M&A Awards 2023 www.acquisition-international.com • M&A Awards 2023 Best Lower-Middle Market M&A Advisory 2023 - Western USA Growing out of a business valuation and advisory firm, and later a Main Street business brokerage, Veld Mergers & Acquisitions has become a beacon of light within its industry niche. Here we learn more from its Director, Michael Wildeveld, as the business wins its title in the 2023 M&A Awards.
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Contents 4 Veld Mergers & Acquisitions: Best Lower-Middle Market M&A Advisory 2023 - Western USA 6 IMCI GROUP INTERNATIONAL GMBH /LLC: Best Global M&A Consultancy 2023 & Management Consulting CEO of the Year 2023 (Central Europe): Modesto N Peña y Gorrin 8 Technology Holdings: Global Technology M&A Advisory Firm of the Year 2023 9 GBank Financial Holdings Inc. Confirms Agreement to Merge with BankCard Services, LLC 10 Commerzbank AG: Best M&A Mid-Market Advisory 2023 - Germany 11 Founders Trust: Best Middle Market Acquiror 2023 - USA 12 Marcelo Claure to Co-Lead and Co-Own Open Opportunity Fund in Partnership with Paul Judge 13 DQE Communications To Be Acquired by GI Partners 14 Kraken acquires asset management expert Sennen to improve renewable management capabilities 6 4 10
4 | Acquisition International M&A Awards 2023 Best Lower-Middle Market M&A Advisory 2023 - Western USA o begin, Michael Wildeveld gives us further insight into Veld Mergers & Acquisitions’ background, with his words speaking volumes in terms of the reasons for its success: “Rather than beginning as deal makers in private equity or with Wall Street type of investment banks, we began with the smaller, more challenging deals that tend to have a lot more moving parts and clients with varying levels of financial sophistication.” He continues, “Believe it or not, the more ‘upmarket’ a company is, the easier preparing it and its owner to go to market tends to be. Larger businesses have a far greater buyer pool, and access to talent and capital are no longer an issue. A transaction becomes a bit more academic – it essentially boils down to valuation and deal structure. The stakeholders tend to be dispassionate, so they are far more rational and predictable. When working with founders and their businesses in the lower middle market or even on Main Street, you can sometimes throw logic out the window. Companies in these markets are the owners’ babies, and all parties better be prepared to treat them as such if they want to transact.” Veld Mergers & Acquisitions’ client base isn’t comprised of buttoned-up blue-chip businesses. It’s made up of founder or family operated companies that have persevered for decades to achieve a remarkable level of success despite their humble beginnings and substantial market forces working against them. Demonstrating the variety of sell-side engagements Veld Mergers & Acquisitions takes on, Michael informs us, “This month, I’ve been focused on keeping three very different deals moving towards the finish line. The first is a 45-year-old retail furnishings chain located in four states in the mid-Atlantic region. Despite the challenges retail has faced in large urban areas, we’ve managed to attract a variety of competing private equity bidders. Each buy-side team has been led by partners that are the chain’s longstanding clients. Rather than focusing on the bottom-line, the seller chose to work with the buyer that most reminded her of herself, as she felt they would maintain the family-like culture she’s created. “In a second instance, we are entertaining offers on a global beauty care brand. The two founders left corporate America (one hailed from Big 5 Accounting while the other came from Big Beauty). These partners felt they could better service their luxury-oriented skincare customers with a unique model and disruptive sales channel. They used their nimble size to their advantage against the majors with coveted retail shelf space. They now outcompete them in their niche and have generated over $70 million in revenues annually on three continents.” The last example involves a specialty contractor that Veld Mergers & Acquisitions has an established relationship with, as Veld sold him a ‘trophy’ business a decade ago, and has since sold it for him. This client left high school in the 10th grade to drive dump trucks and operate tractors for his father. As a specialty operator, he became an industry celebrity due to his well-honed skillset and ability to size up the most efficient way to complete a job. After working for the industry majors, he went out on his own with a vision to capitalize on his experience to tackle a broader market segment than competitors could. It turned out that literally spending his formative years “in the trenches” allowed him to recognize opportunities that publicly traded competitors miss, since their leaders were never operators. The company is set to surpass $50 million in revenue this year with an incredible margin at twice the industry average. While Veld Mergers & Acquisitions is already in discussions with industry leaders, including his former employer, this client was just awarded a $250M government contract over five years. To fully capitalize on this, they now need growth capital more than ever. Despite being in the midst of negotiations, their market position and valuation has dramatically changed so all parties will adapt accordingly. “These stories differ but also remain the same,” Michael says. “Each is a Cinderella story about founders with vision and the necessary grit to realize it. None of them are MBAs and none of these are glamourous tech start-ups. Each made it without access to capital, or guidance from their board of directors, let alone private equity partners. We are honoured to be entrusted to see the