United Rentals acquires competitor H&E in $4.8bn deal

BY Fraser Tennant

In a deal that expands its capacity in strategic US markets, American equipment rental company United Rentals is to acquire one of its major competitors, H&E Equipment Services, in a transaction valued at approximately $4.8bn.

Under the terms of the definitive agreement, which has been unanimously approved by the boards of directors of both companies, United Rentals will acquire H&E for $92 per share in cash.

As the largest equipment rental company in the world, United Rentals has an integrated network of 1571 rental locations in North America, 39 in Europe, 37 in Australia and 19 in New Zealand. In North America, the company operates in 49 states and every Canadian province, with approximately 27,550 employees serving construction and industrial customers, utilities, municipalities, homeowners and others.

The integration of H&E into United Rentals’ operations presents opportunities to improve efficiency, productivity and new business development with the adoption of United Rentals’ operational excellence, including its technology offerings.

“In H&E we are acquiring a well-run operation that’s primed to benefit from our technology, operations and broad value proposition,” said Matthew Flannery, chief executive of United Rentals. “Most importantly, we are gaining a great team that shares our intense focus on safety and customer service.

“This purchase supports our strategy to deploy capital to grow the core business and drive shareholder value,” he continued. “This acquisition allows us to better serve our customers with expanded capacity in key markets while also providing the opportunity to further drive revenue through our proven cross-selling strategy.”

Founded in 1961, H&E is one of the largest rental equipment companies in the US. Comprised of aerial work platforms, earthmoving, material handling and other general and specialty lines, H&E serves a diverse set of end markets in many high-growth geographies and has branches throughout the Pacic Northwest, West Coast, Intermountain, Southwest, Gulf Coast, Southeast, Midwest and Mid-Atlantic regions.

The transaction is subject to customary closing conditions, including a minimum tender of at least a majority of then-outstanding H&E common shares and the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

“I could not be more pleased with this win-win outcome for both organisations, our customers and our shareholders,” concluded John M. Engquist, executive chairman of H&E. “I am confident that we have found an excellent landing spot for them and I am excited for the new opportunities they will have as part of United Rentals.”

News: United Rentals boosts equipment capacity with $4.8 billion H&E deal

GSK to acquire IDRx for $1.15bn

BY Richard Summerfield

Drug manufacturer GSK has agreed to acquire US biopharmaceutical firm IDRx, which is developing a therapy for the treatment of gastrointestinal stromal tumours (GIST).

Under the terms of the deal, GSK, Britain’s second-biggest drugmaker behind AstraZeneca, will pay $1bn upfront, with potential for an additional $150m success-based regulatory approval milestone payment. The acquisition includes lead molecule, IDRX-42, a highly selective KIT TKI being developed as a first- and second-line therapy for the treatment of GIST. GIST are the most common subtype of soft tissue sarcoma, with up to 120,000 patients diagnosed globally every year.

GSK will also be responsible for success-based milestone payments as well as tiered royalties for IDRX-42 owed to Germany’s Merck KGaA.

The deal will add to GSK’s growing portfolio in gastrointestinal cancers and is a continuation of its M&A strategy: acquiring assets designed to treat validated targets with unmet need. The company agreed a $2bn acquisition of Bellus Health and a $1.9bn takeover of Sierra Oncology in 2023 and 2022 respectively.

Since she became GSK’s chief executive in 2017, Emma Walmsley has been making acquisitions to boost key areas, after slimming down the overall drugs portfolio. Sales of vaccines, one of GSK’s strengths, have been falling.

The deal comes just one month after GSK gained an exclusive option to obtain a licence to develop and commercialise Duality Biologics preclinical antibody-drug conjugate, DB-1324, which leverages DualityBio’s duality immune toxin antibody conjugate platform against a gastrointestinal cancer target.

