Serena Software Bought by Private Equity Firm HGGC

Serena Software founder is joining hands with private equity firm HGGC to purchase the application development software vendor from Silver Lake Partners.

The financial terms of the transaction were not disclosed, but people briefed on the matter said HGGC paid about $450 million, in the first investment out of its second buyout fund. That price is substantially less than the $1.2 billion Silver Lake paid in 2006.

A spokesman for HGGC declined to comment on the purchase price.

The transaction will leave HGGC responsible for continuing efforts to turn around Serena, which makes products to help companies manage their software services. The overall industry is growing, the company argues, estimating the market at about $8 billion.

But Serena has lost money in three of its six most recent fiscal quarters. For the three months that ended Oct. 31, it lost $2.5 million on revenue of $46.1 million.

(But using adjusted earnings before interest, taxes, depreciation and amortization, which excludes restructuring charges, the company reported a slight gain for the quarter, to $21.9 million.)

Source: New York Times

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Serena Software, Serena Software, Silver Lake Partners.


William Morris Endeavor, Silver Lake Bought IMG Worldwide for $2.3B

William Morris Endeavor, the world’s largest diversified talent agency, along with Silver Lake Partners, a US-based private equity firm focused on leveraged buyout and growth capital investments, have bought IMG Worldwide Inc. for a total cash consideration of $2.3 billion.

The deal values IMG at roughly 13 times operating income (earnings before interest, taxes, depreciation and amortization).

Although the price tag falls a few hundred million dollars short of what Forstmann Little was hoping to get for IMG, it is still a 30% premium to the valuation afforded the overall market, and represents a 12% compound annual return on the $750 million the late Ted Forstmann paid in for IMG 2004.

It will not be as easy for the new owners of IMG to increase the company’s earnings. Although IMG represents star athletes like baseball’s Joe Mauer and football’s Peyton Manning, and entertainers like Justin Timberlake and Taylor Swift, it is a slow-growth, low-margin business.

Source: Forbes

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity Fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, US Private Equity, Silver Lake Partners, Silver Lake, Buyout, Buyout Fund, Leveraged Buyout, Buyout Firm, William Morris Endeavor, Diversified Talent Agency, IMG, IMG Worldwide, Forstmann Little, Ted Forstmann, Joe Mauer, Peyton Manning, Justin Timberlake, Taylor Swift.


Avago to Acquire LSI Corp. for $6.6B

Avago Technologies, a Singapore-based chip manufacturer that began as a unit of Hewlett-Packard Co., has agreed to buy storage and networking company LSI Corp. for a total cash consideration of $6.6 billion in an effort to expand its data center offerings.

Avago will pay $1 billion in cash and use a $4.6 billion bank loan, the companies said in a statement today. Silver Lake Partners, a private-equity firm that helped acquire Avago before its initial public offering in 2009, will provide a $1 billion investment toward the all-cash purchase.

LSI and Avago may be combining to gain more resources as the cost of designing and building semiconductors rises, potentially heralding a wave of deals in the industry, said Suji De Silva, an analyst at Topeka Capital Markets Inc. Packaged together, some of the companies’ storage products may be more attractive to large Internet data-center operators, such as Google Inc., he said.

“The question is whether this is the beginning of a consolidation trend in semiconductors — scale does make sense,” said De Silva, who recommends buying LSI shares. “This clearly extended that data-center footprint.”

Source: Bloomberg

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity Fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, Avago, Avago Technologies, Singapore, Chip Manufacturer, Hewlett-Packard Co., Storage, Networking Company, LSI Corp., Silver Lake Partners, Initial Public Offering, IPO, Suji De Silva, Topeka Capital Markets Inc., Internet Data-Center, Google Inc.


Private Equity-backed William Morris to be the Higher Bidder for IMG

William Morris Endeavor, a private equity-backed and the world’s largest diversified talent agency, with offices in Beverly Hills, New York City, London, Miami, and Nashville, appears to lead the bidding raise as it is poised to submit the highest offer for sports agency IMG Worldwide.

Offers for the company were due Friday from three bidders, and a decision could come as early as Saturday.

Backed by Silver Lake Partners, its private equity investor of less than two years, William Morris Endeavor plans to offer more than $2 billion for the sports agency, according to people briefed on the matter who spoke on the condition of anonymity because they were not authorized to comment publicly.

Peter Chernin, a former News Corporation executive who now runs a media investment firm, has joined the European fund CVC Capital and other investors in a bid for less than $2 billion, according to people briefed on the matter who spoke on the condition of anonymity because details of the auction were private.

ICM Partners, another Los Angeles-based talent agency working with the private equity firm Carlyle Group, will most likely also bid less than $2 billion.

Source: New York Times

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity Fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, Private Equity Backed, Diversified Talent Agency, Beverly Hills, New York City, London, Miami, Nashville, William Morris, William Morris Endeavor, Sports Agency, IMG Worldwide, Peter Chernin, News Corporation, CVC Capital, Silver Lake Partners, Carlyle, Carlyle Group.


