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Happy Wednesday. Here’s what we’ve got today…

• A look at Bird’s 363 sale

• The deal sheet, plus Jefferies’ contested breakup fees

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Distressed scooter giant Bird sold for $145 million

By Bob Clair

Bird Global Inc., one of the largest scooter rental businesses in North America, was sold to its debtholders in a bankruptcy-led process.

Bird, which went public via SPAC in 2019, had failed to reach profitability and burned more than $650 million of cash from 2020 through 2022. In total, the company dispatched more than $1.1 billion in venture funding.

“They were very successful in raising capital for a substantial period of time, but the markets have not been as forgiving for growth companies as they were a few years ago,” said James Cassel, chairman and co-founder of Miami-based investment bank Cassel Salpeter & Co., Bird’s financial advisor.

After reaching a peak valuation of $2.5 billion in its Series D, the business was delisted in September 2023 and entered into Chapter 11 bankruptcy in December—prompted by debtors’ desire for a Section 363 sale.

First lien holders were led by MidCap Financial, an affiliate of Apollo Global Management, while second lien holders were led by Obelysk Inc. The group provided up to $33 million in new money first lien DIP financing at a 15% interest rate (6% cash, 9% payment-in-kind), along with $6 million in new money second lien notes at an 18% PIK interest rate.

Speaking to Transacted, Cassel described a broad sale process with a mix of sponsor and strategic interest.

“We went to 137 potential purchasers, 81 that we identified as strategic parties,” Cassel said. “We talked to anybody and everybody. People like Lime and Uber and Citi Bike, as well as private equity firms that buy distressed businesses. We went to all the players, both domestic and foreign.”

Christopher Rankin, Bird’s Chief Restructuring Officer, confirmed there was interest from strategics, though declined to share how far competitors progressed in the bidding process.

When asked, Lime, the Uber-backed industry leader, said via spokesman Russell Murphy only that “we are not going to comment on Bird’s situation.”

In the absence of a competitive offer, Bird was purchased by stalking horse bidder Third Lane Mobility, an entity formed by a consortium of the company’s first and second lien holders.

“The stalking horse bidders were a related party, so that adds a fair amount of complexity to make sure the proper process was run and that we went to the proper parties. We got the cooperation of management, which, on the one hand, may be conflicted because they are part of the buyer, but on the other hand, they are part of the seller,” Cassel said.

MidCap Financial did not respond to requests for comment.

Bird’s outcome is the latest setback for the challenged scooter and bike rental industry. Once a hotbed of venture activity, unprofitable operators have shut down or consolidated in recent years – Bird itself had bought rival Spin and platform partner Bird Canada as recently as late 2023.

Cassel said he expects further consolidation, particularly among the large number of smaller regional players.

Along with scale, Cassel notes that micromobility M&A “can be a way to get into certain markets or a way to obtain certain contracts.”

As for Bird, Rankin said he doesn’t expect new owner Third Lane to be acquisitive anytime soon.

“I don’t think they’ll be making acquisitions. It’s up to them, but I don’t expect that,” Rankin said.

• International Paper has agreed to acquire DS Smith, a provider of sustainable packaging solutions, for around $7.2 billion.

• Envestnet, a wealth management software provider trading at a market value above $3.4 billion, is exploring a potential sale, per Reuters.

• Blackstone is considering the sale of G6 Hospitality, the owner of budget hotel brands Motel 6 and Studio 6.

• Denmark-based Saxo Bank is considering a potential sale at a valuation of up to $2.1 billion, per Reuters.

• Microsoft invested $1.5 billion in G42, an Abu Dhabi-based AI holding company, as part of a strategic partnership following G42's divestment from Chinese firms like ByteDance in response to U.S. national security concerns.

• Apax Partners has agreed to acquire Zellis Group, a UK and Ireland-based HR and payroll software solutions provider, from Bain Capital for £1.25 billion ($1.56 billion).

• Permira is preparing to sell CABB, a European specialty chemicals producer that could fetch more than $1.06 billion, per Bloomberg.

• State Street (NYSE: STT) is in talks to acquire Societe Generale Securities Services, the asset custodian unit of Societe Generale, that had been valued by the parent at €1 billion, per Bloomberg.

• Riverside Credit Solutions, the middle market direct lending arm of The Riverside Company, is exploring strategic options including a potential sale.

• Gen II Fund Services acquired Crestbridge, an independent provider of fund and private client services.

• PestCo Holdings, a portfolio company of Thompson Street Capital Partners, acquired Portland, Oregon-based Sasquatch Pest Control Corp.

• The Abu Dhabi National Energy Company (ADNEC) is in talks to acquire Naturgy, a Spanish natural gas and energy utility.

• BeyondTrust acquired Entitle, a privileged access management solutions provider, for up to $150 million.

• Armis acquired Silk Security, a New York-based cyber risk resolution startup, for $150 million.

• DZS (Nasdaq: DZSI), a network provider, has agreed to sell its Asia operations to DASAN Networks Inc. for $48 million.

