing profitability, quickly. LCCs have grown twice as fast as ence. PROS uses artificial intelligence to airlines need a technology full-service carriers over the past five years help companies price and sell their products partner that is ready to and now total nearly 30 percent of global through omni-channels. deliver tomorrow’s techno- passengers boarded annually, according to “With Travelaer, PROS is uniquely posi- logical solutions today,” says Sabre. tioned to provide an end-to-end solution Menke. M&A Radixx’s technology is designed to deliver that transforms the digital selling experience omni-channel merchandising services that are built into the passenger system that allow airlines to maximize their revenues. Radixx expects to close 2019 with about $20 million in revenue. “By combining Radixx technology and expansive LCC customer base with Sabre’s expertise, scale and global service capabilities, this acquisition will result in a better alternative for low cost carriers that might have otherwise felt their passenger service system and other technology options were limited,” says Sabre CEO Sean Menke. “This acquisition also allows Sabre to quickly ex-

pand its footprint both geographically and in ADOBE STOCK

TheMiddleMarket.com November/December 2019 Mergers & Acquisitions 19

019_MAJ1119 19 10/31/2019 5:43:34 PM By Demitri Diakantonis

JUST BUY IT.

020_MAJ1119 20 10/31/2019 5:46:46 PM Retail relies intensely on technology for everything from predicting what customers want to delivering orders quickly. The current trend is for retailers to find tech targets that offer the innovations they need – and acquire them.

By Demitri Diakantonis

The challenge of meeting customers’ changing demands and tastes has intensified, a byprod- uct of how consumers interact with and react to constant information and marketing. That’s required retailers to raise their own technology game massively. And many have responded, not only by investing in a wide range of tech systems, but also in buying outright the companies that are developing key tools, systems and services. McDonald’s Corp. (NYSE: MCD), Nike Inc. (NYSE: NK), Walmart Inc. (NYSE: WMT) and other savvy retailers are forging acquisitions of tech providers to improve their offerings. M&A activity is often paired with internal efforts to develop technology. The costs of not delivering a good customer experience or the right product mix are high, as the mounting body count in the retailer space demonstrates. “There is very little room for error, and those who aren’t operating efficiently and responding to the market quickly will not survive,” says Steven Agran, managing director at Carl Marks Advi- sors merchant bank. Embracing technology has become a key piece of many retailers’ investment and acquisition strategies. “The shift to a services economy has led to a reduction in many traditional forms of JUST BUY IT. corporate investment in favor of the software and equipment needed to support consumer demand,” said Paula Campbell Roberts, director of KKR & Co.’s (NYSE: KKR) global macro and asset allocation team, in a recent report. In this story, we explore seven key technologies that retailers are investing in through acquisitions: The Internet of Things enables enhanced personalization, such as custom drive-thru menus. Artificial intelligence applications predict customers’ needs. Modern data centers and warehouses fill orders quickly. Robots assist with sorting and packing consumer goods. Voice- and text-assisted technology provides customers with hands-free shopping experiences. Analytics give retailers a better understanding of consumer behavior and habits. Mobile payment processing provides consumers with on-the-go convenience.

021_MAJ1119 21 10/31/2019 5:46:47 PM Cover Story

startups to improve customer experiences by capitalizing on Internet-of- Things innovations. The chain is buying personalization company Dynamic Yield in its largest deal in more than 20 years. McDonald’s will customize drive-thru menus with Dynamic Yield’s technology based on time of day, weather, current restaurant traffic and what the customer has already ordered. McDonald’s will roll out the software in the U.S. and then expand it internationally. The company will also integrate Dynamic Yield in self-order kiosks, the McDonald’s app and other mobile devices. Technology is a critical element of Customizing through McDonald’s “velocity growth plan,” Leveraging artificial or the chain’s strategy of growing to the Internet of Things improve service and increase sales, said intelligence McDonald’s CEO Steve Easterbrook in IoT innovations satisfy consumer demands March, when the deal was announced. New AI is helping retailers anticipate their Technology will enhance “the experi- for personalization ence for our customers by providing customers’ needs greater convenience on their terms. Businesses must find innovative ways technology to customize shoes. Founded With this acquisition, we’re expanding Retailers are increasingly using to attract and keep consumers who in 2014 under the name Platform Or- both our ability to increase the role artificial intelligence to manage their demand personalization, and some thopedic Solutions, Invertex originally technology and data will play in our stores and monitor shopping behav- are finding that innovation through the used 3D scanning to create customized future, and the speed with which we’ll ior and offer better experiences. For Internet of Things. For example, Apple medical equipment, such as orthot- be able to implement our vision of example, AI alerts Walmart staff when (Nasdaq: AAPL) introduced iBeacon in ics and braces. The startup evolved to creating more personalized experiences shelves need to be replenished or if 2013—a feature that transmits informa- make products for retailers, including an for our customers,” he said. perishable items have sat too long and tion to wireless devices via Bluetooth in-store mat that shoppers stand on so McDonald’s is not the only company need to be removed. technology--and retailers including they can be precisely measured to help that is leveraging the Internet of Things At the same time, Walmart is Target Corp. (NYSE: TGT), Starbucks them choose shoes that fit. and customization to stay ahead in the boosting its tech arsenal through ac- Corp. (Nasdaq: SBUX) and Walmart Inc. “Differentiation is always important, changing consumer landscape. quisitions. Earlier in 2019, the company (NYSE: WMT) use beacons to improve and more so now than ever before,” E-commerce firm Kibo is buying acquired Israel-based Aspectiva. in-store experiences. says Steven Agran, managing direc- Monetate, which offers personal- Aspectiva’s AI analyzes product Other retailers, including Nike tor of Carl Marks Advisors, a merchant ized software to retailers. The target’s reviews and combines that analysis (NYSE: NKE), are making acquisitions bank. “When a person can order the technology helps consumer brands and with the individual shopper’s browsing to enhance their customer experiences. same or similar product from Amazon, marketers to target customers directly. behavior to make product suggestions Nike won Mergers & Acquisitions’ 2018 what is going to entice that person to “As the market becomes more to customers both online and in stores. Strategic Buyer of the Year, for buy- shop in a store?” Retailers can offer pri- dynamic, the future of commerce is Consumers rely on product reviews ing Zodiac and Invertex Ltd., a pair of vate labels and create interesting shop- centered around the customer, and the from their peers to help them make innovative digital startups helping the ping experiences to drive consumers to key to creating a competitive advan- purchasing decisions, and retailers are athletic apparel maker get closer to stores, but many are slow to adapt. tage relies on personalization,” Kibo looking for ways to make it fast and customers. Invertex is a Tel Aviv, Israel- McDonald’s, the world’s largest said in a release. easy for customers to search for based pioneer in the use of 3D-scanning restaurant chain, is gobbling up digital reviews to provide personalized

22 Mergers & Acquisitions November/December 2019 TheMiddleMarket.com

022_MAJ1119 22 10/31/2019 5:46:52 PM startups to improve customer experi- ment in a mobile app vendor. Plexure ences by capitalizing on Internet-of- has agreed not to work with certain Things innovations. The chain is buying rivals of McDonald’s. personalization company Dynamic “Across all of our markets, we’re using Yield in its largest deal in more than 20 technology to elevate and transform years. the McDonald’s customer experience,” McDonald’s will customize drive-thru says Easterbrook, the restaurant’s CEO. menus with Dynamic Yield’s technol- “Our mobile apps play a key role in our ogy based on time of day, weather, digital acceleration, allowing customers current restaurant traffic and what the to interact with us on their terms in a customer has already ordered. personal, customized way.” McDonald’s will roll out the soft- Other retailers using AI to grow ware in the U.S. and then expand it digital focus include Ulta Beauty Inc. internationally. The company will also (Nasdaq: ULTA), which acquired QM integrate Dynamic Yield in self-order Scientific in 2018. QM uses an AI-pow- kiosks, the McDonald’s app and other ered shopping assistant that processes mobile devices. customers shopping patterns over time. Technology is a critical element of QM devices, apps and bots respond to McDonald’s “velocity growth plan,” Leveraging artificial shoppers with answers and suggestions. or the chain’s strategy of growing to “We continue to leverage augment- improve service and increase sales, said intelligence ed reality in artificial intelligence to cre- McDonald’s CEO Steve Easterbrook in ate compelling beauty experiences for March, when the deal was announced. New AI is helping retailers anticipate their guests,” said Mary Dillon, Ulta Beauty Technology will enhance “the experi- CEO, during a recent earnings call. ence for our customers by providing customers’ needs Retailers are using M&A to build up greater convenience on their terms. their e-commerce channels to compete With this acquisition, we’re expanding Retailers are increasingly using shopping experiences. with Amazon.com Inc. (Nasdaq: AMZN). both our ability to increase the role artificial intelligence to manage their “Aspectiva has developed incredibly technology and data will play in our stores and monitor shopping behav- sophisticated machine-learning tech- “It’s not just Amazon. future, and the speed with which we’ll ior and offer better experiences. For niques and natural language processing be able to implement our vision of example, AI alerts Walmart staff when capabilities, both of which are areas we It’s the whole world of creating more personalized experiences shelves need to be replenished or if believe will have profound impact on direct-to consumer.” for our customers,” he said. perishable items have sat too long and how customers will shop in the future,” McDonald’s is not the only company need to be removed. Walmart said in a press release. “It’s not just Amazon. It’s the whole that is leveraging the Internet of Things At the same time, Walmart is AI is helping restaurants lure custom- world of direct-to-consumer,” says and customization to stay ahead in the boosting its tech arsenal through ac- ers as well. McDonald’s has acquired Cathy Leonhardt, a managing director changing consumer landscape. quisitions. Earlier in 2019, the company a 10 percent stake in app developer at PJ Solomon investment bank. “Tech- E-commerce firm Kibo is buying acquired Israel-based Aspectiva. Plexure. The investment will support nology is a big piece of it. Retailers are Monetate, which offers personal- Aspectiva’s AI analyzes product Plexure’s growth while giving McDon- making fundamental changes to their ized software to retailers. The target’s reviews and combines that analysis ald’s greater access to technology to business. You need to know where your technology helps consumer brands and with the individual shopper’s browsing help with customer targeting. Plexure inventory is and be transparent to your marketers to target customers directly. behavior to make product suggestions already powers McDonald’s global customers.” “As the market becomes more to customers both online and in stores. app in 48 countries. Plexure’s software PJ Solomon is advising Hudson’s Bay dynamic, the future of commerce is Consumers rely on product reviews allows companies to engage with con- Co. on its pending sale of department centered around the customer, and the from their peers to help them make sumers on their mobile devices, using store chain Lord + Taylor to Le Tote for key to creating a competitive advan- purchasing decisions, and retailers are offers, loyalty programs and mobile up to $100 million. Le Tote is a fashion tage relies on personalization,” Kibo looking for ways to make it fast and ordering to encourage them to order subscription service that lets women said in a release. easy for customers to search for more often. rent clothing and accessories for a flat reviews to provide personalized The deal is McDonald’s first invest- monthly fee.

