New Filters: Mergers and Acquisitions

If you are not happy with the results, please do another search

Airo Digital Labs LLC Acquires Cloudaction LLC

JSA advised and assisted AiRo Digital Labs LLC (“AiRo”) in the acquisition of Cloudaction LLC (Oklahoma limited liability company) and its Indian affiliate Cloudaction Technology Services Private Limited (“Cloudaction”).

AiRo is an innovation-led transnational company headquartered in Chicago, United States of America. It operates in the artificial intelligence and robotics space, assisting clients in a vast array of sectors such as healthcare, life sciences, manufacturing, retail and banking and insurance. It has been recognized by Inc. 5000 and Forbes as a startup in transformative technology and AI-driven innovation.

Cloudaction specializes in the market-leading business applications and IT automation solutions driving enterprise digitalization.

Our Transaction Team Comprised Lead Partner – Shivpriya Nanda, Partner – Zain Pandit, Senior Associate – Twisha Shrivastava, Associate – Vibhu Choubey, Ananya Mathew, and Treya Gupta.

Jain Resource Recycling Private Limited acquires majority stake in UAE based Jain Ikon Global Venture (FZC)

Kedaara Capital Fund II LLP sells its 100% stake in Sunbeam Lightweighting Solutions Private Limited

JSA advised and assisted Jain Resource Recycling Private Limited (“JRR”), a company which has in-depth experience in metal recycling and manufacturing and has presence in almost 20 countries. JRR acquired majority stake in the UAE based Jain Ikon Global Venture (“Company”) from Ikon Square Limited. As part of the strategic partnership, the Company will operate a gold refining plant at UAE to process raw materials such as gold dore bar, gold powder and old jewellery to make gold bar of minimum 99.95% purity.

 The JSA transactions team was involved in the structuring the transaction, advising on the issues pertaining to overseas direct investment and consequent review, negotiations and finalizing of the documentation in relation to the transfer of shares from Ikon to JRR. The JSA tax team advised JRR on the tax and transfer pricing related issues.

Our Transaction Team Comprised Lead Partner – Trisheet Chatterjee, Partner – Sarvesh Kumar Saluja, and Associate – Neeral Jain.

Our Tax Team Comprised Partner – Kumarmanglam Vijay.

Acquisition on Corra Technology Inc by Publicis Group

JSA advised Corra Technology, Inc. (“Corra”) and its founders, a global commerce leader and systems integrator helping brands and organizations grow by evaluating, building, and optimizing their digital commerce ecosystems, on the India leg of Corra’s 100% acquisition by Sapient Corporation, a Publicis Group company (“Publicis Sapient”) which is a multinational marketing communications holding corporation.

 Corra was founded in 2002, and headquartered in New York with additional operating locations established in the U.S., the U.K. and India. Corra helps build faster and flexible digital storefronts for growing brands across retail, food and beverage, technology and electronics, health and wellness, and B2B industries.

 The acquisition of Corra will enhance Publicis Sapient’s current capabilities in commerce solutions, including Adobe Commerce and MACH Alliance composable commerce solutions. Additionally, Corra would provide specialized resources that cover several of Publicis Sapient’s capabilities, such as strategy, product, experience, engineering, and data and AI.

Our Transaction Team Comprised Lead Partner – Manvinder Singh, Partner – Anant Mishra, Senior Associate – Archi Roy and Parnik Saxena, Associate – Adarsh Raj Singh and Pragya Pandey.

JSA advised Ismartu India in the acquisition of its controlling stake by Dixon Technologies

JSA represented Ismartu India Private Limited (“Ismartu India”) and its shareholders Ismartu Singapore, Transsion Technology Ltd, and 5A advisors LLP in the sale of its controlling stake to Dixon Technologies (India) Limited. The transaction will take place in two tranches. In Tranche 1, Dixon will acquire a 50.01% stake for approximately INR 2.38 billion in an all-cash deal. Thereafter, in Tranche 2 Dixon will acquire additional stake ranging from 1.60% to 5.90% of Ismartu India on a fully diluted basis. The transaction is subject to the satisfactory completion of the conditions precedent and requires approval from the Competition Commission of India.

Ismartu India is the manufacturing unit of the mobile phone manufacturer Transsion Holdings, which is a leading player in the global mobile phone manufacturing industry, ranking among the top five smartphone makers and sellers globally. Ismartu India Private Limited is a dominant player in the electronics manufacturing segment in India, with a turnover of approximately INR 62.35 billion as of March 31st, 2023.

JSA provided end-to-end assistance to the client in the acquisition process, covering regulatory consultation, structuring, drafting, and negotiation of transaction documents.

Dixon Technologies was advised and assisted by Cyril Amarchand Mangaldas.

