The M&A market has gone from empty to crowded, with cash-heavy strategics and overhung private equity firms on the prowl for new deals. "It’s crazy busy," says Orlando Bravo, managing partner of Thoma Bravo. "It’s August and the whole financial industry [usually] slows down right before Labor Day, but we’re seeing a lot of activity in investments and portfolio companies." Thoma Bravo, which invests in mid-market technology and services companies, has been particularly busy. The firm closed its $242 million buy of Double-Take Software in July. Last month, it completed a $717 million acquisition of SonicWall, a provider of IT security and data backup and recovery solutions. The downturn provided an opportunity for good deals. Thoma Bravo has completed nine acquisitions, including add-ons, since 2008. It also sold Datatel for $570 million to Hellman & Friedman in 2009, as well as its convertible preferred position in JDA software. Bravo, who himself focuses on software, says firms with a "clean growth business" were selling for 7.5x EBITDA during the downturn. This has since jumped to 9 to 10x EBITDA, he says. Unfortunately, there were
Wellspring Capital Management has acquired Jen-Coat Inc., a maker of flexible packagng for the food, healthcare and industrial markets, from CGW Southeast Partners. No financial terms were disclosed.
Cornerstone Healthcare Group, a portfolio company of Highland Capital Management, has merged with Solara Healthcare. Both companies are Dallas-based providers of long-term acute care hospital services. No financial terms were disclosed.
Rizvi Traverse Management and Starwood Capital Group have recapitalized Key Air, a provider of aircraft management, worldwide charter and FBO services. No pricing terms were disclosed.
Sun Capital Partners has acquired Betts, a provider of printed laminate tubes for the oral care and personal care sector. No financial terms were disclosed.
Prospect Partners has sponsored a recapitalization of Navix Diagnostics Inc., a Taunton, Mass.-based provider of outsourced cardiovascular diagnostic services. No financial terms were disclosed. www.prospect-partners.com
NEW YORK (Reuters) – A number of private equity firms are interested in taking a look at Barnes & Noble (BKS.N), with names including Bain Capital, Apollo, TPG Capital and others, sources familiar with the matter said on Wednesday. Still, it was unclear how any private equity interest might be structured, given that billionaire investor […]
One of the big knocks on pre-crisis private equity was that it had eschewed its buy-low/sell-high mantra, in favor of buy high and (hope to) sell higher. A lot of it was properly pinned on cheap debt, but some was caused by a sheep-like portfolio land rush (“They did a deal? Well then, we’ll do a deal…”). I bring it up today because of some new data from Thomson Reuters (download here), about PE-backed M&A volume in 2010 (through Monday). It works out to 1,755 global deals valued at just over $103 billion, compared to 1,558 deals worth nearly $39 billion over the same period in 2009.
RPI, a Seattle-based provider of automated manufacturing and fulfillment solutions for the consumer make-on-demand printed products market, has raised an undisclosed amount of mezzanine funding from Huntington Capital.
Neff Capital Management has acquired Complete Turbine Services LLC, a Ft. Lauderdale, Fla.-based provider of engine performance restoration services to airlines and operating lessors. No financial terms were disclosed.