TheMiddleMarket.com November/December 2019 Mergers & Acquisitions 23

023_MAJ1119 23 10/31/2019 5:46:53 PM Cover Story

-are attracting buyer attention too. Stockbridge Capital Group, a real estate investment firm, has acquired 26 e-commerce and logistics properties from Westcore Properties. “We’re excited about this portfolio because the properties are located in markets with above-average popu- lation growth, a propensity toward e-commerce buying and selling, lower overall vacancy rates and higher overall rent growth,” says Nicole Stagnaro, head of opportunistic and platform transactions at Stockbridge. She adds that e-commerce real estate properties are worth taking a looking at. “It is no secret that e-commerce continues to enhance the attractiveness of high- Building for the future quality and well-located warehouse All about automation and distribution properties.’’ Demand for faster shipping creates need for more Blackstone Group Inc. (NYSE: BX) is Robots help employees with sorting and packing another buyer of logistics real estate. fulfillment centers The PE firm announced plans to buy Colony Industrial, the warehouse arm Advances in robotic technology are Online retailers, including Amazon, struction-- a very attractive addition of real estate investment firm Colony making it possible for retail businesses are adding more fulfillment centers to Sterling’s portfolio of businesses,” Capital Inc. (NYSE: CLNY), for $5.9 bil- to complete more complex tasks at to meet consumer demands for faster says Joe Cutillo, Sterling CEO. The type lion. The unit’s properties mostly serve higher speeds and with improved con- shipping. The owners of these fulfill- of construction that Plateau special- as the last mile stop and are crucial trol and outcomes, driving deal activity ment center sites, along with the izes in commands higher margins than for companies seeking to make rapid in the sector. According to the 2019 contractors that build the centers, are Sterling’s highways, roads and bridges deliveries to consumers. Mobile Robot Market Report from Inter- becoming prime M&A targets. projects, and enables Sterling to grow The deal by Blackstone, one of the act Analysis, nearly 600,000 robots are Public works builder Sterling Con- its business with a customer base, that world’s biggest property investors, expected to be used by companies, not struction Co. (Nasdaq: STRL) bought includes large e-commerce, social comes at a time when it is spending including Amazon, by 2023 to help with Plateau Excavation Inc. for $400 mil- media, logistics and big-box-store billions of dollars to snap up logis- order fulfillments. The demand is driven lion. Plateau serves customers in the companies, he says. tics assets as a surge in e-commerce by Amazon’s increased use of robotics e-commerce and warehousing sectors More local fulfillment centers mean activity spurs demand for delivery and and by other logistics companies look- with infrastructure and excavating faster delivery times and lower last-mile warehouse services. ing to keep pace. contracting services. costs, or costs for the last legs of deliv- Blackstone paid $18.7 billion for the E-commerce company Shopify Inc. Plateau’s recent and current con- eries for both retailers and customers. U.S. logistics assets from three of the (NYSE: SHOP) acquired 6 River Systems struction projects include: an Ama- “Plateau is a transformational U.S. funds of GLP, a logistics-focused for $450 million. 6 River Systems uses zon fulfillment center in Alabama, a acquisition in that it not only comple- investment firm, in what the companies cloud-based software and mobile Walmart distribution center in Florida ments our core heavy civil construction called the largest private real estate robots called “Chuck” that assist and a UPS (NYSE: UPS) warehouse at and commercial concrete businesses, transaction globally. employees with inventory replenish- the Charlie Brown airport in Atlanta. but also gives Sterling access to new “These properties are a complemen- ment, picking, sorting and packing. The “The rapid growth in e-commerce geographies and rapidly growing end tary addition to our stabilized com- acquisition adds a fleet of six Chuck and cloud computing, and the continu- markets,” Cutillo adds. mercial real estate portfolio, which is robots to Shopify, while it allows 6 ing rise of internet activities, makes Existing logistics sites – sites for oriented toward our highest conviction River to expand its robot technology Plateau-- a company that specializes fulfillment and distribution centers to themes, such as logistics,” says Frank business. Shopify is keeping the 6 River in data center and warehouse con- fill, pick up and deliver online orders- Cohen, CEO of Blackstone REIT. brand.

24 Mergers & Acquisitions November/December 2019 TheMiddleMarket.com

024_MAJ1119 24 10/31/2019 5:46:58 PM -are attracting buyer attention too. products in warehouses to increase Stockbridge Capital Group, a real efficiency, and to cater to consumer estate investment firm, has acquired 26 demands to get deliveries faster. e-commerce and logistics properties AutoStore, based in Norway, operates from Westcore Properties. more than 11,000 robots in 28 countries. “We’re excited about this portfolio The deal will help expand AutoStore’s because the properties are located in technology and software systems. markets with above-average popu- AutoStore will use the investment lation growth, a propensity toward from Thomas H. Lee to build out its e-commerce buying and selling, lower robot technology and software, create overall vacancy rates and higher over- new products and expand globally. In all rent growth,” says Nicole Stagnaro, addition to robots, AutoStore designs head of opportunistic and platform cube-shaped storage systems that are transactions at Stockbridge. She adds designed to save space. that e-commerce real estate properties “Global megatrends, including are worth taking a looking at. “It is no increasing focus on automation and secret that e-commerce continues to robotization, urbanization and need enhance the attractiveness of high- for space efficient solutions, as well quality and well-located warehouse All about automation as e-commerce demands requiring and distribution properties.’’ increased speed and accuracy, are all Blackstone Group Inc. (NYSE: BX) is Robots help employees with sorting and packing expected to continue to fuel AutoS- another buyer of logistics real estate. tore’s growth globally,” AutoStore adds The PE firm announced plans to buy in a release. Colony Industrial, the warehouse arm Advances in robotic technology are “Together, we will help thousands of The robotics sector is attracting of real estate investment firm Colony making it possible for retail businesses businesses improve their fulfillment op- buyers outside the U.S. also. Japanese Capital Inc. (NYSE: CLNY), for $5.9 bil- to complete more complex tasks at erations with an easy-to-learn solution technology company Hitachi is buying lion. The unit’s properties mostly serve higher speeds and with improved con- that can more than double productivity robots manufacturer JR Automation as the last mile stop and are crucial trol and outcomes, driving deal activity and improve accuracy,” says 6 River Technologies from PE firm Crestview for companies seeking to make rapid in the sector. According to the 2019 CEO Jerome Dubois. Partners for about $1.4 billion. deliveries to consumers. Mobile Robot Market Report from Inter- The deal will help Shopify grow the JR Automation builds production The deal by Blackstone, one of the act Analysis, nearly 600,000 robots are Shopify Fulfillment Network, which the lines and logistics systems that deploy world’s biggest property investors, expected to be used by companies, not company says is set up to “ensure time- industrial robots for the consumer and comes at a time when it is spending including Amazon, by 2023 to help with ly deliveries, lower shipping costs and food and beverage industries. The billions of dollars to snap up logis- order fulfillments. The demand is driven provide superb customer experience for acquisition expands Hitachi’s presence tics assets as a surge in e-commerce by Amazon’s increased use of robotics merchants and their customers.” in the U.S. robotics industry. activity spurs demand for delivery and and by other logistics companies look- “Shopify is taking on fulfillment the “In the manufacturing and logis- warehouse services. ing to keep pace. same way we’ve approached other tics fields, there has been a growing Blackstone paid $18.7 billion for the E-commerce company Shopify Inc. commerce challenges, by bringing demand for automation because of U.S. logistics assets from three of the (NYSE: SHOP) acquired 6 River Systems together the best technology to help decreased working age populations, U.S. funds of GLP, a logistics-focused for $450 million. 6 River Systems uses everyone compete,” says Shopify CEO intensifying global competition, and investment firm, in what the companies cloud-based software and mobile Tobi Lütke. further quality improvement require- called the largest private real estate robots called “Chuck” that assist On the private equity side, PE firm ments to prevent significant product transaction globally. employees with inventory replenish- Thomas H. Lee Partners is buying a recalls,” according to a Hitachi release. “These properties are a complemen- ment, picking, sorting and packing. The majority stake in robot technology “As a result, the global robot-based tary addition to our stabilized com- acquisition adds a fleet of six Chuck company AutoStore from EQT, an automation market continues to ex- mercial real estate portfolio, which is robots to Shopify, while it allows 6 investment and PE firm. EQT is keeping pand, with a high average growth rate oriented toward our highest conviction River to expand its robot technology a 10 percent stake in AutoStore through exceeding 10 percent per year.” themes, such as logistics,” says Frank business. Shopify is keeping the 6 River a reinvestment. Cohen, CEO of Blackstone REIT. brand. AutoStore makes robots that retrieve

