Sun Life's sale of UK business to London-based Phoenix Group also in deals roundup
Blakes and Stikeman Elliott assisted in Sierra Wireless’s approximately $1.5 billion (US$1.2 billion) enterprise value sale to US peer Semtech Corporation, one of this week’s highest M&A deals. Also included in this roundup is Sun Life Financial’s $385 million sale of its UK company to London-based insurance services provider Phoenix Group.
Sierra Wireless Inc., a BC-based Internet of Things (IoT) solutions provider entered into an agreement with US peer Semtech Corporation in which Semtech will acquire Sierra Wireless in an all-cash deal representing a total enterprise value of approximately $1.5 billion (US$1.2 billion).
Blake, Cassels & Graydon LLP and Skadden, Arps, Slate, Meagher & Flom LLP are serving as Canadian and US legal counsel, respectively, with Qatalyst Partners and BMO Capital Markets serving as financial advisors to Sierra Wireless.
Stikeman Elliott LLP and O’Melveny & Myers LLP are serving as Canadian and US legal counsel, respectively, and J.P. Morgan Securities LLC is serving as the exclusive financial advisor to Semtech.
“We believe the next era of technology growth is the full digitization of our industrial world – the Internet of Everything,” said Semtech president and CEO Mohan Maheswaran. “Our vision is to build a simple, horizontal platform with the goal of accelerating this transformation and to bring about a smarter and more sustainable planet. This exciting strategic acquisition of Sierra Wireless is a critical part of bringing this vision to life through the combination of cellular, LoRa and Cloud services.”
“Together with Semtech, we will be able to extend the reach of IoT solutions by scaling, optimizing and ultimately delivering an even stronger product portfolio and service model to customers,” said Sierra Wireless president and CEO Phil Brace. “Sierra Wireless is a high growth business with some of the best, most advanced IoT technology in the industry, and we are pleased to deliver immediate and compelling value to our shareholders through this transaction.”
The deal is expected to close in Semtech’s fiscal year 2023.
Sun Life Financial agreed to sell London-based Sun Life UK to insurance services provider Phoenix Group, also based in London, for $385 million.
Freshfields Bruckhaus Deringer LLP is serving as legal counsel and Fenchurch Advisory Partners LLP as financial advisor to Sun Life.
Sun Life President and CEO Kevin Strain said, “A great deal of consideration was taken to find the right buyer and partner for our UK business. Phoenix Group is a purpose-led company with similar values to Sun Life and a strong focus on delivering outcomes for their customers. We believe Phoenix Group will be a great organization for our UK employees and clients."
Sun Life's asset management companies, MFS and SLC Management, will continue to manage approximately $9 billion of Sun Life UK's general account upon deal completion.
"As the UK's largest long-term savings and retirement business with a strong track record of UK closed book integrations, we look forward to offering a safe home for Sun Life UK clients over the long term and enabling them to benefit from our broad range of Standard Life products in our Open division," said Phoenix Group CEO, Andy Briggs. "We are also pleased to enter into a new, long-term strategic asset management partnership with MFS and SLC Management. This partnership will complement our existing relationships and further enhance our liquid and illiquid credit capabilities in North America by building on their strong presence in the region."
This transaction is expected to close during the first half of 2023.
Canaccord Genuity Group agreed to acquire Results International Group, a UK-based independent advisory firm providing M&A and corporate finance services to entrepreneurs, corporates, private equity firms and investors in the technology and healthcare sectors.
Shearman and Sterling LLP is serving as the legal counsel to Canaccord Genuity.
Squire Patton Boggs is serving as legal advisor and Hines Associates Ltd. as financial advisor to Results.
"Since our initial investment to expand our advisory practice in 2019, we have meaningfully increased our relevance as a leading independent midmarket advisory firm in North America and Europe, and this has contributed to our stronger profitability," said Canaccord Genuity Group Inc. President and CEO, Dan Daviau. "Our acquisition of Results supports our strategy of increasing contributions from our advisory segment and provides robust European expertise in two of our core focus sectors, healthcare and technology."
"For more than three decades the Results team has been achieving outstanding results for our clients through a combination of deep sector expertise, a relentless focus on client service and an agile and collaborative approach,” said Results Managing Partner, Julie Langley. We are pleased to have found a flexible and entrepreneurial partner in Canaccord Genuity, where both the strategic and cultural fit are so strong. We look forward to providing enhanced geographic reach, domain expertise and service offering for our combined clients."
The transaction is expected to close in the current fiscal quarter.