results of their decades of toil through to their next chapter. In these instances, it feels like we are managing their legacy as much as we are their transaction.” Exit On Your Terms Course To help owners gain clarity on their transition options and to better prepare them and their companies to potentially transact, Veld Mergers & Acquisitions launched “Exit On Your Terms” in 2023. The comprehensive course touches on business valuation, personal readiness, business planning, tax strategy, value maximization, and legacy planning. It is geared towards owners who are 1-5 years away from going to market, but want to approach a merger, sale, or even an internal transition prepared and well-informed. Rather than being academic in nature, a participant (which isn’t necessarily a Veld Mergers & Acquisitions client) can take the course at their own pace. They can participate publicly and leverage the experience of other participants, or they can opt to not share their identity. In fact, there are “Do It Yourself”, “Done With You” (most popular) and even “Done For You” options available. In Michael’s words, the course was created “to reach a larger number of comparably sized business owners earlier in their decision process.” He elaborates, “We’ve incorporated the lessons we’ve learned in orchestrating over 1,000 transactions in 20+ years so that owners who are contemplating a transition – whether that be a sale, recapitalization, succession event, or sometimes to achieve growth prior to selling – can not only learn from our experiences, but also from the course contributors from the financial, wealth, insurance, tax, legal, estate planning and other advisory industries. “We are able to provide owners a broad overview of business valuation, exit planning, and mergers and acquisitions concepts in a non-charged atmosphere. Neither ourselves nor the vetted Growing out of a Business Consulting and Valuations, and later a Main Street Business Brokerage firm that began in 2002, Veld Mergers & Acquisitions has become a beacon of light within its industry. Here we learn more from its Director, Michael Wildeveld, as the business wins its title in the M and A Awards 2023. T
Acquisition International M&A Awards 2023 | 5 Best Lower-Middle Market M&A Advisory 2023 - Western USA industry professionals that contribute are placing our participants into their own sales funnels. It’s a ‘protected’ environment designed to help owners to figure out their options and to gain resources, without obligating them to a particular tract or to work with any specific advisor.” Owners leave the course with an understanding of how they can: • Bolster their firm’s valuation (via traditional methods + “hacks”) • Explore the transition paths available (there are more than 4!) • Evaluate a variety of deal structures (and assess pros/cons of each) • Understand buyer groups and how valuations differ for each • Employ tax-mitigation strategies, to retain more sale proceeds • Craft a plan to achieve their ‘life after transition” goals “What’s nice is that the course is independent from our practice and is comprised of a group of exit planning professionals who are genuinely interested delivering value to those who need it most,” Michael comments. “As a result, participants feel they are collaboratively evaluating their options alongside their peers – sharing their identity or company is voluntary. “Participants can leverage the ecosystem to their advantage to share ideas or even potentially collaborate with others in a number of ways. They are able to obtain broad, unbiased insights from a greater variety of industry professionals than they would likely be able to otherwise come across, without ever feeling they are being led down a particular path.” Throughout its years of operation, Veld Mergers & Acquisitions has learned that owners often feel they are pigeonholed to pursue a particular strategy based on their primary advisor’s area of expertise, licensing, or firm focus. For example, if the advisor is a sales intermediary, the solution for every owner may be a third-party sale; whereas if they are an ESOP (Employee Stock Ownership Plan) specialist, this will invariably become their go to one-size-fits-all solution. Michael goes on to share, “a famous Pricewaterhousecooper’s satisfaction survey surprisingly revealed that 75% of owners regret their sale one year after a transaction. The regret is not because they didn’t receive enough for their business, but rather, they weren’t satisfied with their transition choices, tax mitigation strategies (or lack thereof), and most importantly, they didn’t consider or incorporate their post-transition goals into their transaction. “Our course takes a holistic approach to address each of these key topics and far more in a safe, collaborative environment where several, often very different options may be explored with the costs and benefits of each weighed. Although there is no obligation to work with any of the presenters, most of them offer participants favorable rates should they choose to do so. What’s more, participants have the unique opportunity to pursue parallel exit or potential transition tracks until the best solution becomes clear.” Michael shares that while Veld Mergers & Acquisitions has an 82% success rate when taking clients to market, the industry average is only 30%. He attributes this to many factors, including clients choosing the wrong representatives, or ones that are inappropriately qualified for their company’s industry or size, and owners being unprepared for the sale process and what ‘life after sale’ is going to look like. This is in addition to, surprisingly, owners not having a clear understanding of the variety of transition options and tax mitigation strategies available well enough in advance in order to pursue these opportunities – let alone several exit paths at once. He states that advance planning is the most critical factor in achieving the most successful outcome possible, but without knowing what they don’t know, owners often set themselves up for failure by approaching an exit planning or M&A Advisory firm when they are only 12 months out from their intended transition. Overall, we wish the Veld Mergers & Acquisitions team and the Exit On Your Terms course staffers all the best as they continue to help business owners to “arrive at a lightbulb moment” when they can confidently choose the best path forward for themselves, their company and their legacy! Contact: Michael Wildeveld Company: Veld Mergers & Acquisitions Web Address: https://www.veldma.com/