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and crew,” adds Apprente co-founder Itamar Arel. “Building our technology infrastructure and digital capabilities are fundamental to our velocity growth plan and enable us to meet rising expectations from our customers, while making it simpler and even more enjoyable for crew members to serve guests,” says Easterbrook. Another company that recently added messaging technology is Nord- strom (NYSE: JWN), which purchased two messaging technology companies—BevyUp and MessageYes-- in 2018. BevyUp allows sales employees to communicate with each other and encourages shoppers to share infor- More ways to talk mation and browse together online. Data improves BevyUp’s digital selling platform gives Voice technology products give more communication Nordstrom sales reps another tool to customer service reach out to customers with tools such options to customers as style boards, which designers use to Retailers look at analytics to understand brainstorm ideas. MessageYes offers Voice and text-assisted technol- Not all retailers are equipped with brands the opportunity to text their shopping patterns ogy, including Amazon’s Alexa device, messaging technology, so some are customers personalized notifications is becoming ubiquitous in everyday adding capabilities through acquisi- while they browse online. Consumers are becoming more shopping routines, providing a hands- tions. McDonald’s is buying Apprente, Historically, the customer connec- demanding and more specific in their free experience. Voice shopping on a maker of voice-based conversational tions and conversations about style tastes. Retailers of all kinds are under Alexa will rapidly rise, ranging from technology. The target offers software decisions that Nordstrom prided itself pressure to get a better grasp of shop- ordering food to restocking refrigera- for complex, multilingual, multi-accent on have happened in brick-and-mortar per behavior, so they can tailor their tors, according to industry reports, and and multi-item conversational ordering. stores. But those in-store connections marketing strategies and inventories to retailers are figuring out how to take McDonald’s wants to use Apprente’s are less and less frequent as online meet evolving consumer needs. To do advantage. software for “faster, simpler and more sales rise. Nordstrom was one of the this, companies are investing in tech- 1-800-Flowers.com (Nasdaq: FLWS) accurate order taking” at its drive-thrus, earliest department stores to make a nology, including data and analytics has internally invested the way its cus- and potentially for mobile ordering and bet on e-commerce, acquiring Hau- providers, and acquiring companies in tomers can communicate with another. kiosks. teLook, a members-only shopping those fields through M&A. The company’s SmartGift service allows “In McDonald’s restaurants, this website, in 2011. Home improvement retailer Lowe’s customers to notify their gift recipi- technology is expected to allow for With the MessageYes technology, Cos. (NYSE: LOW) has acquired the ents via text, e-mail or any messaging faster, simpler and more accurate order customers can respond with “Yes” retail analytics suite of products and platform that a gift is on the way. The taking at the drive-thru with future to one of Nordstrom’s messages to services from Boomerang Commerce. feature gives the recipient the option potential to incorporate into mobile instantly buy products from their Boomerang’s technology offers retail of modifying their delivery preferences. ordering and kiosks,” McDonald’s said phones. The company is focused on analytics services that processes prod- 1-800-Flowers says it will continue to in a press release. personalization, isolating what each uct and pricing datasets and converts test and launch new technology prod- “Apprente was born out of an oppor- shopper’s interests are, and offers them into insights. The acquisition is ucts to help customers. For instance, tunity to use technology to solve chal- algorithms to do so. With the technol- designed to assist Lowe’s in modern- the company launched smart message, lenging real-world problems, and we’re ogy, customers can expect to be able izing and digitizing the company’s an augmented reality gift messaging thrilled to now apply this to creating to communicate with retailers anytime approach to pricing. feature on its mobile app. personalized experiences for customers from anywhere. “One of the key components of our

26 Mergers & Acquisitions November/December 2019 TheMiddleMarket.com

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and crew,” adds Apprente co-founder CommerceIQ, which automates e-com- Itamar Arel. merce growth for consumer brands, will “Building our technology infrastruc- operate as an independent business ture and digital capabilities are funda- under the CommerceIQ.ai name, with mental to our velocity growth plan and Hariharan serving as CEO. enable us to meet rising expectations Companies are becoming more from our customers, while making it efficient, and businesses are relying on simpler and even more enjoyable for data to improve their operations. Data crew members to serve guests,” says management, data virtualization and Easterbrook. AI are among the software develop- Another company that recently ments appealing to strategic buyers. added messaging technology is Nord- Nike has acquired predictive analyt- strom (NYSE: JWN), which purchased ics and demand sensing firm Celect. two messaging technology compa- The deal is part of Nike’s consumer di- nies—BevyUp and MessageYes-- in rect strategy that is aimed at improving 2018. BevyUp allows sales employees its personal customer service. Celect, to communicate with each other and founded in 2013, offers cloud-based encourages shoppers to share infor- analytics that helps retailers manage mation and browse together online. Data improves their inventory based on local demand BevyUp’s digital selling platform gives predictions. Nordstrom sales reps another tool to customer service “As demand for our product grows, reach out to customers with tools such we must be insight-driven, data opti- as style boards, which designers use to Retailers look at analytics to understand mized and hyper-focused on consumer brainstorm ideas. MessageYes offers behavior,” says Nike chief operating of- brands the opportunity to text their shopping patterns ficer Eric Sprunk. “This is how we serve customers personalized notifications consumers more personally at scale.” while they browse online. Consumers are becoming more transformation here at Lowe’s is to mod- Nike bought Zodiac, a data analyt- Historically, the customer connec- demanding and more specific in their ernize our technology,” says Lowe’s chief ics provider, in 2018. Zodiac says it uses tions and conversations about style tastes. Retailers of all kinds are under information officer Seemantini Godbole. “proven data models, customer analyt- decisions that Nordstrom prided itself pressure to get a better grasp of shop- “Pricing and assortment planning have ics and behavioral analysis to predict on have happened in brick-and-mortar per behavior, so they can tailor their been identified as strategic areas in the future behaviors of individuals.” stores. But those in-store connections marketing strategies and inventories to need of modernization. And when we But it’s not just Nike that is active are less and less frequent as online meet evolving consumer needs. To do find the right assets available to buy in this sector. Cisco (Nasdaq: CSCO) is sales rise. Nordstrom was one of the this, companies are investing in tech- and advance our strategy, we’ll do that.” buying customer experience manage- earliest department stores to make a nology, including data and analytics Founded by Guru Hariharan in 2012, ment company Cloudcherry. The target’s bet on e-commerce, acquiring Hau- providers, and acquiring companies in Boomerang Commerce has raised predictive analytics helps contact-center teLook, a members-only shopping those fields through M&A. more than $20 million from venture agents improve service by showing them website, in 2011. Home improvement retailer Lowe’s capital firms including Shasta Ventures, when cross-selling and discounts will With the MessageYes technology, Cos. (NYSE: LOW) has acquired the Madrona Venture Group and Trinity best meet customer needs and increase customers can respond with “Yes” retail analytics suite of products and Ventures. Lowe’s acquisition includes loyalty. Cloudcherry’s software uses to one of Nordstrom’s messages to services from Boomerang Commerce. the proprietary technology and tools data from records and transactions to instantly buy products from their Boomerang’s technology offers retail for the retail analytics platform but ex- help contact center agents “close the phones. The company is focused on analytics services that processes prod- cludes customer contracts and related feedback loop,” says Vasili Triant, vice personalization, isolating what each uct and pricing datasets and converts confidential information and data. As president and general manager of Cisco shopper’s interests are, and offers them into insights. The acquisition is part of the transaction, some associ- contact center solutions. “This is the next algorithms to do so. With the technol- designed to assist Lowe’s in modern- ates from the retail analytics teams step in realizing our vision for cogni- ogy, customers can expect to be able izing and digitizing the company’s based in Bangalore and the United tive collaboration in the contact center, to communicate with retailers anytime approach to pricing. States will join Lowe’s. After the acquisi- enabling the delivery of the best, most from anywhere. “One of the key components of our tion, Boomerang Commerce’s product personalized customer experiences.”

