2021 processes to watch: Hg, TA-backed Mitratech, New Mountain’s Zep; ERT-Bioclinica merger brings TEV to $5.9 billion

News report claims that New Mountain Capital is weighing a sale or IPO of cleaning products company Zep in 2021.

Happy Friday!

Sponsors are gearing up to bring some of their most prized assets to the market next year. One of those, PE Hub’s Milana Vinn writes, is Hg- and TA Associates-backed Mitratech, a software provider for legal and governance, risk and compliance (GRC) professionals. The sellers plan to select a sell-side banker early next year, sources familiar with the firms’ plans said.

Hg and TA have a history of working together as partners on other software assets, as the pair of firms are both investors in Sovos Compliance and Access.

Miratech, for its part, has continued to grow through the health crisis, clinching four acquisitions over the last 12 months. For more on the company’s financials and possible suitors, check out Milana’s full report.

In other upcoming situations to watch, Bloomberg reported that New Mountain Capital is weighing a sale or IPO of cleaning products company Zep in 2021. The New York firm – which took Zep private in 2015 in a $692 million deal – is working with a sell-side adviser, but the bank’s identity was not named. Any idea who’s advising NMC on the process? Hit me up!

Tech steals share from services: As covid-19 has accelerated the use of technology in clinical trials, the pending merger of two such businesses backed by private equity – ERT and Bioclinica – assigns the combination a total enterprise value of approximately $5.9 billion, sources familiar with the matter told PE Hub.

The deal is poised to leave Nordic and Astorg with roughly 40 percent stakes each, alongside Novo and Cinven with around 10 percent stakes each, one of the people said. For ERT, buying Bioclinica was a means to filling in one major gap – medical imaging, in which it only had a small footprint. Bioclinica under Cinven’s ownership has rapidly built out its imaging unit, which now makes up 80 percent of the company, sources said.

Check out my full report for more details of the deal.

That’s it for me! Have a great weekend, everybody, and as always, write to me at springle@buyoutsinsider.com with any feedback, juicy tips or just to say hello, or find me on LinkedIn.

Note to Readers: It’s that time of year … for the 21st time, the editors of PE Hub and Buyouts honor exceptional buyouts with our Deal of the Year Awards.

Winners are chosen in seven categories: Deal of the Year, Large-Market Deal of the Year, Middle-Market Deal of the Year, Small-Market Deal of the Year, Turnaround of the Year, International Deal of the Year, and Secondaries Deal of the Year.

Go here for more information and to read about rules and methodology. Also check out past winners. Last year, New Mountain took the crown with its exit of Equian.

If you have additional questions, email Private Equity Editor Chris Witkowsky at cwitkowsky@buyoutsinsider.com.