6 | Acquisition International M&A Awards 2023 Best Global M&A Consultancy 2023 & Management Consulting CEO of the Year 2023 (Central Europe): Modesto N Peña y Gorrin MCI GROUP INTERNATIONAL GMBH /LLC is located in London, but maintains close ties to its Swiss roots with a headquarters in Zurich managing the firm’s overarching structure. This extends to global development, marketing, controlling, professional services, investment, and participation. The company has been awarded the title of Best Global M&A Consultancy 2023 and its CEO, Modesto N Peña y Gorrin, has been named as Management Consulting CEO of the Year 2023 (Central Europe). IMCI Group International GmbH / LLC is a project financing and consulting company that provides blue sky thinking and comprehensive, panoramic financial services to its clients. The company has a network structure of advisors who focus on corporate finance, restructuring services, and expansion support. IMCI+ Group International GmbH/LLC is located in Zurich, Switzerland, and acts as the firm’s headquarters, aiming to deliver management services to the entire business structure. Modesto N Peña y Gorrin, the CEO of IMCI Group International GmbH / LLC, has been recognized for his outstanding leadership and contribution to the field of management consulting. He has been instrumental in driving the company’s growth and success, and has helped it to become one of the world’s leading project financing and consulting companies. IMCI+ Group International is divided into several different divisions. These are IMCI+ Capital Services, IMCI+ Consultancy & M&A Services, and IMCI+ World Advisors Alliance. IMCI+ Advisory exists to support clients who desire business expansion and optimisation. It involves working in close collaboration and forming solid partnerships with its client businesses. IMCI+ Capital Services is concentrated on the corporate finance side of things, and focuses on developing financial solutions and presenting investment opportunities for investors. It is determined to help clients make investments that are bold and make a big difference. The IMCI+ Alliance is the part of the business that zooms in on advisory and coaching services. Its intention is to provide a comprehensive, effective, tailor-made service that handles all the management areas of its clients’ businesses. “Our Management Consulting Division is focused on one thing only: helping the client become more successful. Our experts work in collaboration with the client, combining their skills, expertise, and extensive experience to deliver significant, sustainable benefits and measurable ROI. ” In the company’s recent history, it has already been globally recognised for the high quality work it undertakes. For example, in 2016 and 2018 it was shortlisted for the Best International M&A Advisory Partner – Global, by Capital Finance International (www.cfi.com). Another interesting point of note is that between the years of 2013 and 2017, it has been responsible for the making of two TV shows at Swiss Financial TV company Dukascopy in Geneva. Dukascopy TV was founded in 2008 by the Swiss Forex Bank Multi award winning company IMCI GROUP INTERNATIONAL GMBH /LLC is an international business consultancy that advises on financial services including mergers and acquisitions. It is a London based company with Swiss roots tracing back to 1998 when its founder and global CEO Modesto N Peña y Gorrin first started his career in the sector. In 2004 he founded a single proprietorship firm known as IMC Peña, as an integrated management consultancy, but from small acorns mighty oaks do grow, as they say, and the business has since flourished at a rate of knots. It has opened many subsidiaries, and formed numerous strategic alliances that have helped both it and its clients to bloom. I IMCI GROUP INTERNATIONAL GMBH /LLC
Acquisition International M&A Awards 2023 | 7 Best Global M&A Consultancy 2023 & Management Consulting CEO of the Year 2023 (Central Europe): Modesto N Peña y Gorrin of the same name. It oversees an international video hub that covers the financial markets and crypto. IMCI+ is also a fiduciary partner of a SwissEuropean Private Equity /VC/Investment structure. In 2020, IMCI+ became a syndicate partner of a group backed by 70 banks offering monumental funding services extending to 100 billion USD. This was the same year it launched the Joint Venture Investment Partnership Program (JVIPP), which offers investment partners joining IMCI+ an opportunity as shareholders in the company’s new structure. Following on from this, IMCI+ was able to maximise on its promise by preparing a plan that focused on its Vision 2025. The company’s aim within Vision 2025 is to re-establish the company’s corporate headquarters in Switzerland based on the aforementioned structure. That is, to separate and diversify with divisions known as IMCI+ World Advisors Alliance Ltd (Network), IMCI+ Capital Services (Investment Services, Investment Fund, Project Finance), and IMCI+ Consultancy & M&A Services. These are all to be overseen by the IMCI+ Group International LLC (Corporate / Group Services and Holding) Vision 2025 embraces a daily endeavour to become an international worldclass business advisory and financial conglomerate, and provide a helping hand for clients that is both valued and respected. This can be simply summed up, as the company itself expresses it, as “an organization of passionate professionals making the difference and creating value for all stakeholders.” “IMCI+ is unique. A worldwide active consultancy organisation, with a local understanding of today’s business reality. ” In conclusion, IMCI Group International GmbH / LLC and its CEO, Modesto N Peña y Gorrin, have been recognised for exceptional work in the field of project financing and consulting. The dedication that has been shown in providing 360-degree financial services to clients has helped the company to excel, and take its place at the very vanguard of the industry. Our congratulations go out to this multi-awards winning company and its extraordinary mentor/CEO. Contact Details Company: IMCI GROUP INTERNATIONAL GMBH /LLC Web Address: imci-group.com Contact Name: Modesto N Peña y Gorrin
8 | Acquisition International M&A Awards 2023 Global Technology M&A Advisory Firm of the Year 2023 Serving companies in the technology, software, consulting, healthcare, and business process management sectors, Technology Holdings is a global investment bank that delivers a comprehensive range of M&A and capital raising advisory services. Leveraging its global reach, industry knowledge, negotiation skills, and understanding of the key valuation drivers, the company achieves top-end valuations for its sell-side clients. Here, we dive deeper into Technology Holdings, exploring its background and its work. Contact: Vivek Subramanyam Company: Technology Holdings Email: vivek@technologyholdings.com Web Address: technologyholdings.com Contact: Geeta Ramanathan Company: Technology Holdings Email: geeta@technologyholdings.com Web Address: technologyholdings.com In 2000, Technology Holdings was established by Founder and CEO Vivek Subramanyam, an investment banking professional with more than two decades of experience providing strategic and M&A advisory services to leading companies and private equity funds. His company was founded to offer comprehensive advisory services, including M&A sell-side, buy-side, private equity, and capital advisory services. Since then, Technology Holdings has maintained a laser focus on the industries it serves. Its clients include companies with enterprise values ranging from $25 million to $500 million. These businesses span the fields of digital transformation, IT services, Cloud, DevOps, consultancy, analytics, data science, AI, healthcare, life sciences, engineering, IoT, technology platforms, SaaS, FinTech, Insurtech, business process management, ERP, CRM, ITSM, and cybersecurity. Over the years, Technology Holdings has worked to expand its presence across the world. Today, it has offices in North America, Europe, Asia, and Australia, spanning 15 cities and 8 countries across 4 continents. Its team consists of over 70 employees who boast decades of collective expertise, having worked at a number of bulge bracket and boutique investment banks. They have built a solid track record for success, with accumulated enterprise values exceeding $100 billion. They take a handson, strategic, and focused approach to their work, leaving no stone unturned. When it comes to providing independent M&A and capital raising advisory services in any of its industries of focus, Technology Holdings is unmatched in terms of its capabilities, expertise, and track record of success. For this reason, the company has received global recognition as the investment bank of choice in the vast majority of these sectors. Technology Holdings understands that choosing the right adviser is critical to clients’ success. With two decades of deep transactional expertise across the globe, the company is well-equipped to do the job. When appointed, it serves as an extension of the client’s team, working closely with them in all aspects of their transaction. This includes strategy, positioning, preparation of material, due diligence, and transaction closure. In everything it does, Technology Holdings views its own success as directly linked to that of its clients. For this reason, it goes above and beyond to deliver the very best results for them. Despite its significant growth, expansion, and evolution, the company has maintained an unwavering commitment to its ethos of putting the client first, delivering excellence at every stage of the transaction process, and ultimately achieving outstanding results and premium valuations. For its superlative services, Technology Holdings has received a multitude of positive testimonials from its clients, which are available to view on its website. For example, one client shares, “We chose TH because of their track record in healthcare and life sciences. They truly became an extension of our company and took the lead in all aspects of the transaction. Their deep understanding of the transaction process and guidance through all the stages was invaluable. We truly couldn’t have done it without the TH team. When we started, we had excellent TH advisors, now we have wonderful friends.” In light of this exceptional praise, it is no surprise that Technology Holdings has received yet another prestigious accolade to add to its growing list. As part of the M&A Awards 2023, it has been named Global Technology M&A Advisory Firm of the Year. Looking towards the future, the firm plans to continue reviewing its offerings, innovating to stay ahead of its competitors, and going the extra mile for its clients.