Dell Agrees with the $25 Billion Buyout to Go Private

An American business magnate, investor, philanthropist, and author Michael Dell and the private equity firm Silver Lake have prevailed in their 14-month effort to prove shareholders in the computing company Dell Inc. to take the company private in a leveraged buyout.

The result of a shareholder vote was announced moments ago at a special meeting of shareholders in Round Rock, Texas. The final vote tallies haven’t been released yet, but CNBC, citing sources familiar with the result, have pegged the vote in favor at 65 percent to 35 percent. A final tally will be read out a little later, as the meeting is still under way.

The final buyout price is $13.75 per share, and includes a 13 cent per share special dividend, for a total price of $13.88, or $24.9 billion. The deal also guarantees an eight cent per share quarterly dividend when Dell next reports earnings, in November.

The vote brings to an apparent close a rancorous process during which numerous Dell shareholders lined up to oppose Dell and Silver Lake.

The process began in June of 2012, when the investment firm Southeastern Asset Management, a longtime Dell investor and until recently its No. 2 shareholder, first contacted Michael Dell about the possibility of going private. Dell held his first conversations with people from Silver Lake at a technology industry conference in Aspen, Colo., the following month. Source

 

Tags: Buyout, Buyout Funds, Leveraged Buyout, Buyout Firm, Dell Buyout, Dell, Dell Inc., Michael Dell, Silver Lake, Silver Lake Partners, Icahn, Carl Icahn, Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, Round Rock, Texas, CNBC, Southeastern Asset Management.


Dell Sets Rate on $5.5 billion Loan to Back Leveraged Buyout

Dell Inc., an American multinational computer technology corporation based in Round Rock, Texas, United States, set indicative pricing on the new $5.5 billion loan backing the company’s approximately $25 billion buyout by founder and CEO Michael Dell and private equity firm focused on leveraged buyout and growth capital investments in technology Silver Lake Partners, sources told Thomson Reuters LPC.

A lender meeting was held today in New York City. Michael Dell was on the agenda to discuss the company.

The new deal will include a $1.5 billion, five-year term loan C and a $4 billion, 6.5-year term loan B. The term loans are expected to be covenant-lite.

The term loan C is guided at LIB+275-300, with a 1 percent Libor floor and a 99.5 original issue discount. The term loan B is guided at LIB+375, with a 1 percent Libor floor at 99.

The debt financing package also will include a $2 billion, five-year asset-based revolving credit facility, $2 billion in first-lien seven-year secured notes and $1.25 billion in second-lien eight-year secured notes.

About $750 million of the ABL facility is expected to be drawn at the close of the transaction.

Bank of America Merrill Lynch, RBC, Barclays, Credit Suisse and UBS are lead arrangers on the term loans and the ABL revolver. Term loan commitments are due September 23, and closing and funding is expected in late October. Source

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, US Private Equity, Silver Lake, Silver Lake Partners, Carl Icahn, Icahn, Michael Dell, Dell, Dell Inc., Dell Buyout, Buyout, Buyout Funds, Leveraged Buyout, Buyout Firm, Computer, Software, Growth Capital Investments in Technology, Thomson Reuters, Thomson Reuters LPC, Reuters, Bank of America Merrill Lynch, BAML, RBC, Barclays, Credit Suisse, UBS.


Channel Celebrates Icahn’s White Flag in Dell Leveraged Buyout Offer

Dell Inc. partners see great opportunities for the enterprise-focused solution provider now that corporate raider Carl Icahn, an American businessman and investor, has dropped on his proposal to take control of Dell.

Icahn opposed the $24.8 billion leveraged buyout plan put forth by Michael Dell and Silver Lake Partners. But the billionaire investor abandoned his own plan for Dell Monday morning, declaring in a shareholder letter that it was “almost impossible” to win the stockholder vote scheduled for Sept. 12.

“This is great news. It’s been dragging out for too long,” said Paul Clifford, president of Davenport Group, a St. Paul, Minn.-based solution provider and Dell partner. “It’s been hurting Dell, hurting customers, and partners like us.” Source

 

Tags: Buyout, Buyout Funds, Leveraged Buyout, Leveraged Buyout Offer, Dell Buyout, Dell Inc., Dell, Michael Dell, Michael S. Dell, Icahn, Carl Icahn, Silver Lake, Silver Lake Partners, Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, Paul Clifford, Davenport Group.


Carl Icahn Recognizes Defeat in Battle for Dell Buyout

Billionaire investor corporate raider Carl Icahn acknowledged defeat Monday morning in his effort to block a private equity buyout of American computer giant Dell, but still argued the plan “greatly undervalues” the company.

By standing down, Icahn hands a major victory to CEO Michael Dell and his private equity partner, Silver Lake Partners, who should be able to win Thursday’s vote and make the deal a certainty. Icahn called off the campaign after Dell twice postponed the vote on the deal and upped his bid to $24.9 billion–and following a judge’s ruling that shot down Icahn’s effort to install a new board of directors.

