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Canada Pension Plan Investment Board Won Bidding for General Electric Co.’s Private – Equity Lending Business

July 2, 2015 by Sabin Piso

Canada Pension Plan Investment Board won the bidding for General Electric Co.’s private-equity lending business. The pension board agreed to pay $12 billion for the transaction. It has managed to lead its way towards the acquisition and has overtaken private-equity firms such as Apollo Global Management LLC and KKR & Co. Experts believe that this is one of the most aggressive bids compared to other competitors’ offers.

Canada

Chief Executive Mark Wiseman, leader of the fund, has more than 260 billion Canadian dollars (US$211 billion) under management, up from C$219.1 billion a year ago. Canada’s chief actuary estimates that these will reach C$300 billion by 2020.

The Canadian funds are “no longer content just being passive investors in private-equity funds,” said Jonathan Melmed, head of the Canada practice and co-chair of the global private-equity and buyout practice at law firm Morrison & Foerster LLP. The fund’s aggressive approach in acquiring GE Capital’s private-equity lending unit. The business lends money to private-equity firms for the acquisition and operation of middle-sized companies and is responsible for 400 loans. The company employs about 300 people who manage new loans and transactions for customers.

About the Canada Pension Plan Investment Board

The Canada Pension Plan Investment Board operates a debt business, which was established in 2009 to take advantage as banks backed out during the credit crunch. The midsize-lending market, where the GE business is considered a leader, appealed to the Canadian fund due to a much higher recurring returns it offered, said Mark Jenkins, head of the fund’s private investments.

Under the direction of the then Canadian Finance Minister Paul Martin, the CPP Investment Board was created in 1997 as a group that was independent of the government to monitor and invest the funds held by the Canada Pension Plan (CPP). The CPP Investment Board is a crown corporation created by an Act of Parliament. It oversees the operation of various aspects of the CPP reserve fund. It also plans changes in the direction and the board of directors that is accountable to but independent from the federal government. The CPP Investment Board’s mandate is in its founding legislation, the Canada Pension Plan Investment Board Act. Its investing mandate is to achieve a “maximum rate of return, without undue risk of loss.”

About Mark Wiseman

Mark Wiseman is the President and Chief Executive Officer of CCP. Mark assumed the role of President and CEO in July 2012. He is responsible for leading the CPP Investment Board and its investment activities. Mark Wiseman joined the CPP Investment Board in June 2005 as the organization’s Senior Vice-President, Private Investments. He was later named Executive Vice-President, Investments, responsible for managing all of the investment activities of the CPP Investment Board – Public Market Investments, Private Investments and Real Estate Investments. Born in Niagara Falls, Ontario, Mark holds a BA from Queen’s University and a law degree and MBA from the University of Toronto. In 2006, Mark was named to Canada’s Top 40 Under 40.

Jonathan M.A. Melmed

Jonathan M.A. Melmed, Age 35, New York Office, Corporate. Mr. Melmed’s practice focuses on international corporate mergers and acquisitions private equity and venture capital. He is a member of Chadbourne’s Canada practice and private equity group. Mr. Melmed represents corporations as well as private equity, venture capital and hedge funds in domestic and cross-border M&A, private equity and venture capital transactions, including U.S.-Canada and U.S.-Israel. He has also represented numerous companies and investment banks in U.S. securities transactions, including initial public offerings, as well as both public and private debt and equity offerings. While Mr. Melmed has broad sector experience, including in the media and life sciences sectors, his recent practice has focused heavily on renewable energy. Mr. Melmed received a B.A., with Great Distinction and Dean’s Honour List, from McGill University in 1994 and an LL.B. and a B.C.L., with Distinction, from McGill University, Faculty of Law, in 1998. He is a member of the New York and Quebec, Canada bars.

About General Electric

GE new

General Electric (GE) is an American multinational conglomerate corporation incorporated in New York. General Electric has headquarters in Fairfield, Connecticut. As of 2015, the company operates through the following segments: Power and Water. Oil and Gas, Energy Management, Aviation, Healthcare, Transportation, and Capital. In 2011, General Electric has ranked among the Fortune 500 companies as the 26th-largest firm in the U.S. by gross revenue. As of 2012 the company was listed the fourth-largest in the world among the Forbes Global 2000, further metrics being taken into account. General Electric stock market evolution http://www.marketwatch.com/investing/stock/ge

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Filed Under: Noutati Sabin Piso Tagged With: acquisition, Canada Pension Plan Investment Board, General Electric (GE), Jonathan M.A. Melmed, Mark Wiseman

Informatica to Be Acquired by Permira and Canada Pension Plan Investment Board for $5.3 Billion

April 12, 2015 by Sabin Piso

The deal that is approximately $5.3 billion states that Informatica will be acquired by a company that is controlled by CPPIB and Permira. According to the terms of the agreement, Informatica shareholders will receive $48.75 in cash for each share of Informatica common stock.

