G4S shareholders agree to $5.3bn Allied deal

BY Richard Summerfield

Following a long-running battle for control of the company, G4S shareholders have finally accepted a $5.3bn bid from Allied Universal.

Allied Universal has received valid acceptances representing roughly 79 percent of the G4S share capital. The threshold was 50 percent plus one G4S share.

The deal will create the world’s largest private security company, generating more than $18bn in revenue and employing more than 750,000 security guards and other staff.

The final Allied Universal offer price of 245 pence per G4S share represents a premium of approximately 68 percent to the closing price of 146 pence per G4S share on 11 September 2020, the last business day before commencement of the offer period, and a premium of approximately 91 percent to the three-month volume weighted average closing price of 128 pence per G4S share on 11 September 2020.

Allied Universal beat Canadian rival GardaWorld to G4S, after the two companies had been involved in a bidding war. In December, G4S agreed to be acquired by Allied, rejecting GardaWorld’s offer of 235 pence per share in favour of Allied’s bid, which was 10 percent higher. GardaWorld had been attempting to acquire G4S since last summer, raising the price of its bid four times since first approaching shareholders about a potential takeover.

“We are pleased that a very large proportion of shareholders have accepted Allied Universal’s final offer,” said John Connolly, chairman of the G4S board. “The G4S board believes that the offer provides shareholders with an attractive premium, while securing the future success of G4S for employees, customers, pension scheme members and other stakeholders.”

“The combination of G4S and Allied Universal creates the global leader in security with revenues of over $18billion, industry leading talent and expertise and unmatched market coverage,” said Ashley Almanza, chief executive of G4S. “This unique combination will offer customers exceptional service and provides employees with an exciting future.”

He added: “My team and I look forward to working with Allied to support a successful integration of the two businesses.”

News: G4S saga ends as shareholders accept $5.3 billion Allied Universal offer

Speedcast emerges from Chapter 11 under new ownership

BY Fraser Tennant

Having successfully completed its restructuring process, satellite communication provider Speedcast International Limited has emerged from Chapter 11 proceedings under the ownership of private investment firm Centerbridge Partners.

Over the past 12 months, Speedcast has taken steps to reduce its cost structure and strengthen its operations. Furthermore, the company plans to transform its business and help customers evolve what their remote operations can achieve with fully connected systems that harness future-ready technologies and applications.

As part of this transformation, Speedcast will also integrate its previous mobility networks with a comprehensive, unified global platform capable of supporting the most demanding customer operations and digitalisation requirements.

“We are pleased to have reached the completion of this process which is the culmination of a lot of hard work from our entire team,” said Joe Spytek, chief executive of Speedcast. “I’m eager to work with Centerbridge to position the business for success and give our customers the tools to advance the performance of their operations in today’s changing market landscape.”

Following Centerbridge’s $500m equity investment in the company, Speedcast now has a clean balance sheet with no secured debt and a healthy cash balance, optimally positioning it as a stable, long-term partner for its employees, customers and vendors.

“We look forward to supporting Speedcast’s management team in building upon the company’s strong foundation to realise the growth opportunities that exist as they move forward,” said Jared Hendricks, senior managing director at Centerbridge. “We are excited to work together to help Speedcast further strengthen its service offerings to ensure the company is poised to thrive.”

Speedcast filed for Chapter 11 in July 2020, citing significant industry pressures, as well the global impact of coronavirus (COVID-19) pandemic –  dynamics that made it impossible for the company to complete its planned equity raise.

Founded in 1989, Speedcast is the world’s largest remote communications and IT services provider. Serving more than 3200 customers in over 140 countries, the company has a strong customer focus and a strong safety culture.

Mr Spytek concluded: “I especially want to thank our customers and partners who extended us their trust as we completed our restructuring, and our employees for their dedication to supporting client operations throughout this process.”

News: Speedcast emerges from Chapter 11 bankruptcy debt free

Wipro to acquire Capco in $1.5bn deal

BY Fraser Tennant

In a deal that will make it one of the largest providers of integrated, end-to-end consulting, digital, cloud and IT transformation services, Wipro Ltd is to acquire global management and technology consultancy Capco for $1.5bn in cash.

When combined, the capabilities of Indian multinational Wipro alongside Capco’s domain and consulting strength will deliver integrated, bespoke solutions to help fuel growth and achieve transformation objectives.

Recognised globally for its comprehensive portfolio of services, strong commitment to sustainability and good corporate citizenship, Wipro has over 190,000 employees serving clients across six continents.

The acquisition of Capco, which is Wipro’s biggest since the company acquired Infocrossing Inc. for $548m in 2007, is intended to give the tech services giant a strong consulting footprint, as well as help it to regain some of the momentum the company has lost to rivals in recent years.

“We are very excited to welcome Capco’s admirable leadership team and employees, and global clients, to Wipro,” said Thierry Delaporte, chief executive and managing director of Wipro. “Together, we can deliver high-end consulting and technology transformations, and operations offerings to our clients. Wipro and Capco share complimentary business models and core guiding values, and I am certain that our new Capco colleagues will be proud to call Wipro home.”

London-based Capco has an experienced executive team and over 5000 business and technology consultants based across more than 30 global locations, supporting clients through their expert insights, entrepreneurial approach and focus on delivery excellence.