The two sides battled for months, with Icahn flatly accusing of Dell of attempting to steal the company from public shareholders. He offered a number of alternatives, and last month seemed poised to win. With Icahn close to victory, Dell pushed the vote back and resorted to changing the rules on the vote to ensure approval for the buyout.

“We jokingly ask, ‘What’s the different between Dell and a dictatorship?” Icahn says. “The answer: Most functioning dictatorships only need to postpone the vote once to win.” Source

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, Dell Buyout, Buyout, Buyout Funds, Leveraged Buyout, Icahn, Carl Icahn, American Computer, Computer Giant, Dell, Dell Inc., Michael Dell, Silver Lake, Silver Lake Partners.


BlackBerry Possibilities of Going Private, Sources Say

As the smartphone maker battles to revive its fortunes, BlackBerry Ltd has started to warm up possibilities of going private, sources say. The smartphone maker company has recently discussed with private equity firm Silver Lake Partners about potential collaboration in enterprise computing.

Chief Executive Thorsten Heins and the company’s board is increasingly coming around to the idea that taking BlackBerry private would give them breathing room to fix its problems out of the public eye, the sources said.

“There is a change of tone on the board,” one of the sources said on Thursday.

No deal is imminent, however, and BlackBerry has not launched any kind of a sale process, the sources said. Even if it tried, BlackBerry could find it hard to come up with a buyer and the funding to go private. With the company still posting losses and bleeding subscribers, private equity firms and other buyers may not want to step up.

The company’s shares have fallen more than 19 percent this year. Its market value has fallen to $4.8 billion, from $84 billion at its peak in 2008.

BlackBerry, which had been pinning its hopes for a turnaround on its new line of BlackBerry 10 devices, declined to comment. The sources declined to be named because these discussions are private. Source

 

Tags: Private Equity, Private Equity firm, Private Equity investment, BlackBerry, BlackBerry Ltd, Silver Lake Partners, Thorsten Heins, Apple Inc.,  iPhone, Samsung Electronics Co Ltd., Samsung Galaxy, Google Inc., Android.


Michael Dell Offers to Take the PC Maker Private

Michael Dell and his investment partners have upped their bid to take the company he founded private to nearly $25 billion. The increased proposal came after a shareholder voting delayed last week.

The new offering values shares of Dell Inc. at $13.75. Dell and investment firm Silver Lake Partners’ previous offer of $24.4 billion would have valued the shares at $13.65.

The new price, however, comes with a caveat: the decision will be made by a simple majority in a straight up-and-down vote. Under the previous arrangement, shares that were not voted were counted as “no” votes — a provision Dell and his allies called unfair. Shareholders are expected to vote on Dell’s new offer on August 2.

The move is the latest development in a drawn out battle between Dell and business mogul Carl Icahn, who is also attempting to buy a controlling stake in the company. Icahn expressed his distaste for Dell’s initial go-private offering of $24.4 billion in a letter to the Dell Board in March, saying that the proposed deal is “not in the best interests of Dell shareholders and substantially undervalues the company.” In another letter this week, Icahn voiced his disapproval of the rescheduled shareholder vote.

In June, Icahn presented the board with a counteroffer that would value shares at $14 and informed the board that he had purchased 72 million shares of Dell Inc. stock from Southeastern Asset management, the PC manufacturer’s largest outside shareholder. Source

 

Tags: Michael Dell, Dell Inc., PC Maker, Dell Board, Silver Lake, Silver Lake Partners, Icahn, Carl Icahn, Southeastern Asset management, Leveraged Buyout, Buyout.


Silver Lake Closes Oversubscribed Fund

In an uplifting bit of news for private equity professionals, Silver Lake appears to have surpassed its target raise for its new fund.  According to multiple sources, the private equity firm is ready to close their next fund at a whopping $10.3 billion–that’s almost $3 billion higher than the fund’s $7.5 billion target.  The focus of the fund will be technology buyouts and constitutes the largest ever fund to focus exclusively on tech buyouts.

Silver Lake has distinguished itself from both buyout and venture capital firms with its focus and strategy.  The firm is so big and targets companies that are so large and later-stage that it is unique from most of the venture capital shops out there; but the firm also uniquely focuses on technology so it is unlike most buyout firms.

You’ll likely recall Silver Lake’s name was in the headlines recently for its multi-billion dollar bid with Michael Dell to take Dell Inc. private.  It will be interesting to see how the fund makes waves in Silicon Valley as it puts that capital to work in the coming years.

 

 

tags: Silver Lake, Silver Lake Private Equity, Silver Lake Fundraising, Silver Lake Partners IV, Silver Lake Partners IV fund, Silver Lake Partners IV assets under management, Silver Lake Partners IV LP, Silver Lake Partners IV investors, Silver Lake Partners, buyout funds, fundraising news


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