IDRX-42 is currently being evaluated in a phase 1/1b trial among GIST patients who have received second-line or more treatment. Data from the study, dubbed StrateGIST 1, demonstrate a manageable safety profile and favourable durability, according to GSK. IDRX-42 has gained FDA fast-track designation for treating patients with GIST after disease progression on or intolerance to imatinib, plus an orphan drug tag for GIST.

“IDRX-42 complements our growing portfolio in gastrointestinal cancers,” said Luke Miels, chief commercial officer of GSK. “This acquisition is consistent with our approach of acquiring assets that address validated targets and where there is clear unmet medical need, despite existing approved products.”

“We are excited by the early data from IDRX-42 and its unique ability to target all clinically relevant KIT mutations present in GIST, a major gap in the current standard of care,” said Tony Wood, chief scientific officer of GSK. “We look forward to accelerating its development in 2025 to redefine treatment.”

“We are looking forward to working with GSK to advance IDRX-42 for patients with GIST given there have been no major advances to the standard of care for almost 20 years,” said Tim Clackson, chief executive of IDRx. “Combining our experience to date with GSK’s expertise in GI cancers, global clinical development capability, and strong commercial presence in oncology will help to accelerate the development of this novel medicine for patients.”

News: GSK to buy US biotech firm IDRx for up to $1.15 billion

Ligado Network files for Chapter 11 bankruptcy protection

BY Richard Summerfield

US satellite communications company Ligado Networks has filed for Chapter 11 restructuring in the US state of Delaware.

According to the company’s filing, Ligado Networks has assets and liabilities of between $1bn and $10bn. Inmarsat Global Limited and Boeing Satellite Systems are listed as the two largest unsecured creditors, though the amounts they are owed have not been disclosed.

The filing will allow Ligado to continue operations as it implements a plan to repay creditors. Ligado has also signed a deal with AST SpaceMobile to allow the company to use Ligado’s mid-band spectrum.

As part of its restructuring support agreement, Ligado stated that a significant portion of its supporting creditors hold approximately 88 percent of its funded indebtedness. The supporting creditors have agreed to provide a fully backstopped financing commitment to provide $115m of additional incremental financing to fund the company during the restructuring process. Upon completion of Ligado’s Chapter 11 filing, the company’s debt will be reduced from $8.6bn to approximately $1.2bn. To that end, the restructuring will see the conversion of approximately $7.8bn of existing debt into new preferred equity and the preservation of the existing interests in the capital structure below the new preferred equity.

Ligado will continue to operate through the restructuring, providing mobile satellite services to its existing customers and advancing its mobile satellite plans to emerge from Chapter 11 on firm footing.

“This restructuring allows us to concentrate on our ongoing value-maximizing daily work and other key initiatives for the benefit of all of our stakeholders,” said Doug Smith, president and chief executive of Ligado.

The filing follows a year-long effort to secure a comprehensive resolution with satellite communications company Viasat to restructure Ligado’s significant payment obligations to Inmarsat, which Viasat acquired in 2023.

According to a statement from Ligado, the company’s filing was precipitated by large operational losses Ligado suffered due to what it considers the US government’s unlawful taking without just compensation of Ligado’s licensed spectrum. In response, Ligado Networks filed a lawsuit against the US government in October 2023, alleging it took some of its Federal Communications Commission-licensed spectrum for use by the Department of Defence without compensation, which the company alleges prevents it from launching its own 5G operations. In November 2024, a federal judge ruled Ligado Networks could continue its lawsuit after the US government sought to dismiss it.

“Ligado will continue to vigorously prosecute its litigation against the US government to enforce its constitutional right to just compensation for the government’s unlawful taking of Ligado’s licensed L-Band spectrum,” said Mr Smith. “The DOD’s actions constitute the largest uncompensated taking of private property in the US in modern times and have caused Ligado catastrophic financial distress.”

News: Ligado Files for Chapter 11, Makes Deal with AST SpaceMobile for MSS Spectrum

WWT acquires Softchoice in C$1.8bn tech deal

BY Fraser Tennant

In a move that will enhance its artificial intelligence (AI), cloud and software business across North America, World Wide Technology (WWT) is to acquire fellow IT channel company Softchoice in an all-cash transaction valued at C$1.8bn.   