M&A Awards 2023 Acquisition International | 9 intellectual property and licensing opportunities can generate a significant upside for the Company.” Edward M. Nigro, President of Omega Industries, Inc, the Manager and CEO of BankCard Services, LLC stated, “Hanan Sabri, BCS President, and I founded BCS in 2014 and raised the capital necessary to enable GBank to participate in the launch of Cashless Gaming with Sightline Payments in our home State of Nevada. BCS has evolved and developed proprietary banking solutions that can provide gaming patrons and payments users with FDIC-insured individual ledger accounts when utilizing Apps or Wallets of contracted companies. This strategic decision shall afford GBank greater opportunity to harness BCS proprietary solutions including licensing our intellectual property to other Financial Institutions.” Hanan Sabri will also continue with the new GBank Subsidiary as its President/Chief Operating Officer after completion of the transaction, which is subject to regulatory and Company shareholder approval as well as other customary conditions as set forth in the definitive merger agreement. The transaction is anticipated to close in the second quarter of 2024. Janney Montgomery Scott LLC has issued a Fairness Opinion to the disinterested board subcommittee of the Company and Bank Board of Directors. GBank Financial Holdings Inc. Confirms Agreement to Merge with BankCard Services, LLC GBank Financial Holdings Inc. (the “Company”) (OTCQX: GBFH), the parent company for GBank (the “Bank”), and BankCard Services, LLC (“BCS”) today announced that they have executed a definitive merger agreement whereby the Bank will acquire BCS in an all-stock transaction. When completed, BCS will operate as a subsidiary of the Bank, further enhancing its Gaming FinTech Division. BCS patented Pooled Player (PPA™) and Pooled Consumer (PCA™) Programs shall expand cashless payment solutions to a growing network of gaming and payments partners and financial institutions. As stated in the merger agreement, which has been approved by the disinterested members of the Board of Directors of the Company and the Bank, BCS shareholders will receive an aggregate of $10.0 million of shares of Company common stock, valued for purposes of the merger at the October 27, 2023 closing price of $14.25 per share (an aggregate of 701,754 shares of the Company’s common stock). The transaction is expected to be immediately accretive to the Company’s earnings per share. T. Ryan Sullivan, President and CEO of the Company and Bank, stated, “We are very excited to announce this transaction and are looking forward to expanding our existing relationship with BCS. The platform’s ability to generate fees and source noninterest bearing deposits in today’s interest rate environment is extremely valuable. Furthermore, BCS’s proprietary
Aug22499 10 | Acquisition International M&A Awards 2023 Nov23363 Best M&A MidMarket Advisory 2023 - Germany ith an excellent M&A track record, strong deal momentum in 2023, extensive sector knowledge and industry network, and qualified investor access (worldwide): Commerzbank’s M&A team is uniquely positioned to advise the German Mittelstand, domestic and international corporates, multinational corporates, and financial sponsors on mid-market transactions. For many years Commerzbank M&A has developed a reputation as a top adviser for family businesses in Germany. The team has an outstanding track record of successfully completed deals. M&A projects to highlight in 2023 are the sales of BARTHEL Group to Asteria (Waterland Private Equity), FLEXIM Group to Emerson Electric (NYSE:EMR) and EXPLORIS Group to TX Logistik (FS Italiane). Commerzbank M&A offers a comprehensive range of advisory services for all types of sell-side and buy-side projects. This includes the development of a specific transaction strategy and the coordination of the entire M&A process (acting as a “sparring partner” during all phases of a transaction). The bank has access to a broad universe of investors and corporates. Commerzbank M&A has a high level of expertise with privately held German mediumsized companies as well as capital market-oriented corporates. An additional success factor with regard to project origination can also be seen in the excellent sector coverage. Commerzbank has established dedicated sector teams with extensive relationships and specific expertise in Automotive and Transport, Industrials, Healthcare and Chemicals, Infrastructure and Energy, Technology, Media, and Telecom, as well as Consumer and Retail. As an example of a landmark transaction in the industrial technology sector: In August 2023, the global market and technology leader in the field of ultrasonic flow measurement FLEXIM Group (Berlin, Germany) was acquired by the listed US technology group EMERSON Electric (St. Louis/MO, USA). Commerzbank’s M&A team acted as exclusive M&A adviser to the shareholders of FLEXIM Group. The project team, headed by Andreas Laudien and Dr. Matthias Zemelka, managed to execute a highly visible primary transaction in Germany to facilitate a succession solution for the four selling shareholders. - Jens Krane, Head of M&A Advisory, Commerzbank