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The Past Week’s Notable Private Equity-Backed Deals and Exits

by Kevin Smith

  • 05 Jul 2012
  • PE

In the private equity industry this week Insight Venture Partners and Vector Capital were unsuccessful in their plan to take private Quest Software Inc. for $2.17bn. Strategic buyer Dell Inc. agreed to pay $2.4bn in cash for the company, outbidding the private equity firms also seeking the deal.

US-based EMI Music Publishing, a notable music catalogue, entered into an agreement to be acquired by a consortium of investors including Blackstone Group, Sony, Mubadala Development, and The Raine Group in atransaction valued at $2.2bn.  The seller was Citigroup, which acquired 100% of EMI in a restructuring transaction from Terra Firma in February 2011.

Elsewhere in the US medical technologies company M*Modal entered into an agreement to be taken private by One Equity Partners for $1.1bn. One Equity is offering $14 per share for the company, an 8.3% premium over the company’s last trading day. Bank of America Merrill Lynch and RBC Capital Markets are providing committed financing to One Equity Partners, subject to certain customary conditions. The $1.1bn deal represents a revenue multiple of 2.4x and an EBITDA multiple of 9.6x.  

Fifteen years after recapitalizing Consolidated Container Company, Vestar Capital Partners will finally exit its investment in a secondary buyout deal to Bain Capital for $800mn. Vestar originally acquired the company in 1997, investing out of its Vestar Capital Partners III fund.

Also in the news this week, private equity-backed Getty Images has received interest from several other buyout firms. Hellman & Friedman and Farallon Capital Management, which acquired the company in a take private deal in 2008 for $2.4bn, have been looking to exit the company through an initial public offering since May. However, because of challenging stock market floatation conditions, a secondary buyout sale could prove more favourable. KKR and TPG are two US-based firms that have displayed an interest in the company in a deal that could fetch up to $4bn. Goldman Sachs and J.P. Morgan are running the sale process on behalf of Hellman & Friedman and Farallon Capital Management.

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