Blackstone seals $6bn Home Partners deal

BY Richard Summerfield

Private equity giant Blackstone Group has agreed to acquire Home Partners of America in a deal worth $6bn. The transaction is expected to close in the third quarter of 2021.

Home Partners of America is no stranger to private equity investment, having previously received backing from KKR & Co. and BlackRock. In recent years, Home Partners had explored the option of an initial public offering, but instead opted to sell to Blackstone Real Estate Investment Trust, known as BREIT, a non-public real estate investment trust externally managed by a Blackstone subsidiary.

The deal is a substantial bet on the US property market. In 2020, US home sales grew at their fastest pace in 14 years, when low mortgage rates and the rise of remote work during the pandemic drove market activity. Home Partners owns more than 17,000 houses in the US that it rents out to tenants who are eventually given the opportunity to buy them. Blackstone intends to continue this programme.

“The fundamental premise of the HPA platform is to provide residents with the opportunity to live in their chosen home with the option to purchase it – we intend to build on that goal and expand access to homes across the US,” said Jacob Werner, senior managing director of Blackstone Real Estate. “We look forward to working with HPA’s leadership team to further invest in the properties and continue its role as a valuable resource for people considering home purchases.”

“This partnership with Blackstone Real Estate and its consistent support of our business will ensure we are well-positioned to expand the reach of our program to provide access to more homes while also delivering on our commitments to our current residents for the long-term,” said Bill Young, co-founder and chief executive of HPA. “Our goal has always been to make homeownership a reality for more people, and now we can continue that mission, while providing even more flexibility and services for our residents.”

Blackstone previously owned Invitation Homes, currently the largest owner of single-family homes in the US with 80,000 homes, until it sold the last of its shares in the company in 2019 at $30.10 per share. Blackstone made about $7bn on its stake in Invitation, more than doubling its money, but shares in the company have increased by 25 percent since then, indicating the growing demand for suburban housing across the US.

News: Blackstone to buy Home Partners of America in $6 billion deal

Axiata and Telenor agree $15bn mobile operations merger in Malaysia

BY Fraser Tennant

In a move that forms a new market leader in Southeast Asia, multinational telecommunications groups Axiata Group Berhad and Telenor Asia Pte Ltd have agreed to merge their mobile operations in Malaysia – Celcom Axiata Berhad and Digi.Com Berhad – in a transaction valued at $15bn.

The merged company will combine the scale, experience, competencies and financial strength of both global telecommunications groups with the market knowledge of two well-established local companies – uniquely positioned to address Malaysia’s increasing digital service adoption and expectations of better connectivity.

Upon completion of the transaction, Axiata and Telenor will each own 33.1 percent of the merged firm.

“We remain aligned in our intentions to deliver a strong value proposition that will enable our customers to participate more confidently as Malaysia transitions toward a digital economy,” said Dato’ Izzaddin Idris, president and group chief executive of Axiata. “We look forward to delivering better value and choices to benefit society, especially in bridging the divide in rural areas and taking of new opportunities in this digitally accelerated environment.

“Assuming a smooth transition, post integration period, we are expecting to see improvement in earnings before interest, taxes, depreciation and amortisation (EBITDA) and cashflow margins in the combined entity in step with our ongoing commitment to maximise dividend payout for our shareholders,” added Mr Idris.

Furthermore, Axiata and Telenor have agreed to nominate Mr Idris as chair, and Jørgen C. Arentz Rostrup, executive vice president and head of Asia at the Telenor Group, as deputy chair of the merged company, which will be renamed to Celcom Digi Berhad subject to shareholder approval.

“We look forward to partner with Axiata to realise the potential of the proposed merged company,” said Mr Rostrup. “The telecommunications industry is at the beginning of an exciting digital shift, and new technologies are going to change how we develop and deliver services for both the private and public sector.”

The transaction is expected to complete by the second quarter of 2022, subject to the approval of both Axiata and Digi shareholders, regulatory approvals and other customary terms and conditions. 

Mr Rostrup concluded: “With this merger we bring together competencies, financial strength and scale to go beyond connectivity and implement technology that further advances our customers’ digital experience.”

News: Axiata, Telenor sign $15 bln deal to merge Malaysian telecoms units

$1.2bn SPAC deal sees Solid Power go public

BY Fraser Tennant

In a deal that takes the start-up public, BMW- and Ford-backed battery maker Solid Power is to merge with special purpose acquisition company (SPAC) Decarbonization Plus Acquisition Corporation III (DCRC) – a combination valued at $1.2bn.

Upon closing of the transaction, which is expected in the fourth quarter of 2021, Solid Power is projected to have approximately $600m in cash, including a $165m fully committed private investment in public equity (PIPE) transaction anchored by investors. The company will continue to be led by its existing management team.

“This is an important milestone of commercialising Solid Power's next generation of all-solid-state batteries that can alleviate the two largest passenger EV pain points: range anxiety and cost,” said Doug Campbell, co-founder and chief executive of Solid Power. “In addition to our existing partners, Ford and BMW, we are now excited to partner with the DCRC team that shares our vision of powering a cleaner, safer and cost-effective electric future.”