AG. Contact Details Contact: Jens Krane, Andreas Laudien, Dr. Matthias Zemelka Company: Commerzbank AG Address: Kaiserplatz, 60311 Frankfurt am Main Web Address: www.commerzbank.com Commerzbank is the leading bank for the German Mittelstand and a strong partner for around 26,000 corporate client groups. The Commerzbank M&A advisory team is one of the most successful and experienced advisers in the mid-market segment, with a strong expertise on corporate succession situations in its home market of Germany. We learn more about Commerzbank as the bank wins a title in the M&A Awards 2023. W “ We are confident we’ll see a continued strong deal momentum in 2024. As the leading bank for the German Mittelstand, we are uniquely positioned with our extensive sector knowledge to support our clients with their M&A activity domestically, as well as supporting international corporates who seek opportunities in Germany. ”
Acquisition International M&A Awards 2023 | 11 Best Middle Market Acquiror 2023 - USA ith a deep-rooted respect and admiration for the founders of the business world, Founders Trust is dedicated to helping those who have built a successful business achieve a successful exit, the most important success of a business owner. Some are ready to retire whilst others would like to continue working within the business as a manager or partner, free of the daily burden of ownership. Founders Trust specializes in buying middle market and lower middle market companies. Its Board of Directors and team has a profound depth of expertise in the acquisition process and in managing companies for long-term growth and stability, and have completed over $4 billion in acquisitions. It acquires companies as a long-term home for the company, does not do layoffs or conglomerations, and focuses on the structural alignment of interests, long term success, and stability of companies. Founders Trust only works with businesses that meet a specific set of criteria. They must be of a certain size and privately owned, be relatively recession-proof with an understandable business model, and generally, a strong management team and successful track record. Owners play a significant role in the management structure, values, character, and priorities of their business. This is true even for large companies like Apple, and it is even more the case with middle market companies. For sellers who want to continue working with their company, yet still achieve that “Physical & Mental FreedomTM,” Founders Trust can acquire either the entire company or a majority interest, and really take that company to the next level, with its depth of expertise, platform, and capabilities for execution on that growth. Other sellers, on the contrary, want to retire. For those sellers, Founders Trust builds in a period of transition, to assure the continuing stability of the company. As part of this transition period, Founders Trust will either train a member from that specific company’s management team to step up to a new role, with the help of Founders Trust and its platform and expertise. Or it will bring in, from its vast and deep bench, an individual or individuals to fill out needed areas of expertise or capability in that company’s management team, again drawing on Founders Trust and its depth of expertise. One of the biggest concerns in selling a company is the disintegration of everything that the founder or owner has built over many years of decades of their life. Founders Trust is a different type of buyer, essentially a ‘white knight’ type of buyer. When it buys businesses, they stay independent, and function autonomously as independent organizations, with the support of Founders Trust, for anything they need. Founders Trust keeps the employees, leadership team, culture, and legacy of the creator and the company. It is not returns driven, but rather, quality of company driven. It operates with a core value that if a company is a good quality company, then over time, long term value will be created. In the acquisition process itself, Founders Trust is a reliable acquisition partner. It does not wait until late in the process to send or agree on the main Agreements. Investment banks, intermediaries, and sellers alike, 360 degrees, are enthusiastically appreciative of this approach, as it eliminates misunderstandings later on in the process, since things are done transparently at the outset. Furthermore, Founders Trust invites all founders to pursue a role in the business on their own schedule, or to adopt a position on the board. This way, they can continue to have a meaningful impact on the company by sharing their expertise with the leadership team. Complementary to this strategy, Founders Trust focuses strongly on employee retention. As well as offering them incentives like part ownership options, the firm works to provide them with the help, support, and specialist advice. For its continued excellence in all areas, Founders Trust has been named Best Middle Market Acquiror in the M&A Awards 2023. Contact: Jon Adams Company: Founders Trust Web Address: www.founderstrust.org Based in the Chicago area, Founders Trust is an acquiror of middle market and lower middle market companies in the U.S. The firm maintains an unwavering focus on preserving companies’ values, existing teams, and independence. It focuses on a transparent, and reliable acquisition process, structural alignment of interests, and the long-term view. W
