==Zuora (ZUO) to be acquired by Silver Lake and GIC for $1.7 billion

(Reuters) - Billing software firm Zuora said on Thursday it has agreed to be acquired by buyout firm Silver Lake and Singaporean wealth fund GIC in a deal valued at $1.7 billion.

Silver Lake and GIC will acquire all outstanding shares of Zuora's common stock at $10 apiece in cash, which represents a premium of 6.2% to its last close.

The offer price is an 18% premium to the closing price on April 16, the last trading day before Reuters first reported Zuora was exploring options after it had received acquisition interest from potential suitors.

Zuora will become a privately held company after the transaction is closed, which is expected in the first quarter of 2025, it said.

The company, founded in 2007, offers billing software and other subscription management tools to enterprise customers, which include cloud computing firm Nutanix and Siemens Healthineers.

Zuora founder and CEO Tien Tzuo will continue to lead the company, which will maintain its headquarters in Redwood City.

Qatalyst Partners is serving as financial adviser to the company's special committee consisting of independent directors of the board and Foros is serving as Zuora's financial adviser.

Zuora had said earlier this year it planned to lay off about 8% of its workforce as part of a broader company-wide cost-cutting drive.

 

About Silver Lake

Silver Lake is a global technology investment firm, with more than $104 billion in combined assets under management and committed capital and a team of professionals based in North America, Europe and Asia. Silver Lake’s portfolio companies collectively generate nearly $243 billion of revenue annually and employ approximately 453,000 people globally.

About GIC

GIC is a leading global investment firm established in 1981 to secure Singapore’s financial future. As the manager of Singapore’s foreign reserves, GIC takes a long-term, disciplined approach to investing and is uniquely positioned across a wide range of asset classes and active strategies globally. These include equities, fixed income, real estate, private equity, venture capital, and infrastructure. Its long-term approach, multi-asset capabilities, and global connectivity enable it to be an investor of choice. GIC seeks to add meaningful value to its investments. Headquartered in Singapore, GIC has a global talent force of over 2,300 people in 11 key financial cities and has investments in over 40 countries. For more information, please visit www.gic.com.sg.

=GE spins off digital assets to form internet of things company

General Electric announced plans Thursday spin off its GE Digital business and establish an independent Internet of Things company, built around several GE Digital technologies.

GE is simultaneously selling a majority stake in Service Max to private equity shop Silver Lake, the company announced. Service Max is a software business GE Digital acquired for $915 million in November 2016.

"As an independently operated company, our digital business will be best positioned to advance our strategy to focus on our core verticals to deliver greater value for our customers and generate new value for shareholders," GE chairman and CEO Larry Culp said in a statement.

The spin off comes as GE also announced that GE Digital CEO Bill Ruh left the company. GE said it will "conduct an internal and external search to identify the CEO for this new independent company."

GE says more detail about the new internet of things company will be announced in the first quarter of next year. GE says the company will have its a new brand, as well its own equity structure and independent board of directors.

GE shares jumped 10 percent in premarket trading to $7.41 from Wednesday's close of $6.71 a share. The jump came after longtime bearish analyst Stephen Tusa of J.P. Morgan upgraded GE shares to neutral from underweight, saying the embattled industrial giant now has a more "balanced risk reward at current levels."

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General Electric announces plans to establish a new, independent company focused on building a comprehensive Industrial Internet of Things software portfolio

The company will start with $1.2 billion in annual software revenue and an existing global industrial customer base. The company is intended to be a GE wholly-owned, independently run business with a new brand and identity, its own equity structure, and its own Board of Directors.

• GE Digital CEO, Bill Ruh, has decided to depart GE to pursue other opportunities. The company intends to conduct an internal and external search to identify the CEO for this new independent company. Further details on GE's new IIoT software company will be announced in Q1 2019. This plan is subject to customary regulatory approvals, including information and consultation with employee representatives where required.

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J.P. Morgan upgraded shares of GE to neutral from underweight. Stephen Tusa, the firm's lead analyst on the stock, says the embattled industrial giant now has a more "balanced risk reward at current levels."

Tusa put out a bearish note on GE in May 2016 when the stock was above $30 that questioned the conglomerate's earnings and cash flow outlook.

=Blackhawk Network (HAWK) to be acquired by Silver Lake and P2 Capital Partners for $45.25/share

• A pair of private equity firms are set to acquire fintech business Blackhawk Network Holdings in a deal worth $3.5bn.
• California-based Blackhawk is a physical/digital gift card and prepaid payments network. A selection of gift cards, cash-based payment products, prepaid debit cards and rebate cards are available on the platform.

Blackhawk Network to be acquired by Silver Lake and P2 Capital Partners for $45.25/share in cash, or approximately $3.5 bln 
The definitive agreement has fully committed debt and equity financing, including an approximately $1.7 billion equity commitment from Silver Lake. P2 Capital Partners, which beneficially owns approximately 5.4% of Blackhawk's outstanding common stock, has committed to vote in favor of the proposed transaction. The transaction, which is expected to close mid-2018, is subject to customary closing conditions, including receipt of stockholder and regulatory approvals

SolarWinds (NYSE:SWI) agrees to be acquired in $4.5B deal

Update: In September 2018, SolarWinds filed for a public offering again, after three years of being owned by private equity firms. SolarWinds completed their public offering on October 19, 2018.

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• Austin software developer SolarWinds Inc. agreed to be bought by investment firms Thoma Bravo and Silver Lake Partners in a deal worth about $4.5 billion.
• The stock jumped 13% Oct. 9 when SolarWinds announced that it was reviewing strategic alternatives.
• California-based Silver Lake Partners also teamed with Michael Dell in a $24.9 billion leverage buyout of Dell Inc. in late 2013.

       

EMC Corp. (EMC) to be acquired by Silver Lake Partners for $33.15

• EMC; 10/12/15 : Dell Inc. and private-equity firm Silver Lake will buy EMC Corp. for roughly $67 billion in cash and stock, marking one of the largest technology-industry takeovers ever.  The $33.15 a share price tag represents a 19% premium over previous day’s closing price for EMC.
• The merger is expected to end by October 2016, pending negotiations and regulatory approvals. 

  

(Chart the day before, Fri. Oct. 9)