PE HUB Wire Highlights, 2.6.19


Photo of Luisa Beltran, PE HUB Senior Editor, courtesy of Buyouts Insider.

K1 Investment Management said to acquire GoCanvas for $100M; TCV invests $200 mln in RELEX; ex-Blackstone exec’s independent sponsor buys Tender

​In honor of last’s night main TV feature, I’ll be Queen of the eyeroll this morning, or the single clap and look of disapproval when I don’t like something. I would wear white but it’s February and we don’t do that in NYC out of season. Seriously, though, very entertaining.

Last week, one of the more disturbing stories was about the Brooklyn prison that didn’t have heat or electricity as the temperatures plummeted to nearly zero. There were protests but the inmates went a week without heat. Today, Bloomberg has a story about the American Federation of Teachers, which is encouraging pensions to consider avoiding private equity investments in companies that benefit from mass incarceration. The cost-cutting involved in deals involving correction companies has led to allegations that some of them neglect, mistreat or abuse prisoners and take advantage of families of the incarcerated, the story quotes a report from AFT.

“Private prisons and private equity firms that invest in corrections companies are profiting from jailing people — disproportionately people of color — and are a major contributor to the United States’ world-leading incarceration rate,” said Randi Weingarten, AFT’s president, in the story.

The Financial Times this morning is reporting about a “war” between Blackstone and Urbano Cairo, the Italian media tycoon. The spat involves a lawsuit between BX and Cairo’s RCS Media Group over the ownership of the company’s headquarters in Milan. Blackstone, in the lawsuit, accuses the RCS chairman and CEO of trying to extort money from Blackstone for falsely claiming his company still owns the building, the FT said.

DealsK1 Investment Management has acquired GoCanvas, according to the Washington Business Journal. K1 spent $100 million on GoCanvas, which makes mobile-friendly web forms for businesses.

Travel Tripper and Pegasus, both hospitality technology providers, are merging in a deal backed by Accel-KKR. No financial terms were announced. Regent, the Los Angeles PE firm, acquired Pegasus in 2014. Travel Tripper has raised angel funding, according to PitchBookSee our brief here.

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