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in 2018. Pizza Hut says with Qui- kOrder, the company “will improve its ability to deliver an easy and personalized online ordering experience.” In 2018, about half of Pizza Hut U.S. sales were processed through QuikOrder’s software. QuikOrder and Pizza Hut have worked together for nearly two decades. “We’re doubling down on our commitment to digital and this deal positions Pizza Hut perfectly for the future,” says Pizza Hut U.S. president Artie Starrs. In Addition to Pizza Hut, Yum! owns the KFC and Taco Bell restaurant chains. Pizza Hut has been ramping up its online ordering services by rolling out Paying from anywhere delivery tracker with text alerts and voice-enabled digital assistants, and Mobile ordering has grown rapidly, driven by with Hut Rewards, which rewards its members for every dollar spent on food demand for convenience online. Restaurants are scrambling to meet Driven by consumer demand for There are other companies that the demands of the next generation speed and convenience, mobile order- are looking to expand into or grow of diners, who want more convenience ing has grown rapidly and is seeing existing food delivery businesses. such as online and mobile ordering, robust M&A activity. DoorDash Inc. is Uber Technologies Inc. (NYSE: UBER) so they are ramping up those services buying food delivery app Caviar from plans to buy a majority stake in online through dealmaking. Square Inc. (NYSE: SQ) for $410 million. grocer Cornershop, a deal designed to Square has worked hard in the past both extend its geographic reach and “We want Uber to be several years to offer more than just bolster profits by bundling food de- the operating system mobile card acceptance, but not all of livery with rides. Walmart announced its efforts have paid off. The company its intention more than a year ago to of your everyday life.” launched and retired several mobile purchase Cornershop outright for $225 wallet apps in its early years, and more million and re-sell it to its Mexican Online food ordering company recently has been acquiring food deliv- subsidiary, only to have Mexican regu- Grubhub Inc. (NYSE: GRUB) bought ery companies such as Caviar. lators oppose it in June for antitrust LevelUp, a provider of payment pro- Caviar’s complementary geographic reasons. cessing technology for restaurants, footprint provides DoorDash with a “Whether it’s getting a ride, ordering for $390 million in 2018. LevelUp gives significant number of new and unique food from your favorite restaurant, or Grubhub more tools to drive online customers, who will benefit from an soon, getting groceries delivered, we delivery and pickup orders, making it even broader set of merchants, accord- want Uber to be the operating system easier for Grubhub customers like the ing to DoorDash. for your everyday life,” says Uber CEO KFC, Taco Bell and Bareburger restau- “The acquisition further enhances the Dara Khosrowshahi. rant chains. breadth of our merchant selection, en- Pizza Hut, a subsidiary of Yum! The online payments sector, along abling us to offer customers even more Brands Inc. (NYSE: YUM), announced with other technology providers, will choice when they order through Door- plans to buy online restaurant order- also see more M&A activity as retailers Dash,” says DoorDash CEO Tony Xu. ing and delivery company QuikOrder look to transform themselves. M&A

28 Mergers & Acquisitions November/December 2019

028_MAJ1119 28 10/31/2019 5:47:08 PM PRESENTED BY

Gut Instinct Isn’t Enough

SPONSORED BY:

029_MAJ1119 29 10/31/2019 10:29:42 AM Gut Instinct Isn’t Enough Gut Instinct Isn’t Enough

As private equity firms look for ways to produce Moving the needle on turnover, overtime, benefits Hiring and retaining the right talent was critical, ADP had a mid-market client that was experiencing outsized returns, no stone should be left unturned. costs, or even time to fill common roles, can deliver but turnover was a big problem. After reviewing the high turnover. Using analytic tools, the company Taking a deep look at hiring practices, talent meaningful financial results. However, firms are often data the company realized that many of the hires was able to determine that they didn’t have an management and retention at the portfolio level is lacking the benchmarks to know what good looks were not a good fit for the company. The company overall problem with turnover that they thought no exception. In fact, according to the Society for like and the expertise to drill into key drivers and realized there were a few areas they could improve they had, but they had a problem with turnover in Human Resource Management, depending on sector, deliver results.” says Amin Venjara, Chief Product upon during the interview process. The HR team one particular department, which brought them a company will spend between 40 and 80 percent of Owner of ADP DataCloud. added a peer interview to the recruiting process and to the realization that they had a problem with gross revenues on employee salaries provided candidates with a better sense of what the management in the department. “Prior to using and benefits. “Moving the needle on turnover, overtime, job entailed during the interview process, both of analytics, the company was getting data late and benefits costs, or even time to fill common which helped to increase acceptance rates wasn’t able to successfully pinpoint the problem. “We believe talent data is one of the most important roles, can deliver meaningful financial and retention. Once the company made a manager change, KPIs next to financial performance data at the results.” the turnover dropped and it was a $60,000 gain,” High employee turnover during the first year is portfolio level and there’s a huge correlation between – Amin Venjara, Chief Product Owner of says Venjara. “When someone quits the usual cost noteworthy. “It tells you if you are making the them,” says Mike Beauregard, senior partner with ADP DataCloud is estimated at half the annual salary of that job. right hires. If you aren’t looking at data around Huron Capital. “Tracking data about your human By the time you replace that person it’s about six turnover during the first year of employment you capital, such as hiring, turnover, goal setting and The use of people analytics at the portfolio level is months of time lost. Using analytics can help lower are essentially blind. You spend money to recruit, performance tracking, etc. is just as important as indeed growing, however while many companies turnover and give management insight as to how to but don’t follow up to make sure they don’t leave? tracking data about other areas of your business.” are tracking data, many aren’t using that data to stop turnover and make gains to drive returns.” It’s critical to understand the turnover rate and its help them make better decisions with their talent impact,” says Venjara. Gabe Mesanza is a partner in performance Using data in the human resources department is practices. “Many utilize data storage to collect the enhancement at Huron Capital and works with becoming more frequent. According to Josh Bersin, information, but it is not consistently utilized to Managing and optimizing portfolio companies to drive value. He says for the founder of Bersin & Associates, a research and proactively drive initiatives within the business,” advisory firm for talent management, as of 2018, last five years the biggest issue he encounters on says Beauregard. Managing talent is another important area where approximately 30 percent of human resources (HR) the HR side is with retention of hourly employees. data analytics can be beneficial. It can help departments include a person or team dedicated to Hiring the Right talent “It’s not always easily understood why people leave. company management figure out what their training people analytics—that’s up from 10 percent a few You need to work backward and use the data to The first way to use the data is for hiring practices. and employee development should look like. “We years ago. What more, the HR technology space figure out what’s going on. When did those people The question is how do you attract the best believe that companies that engage their employees, is growing rapidly and has attracted more than $3 leave, was it in a short period of time, will increasing talent? “Analytics can help hiring managers see train and develop them, will lead to work product billion in investment since 2015. wages help? Until you parse through that data on a productivity, customer satisfaction, and ultimately characteristics and trends in their employees, granular level it’s hard to understand,” says Mesanza. performance.” says Beauregard. The message is “Tracking data about your human capital, such as what backgrounds and experiences are clear: managing talent correctly is a very important At one manufacturing company Mesanza led, such as hiring, turnover, goal setting common for their current best employees. We to the bottom line. employee turnover was at 15 percent on any given and performance tracking, etc. is just as believe this data will help make better hires in the week. “That didn’t really tell me much other than important as tracking data about other future. Other questions that might be answered Retaining Talent at any given week 15 percent of employees were areas of your business” by data analytics include preferences of one set of employees in a certain geography vs another, or walking out the door,” he says. Retention is also an area where data analytics – Mike Beauregard, senior partner different preferences by generation, for example. can be useful. “Turnover is costly and there are But Mesanza started to dig in. First he looked at the with Huron Capital This assessment can help management make timely usually underlying issues creating that turnover. starting hourly wage and benchmarked it against decisions for the growth of their workforce.” “People analytics is an under-utilized lever for value Compensation is the most obvious thing to look at,” the local industry average and decided the company says Beauregard. creation at most companies. Human capital is not says Venjara. “But things like employee engagement was paying below market. The company increased only the engine for top-line growth, but also typically ADP helped a high-end spa with 2,000 employees can be very telling as well.” its wages. However, the turnover rate remained high one of the largest expense drivers on the P&L. across five locations reduce its high turnover rates.

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030_MAJ1119 30 10/31/2019 10:29:42 AM Gut Instinct Isn’t Enough Gut Instinct Isn’t Enough

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031_MAJ1119 31 10/31/2019 10:29:42 AM Gut Instinct Isn’t Enough

and most employees were leaving in the first 30 to (HCM) benchmarks based on real, “living” data to 60 days on the job. “That told me they took this job, implement best practices across your portfolio. With but were still looking for other jobs,” says Mesanza. Analytics and Benchmarking capabilities powered “Well, why were they doing that?” by ADP® DataCloud, you get up-to-date, easily accessible data that reveals critical, actionable Through conversations and employee surveys, workforce and business insights which are critical to management learned of dissatisfactions and worked success today. to address them. “We had temporary and full-time employees. The temporary employees were the ones who were leaving at a far faster rate so we worked with our temporary staffing agency to accelerate their conversion to full time employees and shifted our mix total mix toward full-time employees and implemented changes to our onboarding process,” says Mesanza.

“If you aren’t looking at data around turnover during the first year of employment you are essentially blind.” – Amin Venjara, Chief Product Owner of ADP DataCloud

The company realized a better onboarding process would go a long way. Instead of hiring someone and sending them to listen to a quick presentation and putting them out of the floor, the company made sure every new employee had a ‘buddy’ to shadow them on the floor. The company added an onboarding presentation that talked more about the company’s long-term goals and encouraged the new employees to ask questions.

“This turnover problem was going on for 10 years and no one had asked for the data. The HR department was dealing with daily issues and employees on the floor. They weren’t looking for insights as to why things were happening,” says Mesanza. “The changes had an impact and cut the turnover rate significantly.”

ADP helps PE firms and their portfolio companies access the key metrics of their workforce compared with the most current Human Capital Management

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032_MAJ1119 32 10/31/2019 10:29:42 AM Q&A

customization around our product. We focus on where we can compete the best. We focus on delivering success to the customers. We are also looking at investments. The management team has changed and we are putting more rigor against great focus and brighter lines. We are still working hard every day on the health of the company.

