Good morning, Hubsters. MK Flynn here with the Wire, on a busy Merger Monday with some big deal news.
In corporate dealmaking, Warren Buffett’s Berkshire Hathaway is buying Alleghany, best known for providing property and casualty insurance, for $11.6 billion. The deal includes a 25-day go-shop period during which Alleghany can seek a better offer.
Take private. In private equity deals, there’s another big LBO.
Thoma Bravo is buying Anaplan, a developer of business plan software, in a $10.7 billion take-private deal.
“Anaplan is a clear leader in Connected Planning, solving critical business priorities for the world’s largest enterprises as they implement strategic and complex digital transformations,” said Holden Spaht, a managing partner at Thoma Bravo. “We have followed Anaplan for years and have seen the incredible value they bring customers through their best-in-class planning platform. We look forward to leveraging Thoma Bravo’s extensive operational and investment expertise in enterprise software to support Anaplan in its future growth.”
Wealth management. Clearlake Capital and Motive Partners are acquiring the so-called “BETA+” assets from London Stock Exchange Group. Additionally, Clearlake and Motive Partners announced a long-term strategic partnership with LSEG, in which the exchange will provide content, data, and tools to BETA+ and the sponsors’ other portfolio companies, such as InvestCloud.
“The wealth management industry continues to demonstrate opportunities, bolstered by tailwinds across the spectrum including a significant movement in technology modernization, industry consolidation, increases in retail trading, and democratization of the capital markets,” the buyers said in a statement. “Over recent years, the space has exhibited growth across various avenues, compounded by investment from new and established players. This has presented opportunities for well-placed investors and innovators to digitize legacy technology, expand product offerings to address unmet demand, and create efficiencies along the value chain.”
The deal includes the assets of BETA (securities processing, custody, clearing, and asset servicing technology), Maxit (cost and tax basis reporting software), and Digital Investor (front-end client solutions). Clearlake and Motive intend to execute on a buy and build strategy.
“BETA+ has established a strong position in the self-clearing technology space and broader wealth management ecosystem with a reputation for meeting the unique needs of global financial institutions and their clients,” said Behdad Eghbali, co-founder and managing partner, and James Pade, partner of Clearlake.
“BETA+, together with our other portfolio companies, will be focused on creating frictionless, digital-first experiences for clients, advisors, and home office personnel with streamlined processes, reduced costs, and increased retention and satisfaction, ultimately making it easier for Wealth clients to obtain solutions which address their financial needs,” Stephen Daffron, co-founder and industry partner of Motive Partners.
Mission critical. Stellex Capital Management, a mid-market PE firm investing in aerospace and defense, today announced a new platform investment in RTC Aerospace, a provider of machined components and assemblies for mission-critical aerospace and defense applications.
“Stellex has a strong track record in the aerospace and defense manufacturing industry and a deep understanding of what it takes to be a collaborative, quality partner to leading commercial and military aircraft OEMs and Tier 1 suppliers,” said David Waxman, managing director at Stellex. “Our goal is to materially expand RTC’s market presence and continue being a trusted, industry-leading partner on blue-chip military and commercial platforms.”
Secondary sale. Kaiser Permanente, which has ramped up its private equity program at an extraordinary pace since 2019, is selling a portfolio of stakes in private equity funds valued at about $1.5 billion, four sources told Buyouts.
Chris writes: “The sale comes as numerous LP portfolios have hit the market, with sellers looking to take advantage of rich pricing. However, uncertainty has crept into the markets amid public market volatility, persistent inflation, rate increases, supply chain disruptions and geopolitical shocks. This is leading to some renegotiating around pricing, and some large portfolio sales may need to be repriced or even delayed until markets stabilize.”
For more, read Chris’s story.
That’s it for this busy Monday morning!