Category: Corporate Finance and M&A/Deals

Harris Williams & Co. Advises Telecoms Firm on Significant Investment
Corporate Finance and M&A/DealsFinance

Harris Williams & Co. Advises Telecoms Firm on Significant Investment

The investment, completed on April 17, 2014, was led by bankers from Technology, Media & Telecom Group as well as from Harris Williams & Co.’s London and San Fransisco offices.

“Upstream has delivered tremendous growth over recent years, which is testament to the strength of the management team and of the demand fulfillment marketing platform it has developed since its inception in 2001,” said Thierry Monjauze, head of Harris Williams & Co.’s London office and a managing director in the firm’s TMT Group.

“Following the investment, Upstream will leverage Actis’ relationships and expertise to expand its customer base and solution suite and drive continued expansion,” added Mike Wilkins, a managing director in Harris Williams & Co.’s TMT Group.

Upstream is the industry leader in emerging markets mobile monetisation. Upstream works with mobile operators, ecommerce brands and app developers in 40 markets helping them to sell their products to mobile consumers through sophisticated demand fulfillment marketing campaigns, while increasing customer loyalty and providing deep customer insights. Its clients include the Vodafone Group, Telecom Italia Mobile (TIM), MTN, T-Mobile and Etisalat. Upstream has direct marketing and billing access to more than 1 billion emerging market consumers through their mobile handsets, offering them personalised propositions. The company has already generated an estimated $1 billion of incremental revenue for its clients and grew its revenues by 61% in 2013 with new services and markets being added on a monthly basis.

“Actis has a first-class reputation as an emerging market investor. Its track record of partnering with founder and entrepreneur management teams is exceptional,” commented Marco Veremis, CEO and founder of Upstream. “Upstream will benefit from Actis’s deep expertise in emerging markets and its highly complementary regional presence. Upstream’s founders and management team are glad to see Actis subscribing to our vision and look forward to a close collaboration in executing our high growth strategic expansion plan for the coming years.” Veremis has led the business since its foundation and will continue to lead the company after Actis’ investment.

Actis invests exclusively in the emerging markets with a growing portfolio of investments in Asia, Africa and Latin America; it currently has $7 billion funds under management. Combining the expertise of more than 120 investment professionals on the ground in nine countries, Actis identifies investment opportunities in three areas: private equity, energy and real estate. Actis is proud to actively and positively grow the value of those companies in which it invests and in so doing, contribute to broader society.

Harris Williams & Co., a member of The PNC Financial Services Group, Inc. (NYSE:PNC), is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements and capital markets advisory services.

Harris Williams & Co.’s TMT Group has experience across a broad range of sectors, including software, internet and digital media and infrastructure solutions. Within these segments, the TMT Group focuses on targeted subsectors including application software, data and informatics, eCommerce, education technology, energy technology, financial technology, healthcare IT, infrastructure software, IT and tech-enabled services, mobile, online advertising and marketing services, public sector software and telecom, data center and networking solutions. For more information on the firm’s TMT Group and other recent transactions, visit the TMT Group website.

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

Temenos Appoints Martin Frick as Head of APAC
Corporate Finance and M&A/DealsFinance

Temenos Appoints Martin Frick as Head of APAC

Temenos, the market-leading provider of mission-critical solutions to the financial services industry, has appointed Martin Frick as Head of APAC, based out of the group’s Singapore office.

Martin brings over 20 years of relevant experience in banking and banking technology. In this career, Martin has been a Senior Executive of Raiffeisen Bank in Switzerland as well as Executive Director and Head of Custody Processing Service at UBS. More recently, Martin has been working in banking technology and was previously Managing Director of Asia Pacific for Avaloq. He is a qualified economic computer scientist, and has an MBA.

Temenos already has a very strong reputation and track record in the APAC market. In 2013, the APAC business grew licensing by 19% and now boasts revenues of over USD100m, serving more than 150 customers, including Bank of Shanghai and Bank Sinopac. Martin’s appointment will strengthen Temenos’ APAC team, positioning it to take advantage of the very strong growth being seen in the market as a whole, with industry analyst Gartner forecasting the APAC banking-software market to grow at a CAGR of over 9%, reaching USD 2.7 billion in 2017[1]. In conjunction with Martin’s appointment, you can read his perspective on the private wealth market and APAC here.