CIBB

Informatica is known as the leader in several technology categories, including Cloud Technologies, Data Integration for Big Data initiatives, and MDM Solutions. The company’s growth strategy is to be the best in all geographic regions and to grow across customer data initiatives and of course to assume leadership in all things data.

“After careful consideration and deliberation of strategic alternatives, our Board of Directors unanimously concluded that the sale of Informatica to the Permira funds and CPPIB is in the best interest of all Informatica stakeholders,” said Sohaib Abbasi, chairman and chief executive officer, Informatica. “While delivering immediate compelling value to our shareholders, we remain committed to the long-term success of our customers, partners, and employees. Permira and CPPIB share both our vision for Informatica to power the data-ready enterprise and our conviction in sustained long-term growth.”

“Informatica is an outstanding company and a clear leader in the essential field of enterprise data solutions,” said Brian Ruder, a Permira Partner and Co-Head of the firm’s Technology Sector Team. “We are very excited about the Company’s ongoing transition to cloud and subscription based services, as well as its continued pursuit of four separate billion dollar market opportunities in cloud integration, master data management, data integration for next generation analytics, and data security. In addition, we look forward to working with this talented team of dedicated employees and CPPIB to grow the business and achieve Informatica’s highest potential.”

informatica

“This transaction represents an excellent opportunity to acquire a market-leading enterprise data integration solutions provider,” said Mark Jenkins, Senior Managing Director & Global Head of Private Investments, CPPIB. “Informatica’s differentiated suite of software solutions, stable base of recurring revenues and strong potential for future growth make this a highly attractive investment for CPPIB. We look forward to partnering with the Informatica team and the Permira funds to accelerate the Company’s growth and to support Informatica’s continued market leadership in product innovation.”

The Board of Directors of Informatica has unanimously approved the merger recommend that Informatica shareholders will adopt the agreement. The transaction is expected to be completed in either the second or third quarter of 2015 and is subject to receipt of shareholder approval as well as customary regulatory approvals.

About Informatica Corporation

Informatica Corporation is a software development company which started in 1993. Its headquarters are in Redwood City, California. Founded by Diaz Nesamoney and Gaurav Dhillon. The company’s chairman and CEO is Sohaib Abbasi.The software company has popular products such as Cloud Integration, Complex Event Processing, Data Masking, Data Quality, Data Replication, Data Virtualization, Master Data Management, Ultra Messaging.

The Informatica Marketplace was launched in 2010 with products and services such as data integration eco-system for Informatica and its partners to share and leverage data integration solutions. Informatica features over 1,300 pre-built mappings, templates, connectors and add-ons for data integration and cloud data integration products. Informatica stock market evolution: http://www.nasdaq.com/symbol/infa

About Permira Funds

permira

Permira is a European equity company, founded in 1985. Since 1985 the Permira funds have made nearly 200 private equity investments. Permira specializes in five sectors: Consumer, Financial Services, Healthcare, Industrials and TMT (Technology, Media, and Telecommunications). At present there are 25 companies in the Permira portfolio. The firm has approximately 120 professionals. Permira teams are based in Frankfurt, Guernsey, Hong Kong, London, Luxembourg, Madrid, Menlo Park, Milan, New York, Paris, Stockholm and Tokyo. Permira is led by two co-managing partners Kurt Björklund and Tom Lister.

About Canada Pension Plan Investment Board (CPPIB)

The Canada Pension Plan Investment Board (CPPIB) manages more than C$238 billion in investment assets of Canada Pension Plan which is pension plans for eighteen million Canadians. Under former Canadian Finance Minister Paul Martin, the CPP Investment Board started in 1997 as an organization independent of the government. Its job was to monitor and invest the funds held by the Canada Pension Plan (CPP). The CPP Investment Board created the CPP Reserve Fund. CPP Investment Board is a crown corporation through an Act of Parliament. It presents reports its performance on a quarterly basis and has a professional management team to oversee the operation of all the aspects of the CPP reserve fund. It is important in planning changes in direction, along with a directorial board which is responsible but independent from the federal government.

 

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Filed Under: Noutati Sabin Piso Tagged With: acquisition, Canada Pension Plan Investment Board, Informatica, Permira