M&A

M&A Roundup

KKR and GMAC Commercial Holding Corp.; Sage Group and Visma; Duracell and Garrity Industries; Dell and Alienware; Lucent and Riverstone Networks; V...
Helen ShawMarch 23, 2006

• General Motors Corp.’s finance unit, General Motors Acceptance Corp., agreed to sell a 78 percent interest in GMAC Commercial Holding Corp. for roughly $1.5 billion in cash to an investor group led by Kohlberg Kravis Roberts, Five Mile Capital Partners, and Goldman Sachs Capital Partners. GMAC Commercial Holding will also repay $7.3 billion in intracompany loans to GMAC.

• U.K.-based accounting software company Sage Group PLC agreed to purchase Oslo,-based Visma ASA, a business software group, for approximately £334 million ($584 million). The acquisition is Sage’s first foray into the Scandinavian market.

• Bethel, Connecticut-based Procter & Gamble Inc.’s Duracell unit will acquire flashlight maker Garrity Industries, a private company based in Madison, Connecticut. Terms of the deal were not disclosed.

• Round Rock, Texas-based Dell Inc. announced that it has agreed to acquire Miami-based Alienware, a privately held maker of high-end computers for video games. Dell did not disclose the terms of the deal, which is subject to regulatory approval.

• Santa Clara, California-based Riverstone Networks, Inc. named Murray Hill, New Jersey-based Lucent Technologies the winner of the auction for Riverstone’s business. Lucent offered $207 million in cash for the bankrupt provider of Ethernet equipment; the deal is expected to close in early April.

• Mountain View, California-based Internet security provider VeriSign announced that it will acquire privately held m-Qube, a Watertown, Massachusetts-based mobile services billing and delivery company, for $250 million.

• Charlottesville, Virginia-based General Electric Fanuc Embedded Systems has agreed to acquire SBS Technologies Inc., a computer systems producer based in Albuquerque, for $215 million. The acquirer is part of GE Fanuc Automation Corp., a joint venture between GE and Japan’s Fanuc Ltd.

• Paradise Island, Bahamas-based Kerzner International Inc., a casino operator, agreed to be acquired for $3 billion by an investor group that includes chairman Sol Kerzner, chief executive officer Butch Kerzner, and Dubai-based Istithmar PJSC. The acquisition will be complete by mid-2006.

• Indonesia-based PT Bumi Resources announced that it has sold its coal mine assets to a consortium controlled by PT Borneo Lumbung Energi, an affiliate of PT Renaissance Capital Asia, a small Indonesian investment firm. The $3.2 billion deal is subject to shareholder approval; if completed, it would be Indonesia’s second-largest corporate acquisition.