How involved is Thoma Bravo? They are on our board. They help pressure test our strategy, but they give us the freedom to run the company against the measures that the board set for us. Fortunately, our goals match The middle office up with Thoma Bravo’s goals. What does the future look like for Thoma Bravo-backed Apttus wants bigger piece of Apttus? business software market We are looking to add to the company. We are looking for adjacent By Danielle Fugazy products that our customers would benefit from. We have begun mapping out the market looking for the best In the fourth quarter of 2018, Thoma including Qlik, Sailpoint and Dynatrace. fit. Our total addressable market is Bravo, LLC, acquired Apttus, a middle What follows is an excerpted version of between $10 billion and $20 billion and office service provider that automates, a conversation with Frank Holland, who we are just a fraction of that. There are optimizes and applies artificial intel- assumed the role of CEO at Apttus, in niche products that have great go-to ligence to revenue generation and January 2019. market strategies. Some are in the management of commercial relation- whole revenue management areas, and ships. Middle office manages technol- What changes have been made we address a big chunk of that market. ogy, risk and information. Founded in since the acquisition? 2006, Apttus was originally built to be We were founded on the Sales- Do you already have an exit used with the cloud-based software force platform. We enjoyed a healthy strategy in mind? company Salesforce. Apttus provides relationship with Salesforce for 10 There are three main ways for us to contract lifecycle management and years until they bought a CPQ solution. exit – sale to a strategic player who quote-to-cash technology as well The founders decided to move toward wants to enter or strengthen its posi- as other middle office solutions. Its Microsoft and IBM. We were building tion in a market space, IPO, or sale customers include hundreds of Global solutions with all three partners, and to another PE firm. Right now, we are 2,000 companies. we were developing like crazy. We were focused on building a strong company Prior to its sale to Thoma Bravo, Apt- spread thin. We needed to simplify that is the standalone leader of the tus was once on track for an IPO and, and focus. We moved back onto the Middle Office space for a very long at another point, thought Salesforce Salesforce platform and put all our time to come. That is our focus. If we would be a logical buyer. Thoma Bravo engineers into that so our customers continue building a strong company, has bought its fair share of enterprise could count on us in one place. these options will always be on the software products over the years We also have cut back on table. M&A

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forts. Glickman was most recently with Antares Capital.

Shea Goggin was hired by investment bank Houlihan Lokey (NYSE: HLI) as New hires and promotions a managing director and head of the firm’s U.S. private funds group. Goggin By Demitri Diakantonis was most recently with UBS.

Angela Gomes has joined law firm Sulli- Geoff Baird has joined private equity firm James Clyne has joined law firm K&L Gates recently with Weatherford van & Worcester as a partner. Previous- LLR Partners as a senior managing director as a partner, where he is focusing on M&A in International plc. ly with Skadden, Arps, Slate, Meagher & where he is leading the firm’s value cre- the minerals and oil and gas sectors. He was Flom LLP, Gomes focuses on securities ation team. He was previously with Tailwind previously with Allens. Keith Dougherty has been regulation, corporate finance and M&A. Capital. named CEO at Vestar Capi- Lee Cooper has joined private equity firm tal Partners-backed Roland Brian Hoekstra was hired by Lawson Ronnie Bloom was hired by middle-market Welsh, Carson, Anderson & Stowe as an op- Foods. Dougherty was Products (Nasdaq: LAWS), a distributor lender Great Rock Capital as a managing erating partner. Cooper was the CEO of GE recently with Essendant Inc., of industrial maintenance and repair director of originations. He was previously Healthcare Systems, U.S. and Canada. a distributor of workplace supplies, as vice president of M&A. with Royal Bank of Canada items. Hoekstra was previously the senior and Wells Fargo Bank. Patrick Cox has joined law firm director of M&A at W.W. Grainger. Nixon Peabody as a partner Irene Eddy has joined lender Joi Bourgeois was hired by where he is concentrating on Accord Financial Corp. as a Alan Jones has joined alternative asset law firm Kirkland & Ellis as tax matters related to M&A. senior vice president, capital management firm Intermediate Capital firm wide director of diversity Cox was most recently with markets. She was most Group as a senior managing director. and inclusion. She was most Baker McKenzie. recently with DBRS. Previously with Morgan Stanley (NYSE: recently with Orrick, Her- MC), Jones is responsible for building rington & Sutcliffe LLP. Adrienne Dale has joined Sandy Feldman has joined ICG’s North American private equity MidOcean Credit Partners law firm Reed Smith as business.

Jerome Brown has joined Geoff Baird as a portfolio manager for a partner. He was most investment bank Houlihan MidOcean’s collateralized loan recently with K&L Gates, Craigh Kahler was hired by private Lokey (NYSE: HLI) as a obligation (CLO) strategies. and focuses on cross-border equity firm Orix Capital Partners as managing director. Brown She was previously with Credit M&A. a managing director. He was most was previously with JMP Suisse Asset Management’s recently with Safanad. Securities, and focuses on the credit investments group. Sean Fitzgerald has healthcare sector. joined investment Hou- Kim Kaselionis has joined middle-mar- John Donaleski has joined lihan Lokey (NYSE: HLI) ket advisory firm AssayCS as a manag- Steve Callis was hired by law firm Orrick as a partner. as a managing director. ing director. Kaselionis is the former GTCR-backed RevSpring as Previously with White & Case, Previously with Macquarie CEO of Circle Bank. president of payments where Donaleski focuses on M&A in Capital, Fitzgerald focuses

he is leading the company’s Angela Gomes the energy and infrastructure on providing equity capital Björn Killmer has joined private eq- growth efforts in the payments sectors. to corporate and sponsor- uity firm Clayton, Dubilier & Rice as a sector. Callis previously held roles with Ela- backed clients for M&A. partner. He was previously with Triton von and Global Payments. Jon Donnel was hired by financial services Partners, and focuses on industrials firm B. Riley Financial Inc. (Nasdaq: RILY) as a Dan Glickman has investments in Europe. David Christmas has been named CEO managing director where he is concentrating joined private equity firm at Trilantic North America-backed Fluid on business valuation, investment appraisal Harvest Partners as a Doug King was hired by Arlington Delivery Solutions. He was previously with and financial planning for companies and partner where he is leading Capital Partners-backed medical Schlumberger Ltd. lenders in the oil sector. Donnel was most the firm’s capital markets ef- device maker Riverpoint Medical as

34 Mergers & Acquisitions November/December 2019 TheMiddleMarket.com

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forts. Glickman was most recently with CEO. King most recently served as initiative focused on value investing. Antares Capital. president of Medtronic’s spinal Ozbolt was most recently with Aurora business. Capital. Shea Goggin was hired by investment bank Houlihan Lokey (NYSE: HLI) as Ed Lukins was hired by law firm Thomas Philippe was hired by law firm a managing director and head of the Orrick as a partner. He was most Shearman & Sterling as a partner. He firm’s U.S. private funds group. Goggin recently with Cooley, and focuses on was previously with Mayer Brown and was most recently with UBS. M&A in the life sciences, oil and gas focuses on private equity and M&A. and technology sectors. Angela Gomes has joined law firm Sulli- Tony Pulice has joined private equity recently with Weatherford van & Worcester as a partner. Previous- Mateja Maher has joined law firm firm Huron Capital as a partner. He was International plc. ly with Skadden, Arps, Slate, Meagher & Sidley Austin as a partner. He was previously Rockbridge Growth Equity Flom LLP, Gomes focuses on securities previously with Campbell Lutyens and Management. Keith Dougherty has been regulation, corporate finance and M&A. focuses on private fundraising along named CEO at Vestar Capi- with secondary transactions. Sue Rechner has been named CEO tal Partners-backed Roland Brian Hoekstra was hired by Lawson at Huron Capital-backed WD Lab Foods. Dougherty was Products (Nasdaq: LAWS), a distributor Niki Mangos has been hired as Grown Diamonds. She previously held recently with Essendant Inc., of industrial maintenance and repair chief technology officer at private mar- positions at Merrell and Confluence a distributor of workplace supplies, as vice president of M&A. kets asset management Outdoor. items. Hoekstra was previously the senior firm Hamilton Lane (Nas- director of M&A at W.W. Grainger. daq: HLNE). Mangos was Adam Reinmann has Irene Eddy has joined lender previously chief informa- been named CEO at Accord Financial Corp. as a Alan Jones has joined alternative asset tion officer at Brandy- private investment firm senior vice president, capital management firm Intermediate Capital wine Global Investment Wendel North America. markets. She was most Group as a senior managing director. Management. Reinmann is a founding recently with DBRS. Previously with Morgan Stanley (NYSE: member of Wendel’s MC), Jones is responsible for building Natalya Michaels has New York office. Sandy Feldman has joined ICG’s North American private equity joined middle-market law firm Reed Smith as business. private equity firm Mid- Natalya Michaels Nicole Rosciano has a partner. He was most Ocean Partners as a joined financial services recently with K&L Gates, Craigh Kahler was hired by private managing director. She company Hilco Global and focuses on cross-border equity firm Orix Capital Partners as is focusing on marketing, as vice president, chief M&A. a managing director. He was most investor relations and human resources of- recently with Safanad. business development ficer. She was most Sean Fitzgerald has across MidOcean’s recently with IRI. joined investment Hou- Kim Kaselionis has joined middle-mar- private equity and credit lihan Lokey (NYSE: HLI) ket advisory firm AssayCS as a manag- businesses. Michaels Eleanor Shanks has as a managing director. ing director. Kaselionis is the former was most recently with joined law firm Sidley Previously with Macquarie CEO of Circle Bank. Artisan Partners. Austin. She was previ- Capital, Fitzgerald focuses Justin Yi ously with Proskauer on providing equity capital Björn Killmer has joined private eq- David Misch has joined ad- Rose, and focuses on to corporate and sponsor- uity firm Clayton, Dubilier & Rice as a visory firm Livingstone as a partner and private equity and M&A. backed clients for M&A. partner. He was previously with Triton head of sponsor coverage. Misch was Partners, and focuses on industrials previously with Wells Fargo Securities Justin Yi was hired by law firm Dan Glickman has investments in Europe. (NYSE: WFC). Orrick as a partner. Yi was most joined private equity firm recently with Klee, Tuchin, Bogdanoff Harvest Partners as a Doug King was hired by Arlington Sean Ozbolt has joined PE firm the & Stern, and focuses on private equity partner where he is leading Capital Partners-backed medical Riverside Co. as a managing partner and M&A. M&A the firm’s capital markets ef- device maker Riverpoint Medical as where he is leading Riverside’s new