Testifying to this vision, Solid Power recently announced an approximately $135m Series B investment round led by the BMW Group, Ford Motor Company and Volta Energy Technologies. Ford and BMW also expanded existing joint development agreements with Solid Power to secure all-solid-state batteries for future electric vehicles.

“No other known company has made the type of commercialisation achievements in all-solid-state batteries that Solid Power has,” said Robert Tichio, chairman of the board of DCRC and partner at Riverstone Holdings LLC. “Solid Power's technology is built around a manufacturing process that would be indistinguishable to lithium-ion batteries, putting this company in a league of its own.” 

The boards of directors of both Solid Power and DCRC have approved the proposed transaction, which is expected to be completed in the fourth quarter of 2021, subject to, among other things, the approval by DCRC's stockholders and satisfaction or waiver of the other conditions.

Mr Tichio concluded: “With nearly a $220bn total addressable market, Solid Power is well-positioned for significant growth for years to come.”

News: BMW-Backed Solid Power Seals SPAC Deal at $1.2 Billion Valuation

Signa Sports signs SPAC deal

BY Richard Summerfield

Signa Sports United has reportedly agreed to list on the New York Stock Exchange (NYSE) through a merger with a blank cheque company, in a deal valuing the firm at $3.2bn.

The deal will raise $645m in proceeds for Signa Sports, made up of $345m from special-purpose acquisition company (SPAC) Yucaipa Acquisition and another $300m from investors through a private investment in public equity (PIPE). The transaction has been unanimously approved by the boards of directors of each of Signa Sports and Yucaipa Acquisition and is subject to approval by Yucaipa Acquisition’s shareholders and other customary closing conditions.

The transaction is expected to close in the second half of 2021. Upon completion, the combined company will trade on the NYSE under the Signa Sports United name.

As part of the deal, Signa Sports will also acquire UK-based online rival Wiggle from its private equity owners. Wiggle generates annual sales of about $500m. The combined company is expected to generate net revenues of approximately $1.6bn in the financial year ending in September 2021, serving over seven million active customers.

“We’re proud and excited by this next chapter in SSU’s growth story. Becoming a listed company allows us to continue capturing market share in Europe and to accelerate our US and international expansion while scaling our platform solutions,” said Stephan Zoll, chief executive of Signa Sports. “We also look forward to welcoming WiggleCRC to our SSU family. The acquisition enhances our global online leadership especially in the bike category. Our focus on growth and internationalization coupled with our platform approach drives significant scale benefits.”

“SSU is a global leader in the fastest-growing sports categories and is well-positioned for continued success as a public company,” said Ron Burkle, chairman and president of Yucaipa. “With its technology platform – and a combination of scale, international growth and profitability – we expect SSU to grow its leadership positions and accelerate its global expansion. We look forward to becoming shareholders and partnering closely with the talented SSU team on this exciting journey.”

The deal is another in an increasingly long line of recent SPAC transactions. SPACs have become a popular alternative to the traditional IPO process for companies looking to list on a stock exchange, accounting for nearly half of the more than $200bn raised globally in new listings over the past year.

News: Signa Sports agrees SPAC deal, to buy Wiggle bicycle store - source

Datavant and Ciox Health to merge in $7bn deal

BY Richard Summerfield

Health data companies Datavant and Ciox Health have agreed to merge in a deal valued at $7bn.

The deal is expected to close in the third quarter of 2021, subject to regulatory approval and customary closing conditions. The newly merged company will be known as Datavant and will be led by Pete McCabe, chief executive of Ciox, the companies said in a statement.

The new company will be the largest health data ecosystem in the US, enabling patients, providers, payers, health data analytics companies, patient-facing applications, government agencies and life science companies to securely exchange their patient-level data. The company will have a network of more than 2000 US hospitals and 15,000 clinics as well as data analytics companies and government agencies.

“The fragmentation of health data is one of the single greatest challenges facing the healthcare system today,” said Mr McCabe. “Each of us has many dozens of interactions with the healthcare system over the course of our lives, and that information is retained in siloed databases across disparate institutions. Every informed patient decision and every major analytical question in healthcare requires the ability to pull that information from across the health data ecosystem while protecting patient privacy.”

He continued: “We are thrilled to join forces with the Datavant team to connect health data to improve patient outcomes. Together we are well positioned to navigate the technical, operational, legal, and regulatory challenges to doing so, and are committed to acting as a neutral connectivity solution for our many customers and partners.”

“Every decision made in healthcare should be informed by data,” said Travis May, chief executive of Datavant. “Our goal is to create a ubiquitous, trusted, and neutral data ecosystem where parties across the healthcare system can seamlessly and securely exchange data – unlocking better outcomes, faster research, and healthcare at a lower cost. The combined company is positioned to transform America’s health infrastructure and power the health data economy.”

The transaction is being supported by an existing investor group of private equity, venture capital and strategic investors led by New Mountain Capital, Roivant Sciences, Transformation Capital, Merck Global Health Innovation Fund, Labcorp, Cigna Ventures, Johnson & Johnson Innovation – JJDC, Inc., and Flex Capital. It also includes a significant new investment by Sixth Street with participation from Goldman Sachs Asset Management’s West Street Strategic Solutions fund. Sixth Street will join the new company’s board of directors on completion of the transaction.

News: Datavant and Ciox Health Announce Merger, Creating the Largest Neutral and Secure Health Data Ecosystem