More action
Happy Friday! This is the last July edition of "People Familiar" as your favorite TMT M&A reporter is going on a much needed vacation. I am travelling to the island of Mallorca, which has been on my list of summer destinations for many years. I am looking forward to visiting its beautiful beaches, wandering around charming old villages, and trying some of the locals' favorite dishes. Being the big planner that I am, we pretty much have every day booked, but if you have any recommendations, please send my way!
In the deal-making world, this has certainly been a fruitful week, and my roundup of stories below can serve as proof. "This is the busiest I have been in three years," one banker told me this week. Many others I spoke to have agreed with this sentiment. There is an appetite for deals, and every participant in the industry seems ready for action.
In tech...
That said, certain deal talks don't get to progress to anything beyond talks.
Google parent Alphabet decided not to pursue a takeover of online marketing software company HubSpot weeks ago, a person familiar with the matter told Reuters on Wednesday.
The talks between Alphabet and HubSpot never progressed to due diligence and fell apart shortly after the companies held initial discussions on a potential deal, the source said, on condition of anonymity to discuss confidential matters.
HubSpot's shares closed 12% lower on Wednesday, while Alphabet's shares were up 1.2%. Reuters had reported in April that Alphabet was in talks with advisers about the possibility of making an offer for HubSpot.
Elsewhere, Svea Herbst-Bayliss was first to report that Investment firm Anson Funds Management has amassed a stake in Five9 and is urging the U.S. call center software company to consider a sale, according to people familiar with the matter.
The investment firm's move comes on the heels of Five9's decision last year to walk away from an acquisition offer from Zoom Video Communications, the maker of the popular virtual meeting software, one of the sources said.
Earlier today, I reported that buyout firm Vista Equity is exploring options including a sale of Sonatype in a deal that could value the cybersecurity firm at more than $1.5 billion including debt, according to people familiar with the matter.
Fulton, Maryland-based Sonatype has tapped Goldman Sachs to solicit interest from potential buyers, which could include other private equity firms, said the sources, who requested anonymity as the matter is confidential.
In fintech...
David French and I reported that private equity firm Genstar Capital is in advanced talks to buy a significant stake in AffiniPay in a deal that could value the payments processor at nearly $3 billion including debt, according to people familiar with the matter.
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A deal is expected to be announced in the coming weeks, if the talks do not fall apart, the sources said on condition of anonymity because the discussions are confidential.
Elsewhere, Bain Capital has agreed to acquire wealth management software provider Envestnet for $4.5 billion, including debt, according to the official announcement shared on Thursday. The press release confirmed my scoop from earlier this week and marked the completion of the sale process which we were first to report on in April.
This is an example of a deal that can benefit from generative AI, which can drive efficiencies and growth within the business, people familiar told me, reflecting on the announcement. For that reason, we have seen and should expect to see more M&A in vertical software, as this is where AI can truly be transformational, the sources added.
In media...
Dawn Chmielewski reported that Skydance Media CEO David Ellison sketched out a vision on Monday for Paramount Global as a technology-media hybrid company at a time Hollywood has been competing for attention with tech giants moving into the entertainment business.
In an hour-long presentation to the financial community following the announcement of a merger agreement with Paramount, Ellison invoked Steve Jobs, describing the late Apple co-founder and Pixar Animation Studios leader as a mentor who informed Ellison's view of the relationship between art and technology.
Other news & commentary:
What else is going on? For any anonymous deal tips you can find me on Signal and Telegram. I am also available by email [email protected] and via cell.
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Have a great weekend, and see you in August!
Milana