Marlin Equity, Emerson Electric vie for Open Systems International, DeVos family secondary process moves forward, Apollo-backed Rackspace files IPO

Marlin Equity and Emerson Electric compete for Open Systems International and Blackstone closes its debut life sciences fund at $4.6 billion.

Happy Monday!

There’s a big tech deal brewing in the market — Marlin Equity and Emerson Electric are finalists for founder-led Open Systems International, writes Milana Vinn today on PE Hub. Interested parties bidding more than $900 million were expected to hit the second round, Milana wrote back in April.

Open Systems provides automation software for management and optimizing production, transport and delivery networks for utilities in the electric, oil and gas, transportation and water industries. The company is an example of one that has moved smoothly through the pandemic downturn because of its reliance on a subscription-based business model.

While not every tech subscription service is prospering, especially those that serve downturn-impacted industries like restaurants, Open Systems provides services to essential functions. Read Milana’s story here.

Close: Blackstone Group closed its debut life sciences fund on $4.6 billion for investments. The fund invests in established life science companies, late-stage product financings and growth investments in emerging companies.

The fund invested in three companies so far: the fund invested into a $2 billion partnership with biotech company Alnylam; it led a $350 million investment in Reata Pharmaceuticals, which is developing the first potential medicine for a kidney disease that affects children; and a $337 million investment with Medtronic to develop the company’s next generation of diabetes management products. Read the news brief here.

Top Scoops
HarbourVest Partners emerged as the investor in a secondary deal involving a large private equity portfolio from Ottawa Avenue Private Capital. Ottawa Avenue is an investment unit associated with the DeVos family.

The deal is one of the largest on the market in the pandemic downturn, which has led to a pause in most secondary activity as buyers and sellers look for more clarity on private equity valuations.

Ottawa Avenue had been shopping up to $1 billion of private equity stakes. The process could have totaled up to $2 billion but sources at the time said it would likely to get to that level.
However, it appear the deal is heading for that higher amount. HarbourVest is said to be investing up to $1.5 billion in the deal. Check it out here on Buyouts.

Apollo Global Management-backed Rackspace Technology, a cloud services company, filed to go public Friday. Goldman Sachs, Citigroup Global Markets and J.P. Morgan Securities served as joint lead book-running managers and underwriters for the offering. Read it here on PE Hub.

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