• The Futurum Group has agreed to acquire TechStrong Group, a media company operating brands including DevOps, Container Journal, and Digital Anarchist.

• Birch Hill Equity Partners is preparing to sell hockey equpiment supplier CCM.

• Delmas Investissements & Participations has agreed to acquire Acces Industrie, a European provider of aerial work platforms and industrial forklifts, from Equistone Partners Europe.

• Wind Point Partners sold Handgards, a manufacturer of disposable gloves and protective wear for the foodservice and medical industries, to Wynnchurch Capital.

• APi Group agreed to acquire Elevated Facility Services, a provider of commercial and industrial cleaning services, from L Squared Capital Partners.

• All Seas Capital invested in Reducate EdTech Group, a provider of automated grading and lesson creation tools.

• Bernhard Capital Partners acquired Strategic Management Solutions, a provider of project and construction management consulting services for the energy industry.

• Data Clean Corporation, a data center infrastructure maintenance provider owned by Angeles Equity Partners, acquired DC Canada, a provider of data center decontamination solutions.

• Foss Recycling acquired the scrap metal recycling unit of Wall Recycling, a solid waste management company backed by backed by Allied Industrial Partners.

• Games Global, a casino-focused gaming studio, filed for an IPO on the NYSE.

Tech, Vertical SaaS, & Misc. Enterprise

• Rippling, a provider of human resources management software, is in talks to raise $200 in new funding, alongside a $670 million secondary, from Founders Fund and Greenoaks.

• Iceye, a developer of synthetic aperture radar technology, raised $93 million in new funding. Solidium Oy led, with participation from Move Capital and Blackwells Capital.

• Upstage, a provider AI-enabled document and workflow automation tools, raised $72 million in Series B funding. Korea Development Bank led, with participation from Shinhan Venture Investment, Hana Ventures, Mirae Asset Venture Investment, IBK Securities, SBVA, Primer Sazze, Company K Partners, and Premier Partners.

• Loft Labs, a kubernetes platform engineering solution, raised $24 million in Series A funding led by Khosla Ventures, with participation from Fusion Fund, Surface Ventures, Emergent Ventures, Berkeley SkyDeck, Mindset Ventures, and Kit Merker.

Fintech

• Flatpay, a provider of financial management tools for SMBs, raised €45 million in Series B funding from Dawn Capital and Seed Capital.

• FInmid, a developer of embedded financing solutions for B2B SaaS platforms, raised €35 million in new funding from Blossom Capital and Earlybird.

• BridgeWise, a provider of AI-enabled multilingual investment research, raised $21 million from SIX Group, Group 11, and L4 Venture Builder.

• Crypto Valley Exchange, a decentralized crypto exchange, raised $7 million in new funding from Fabric Ventures, Kyber Capital Crypto, AMDAX, Wave Digital, Funfair Ventures, Seier Capital, Five T Fintech, and Saxon.

Healthcare

• Sunstone Partners invested $200 million in RPM provider Accuhealth.

• Kontakt, a Poland-based tracking and analytics platform for hospitals, raised $47.5 million in Series C funding from Goldman Sachs.

• Two Chairs, an in-person mental health therapy startup, raised $72 million in Series C funding led by Amplo, with participation from Fifth Down Capital.

• Dot Compliance, an AI-enabled life sciences Quality Management System developer, raised $17.5 million in new funding from IGP Capital, Vertex Ventures, and TPY Capital.

Industrials, Greentech, & Other

• Eocycle Technologies, a manufacturer of small wind turbines, raised $20 million in new equity funding from Export Development Canada and Fonds de solidarité FTQ, along with $5 million in debt financing from Investissement Québec.

• Bcomp, a developer of natural fiber composites, raised $40 million in Series C funding led by EGS Beteiligungen, with participation from Verve Ventures, Zürcher Kantonalbank, and RKKVC.

• Rivos, an AI and database processing chip developer, raised $250 million in Series A funding led by Matrix Capital Management.

• GridBeyond, an intelligent energy and smart grid platform provider, raised €52 million in Series C funding from Alantra, Klima, Energy Impact Partners, Mirova, ABB, Constellation, and Yokogawa Electric.

• Quilt, a developer of home-oriented climate control systems, raised $33 million in Series A funding led by Energy Impact Partners and Galvanize Climate Solutions, with participation from Lowercarbon Capital, Gradient Ventures, MCJ Collective, Garage Capital, and Incite Ventures.

• Bay Bridge Ventures is raising $200 million for its debut fund focused on ESG-related investments.

• Evolution Equity Partners raised $1.1 billion for its third growth fund focused on cybersecurity and AI.

• Citation Capital is targeting $850 million for its debut fund.

• Wellington Management raised $385 million for a new climate-focused fund.

• SOSV raised $306 million for its latest venture fund.

• Infinity Ventures is raising $150 million for its second early-stage fintech fund.

1. Bankers Hit With Millions in Breakup Fees for Ditching New Jobs

• Jefferies is seeking to collect $4 million from banker. — Bloomberg

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