TheMiddleMarket.com November/December 2019 Mergers & Acquisitions 35

035_MAJ1119 35 10/31/2019 5:48:16 PM Key Middle-Market M&A Deals Date Acquirer Target Target Industry Value ($mil) 09/19/19 Automattic Inc Business Services Salesforce Ventures LLC 300.0 Completed in Q3 2019 07/16/19 Comstock Resources Inc Oil and Gas; Petroleum Refining Blue Star Exploration Co 300.0 09/09/19 CIJA (Shanghai) Apartment Real Estate; Mortgage Bankers and Brokers Investor Group 300.0 Date Acquirer Target Target Industry Value ($mil) 08/08/19 LF Logistics Holdings Ltd Transportation and Shipping (except air) Dahlia Investments Pte Ltd 300.0 07/04/19 Rongan Property Co Ltd Real Estate; Mortgage Bankers and Brokers Wang Jiufang 295.6 09/10/19 Wonder Holdings Business Services Nexon Korea Corp 293.7 07/30/19 Caesar Tonga Oil Field Oil and Gas; Petroleum Refining Equinor ASA 965.0 07/16/19 Xiamen Meiya Pico Info Co Ltd Prepackaged Software Sdic Intelligent Tech Co Ltd 289.7 07/22/19 BIDV Commercial Banks, Bank Holding Companies Hana Financial Group Inc 872.2 08/12/19 Terminus (Beijing) Tech Co Business Services Investor Group 283.2 07/29/19 Kookmin Cable Investment Inc Investment & Commodity Firms,Dealers,Exchanges Creditors 824.5 09/30/19 Shanxi Meijin Energy Co Ltd Oil and Gas; Petroleum Refining Hangzhou Shoucheng Shukun 277.8 09/10/19 New Age M12 Hldg Ltd-Marine Oil and Gas; Petroleum Refining Lukoil Upstream Congo Sau 800.0 08/23/19 Castlehaven Finance Real Estate; Mortgage Bankers and Brokers Avenue Capital Group LLC 277.0 08/30/19 JUUL Labs Inc Miscellaneous Manufacturing Undisclosed Acquiror 785.2 09/17/19 Gitlab Inc Prepackaged Software Investor Group 268.0 08/06/19 Daito Trust Construction Co Construction Firms Daito Trust Construction Co 769.4 07/30/19 Jiangsu ZECEN Biotech Co Ltd Drugs Investor Group 261.1 08/30/19 Olympus Corp Measuring, Medical, Photo Equipment; Clocks Olympus Corp 757.3 08/29/19 Medipal Holdings Corp Wholesale Trade-Nondurable Goods Medipal Holdings Corp 259.1 07/03/19 Yunnan Metallurgy Xinli Mining Lomon Billions Group Co Ltd 754.6 07/02/19 Ola Electric Mobility Pvt Ltd Transportation and Shipping (except air) Softbank Group Corp 250.4 07/19/19 Radiology Partners Inc Health Services Starr Investment Holdings LLC 700.0 07/02/19 Converge ICT Solutions Inc Business Services Warburg Pincus LLC 250.4 07/17/19 Lineage Logistics LLC Transportation and Shipping (except air) Investor Group 700.0 09/16/19 Plaid Inc Business Services Investor Group 250.0 07/01/19 Shanghai Deyin Derun Investment & Commodity Firms,Dealers,Exchanges Alibaba (China) Network Tech 694.2 09/04/19 Themis Solutions Inc Prepackaged Software Investor Group 250.0 08/30/19 China Estn Airlines Corp Ltd Air Transportation and Shipping Investor Group 651.5 09/10/19 Quinto Andar Servicos Printing, Publishing, and Allied Services Investor Group 250.0 09/04/19 Sankyo Co Ltd Miscellaneous Manufacturing Sankyo Co Ltd 647.0 09/17/19 CMR Surgical Ltd Measuring, Medical, Photo Equipment; Clocks Investor Group 242.3 07/22/19 Whitbread PLC Hotels and Casinos Whitbread PLC 644.1 09/10/19 Zee Ent Entrps Ltd Radio and Television Broadcasting Stations Invesco Oppen Dvlping Mkt Fund 613.5 07/04/19 PIK Group OJSC Construction Firms Bank VTB PAO 600.2 09/04/19 ADNOC-Pipeline Assets Oil and Gas; Petroleum Refining GIC Pte Ltd 600.0 08/30/19 Hiveloop Technology Pvt Ltd Business Services Investor Group 585.0 08/07/19 Oryx Midstream Svcs Llc Oil and Gas; Petroleum Refining Qatar Investment Authority 550.0 08/02/19 Babylon Healthcare Svcs Ltd Prepackaged Software Investor Group 550.0 07/31/19 Lindt & Spruengli AG Food and Kindred Products Lindt & Spruengli AG 532.0 08/16/19 Beijing Auto & Home Info Tech Transportation Equipment Investor Group 530.0 07/24/19 Gulf Bank KSCP Commercial Banks, Bank Holding Companies Al Ghanim Trading Co Wll 502.2 08/19/19 Laboratorios Sanfer SA de CV Drugs CDPQ 500.0 09/02/19 Yakuodo Co Ltd Miscellaneous Retail Trade Yakuodo Co Ltd 499.4 08/06/19 Klarna Bank AB Business Services Investor Group 460.0 08/16/19 Ivanhoe Mines Ltd Mining CITIC Metal Africa Invests Ltd 453.9 08/30/19 Juneyao Airlines Co Ltd Air Transportation and Shipping Estn Air Ind Invest Co Ltd 453.0 07/23/19 Terreis SA Investment & Commodity Firms,Dealers,Exchanges Terreis SA 442.1 08/12/19 Beijing Zhizhe Tianxia Tech Business Services Investor Group 434.0 07/18/19 Beijing Originwater Technology Sanitary Services China Urban & Rural Hldg Grp 415.7 09/30/19 Icade - Tour Eqho SASU Real Estate; Mortgage Bankers and Brokers L’Etoile Ppty Svcs SASU 404.5 08/21/19 Knotel Inc Prepackaged Software Investor Group 400.0 09/25/19 Verafin Inc Prepackaged Software Investor Group 389.0 07/05/19 Tibet Dragon Copper Ind Co Ltd Mining Zangge Holding Co Ltd 374.0 07/30/19 Urban Compass Inc Investment & Commodity Firms,Dealers,Exchanges Investor Group 370.0 07/08/19 Beijing SPC Envi Protection Sanitary Services Sichuan Dvlp Guorun Envi 369.1 09/09/19 Root Insurance Co Insurance Investor Group 350.0 09/10/19 Rivian Automotive Inc Transportation Equipment Cox Automotive Inc 350.0 09/23/19 Genesis Alkali Holdings Co LLC Wholesale Trade-Nondurable Goods GSO Capital Partners LP 350.0 07/09/19 BioNTech SE Business Services Investor Group 325.0 08/16/19 JUUL Labs Inc Miscellaneous Manufacturing Undisclosed Acquiror 325.0 07/22/19 Robinhood Markets Inc Investment & Commodity Firms,Dealers,Exchanges Investor Group 323.0 07/19/19 DIA SA Retail Trade-Food Stores DIA SA 318.2 08/30/19 Sompo Holdings Inc Insurance Sompo Holdings Inc 304.3