“We are incredibly excited to join our new colleagues at Wipro,” said Lance Levy, chief executive of Capco. “Together, we will offer bespoke transformational end-to-end solutions, now powered by innovative technology at scale, to create a new leading partner to the financial services industry.”

The acquisition is subject to customary closing conditions and regulatory approvals and is expected to close in June 2021.

Mr Levy concluded: “We look forward to leveraging the complementary capabilities and similar cultures of both companies to drive industry change and offer exciting opportunities for both our clients, and our people.”

News: Wipro to buy UK-based consultancy Capco for $1.45 billion

Apollo Global and Athene agree $11bn all-stock deal

BY Richard Summerfield

Apollo Global Management Inc has agreed to acquire Athene Holding Ltd in an all-stock deal that values the annuity business at around $11bn.

The deal is expected to close in January 2022, the companies said in a statement on Monday. Apollo was already the annuity seller’s biggest shareholder, with the firm and related entities owning a 35 percent stake in the company.

Under the terms of the deal, each Athene common share will be exchanged for 1.149 shares of Apollo common stock, with Apollo shareholders owning about 76 percent of the combined company once the transaction is completed.

By merging with Athene, the life insurance company Apollo established at the height of the financial crisis, the alternative asset manager will be transformed into a financial conglomerate with a market capitalisation worth almost $30bn.

“This merger is all about alignment between Apollo and Athene, amongst Apollo’s stockholders and with our limited partners,” said Marc Rowan, co-founder and incoming chief executive of Apollo. “For Apollo and Athene, we will have total alignment to optimize our strategy and allocate capital efficiently, which will include rapidly scaling our capability to originate attractive risk/reward assets, which are the limiter of growth for both firms. We have also created alignment among all our stockholders who will share in the upside of a larger, more liquid company with leading corporate governance. And it further aligns interests with our fund investors, giving us a bigger balance sheet to invest alongside clients in our various fund products.”

“Today’s announcement reflects the strength and strategic nature of our longstanding mutually beneficial relationship with Apollo – one which has already created enormous value for each other and our respective constituents,” said Jim Belardi, chairman and chief executive of Athene. “After carefully reviewing Athene’s options to unlock value for shareholders, Athene and Apollo determined that the potential of a fully aligned business would be significantly greater than a sum-of-the-parts.

“Coming together in this merger is a logical and exciting next step that will simplify our relationship while driving significant strategic and financial benefits in both the immediate and long-term future,” he added.

News: Apollo Global to buy annuities provider Athene in $11 billion deal

Las Vegas Sands to cash out of property portfolio

BY Richard Summerfield

An affiliate of funds managed by alternative investment firm Apollo Global Management Inc are to acquire the Las Vegas properties of Las Vegas Sands in a deal worth $6.5bn.

The properties being sold include the Venetian Resort Las Vegas and the Sands Expo and Convention Centre. Apollo Global Management Inc’s affiliate-managed funds will buy the operating company of the Venetian for $2.25bn and VICI Properties will buy the land and real estate assets of the Venetian for $4bn.

The sale will see Las Vegas Sands increase its focus on the increasingly lucrative Asian market, most notably, the world largest gambling hub, Macau. The deal comes just a few months after the death of the company’s then chief executive and chairman, Sheldon Adelson.

“The Venetian changed the face of future casino development and cemented Sheldon Adelson’s legacy as one of the most influential people in the history of the gaming and hospitality industry,” said Robert Goldstein, chairman and chief executive of Las Vegas Sands. “As we announce the sale of The Venetian Resort, we pay tribute to Mr. Adelson’s legacy while starting a new chapter in this company’s history.

He continued: “This company is focused on growth, and we see meaningful opportunities on a variety of fronts. Asia remains the backbone of this company and our developments in Macao and Singapore are the centre of our attention. We will always look for ways to reinvest in our properties and those communities.”

“The Venetian is America’s premier integrated resort, with an unrivalled set of amenities to serve guests across hospitality, meeting events, gaming, and entertainment – categories that we believe are well positioned for strong recovery and long-term growth,” said Alex van Hoek, a partner at Apollo. “The team at Las Vegas Sands, under the leadership and vision of Sheldon Adelson, built an irreplaceable asset that is renowned for its quality, scale and integrated offerings, and we see significant opportunity to invest in and accelerate its growth.

“This investment also underscores our conviction in a strong recovery for Las Vegas as vaccines usher in a reopening of leisure and travel in the United States and across the world,” he added.

“The Venetian is one of the most coveted properties in Las Vegas and a premier destination for gaming, business and leisure alike,” said John Payne, president and chief operating officer of VICI Properties. “We are thrilled to add The Venetian to our roster of best-in-class assets and believe the property is positioned to benefit from a rebound in Las Vegas under Apollo’s leadership. We look forward to what we expect will be a mutually beneficial and productive relationship with Apollo.”

The gambling industry has been badly affected by the COVID-19 pandemic. Sales growth vanished in March 2020 as infections spread across the US. Las Vegas Sands posted a quarterly loss of almost $300m in January.

News: Las Vegas Sands to sell Vegas properties for about $6.25bn