12 | Acquisition International M&A Awards 2023 Marcelo Claure to Co-Lead and Co-Own Open Opportunity Fund in Partnership with Paul Judge Claure Joins Agreement to Acquire Ownership Stake in Fund 1 from SoftBank Group • Marcelo Claure to become Vice Chairman and General Partner alongside Dr. Paul Judge as Chairman and Managing Partner • Claure joins Judge and affiliated entities in previously announced agreement to acquire an ownership stake in the $100 million Fund 1 of the Opportunity Fund from SoftBank Group • Open Opportunity Fund is now raising Fund 2 to continue to back exceptional Black and Latino tech founders • Open Opportunity Fund, a venture capital fund dedicated to funding Black- and Latino-founded technology companies, is announcing two significant advancements within the fund. Marcelo Claure, a technology entrepreneur and investor, is returning to the Open Opportunity Fund as Vice Chairman and General Partner. In June 2020, SoftBank Group (“SoftBank”) launched the SB Opportunity Fund to invest in underrepresented founders. Claure was a founding member of the fund while he was CEO of SoftBank Group International. In less than three years, SoftBank successfully incubated the Opportunity Fund and deployed the initial $100 million into 75 Black- and Latino-led companies. Two of SoftBank Group’s core growth funds—Vision Fund 2 and the Latin America Fund—separately invested nearly $600 million in Opportunity Fund portfolio companies, for a total of nearly $700 million invested across SoftBank’s funds. In addition, Claure joins Open Opportunity Fund Chairman, Paul Judge, in the previously announced agreement to acquire an ownership stake in the $100 million Opportunity Fund 1 portfolio from SoftBank. SoftBank remains committed to building a community of diverse founders and continues to support the fund as an investor in Fund 2. Open Opportunity Fund aims to double in size, raising Fund 2 to a $200 million fund open to LPs and other investors. Claure is the founder & CEO of Claure Group, a multi-billion-dollar global investment firm. He is also Chairman and Managing Partner at growth equity firm Bicycle Capital as well as Group Vice Chairman of SHEIN. After building his first business, Brightstar, into the world’s largest global wireless distribution and services company, Claure became CEO of Sprint. He later became CEO of SoftBank Group International, where he oversaw strategy alongside SoftBank CEO Masayoshi Son, and launched SoftBank’s $8 billion Latin America Fund. Claure’s return to Open Opportunity Fund is part of a personal mission, shared with Judge, to provide equal opportunity for Black and Latino entrepreneurs like themselves – entrepreneurs who struggle to get access to capital to grow their businesses. “As a Latino and Hispanic entrepreneur who was successful in growing businesses, I still had to fight harder to get funding,” said Open Opportunity Fund Vice Chairman and General Partner Marcelo Claure. “Paul fought those same battles as a Black entrepreneur. Together through the Open Opportunity Fund, we are investing back into our communities, ensuring that Black and Latino innovators have the capital they need to grow profitable businesses. We are grateful to SoftBank for investing in Black- and Latinoled companies through the initial fund, and we appreciate their commitment to Fund 2 as we build on that legacy.” “I’m excited to work alongside Marcelo again. It is a full-circle moment to have him back as a partner. Beyond our work as investors and advisors, I believe our position as an independently-owned fund led by a Black American and a Bolivian immigrant is a powerful statement that I hope will inspire future leaders,” said Open Opportunity Fund Chairman Paul Judge. “As the founding LP and an investor in Fund 2, SoftBank remains committed to building a community of diverse founders,” said Brett Rochkind, Managing Partner of SoftBank Investment Advisers. We believe that under Marcelo and Paul’s leadership, the Open Opportunity Fund is strongly positioned to enter its next chapter, and we look forward to our continued support of its important mission.” Opportunity Fund 1 invested $100 million into 75 Black- and Latino-led tech companies, with a portfolio that includes Atomic, Brex, Career Karma, Cityblock Health, Eight Sleep, Esusu, Lendtable, Lumu, Mayvenn, Paystand, Praxis Labs, QuickNode, Squire, and Subject. The fund has had seven exits. In 2022, Black and Latino founders received less than 3% of venture capital funding, despite comprising over 30% of the United States population. Research has consistently shown that diverse companies yield greater results, such as producing higher profits and exit multiples. Open Opportunity Fund is now raising Fund 2 with the aim of continuing to deliver strong financial performance by backing Black and Latino tech founders. The fund is open to other corporations, institutions, qualified individuals, and other LPs who are committed to this cause.