36 Mergers & Acquisitions November/December 2019 TheMiddleMarket.com

036_MAJ1119 36 10/31/2019 5:44:19 PM Key Middle-Market M&A Deals Date Acquirer Target Target Industry Value ($mil) 09/19/19 Automattic Inc Business Services Salesforce Ventures LLC 300.0 Completed in Q3 2019 07/16/19 Comstock Resources Inc Oil and Gas; Petroleum Refining Blue Star Exploration Co 300.0 09/09/19 CIJA (Shanghai) Apartment Real Estate; Mortgage Bankers and Brokers Investor Group 300.0 Date Acquirer Target Target Industry Value ($mil) 08/08/19 LF Logistics Holdings Ltd Transportation and Shipping (except air) Dahlia Investments Pte Ltd 300.0 07/04/19 Rongan Property Co Ltd Real Estate; Mortgage Bankers and Brokers Wang Jiufang 295.6 09/10/19 Wonder Holdings Business Services Nexon Korea Corp 293.7 07/30/19 Caesar Tonga Oil Field Oil and Gas; Petroleum Refining Equinor ASA 965.0 07/16/19 Xiamen Meiya Pico Info Co Ltd Prepackaged Software Sdic Intelligent Tech Co Ltd 289.7 07/22/19 BIDV Commercial Banks, Bank Holding Companies Hana Financial Group Inc 872.2 08/12/19 Terminus (Beijing) Tech Co Business Services Investor Group 283.2 07/29/19 Kookmin Cable Investment Inc Investment & Commodity Firms,Dealers,Exchanges Creditors 824.5 09/30/19 Shanxi Meijin Energy Co Ltd Oil and Gas; Petroleum Refining Hangzhou Shoucheng Shukun 277.8 09/10/19 New Age M12 Hldg Ltd-Marine Oil and Gas; Petroleum Refining Lukoil Upstream Congo Sau 800.0 08/23/19 Castlehaven Finance Real Estate; Mortgage Bankers and Brokers Avenue Capital Group LLC 277.0 08/30/19 JUUL Labs Inc Miscellaneous Manufacturing Undisclosed Acquiror 785.2 09/17/19 Gitlab Inc Prepackaged Software Investor Group 268.0 08/06/19 Daito Trust Construction Co Construction Firms Daito Trust Construction Co 769.4 07/30/19 Jiangsu ZECEN Biotech Co Ltd Drugs Investor Group 261.1 08/30/19 Olympus Corp Measuring, Medical, Photo Equipment; Clocks Olympus Corp 757.3 08/29/19 Medipal Holdings Corp Wholesale Trade-Nondurable Goods Medipal Holdings Corp 259.1 07/03/19 Yunnan Metallurgy Xinli Mining Lomon Billions Group Co Ltd 754.6 07/02/19 Ola Electric Mobility Pvt Ltd Transportation and Shipping (except air) Softbank Group Corp 250.4 07/19/19 Radiology Partners Inc Health Services Starr Investment Holdings LLC 700.0 07/02/19 Converge ICT Solutions Inc Business Services Warburg Pincus LLC 250.4 07/17/19 Lineage Logistics LLC Transportation and Shipping (except air) Investor Group 700.0 09/16/19 Plaid Inc Business Services Investor Group 250.0 07/01/19 Shanghai Deyin Derun Investment & Commodity Firms,Dealers,Exchanges Alibaba (China) Network Tech 694.2 09/04/19 Themis Solutions Inc Prepackaged Software Investor Group 250.0 08/30/19 China Estn Airlines Corp Ltd Air Transportation and Shipping Investor Group 651.5 09/10/19 Quinto Andar Servicos Printing, Publishing, and Allied Services Investor Group 250.0 09/04/19 Sankyo Co Ltd Miscellaneous Manufacturing Sankyo Co Ltd 647.0 09/17/19 CMR Surgical Ltd Measuring, Medical, Photo Equipment; Clocks Investor Group 242.3 07/22/19 Whitbread PLC Hotels and Casinos Whitbread PLC 644.1 09/10/19 Zee Ent Entrps Ltd Radio and Television Broadcasting Stations Invesco Oppen Dvlping Mkt Fund 613.5 07/04/19 PIK Group OJSC Construction Firms Bank VTB PAO 600.2 09/04/19 ADNOC-Pipeline Assets Oil and Gas; Petroleum Refining GIC Pte Ltd 600.0 08/30/19 Hiveloop Technology Pvt Ltd Business Services Investor Group 585.0 08/07/19 Oryx Midstream Svcs Llc Oil and Gas; Petroleum Refining Qatar Investment Authority 550.0 08/02/19 Babylon Healthcare Svcs Ltd Prepackaged Software Investor Group 550.0 07/31/19 Lindt & Spruengli AG Food and Kindred Products Lindt & Spruengli AG 532.0 08/16/19 Beijing Auto & Home Info Tech Transportation Equipment Investor Group 530.0 07/24/19 Gulf Bank KSCP Commercial Banks, Bank Holding Companies Al Ghanim Trading Co Wll 502.2 08/19/19 Laboratorios Sanfer SA de CV Drugs CDPQ 500.0 09/02/19 Yakuodo Co Ltd Miscellaneous Retail Trade Yakuodo Co Ltd 499.4 08/06/19 Klarna Bank AB Business Services Investor Group 460.0 08/16/19 Ivanhoe Mines Ltd Mining CITIC Metal Africa Invests Ltd 453.9 08/30/19 Juneyao Airlines Co Ltd Air Transportation and Shipping Estn Air Ind Invest Co Ltd 453.0 07/23/19 Terreis SA Investment & Commodity Firms,Dealers,Exchanges Terreis SA 442.1 08/12/19 Beijing Zhizhe Tianxia Tech Business Services Investor Group 434.0 07/18/19 Beijing Originwater Technology Sanitary Services China Urban & Rural Hldg Grp 415.7 09/30/19 Icade - Tour Eqho SASU Real Estate; Mortgage Bankers and Brokers L’Etoile Ppty Svcs SASU 404.5 08/21/19 Knotel Inc Prepackaged Software Investor Group 400.0 09/25/19 Verafin Inc Prepackaged Software Investor Group 389.0 07/05/19 Tibet Dragon Copper Ind Co Ltd Mining Zangge Holding Co Ltd 374.0 07/30/19 Urban Compass Inc Investment & Commodity Firms,Dealers,Exchanges Investor Group 370.0 07/08/19 Beijing SPC Envi Protection Sanitary Services Sichuan Dvlp Guorun Envi 369.1 09/09/19 Root Insurance Co Insurance Investor Group 350.0 09/10/19 Rivian Automotive Inc Transportation Equipment Cox Automotive Inc 350.0 09/23/19 Genesis Alkali Holdings Co LLC Wholesale Trade-Nondurable Goods GSO Capital Partners LP 350.0 07/09/19 BioNTech SE Business Services Investor Group 325.0 08/16/19 JUUL Labs Inc Miscellaneous Manufacturing Undisclosed Acquiror 325.0 07/22/19 Robinhood Markets Inc Investment & Commodity Firms,Dealers,Exchanges Investor Group 323.0 07/19/19 DIA SA Retail Trade-Food Stores DIA SA 318.2 08/30/19 Sompo Holdings Inc Insurance Sompo Holdings Inc 304.3

TheMiddleMarket.com November/December 2019 Mergers & Acquisitions 37

037_MAJ1119 37 10/31/2019 5:44:20 PM Key Middle-Market M&A Deals Completed in Q3 2019

Date Acquirer Target Target Industry Value ($mil) Date Acquirer Target Target Industry Value ($mil)

09/30/19 SASA Polyester Sanayi AS Textile and Apparel Products Investor Group 231.9 07/18/19 Beijing Knowledge Image Co Ltd Educational Services Alibaba Group Holding Ltd 150.0 08/15/19 Leader-Invest JSC Real Estate; Mortgage Bankers and Brokers GK Etalon AO 231.7 07/10/19 Think & Learn Pvt Ltd Educational Services Investor Group 150.0 07/10/19 Creditas Solucoes Financeiras Business Services Investor Group 231.0 09/19/19 Triten Energy Partners LLC Investment & Commodity Firms,Dealers,Exchanges Tailwater Capital LLC 150.0 08/01/19 adjust GmbH Business Services Investor Group 227.0 07/22/19 Thumbtack Inc Prepackaged Software Investor Group 150.0 08/22/19 Beijing UBOX Online Tech Corp Machinery Investor Group 226.6 09/23/19 Sweetgreen Inc Retail Trade-Eating and Drinking Places Investor Group 150.0 07/23/19 BRP Inc Transportation Equipment BRP Inc 226.2 08/02/19 Wing Resources LLC-Oil & Gas Oil and Gas; Petroleum Refining Alliance Resource Partners LP 145.0 09/19/19 Postmates Inc Prepackaged Software GPI Capital LP 225.0 07/02/19 Jiangxi Zhengbang Tech Co Ltd Food and Kindred Products Jiangxi Yonglian Agriculture 142.6 09/09/19 Zhongshang Huimin (Beijing) Business Services Investor Group 224.9 07/10/19 Stonehage Fleming Family & Par Investment & Commodity Firms,Dealers,Exchanges Caledonia Investments PLC 142.5 08/01/19 SIAS SpA Construction Firms ASTM SpA 224.7 08/08/19 Chengdu Xinchao Media Grp Co Advertising Services JD.com Inc 141.7 07/08/19 Sinopec-SK (Wuhan) Petrochem Oil and Gas; Petroleum Refining Sinopec Asset Management Corp 223.3 09/10/19 Split Rock Resources LLC Oil and Gas; Petroleum Refining N Hudson Resource Partners Lp 140.0 09/09/19 Yunnan Yunwei Co Ltd Oil and Gas; Petroleum Refining Yunnan Provincial Energy 217.3 08/13/19 Acutus Medical Inc Measuring, Medical, Photo Equipment; Clocks Undisclosed Acquiror 136.7 08/28/19 Reliance Nippon Life Asset Investment & Commodity Firms,Dealers,Exchanges Nippon Life Insurance Co 214.1 08/06/19 Trent Ltd Retail Trade-General Merchandise and Apparel Tata Sons Pvt Ltd 136.0 07/09/19 Space Exploration Tech Corp Aerospace and Aircraft Undisclosed Acquiror 214.0 09/09/19 V V Food & Beverage Co Ltd Food and Kindred Products Xuzhou Xinsheng Invest Hldg 136.0 08/19/19 GCL System Integration Tech Co Electronic and Electrical Equipment Huaxin Coml Factoring 212.6 09/04/19 Legal & General Group PLC-15 B Investment & Commodity Firms,Dealers,Exchanges Mayfair Capital Investment 135.9 08/29/19 Hangzhou Xianyin Info Tech Co Educational Services Investor Group 209.4 08/08/19 Ebara Corp Machinery Ebara Corp 135.8 07/02/19 Mindtree Ltd Business Services Larsen & Toubro Ltd 208.9 07/18/19 Compass Holdco LLC Business Services Azrieli Data Centers LLC 135.0 09/17/19 DataRobot Inc Business Services Investor Group 206.0 07/16/19 AM-Pharma Holding BV Drugs Investor Group 130.6 07/03/19 Accor Sa-Hotels Portfolio(32) Hotels and Casinos Covivio SA 200.1 09/27/19 Lotte Capital Co Credit Institutions Lotte Finl Corp 128.6 08/13/19 Indecomm Digital Services Inc Business Services Warburg Pincus LLC 200.0 07/22/19 Best Oil Co Wholesale Trade-Nondurable Goods Investor Group 127.7 08/07/19 Pollen Inc Credit Institutions Investor Group 200.0 07/31/19 April SA Insurance Andromeda Investissement 127.1 09/16/19 Capsule Corp Miscellaneous Retail Trade Investor Group 200.0 08/07/19 Sintez JSC Drugs Sinocom Investments Ltd 126.0 08/15/19 ZH International Holdings Ltd Investment & Commodity Firms,Dealers,Exchanges Joy Town Inc 199.5 08/27/19 Kuaikan World (Beijing) Tech Business Services Tencent Industrial Gongying 125.0 08/06/19 Sociedad Gnl Mejillones Sa Electric, Gas, and Water Distribution Ameris Capital Administradora 193.5 08/12/19 Meesho Inc Prepackaged Software Investor Group 125.0 09/04/19 AVIC SUNDA Holding Co Ltd Real Estate; Mortgage Bankers and Brokers China Merchants Shekou 186.7 08/01/19 Rebel Foods Pvt Ltd Retail Trade-Eating and Drinking Places Investor Group 125.0 09/03/19 Harbor Group International LLC Investment & Commodity Firms,Dealers,Exchanges CPPIB Credit Investments Inc 180.0 08/21/19 thredUP Inc Business Services Investor Group 175.0 07/08/19 Lemonade Inc Insurance Undisclosed Acquiror 175.0 07/31/19 Zhejiang Great Southeast Co Chemicals and Allied Products Zhuji Water Affairs Grp Co 174.8 07/11/19 Sonder Inc Hotels and Casinos Investor Group 172.0 08/26/19 Rambler&Co Business Services Sberbank Rossii PAO 171.8 08/23/19 Harbin Pharm Grp Hldg Co Ltd Drugs Investor Group 171.1 07/18/19 N26 GmbH Commercial Banks, Bank Holding Companies Investor Group 170.0 07/30/19 Zhongneng United Digital Tech Business Services Investor Group 166.8 08/28/19 Tonghua Golden-Horse Pharm Drugs Yu Lanjun 164.0 07/23/19 Rubicon Global Holdings LLC Prepackaged Software Undisclosed Acquiror 161.4 07/31/19 Paytm E-Commerce Pvt Ltd Business Services eBay Inc 160.0 08/19/19 Better Mortgage Corp Credit Institutions Investor Group 160.0 07/24/19 Freenome Holdings Inc Drugs Investor Group 160.0 07/11/19 Cleopatra Hospitals Group SAE Health Services Undisclosed Acquiror 158.2 07/12/19 Siliconware Tech Suzhou Co Transportation and Shipping (except air) Tsinghua Unigroup Ltd 156.0 07/22/19 Arca Holding SpA Investment & Commodity Firms,Dealers,Exchanges Investor Group 155.3 07/11/19 Bridge Invest Grp Partners LLC Investment & Commodity Firms,Dealers,Exchanges Shorewood Re Grp Llc 155.0 09/08/19 GKHT Medical Technology Co Ltd Measuring, Medical, Photo Equipment; Clocks Investor Group 154.6 08/19/19 Hudson’s Bay Co Retail Trade-General Merchandise and Apparel Catalyst Capital Group Inc 151.5 09/13/19 Element AI Inc Business Services Investor Group 151.4 09/26/19 Jilin Jinguan Electric Co Ltd Electronic and Electrical Equipment Luoyang Ancient City Asset 151.4 08/12/19 Gbtc I Lp Investment & Commodity Firms,Dealers,Exchanges ARE GmbH Asia Pacific Branch 150.1 07/11/19 Geek + Inc Business Services Investor Group 150.0 09/06/19 Grove Collaborative Inc Business Services Investor Group 150.0 09/19/19 Beijing Dami Technology Co Ltd Educational Services Tencent Holdings Ltd 150.0

