Other deals this week include two M&A deals in IT, retail sectors valued up to $3 billion
Cox Automotive’s Manheim Canada business has received a $130-million acquisition proposal from a US operator of digital marketplaces for used vehicles. Also in this week’s deals roundup are two M&A deals in the IT and retail sectors, one of which is valued at $3 billion.
Cox Automotive’s Manheim Canada to sell to OPENLANE for $130 million
Cox Automative has received a $130-million proposal from OPENLANE, Inc., a US operator of digital marketplaces for wholesale used vehicles, to acquire Cox Automative’s Manheim Canada business.
The deal includes the Manheim Montreal facility and auction sales, operations and select staff across Manheim Canada.
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In a press release on December 4, 2023, OPENLANE announced that Manheim Canada will be integrated into the existing OPENLANE Canada business upon deal completion.
“OPENLANE's vision is to build the world's greatest digital marketplaces for used vehicles — and this acquisition helps advance our digital strategy," said OPENLANE CEO Peter Kelly. "Building on the momentum of our combined, single OPENLANE Canada digital marketplace launch in June, this transaction will help accelerate commercial and dealer growth, and deliver an improved customer experience. “
Waterloo-based OpenText to divest mainframe business to US-based Rocket Software for $3 billion
OpenText Corporation has signed an agreement to divest its AMC (Application Modernization and Connectivity) business to Bain Capital-owned Rocket Software in a deal valued at approximately $3 billion (US$2.275 billion).
AMC is part of the Micro Focus business that OpenText acquired earlier this year for approximately $7.9 billion (US$5.8 billion).
Cleary Gottlieb Steen & Hamilton LLP is serving as legal counsel, and Goldman Sachs & Co. LLC as the sole financial advisor, to OpenText.
Kirkland & Ellis LLP is serving as legal counsel to Rocket Software, while RBC Capital Markets, LLC, Barclays Capital Inc., Deutsche Bank Securities Inc., and UBS Securities LLC are serving as financial advisors.
“For the many enterprise organizations who are built on the mainframe and ready to unlock opportunity using hybrid cloud, reality calls for a continuum with solutions and expertise that span both worlds,” said Rocket Software President and CEO Milan Shetti. “Welcoming the AMC business and its talented team to Rocket Software marks an extraordinary moment for the company, the market, and the thousands of organizations who share in our vision of making the best-of-both-worlds a reality.”
The deal is expected to close in the second quarter of 2024, subject to regulatory approvals and other customary closing conditions.
Unity to acquire majority of Mastermind Toys store locations across Canada
Unity Acquisitions Inc., a firm owned by Canadian retail pioneers Joe Mimran, Frank Rocchetti and David Lui, has signed an agreement with Mastermind GP Inc. and Mastermind LP, the largest independent specialty toy and children's book retailer in Canada, in which Unity will acquire the majority of the Mastermind Toys store locations across the country.
“Mastermind Toys is a beloved Canadian retailer with a loyal customer base driven by quality, curiosity and play,” said Joe Mimran. “The acquisition aligns with Unity's strategy to enhance and grow extraordinary Canadian brands.”
The deal is expected to close in January 2024, subject to certain closing conditions.