Under the terms of the agreement, WWT, through an affiliate, will acquire all the issued and outstanding common shares of Softchoice for a price of C$24.50 per share.

The transaction will be implemented by way of a statutory plan of arrangement under the Canada Business Corporations Act and is subject to, among other things, the approval of a special meeting of shareholders in March 2025.

A termination fee of C$49m would be payable by Softchoice in certain circumstances, including in the context of Softchoice entering into a definitive agreement with respect to a superior proposal.

“Softchoice has been a transformative player in the IT industry for over 35 years,” said Jim Kavanaugh, co-founder and chief executive of WWT. “Adding its complementary software, cloud, cyber security and AI capabilities to WWT’s portfolio will enable us to create even greater value for our clients striving to achieve their digital transformation goals.”

Founded in 1990, WWT is a global technology solutions provider leading the AI and digital revolution, combining the power of strategy, execution and partnership to accelerate digital transformational outcomes for large public and private organisations around the world.

“WWT’s scale and global reach, customer base of large organisations, and industry leading infrastructure solutions are a perfect complement to our software and cloud focused solutions, our Canadian presence and our strength in the North American mid-market,” said Andrew Caprara, president and chief executive of Softchoice. “WWT is the ideal partner for our customers and employees and I am excited about our future as a combined firm.”

The transaction is also subject to court approval and customary closing conditions, including receipt of key regulatory approvals. It is not subject to any financing condition. Assuming the timely receipt of all required approvals, the transaction is expected to close in late Q1 or early Q2 2025.

David Steward, founder and chairman of WWT, concluded: “This acquisition strengthens our access to commercial, small and medium business customers while expanding WWT’s position in the US, Canada and around the world.”

News: WWT to snap up Canada-based Softchoice for $1.25bn

US regional bankers in $1.1bn merger

BY Fraser Tennant

In another sign of increasing consolidation within the US banking industry, regional lenders Berkshire Hills Bancorp and Brookline Bancorp are to merge in an all-stock transaction valued at approximately $1.1bn.

Under the terms of the definitive agreement, Berkshire shareholders will own approximately 51 percent of the combined company, Brookline shareholders will own approximately 45 percent, and investors in new shares will own approximately 4 percent of the outstanding shares.

The merger will see the creation of a $24bn franchise that uniquely positions the combined company to benefit from significant economies of scale and capitalise on meaningful growth opportunities through business diversification and improved competitive positioning.

The combined bank will be divided into six regions. Each of those regions will be led by an experienced local leader who will be responsible for the overall business performance in their markets.

This model allows the combined company to achieve the efficiencies of operating one bank while maintaining a regional banking structure that enables local market leaders to make autonomous decisions with the support and balance sheet of a larger institution.

“This merger marks a transformational milestone in the history of two storied institutions with a strong commitment to serving their clients and communities,” said Nitin J. Mhatre, president and chief executive of Berkshire. “The combined organisation will be in an even stronger position to deliver exceptional client experience and create greater value for shareholders.”

The transaction has been unanimously approved by the boards of directors of both companies.

“This transaction presents an opportunity to bring together two historic franchises in the Northeast market,” said Paul A. Perrault, chairman and chief executive of Brookline. “By bringing together two complementary cultures and geographic footprints with shared values and client focus, we will be better positioned to serve our customers, employees, communities and shareholders."

The transaction is expected to close by the end of the second half of 2025, subject to satisfaction of customary closing conditions, including receipt of required regulatory approvals and approvals from Berkshire and Brookline shareholders.

David Brunelle, chairperson of Berkshire, concluded: “This highly compelling combination is a true merger of equals that will create a preeminent northeast financial institution.”

News: Regional lenders Berkshire Hills Bancorp, Brookline strike $1.1 bln merger deal