Martin Frick, Head of APAC, Temenos, commented: “I am delighted to have been appointed to head up Temenos’ APAC region. My decision to join Temenos was based on its reputation as the market-leading vendor of banking software across the retail, microfinance, Islamic, corporate and private wealth markets. It was also influenced by Temenos’ strong global presence, its market momentum, its industry-leading levels of R&D and its multi-product set. I am proud to be part of a company that has such a good standing within banking technology, and such a great future ahead of it.”

Corporate Finance and M&A/DealsFinance

Steve Back Joins Emerisque Brands as Operating Partner

Emerisque Brands, a specialist, growth-oriented private equity sponsor based in Mayfair, has announced that Steve Back has joined the firm as an Operating Partner.

Back’s initial focus is assisting the executive management of the firm’s Italy-based fashion portfolio, consisting of MCS Group (MCS menswear) and Industries Sportswear Company S.p.A. (Henry Cotton’s, Marina Yachting, Coast Weber Ahaus and the licensed brand 18CRR81 Cerruti).

Most recently, Back was recruited to restructure and take private Monsoon plc, a UK- based fashion retailer and was ultimately named its Chief Executive Officer.

Under his tenure there as Chief Commercial Officer, Back negotiated and repaid the company’s debt; restoring the c. £1 bn Monsoon to £100m EBITDA profitability. He was previously Chief Executive Officer of the supermarket group, Sommerfield PLC, in the mid 2000’s and oversaw an accelerated growth plan there which led to £1.5bn growth in the first year and a subsequent take-private transaction in a deal valued at £1.1 bn. Mr. Back has held a number of other executive and financial positions during his career in the retail industry, including with Laura Ashley Ltd., Chef & Brewer Group Ltd., Ryman Group, Grand Metropolitan Retailing and Budgens Stores Ltd.

“We are delighted Steve has joined Emerisque,” said William Knight, of Emerisque Brands. “His proven experience, specializing in sustainable business building and business recovery, supply chain efficiencies and financial and operational restructuring will be enormously helpful in creating value within the portfolio.”

Adyoulike Announces Major UK Acquisition
Corporate Finance and M&A/DealsFinance

Adyoulike Announces Major UK Acquisition

Adyoulike, the French native technology platform and network, has announced that it has acquired Content Amp, the UK’s leading native distribution and content service.

The combined company had a turnover in 2013 of $5million. The expected turnover for what will be Europe’s first pure-play native advertising company will be around $10million in 2014.

Adyoulike has pioneered native advertising in France since its backing by French venture capitalist Banexi Ventures Partners in October 2012. The company is now seizing on the buzz around native with the first of a planned string of European acquisitions, starting with Content Amp in the UK market.

Content Amp will rebrand as Adyoulike UK. The acquisition will see the founders of Content Amp, Francis Turner and Dale Lovell, join the Adyoulike management board and run the UK division of Adyoulike. This will entail expanding native advertising formats into the UK market.

Julien Verdier, CEO of Adyoulike, comments: “This acquisition creates an immediate market leader in the European native advertising space. In Content Amp we have identified an experienced team that is as excited about native advertising as we are. Their expertise in all things content, plus extensive brand, publisher and agency contacts in the UK and combined with our market leading native advertising technology, is the perfect fit for Adyoulike to lead the expanding UK and European native advertising market.

“We have found a UK partner that shares our vision and strategy to turn Adyoulike into a global native advertising technology provider. “

Francis Turner, Content Amp co-founder and newly appointed managing director of Adyoulike UK, adds: “The native advertising market continues to be 2014’s hottest topic for brands, publishers and agencies. We have been running native campaigns over the last 12 months and have seen great advertiser appetite and outstanding results and performance, particularly when compared to stagnating and commoditized traditional display. There are a number of great opportunities to grow the Adyoulike native advertising solution in the UK.