Our Transaction Team Comprised Partner – Kartik Jain, Senior Associate – Saumya Sahai, Associate – Anmol Mahajan and Company Secretary – Alisha Chawla.

Our Competition Law Team Comprised Partner – Vaibhav Choukse, and Ela Bali, and Associate – Faiz Siddiqui.

CPrime Inc., acquires Integrhythm Inc., and its subsidiary in India

JSA advised CPrime Inc., in its acquisition of Integrhythm Inc., (“Target“) and Integrhythm (India) Private Limited (“Indian Subsidiary“). CPrime Inc., is a trusted global consulting partner, backed by private equity firms such as Goldman Sachs Alternatives and Everstone Capital and provides enterprise-level strategic consulting and technical solutions. INRY is a ServiceNow Elite Partner renowned for its innovative solutions in HR workflow optimization and customer service management.  As part of the transaction, JSA carried out the legal due diligence of the Indian Subsidiary and assisted in the review, negotiation and finalisation of the definitive documentation.

Our Transaction Team Comprised Lead Partner – Archana Tewary, Senior Associate – Savio Tom, Associate – Ajith Kidambi and Company Secretary – Megha Kumari.

Warranty and Indemnity Insurance for M&A Transactions: Frequently Asked Questions

Continuing with our series on the importance of Warranty and Indemnity (W&I) Insurance Policies for M&A Transactions, Nandini Seth (Partner) and Dhruv Malhotra (Principal Associate) answer some of the frequently asked questions raised by clients while considering a W&I insurance backed deal.

 

Transcript

I am a potential acquirer looking to procure a buy-side W&I insurance policy. When should I start the process?

As a buyer, who is looking to procure a warranty and indemnity insurance policy for a transaction, it would be useful to speak to, and get in touch with an insurance broker as early as the commencement of the due diligence process.

 

I am a seller with a limited fund life and want to structure a NIL recourse exit. How should I approach this?

As sell side, it is advisable to bring up W&I insurance in the initial discussions. We have seen clients discuss W&I insurance (with limited recourse or NIL recourse) at the LOI/ term sheet stage itself.

 

While structuring a NIL recourse deal, is it possible for the insurer to consider the buy side draft of the acquisition agreement for providing insurance coverage? 

No, insurers insist on providing comments only on a negotiated acquisition agreement, particularly the representations and warranties schedule. Based on our experience, it is advisable that the parties negotiate the representations and warranties as if the deal is structured on an indemnity basis before submitting the transaction documents for the purposes of procuring insurance.

 

Does a corporate seller need to continue to exist throughout the duration of the W&I insurance policy?

W&I insurance makes for an excellent choice for funds with a limited fund life or which are winding up shortly. This is because the seller does not need to be in existence for the duration of the W&I insurance policy.

 

As a buyer, should there be any kind of rights against the seller in case of a NIL recourse deal backed by W&I insurance? 

Yes, please ensure that there is a subrogation right against the seller for fraud. Insurers typically require incorporation of this right in the transaction documents as well as in the insurance policy.

 

Can a buyer procure a W&I insurance policy after signing the transaction documents? 

Absolutely. An insurance policy can be procured after signing the transaction documents. However, do remember that in such a case, there will be coverage gaps for breaches discovered between the signing date and the policy inception date.

 

Can the payment of premium be delayed until the closing of the transaction?

Insurers typically provide a time period (after the inception of the policy) for paying the insurance premium. In fact, insurers understand these issues and have also accommodated upfront requests for refund of an identified percentage of premium for a W&I policy due to non-occurrence of closing.

 

What is the typical premium payable for procuring a W&I insurance policy?

While the premium payable generally ranges from 2.2% to 3.5% of the insurance limit, it can go as low as 1.5% or higher as well. The premium quoted by the insurers is specific to each transaction.

Edelweiss Alternative Asset Advisors Limited acquires stake in MMTP Projects Private Limited

JSA advised Rental Yield Plus Fund managed by Edelweiss Alternatives on the acquisition of MMTP Projects Private Limited (“MMTP”) for over INR 1,500 crores.

Edelweiss Alternatives is one of the largest alternatives platforms in India. MMTP, earlier owned by the MFAR group, owns and operates 1.1 million square feet of gross leasable area within the larger Manyata Tech Park – a prominent technology park in Bengaluru housing multiple office spaces for companies from various sectors. The acquisition of MMTP is in line with Edelweiss’ larger strategy of aggregating high-quality Grade A/A+ office assets into a larger portfolio of commercial office assets across pivotal office micro-markets in key cities.

JSA served as Edelweiss’ counsel on this transaction and advised them on all aspects of the acquisition, including, due diligence, providing regulatory advise, structuring, drafting and negotiating the relevant transaction documents and support on the closing.

