Good morning, Nina Lindholm here with the Europe Wire from the London newsroom.
Increasing regulatory demands and dated legacy systems in the public sector have led private equity to back govtech businesses looking to bring the segment up to date. This morning we start with a merger of two of Main Capital Partners’ portfolio companies operating in the financial administration segment.
We then move over to logistics, where private equity has also been busy picking up businesses. Houlihan Lokey managing director Burke Smith shares his thoughts on the segment as we take a look at some of the recent deal activity.
To finish, we have a media deal as Cathay Capital signs a deal to jointly own a digital asset and social media management business.
Better together
Public organizations are among the many sectors seeking to modernize workflows with the use of new software and artificial intelligence. Private equity has taken note, and govtech deals make frequent appearances here on PE Hub. This morning, we have a merger in the sector, as Main Capital Partners portfolio companies MPS Public Solutions and Mach have announced a strategic merger to create a “powerhouse” in financial administration software for the semi-public sector.
For more on the deal, take a look at the premium Wire coverage here.
PE Hub’s Iris Dorbian compiled seven PE-backed govtech deals into one story recently.
Improved dynamics
Private equity firms were “skeptical” of investing in logistics platforms during the peak of the covid-19 pandemic, Burke Smith, managing director and transport and logistics practice lead at investment bank Houlihan Lokey, told PE Hub. This skepticism, in retrospect, was rightly placed, he added.
For more on Smith's thoughts on the sector, take a look at the full Wire coverage here.
We’ve seen plenty of logistics plays here at PE Hub recently. The most recent European deals include Triton agreeing to acquire MacGregor, a maritime cargo handling company from Finland’s Cargotec Corporation. Keep an eye out for a deep dive into the deal. Finnish logistics are in vogue, as Mutares agreed to acquire VR Road Logistics business from VR Group, a passenger, logistics and maintenance service company owned by the Finnish state.
In the spring, my colleague Michael Schoeck featured logistics businesses in his on the block series, which highlights companies that sources say are coming to market or have initiated a sale process.
Digital deal
Cathay Capital has signed a deal to jointly own the Wedia Group alongside founder and CEO Nicolas Boutet and the management team.
To find out more, check out the premium Wire coverage here.
That’s all from me this morning. Obey Martin Manayiti will bring you the US edition later today and Craig McGlashan will be with you with the Europe Wire tomorrow.
Cheers,
Nina
Read the full Wire commentary on PE Hub ...