“As one entity, Adyoulike and Content Amp offer a wealth of content expertise and native advertising options that solve many of the challenges around creating and distributing branded content, bringing a scalable solution to brands and agencies. We will be the only company of our type in the UK market.”

Philippe Herbert of Banexi Ventures Partners adds: “Adyoulike’s strategic position in native advertising perfectly fits our search for future leaders of digital advertising, bringing creativity and scalable distribution together. The UK deal is very much in keeping with this strategy as Adyoulike expands globally. We are confident that Adyoulike is set to become a global leading native advertising network, as native advertising is the biggest trend in digital marketing of the last two years.”

Brooks MacDonald Group Plc Acquisition of DPZ Capital Limited
Corporate Finance and M&A/DealsFinance

Brooks MacDonald Group Plc Acquisition of DPZ Capital Limited

Highlights:

• Acquisition of Jersey based DPZ for an initial consideration of £5.7m, made up of £3m in cash and the issue of New Ordinary Shares in the Group at a value of £2.7m. The total consideration payable by the Group will not exceed £13m, which includes c.£1m of net current assets.

• Significant expansion of, and enhancement of the skills and offering of, the Group’s international and offshore division.

• Expected to be earnings enhancing in the full year to June 2015.

• Increases pro forma discretionary funds under management by £360m to £6.04bn.

DPZ is a well-established wealth management business based in Jersey which was founded in 2007. It manages a range of distinct investment strategies founded on its core competencies: asset allocation, manager selection, fixed interest and credit investing, and equity selection. Funds under management since DPZ’s inception have grown rapidly and, as at 31 March 2014, DPZ had c.£430m of funds, c.£360m of which is managed on a discretionary basis, c.£60m of which is managed on an advisory basis and c.£10m is managed on an execution only basis

Consideration:

Should the full value of DPZ funds under management transfer to BMI, based on their value as at 31 March 2014, the consideration would be, in total, £10.8m (excluding net current assets).

The consideration will be satisfied by an immediate cash payment of £3m together with a payment of New Ordinary Shares in the Group to the value of £2.7m. The number of shares issued will be based on an agreed price of 1706.4 pence per New Ordinary Share. A further payment in cash of £2.4m will be paid in October 2014. These three elements together, totalling £8.1m, represent 75% of the total consideration.

Based on the value of DPZ’s funds under management at 31 March 2016, a cash payment will be made comprising the total consideration due at that date less the upfront consideration already paid.

All of the cash payments will be financed from the Group’s internal resources and the exact number of shares issued by the Group as part of the upfront consideration will be separately announced.

Reasons for and benefits of the acquisition:

The Group’s stated strategy has been to build on the successful integration and growth of its international division, BMI, which was acquired in 2012, with further expansion of the international team and its capabilities, thereby strengthening its offering and accelerating its growth rate. Since acquisition, BMI has grown its funds under management and has increased the size of its team by 15 staff. The acquisition of DPZ is consistent with furthering this growth strategy.

The acquisition will increase the Group’s international presence significantly, with an increase in discretionary funds under management managed out of the Channel Islands of over 50%. In addition, DPZ brings additional skills to the business, which are expected to prove valuable routes to growth. First, the Group intends creating a new Fixed Income offering based on the existing DPZ team who have been very successful in the asset class. Secondly, the Group will create a new Platform Team reflecting the success of DPZ’s International MPS solution enabling this offering to be expanded further.

Chelsea Village HR Head joins RiverPeak
Corporate Finance and M&A/DealsFinance

Chelsea Village HR Head joins RiverPeak


Clare has a wealth of experience including time as Group HR Manager for Chelsea Village PLC. Clare will be adding her expertise to the team as RiverPeak continues its planned growth.

Launched in December, RiverPeak Wealth provides portfolio management, investment analysis and financial planning advice.

James Powell, RiverPeak Managing Director, said, “We are delighted to have Clare join us, she brings with her enormous experience in dealing with the day to day issues surrounding a growing company like ours. Importantly she adds invaluable knowledge in the HR field as we look to add further experienced advisers to our team. We are really looking forward to working with Clare”.

