Saturday, July 2, 2011

New PEU Daddies

Private equity underwriters (PEU) Silver Lake, KKR and Technology Crossover Ventures will buy a majority interest in GoDaddy, the internet domain company.  The deal is valued at $2.25 billion, with half of that debt.  These PEU daddies get the GoDaddy Girls.  (WSJ)

Providence Equity Partners’ $1.9 billion buyout of defense contractor SRA International ran into a hitch floating $875 million in debt for the deal.  This PEU daddy might have to up the interest to entice debt issuers.  (WSJ)

Lecherous PEU's called for HP to break up and sell them various HP divisions.  Blackstone Group, Kohlberg Kravis Roberts and TPG Capital had the temerity to say the "tech powerhouse is stretched too thin."  One analyst said:

HP stock is arguably undervalued, and that's when the private equity guys swoop in.
Wells Fargo will sell its H.D. Vest Financial Services brokerage and tax-advisory unit to Parthenon Capital Partners.  (Bloomberg)

The PEU boys at Providence Equity have a second deal, taking Blackboard private for $1.64 billion.  The price is a 4% premium to the stock's late week close.   

BJ's Wholesale Club announced a definite agreement to be acquired by private equity firms Leonard Green & Partners and CVC Capital Partners for $51.25 per share in cash, a 7% premium to Tuesday's closing price. (Toronto Star)  Blackboard and BJ's went for a small premium to their new daddies.

MidOcean Partners, a leading private equity underwriter, announced it completed its acquisition of Pre-Paid Legal Services, Inc.  for $66.50 per share in a cash transaction valued at approximately $650 million.  This could come in handy if daddy gets a divorce. (PRNewswire)

Apollo Global Management will invest in an Indian pipe maker Welspun. That's not daddy's tobacco pipe.  (Economic Times).

PEU independent public offerings were up in the second quarter.  More than The Carlyle Group is cashing in. (Pensions & Investments)

PEU sugar daddies...