Acquisition International M&A Awards 2023 | 13 DQE Communications To Be Acquired by GI Partners ITTSBURGH, Dec. 19, 2023 /PRNewswire/ -- GI Partners, a leading investor in data infrastructure businesses, announced today that it has signed an agreement to acquire DQE Communications (“DQE” or the “Company”) from its parent company, Pittsburgh-based Duquesne Light Holdings Inc. (“DLH”). The transaction provides DQE with additional resources to expand as it continues to provide best-in-class connectivity services as a standalone fiber infrastructure provider. Formed in 1997 as a subsidiary of DLH, DQE Communications has extended its geographic reach beyond its core Pittsburgh footprint and evolved into the region’s largest independent fiber provider offering a full suite of infrastructure-oriented communication services. This includes a 4,700-route mile fiber network that connects more than 3,000 on-net businesses, towers, and data centers with multiple expansion projects underway in strategically adjacent markets. The transaction will bolster DQE’s expansion of its fiber network operations in order to capitalize on the growing demand for high-capacity, carrier-class bandwidth services by the company’s customers in the enterprise, carrier, wireless, education, municipal and government sectors. “We are excited to partner with the DQE team, which has built the region’s most advanced carrier-grade, secure and reliable network serving preeminent enterprise and carrier customers,” said Brendan Scollans, Managing Director and Co-Head of GI Data Infrastructure. “Since its inception, DQE has been dedicated to deploying best-inclass network infrastructure, and we look forward to working with the DQE team to grow the platform in the years ahead.” “This is a great opportunity for DQE. The investment by GI Partners uniquely positions DQE as a scaled and trusted strategic network provider,” said Jim Morozzi, CEO of DQE Communications. “GI Partners is an experienced and knowledgeable investor in digital infrastructure, and we look forward to partnering with them to accelerate our network solutions and geographic reach while remaining fully committed to delivering exceptional service that our customers have come to expect from us for over 25 years.” “We are proud of DQE’s growth in recent years and see this sale as an important next step in their future. We are committed to continuing our investment into the growth of the DQE Communications business leading up to close. Once the transaction is complete, we plan to reinvest proceeds from the sale back into Duquesne Light Company and its affiliate, The Efficiency Network (TEN),” said Kevin Walker, president and CEO, Duquesne Light Holdings. The transaction is subject to regulatory approvals and other customary terms and conditions and is expected to close in the first half of 2024. J.P. Morgan acted as exclusive financial advisor, and Taft Stettinius & Hollister LLP served as legal counsel to DLH. TD Securities served as financial advisor, and Simpson Thacher & Bartlett LLP served as legal counsel to GI Partners. Investment Will Accelerate Expansion of DQE Communications’ Best-in-Class Fiber Infrastructure P
Aug22499 14 | Acquisition International M&A Awards 2023 Aug22499 Kraken acquires asset management expert Sennen to improve renewable management capabilities Kraken, the fastest growing software provider for the energy industry globally, today announces the acquisition of Sennen, a provider of advanced software for the delivery and operation of large-scale renewable energy generation. Kraken Technologies is part of Octopus Energy Group. Its tech platform, Kraken, connects up all parts of the energy system, from customer billing to flexible management of renewable generation and energy devices. It is also revolutionising service for other utilities such as water and broadband. Kraken allows for extended analytics, real time monitoring, optimisation and control of energy devices, such as solar and wind generation, batteries, heat pumps and electric cars, and enables companies to drive efficiency and meet important net zero targets. The Sennen software uses the latest cloud technology to streamline oversight, maintenance and daily operation of renewable energy projects. Joining forces with Sennen will enhance Kraken’s asset management offering, allowing it to develop more innovative products and services. The acquisition of Sennen will increase Kraken’s contracted energy generation and storage assets sixfold, growing them from 6.5GW to 36GW. It also marks the first time the platform will be actively managing the operation of offshore wind farms. Players in asset management have traditionally relied on legacy systems, lacking the bleeding edge tech that modern renewable energy operations demand. Sennen’s in-depth maintenance and analytics platform supports 1000s of sites including offshore wind farms, solar farms and grid scale batteries. Sennen’s talented team has extensive experience and a strong reputation in its field. Its 25 employees will move over to the Kraken family and continue to work from their office in Bristol. Kraken is currently contracted to manage over 6.5 GW across 130,000 green energy assets in 12 countries. Devrim Celal, CEO of Kraken, comments: “This acquisition is a gamechanger for us as we continue to disrupt the renewable energy landscape. Sennen’s expertise and innovative solutions perfectly complement our mission to provide efficiency and scalability to asset managers. We are excited to join forces with Sennen’s talented team to turbocharge the move to a cleaner, cheaper energy world.” Gaby Amiel, CEO of Sennen Tech Ltd, comments: “Our energy system needs to be completely rethought and rewired in order to operate free from fossil fuels. With renewable energy capacity set to triple globally, Sennen’s focus on meeting the challenges faced by renewable project owners will be of increasing importance. Kraken is at the absolute vanguard of the energy transformation. Together, we have the technology to unlock tremendous value for our customers.” Sennen was advised by Roxburgh Milkins who are based in Bristol. Sennen was founded by Gaby Amiel and Paul Grimshaw in 2017 with the aim of creating high performance software specifically for managing renewable energy assets. It is a 25-strong team, mostly based in Bristol, UK. Clients include leading renewable energy companies RWE and EDF Renewables and investment manager Foresight Group. • Absorbing Sennen’s technology into its stack will improve Kraken’s ability to manage renewable energy assets • Will unlock offshore wind farm operational management capabilities • Acquisition increases Kraken’s contracted assets to 36GW P
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