Linden, DW Healthcare-backed HydraFacial merges with Brent Saunders-sponsored SPAC, SoftBank mulls ‘slow-burn’ take-private, TA Associates makes 3x its money on Flexera

A healthcare-beauty business agrees to merge with blank-check company Vesper Healthcare Acquisition Corp, while TA's recent sale of Flexera is poised to reap a handsome return for the PE seller.

Another day, another SPAC deal.

Linden Capital– and DW Healthcare Partners-backed HydraFacial has agreed to merge with a SPAC sponsored by Brent Saunders, the former CEO of Allergan and an experienced investor in healthcare and consumer products, an announcement this morning revealed. 

The deal with Vesper Healthcare Acquisition Corp. implies an initial enterprise value of $1.1 billion for HydraFacial, whose 30-minute facial is likened to a medical treatment. The transaction will leave HydraFacial with $100 million in cash and no debt, the news release said. For Linden and DW Healthcare, which both invest exclusively in healthcare, the investment dates back about four years. Linden will remain the largest shareholder in HydraFacial following the deal. 

For Chicago’s Linden, the deal follows what has been an active year, and the SPAC doesn’t appear to be its only first.

Among other activity, the firm made what appears to be its first ever structured capital investment outside of the portfolio in October. Linden at the time announced a preferred equity investment in IVX Health, a provider of infusion and injection therapy for patients with complex chronic conditions. The investment helped to fund the company’s acquisition of Precision Healthcare from BAI Healthcare Services.

Interestingly, the deal came less than a year after Scott Gallin joined Linden. Gallin is a former managing director of PineBridge Investments, where he helped manage the PineBridge Structured Capital Fund during his about 17 years at the firm, according to his LinkedIn.

This is unusual: SoftBank Group Corp. is weighing going private, but not through the traditional process of fielding offers from private equity funds. The Japanese company is looking at gradually buying back outstanding shares until its founder Masayoshi Son’s stake is big enough to squeeze out remaining investors, people familiar with the matter told Bloomberg.

Insiders have referred to the strategy as a “slow-motion” or “slow-burn” buyout, with the idea emerging after at least five years of debating a take-private, the report said.

Tech take: PE Hub’s Milana Vinn writes that TA Associates is poised to make 3x its money on the sale of Flexera Software after Thoma Bravo agreed to buy back the business. The recently announced sale valued the IT infrastructure software business between $2.8 billion and $2.9 billion, sources told PE Hub. Ontario Teachers’ Pension Fund was another selling investor in the deal.

Read Milana’s full report.

That’s it for today. As always, write to me at springle@buyoutsinsider.com with your tips, feedback, or just to say hello! 

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.