Clare Grout added “I am very excited by the opportunity that RiverPeak Wealth has in financial services and I’m looking forward to supporting the directors’ ambitious growth plans”.

Info Risk Higher for Acquisitions Than Mergers
Corporate Finance and M&A/DealsFinance

Info Risk Higher for Acquisitions Than Mergers

Company acquisitions can have a devastating impact on information security and management, with the employees of acquired firms more preoccupied with the potential impact on their role than with the need to effectively integrate the information of both companies, according to new European research[1] by storage and information management company Iron Mountain. This lack of focus during an acquisition could leave information at increased risk of loss or exposure. The picture is different when companies merge, and employees stay focused on integration and ensuring company information remains well managed.

The top two information concerns of employees at acquired firms are: confusion around responsibilities for managing the information (34%) and the prospect of change to their information management systems (33%). Just over a quarter of employees (27%) at acquired firms worry about consolidating different sets of customer or company records, and less than one in five (17%) worry about how to deal with data discrepancies, duplication and overlap.

This contrasts sharply with the concerns of staff at the acquiring firm, where 41% worry about integrating the two data sets and 34% are concerned about the quality of the data.

Furthermore, one in three employees of acquired firms say there are no policies for integrating records or protecting customer data compared to just 19% of those at the acquiring firm. Paper records are a serious concern, with 44% of newly acquired firms saying there is no process for integrating paper into new digital systems, and 31% saying the same for the storage of the paper archive.

The picture for company mergers is very different, with employees at both firms focused equally on addressing the main aspects of information management. Nearly three quarters (71%) of employees feel supported in record integration during a merger, and nearly two thirds (62%) feel the same about the protection of customer data.

Discussing the findings, Charlotte Marshall, Managing Director of Iron Mountain in the UK, Ireland and Norway said: “Information management is often an afterthought when companies merge. However, given the value of information and the desire of merging firms to rationalise cost structures, it should be a priority. Joining forces with or acquiring another organisation provides an opportunity for firms to re-evaluate their information management programmes and make the changes required to drive consistency, increase security and improve access to information.”

“Our study shows that the emotional impact of acquisitions can cause employees to lose focus on how information is managed. Information on paper is particularly vulnerable, with many firms having no effective storage or integration plans in place, thereby leaving potentially valuable data at increased risk of loss or exposure. Because employees can feel insecure and unsupported during times of change, communication is key. Consistent and clear instruction on how to deal with the information challenges ahead will help employees to understand how information should be managed going forward, where the key responsibilities lie, and what advantages new information management processes can bring.”

Appointment at Quilter Cheviot
Corporate Finance and M&A/DealsFinance

Appointment at Quilter Cheviot

Mo Baluchi, previously head of intermediaries at Credit Suisse, has joined the company as Business Development Director.

The appointment follows a year in which Quilter Cheviot’s Jersey office grew its funds under management by 14%. The office also celebrated the 40th anniversary of its presence on the island in 2013.

Office head Tim Childe said: “Mo is a welcome addition to the team here. His appointment is a reflection of our growth during 2013 and our confidence in relation to growth prospects for the future.

“Mo is a highly regarded finance professional who brings with him a wealth of expertise and unrivalled contacts within the intermediary and introducer marketplace.”

Quilter Cheviot CEO Martin Baines described the Jersey office’s 2013 growth as ‘stellar’ and said it had helped the business nationally break the £15bn* barrier for funds under management.

He added: “The growth is testament to the quality of our investment advice and the character of our relationships with clients and professional intermediaries.”

Baluchi will cover business development with intermediaries, introducers and high net worth private clients and will be working alongside Quilter Cheviot’s existing business development executive in Jersey, Chris Scott.

Mo has lived in Jersey for 10 years and in his spare time likes to spend time with his wife and three children. He is also a Director at the Lions Club of Jersey, a Chartered FCSI and a Chartered Wealth Manager.

Quilter Cheviot has an experienced team working across national, international and regional market-places, with significant expertise in dealing with multi-currency solutions.

Mr Childe added that the firm, which operates across 13 locations in the Channel Islands, UK and Ireland, intended to capitalise on its record for consistency and quality of performance.