38 Mergers & Acquisitions November/December 2019 TheMiddleMarket.com

038_MAJ1119 38 10/31/2019 5:44:23 PM Key Middle-Market M&A Deals Completed in Q3 2019

Date Acquirer Target Target Industry Value ($mil) Date Acquirer Target Target Industry Value ($mil)

TheMiddleMarket.com November/December 2019 Mergers & Acquisitions 39

039_MAJ1119 39 10/31/2019 5:44:26 PM Key Middle-Market M&A Deals Completed in Q3 2019

Date Acquirer Target Target Industry Value ($mil)

07/22/19 OneCom Ltd Telecommunications Investor Group 125.0 09/03/19 Achilles Therapeutics Ltd Drugs Investor Group 120.7 09/05/19 Beijing Renke Interactive Business Services Tencent Holdings Ltd 120.0 09/17/19 Beijing Tusimple Future Tech Business Services Investor Group 120.0 08/26/19 CRED Other Financial Investor Group 120.0 09/18/19 TouchBistro Inc Prepackaged Software Investor Group 119.3 08/19/19 China Oil HBP Science & Tech Oil and Gas; Petroleum Refining Changsha Water Grp Co Ltd 117.2 07/31/19 Breviloba Llc- Shin Oak Ngl Electric, Gas, and Water Distribution Altus Midstream Processing Lp 115.3 07/17/19 Icertis Inc Prepackaged Software Investor Group 115.0 07/03/19 Shenzhen Terca Technology Co Transportation Equipment Shenzhen Chuangtong Invest 113.9 08/14/19 Energy Vault Sa Electric, Gas, and Water Distribution Softbank Vision Fund II 110.0 09/17/19 MadeiraMadeira Comercio Miscellaneous Retail Trade Investor Group 110.0 07/02/19 Cellebrite Mobile Telecommunications IGP Saferworld LP 110.0 09/11/19 Chongqing Sokon Ind Grp Co Transportation Equipment Dongfeng Motor Group Co Ltd 109.5 09/05/19 Guizhou Bailing Grp Pharm Co Drugs Huachuang Securities Co Ltd 109.0 07/19/19 Leo Group Co Ltd Machinery Taizhou Fuzhe Xinxing Power 107.8 07/10/19 Anhui Julong Transmission Tech Electronic and Electrical Equipment Investor Group 107.0 07/01/19 Latecoere SA Aerospace and Aircraft Searchlight Capital Partners 106.3 09/18/19 Henan Xinlianxin Chem Grp Co Chemicals and Allied Products Investor Group 106.0 08/08/19 Bioenergy DevCo Electric, Gas, and Water Distribution Newlight Partners LP 106.0 07/06/19 Mill Creek Logistics Ctr Business Services Investor Group 105.5 07/31/19 Oil Block 3/05 Oil and Gas; Petroleum Refining Etablisemnts Maurel & Prm SA 105.0 07/04/19 Tier IV Inc Business Services Investor Group 104.8 07/10/19 Sisense Ltd Business Services Undisclosed Acquiror 103.7 07/09/19 ADC Therapeutics Sarl Drugs Undisclosed Acquiror 103.0 09/02/19 Ningbo Shanshan Co Ltd Textile and Apparel Products Shanshan Group Co Ltd 101.8 07/22/19 Beijing Langzi Hana Asset Investment & Commodity Firms,Dealers,Exchanges Wuhu Dezhen Ruiyuan Invest 101.2 07/09/19 Enzen Global Solutions Ltd Business Services GPC Pvt Investing India LLP 100.0 08/24/19 Hangzhou Haoyiku Network Tech Business Services Investor Group 100.0 08/16/19 Mohalla Tech Pvt Ltd Business Services Investor Group 100.0 07/16/19 Near Pte Ltd Business Services Greater Pacific Capital LLP 100.0 07/31/19 Rakuten Medical Inc Business Services Rakuten Inc 100.0 07/09/19 Revolution Medicines Inc Business Services Investor Group 100.0 09/19/19 Yinchuan Allinmd Internet Health Services Investor Group 100.0 07/24/19 Hippo Analytics Inc Insurance Investor Group 100.0 07/11/19 Luminar Technologies Inc Measuring, Medical, Photo Equipment; Clocks Undisclosed Acquiror 100.0 08/23/19 Shenzhen Sky Xingyun Supply Miscellaneous Retail Trade Investor Group 100.0 07/09/19 Foursquare Labs Inc Prepackaged Software Undisclosed Acquiror 100.0 08/12/19 Lucidworks Inc Prepackaged Software Investor Group 100.0 09/12/19 Shenzhen Smart Mnfg Software Prepackaged Software Investor Group 100.0 07/22/19 Trax Tech Solutions Pte Ltd Prepackaged Software Hopu Invest Mgmt Co Ltd 100.0 08/26/19 Boll & Br Llc Retail Trade-General Merchandise and Apparel L Catterton Mgmt Ltd-Flagship 100.0 08/05/19 Scale Ai Inc Wholesale Trade-Durable Goods Investor Group 100.0 08/19/19 Plimsoll Productions Ltd Motion Picture Production and Distribution LDC (Managers) Ltd 100.0 08/28/19 Norwegian Property ASA Investment & Commodity Firms,Dealers,Exchanges Geveran Trading Co Ltd 97.3 09/10/19 Delong Holdings Ltd Metal and Metal Products Best Grace Holdings Pte Ltd 97.3

Editor's note: To measure activity in the middle market, Mergers & Acquisitions looks at transactions that fulfill several requirements: Deals must have a value of roughly $1 billion or less; they must be completed (not just announced) within the timeframe designated. The coverage is global. Excluded from our charts are: recapitalizations; self-tenders; exchange offers; repurchases; stake purchases; and transactions with undisclosed buyers or sellers. Our data provider is Thomson Reuters, which updates its databases continuously. We use the data available at press time. The data for this article was gathered on Oct. 17, 2019.

40 Mergers & Acquisitions November/December 2019

040_MAJ1119 40 10/31/2019 5:44:27 PM 0C3_MAJ1119 3 10/31/2019 10:16:34 AM 94% 400+ $11.6 billion deals as lead/ transactions commitments co-lead arranger closed issued to date since Q4 2014 inception

Lower Middle Market. Higher Expectations.

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0C4_MAJ1119 4 10/31/2019 10:16:35 AM