Our Transaction Team Comprised Joint Managing Partner – Vivek K Chandy, Partner – Ajay G Prasad and Senior Associate – Soham Roy.

Our Real Estate Team Comprised Joint Managing Partner – Vivek K Chandy, Partner – Karthik BM, Principal Associate – Lakshmi Baradwaj H S, Associate – Spoorthi Krishna.

Our Power and Regulatory Team Comprised Partner – Megha Arora and Associate – Abhishek Rohatgi.

Our Banking and Finance Team Comprised Partner – Anjana Potti, and Senior Associate – Shivpriya Gurtoo.

Other Support, Including Due Diligence Team Partner – Preetha S, Associates – Aishwarya Manjooran, Ajith Kidambi and Thomas G Kolath, Company Secretary – Megha Kumari.

India Leg of Acquisition of Airgap Networks Inc. by ZSC Holdings Limited

JSA advised and assisted Airgap Networks, Inc. (“Airgap”), a Delaware corporation engaged in providing cybersecurity solutions for business-critical networks, on the India leg of the acquisition of Airgap, by ZSC Holdings Limited (“ZSC“), a provider of cloud-based digital security services. The acquisition was structured through a merger of Airgap, with Argus Merger Sub, Inc. (“Argus“), a wholly owned subsidiary of ZSC.

The JSA team was involved in reviewing, negotiation and finalizing the documentation for the acquisition of Airgap Networks India Private Limited, an Indian subsidiary of Airgap, by ZSC, as well as advising on direct and indirect tax issues arising in relation to the transaction.

Our Transaction Team Comprised Joint Managing Partner – Vivek K Chandy, Partner – Ajay G Prasad, Associate – Deviah Chinnappa and Company Secretary – Swati Hegde.

Our Direct Tax Team Comprised Partner – Kumarmanglam Vijay, Partner – Surajkumar Shetty, Associate – Tejasvi Shukla.

Our Indirect Tax Team Comprised Partner – Shareen Gupta, Associate – Tanay Vyas.

Fast Track Merger of BT Global Business Services Private Limited with BT e-Serv (India) Private Limited

JSA advised BT e-Serv (India) Private Limited in merger with its wholly owned subsidiary, BT Global Business Services Private Limited under the fast track route, pursuant to a scheme of arrangement under Section 233 of the Companies Act, 2013. Post the merger, BT e-Serv (India) Private Limited is the surviving entity. As part of the transaction, JSA provided end-to-end assistance in the process of merger before the Regional Director, Northern Region, including drafting of scheme of merger, filing of merger application, making submissions/arguments to the Regional Director, Northern Region and multiple regulatory authorities from time to time.

The surviving entity, BT e-Serv (India) Private Limited, is engaged in the business of providing IT enabled services including data management, information processing, commercial support, customer management, back office data entry support and other related services to BT Group Plc, ultimate holding company.

Our Transaction Team Comprised Lead Partner – Manvinder Singh, Associate – Adarsh Raj Singh, Parnik Saxena and Ayush Negi.

Sourav Nath | Vendor Diligence

Vendor due diligence is a key step for companies and promoters that are looking to raise funds or undertake a secondary sale, as it streamlines the transaction process in terms of timelines and costs. In this podcast, our principal associate Sourav Nath discusses some of the key benefits of undertaking a vendor due diligence, both from a buyer and seller perspectives.

Transcript – Vendor Diligence

What is the purpose of a Vendor Due Diligence Process?

The purpose of a vendor due diligence process is to evaluate and verify the target company’s financial and legal status, as well as assess any potential risks associated with a potential transaction.

 

How is a Vendor Diligence different from traditional Legal Due Diligence?

  1. Vendor due diligence is undertaken by the seller whereas a legal due diligence is undertaken by the buyer;
  2. Timing of the due diligence;
  3. The buyer or the investor is able to identify the risk areas and focus on those during the transaction;
  4. Legal due diligence is more comprehensive.

 

How is Vendor Diligence helpful for Sellers in M&A and investment transactions?

  1. Speeds up the process;
  2. Allows the seller rectify deficiencies in advance;
  3. Allows the seller/ company to identify consent requirements well ahead of time;
  4. Provides an improved valuation; and
  5. Allows company to differentiate their offering from other potential targets of the buyer.

 

How would such Vendor Diligence help buyers/ investors?

  1. Provides investors with a crisp snapshot of the company;
  2. Enables the buyers/ investors to identify and focus on the risk elements quickly;
  3. Streamlines the process of legal due diligence;
  4. If required, a top up diligence can be done.

Deals & Matter Corner

View More

Articles & Publications


View More

JSA Live

View More

Blogs

View More