snoopy
Top Contributor
Neustar Inc (NSR.N), which helps telephone carriers route calls and text messages, said it would be taken private by an investment group led by private equity firm Golden Gate Capital in a deal valued at about $2.9 billion, including debt.
Neustar's shares were up about 20 percent at $33.30 in premarket trading on Wednesday, slightly below the offer price of $33.50 per share.
The equity value of the all-cash deal is about $1.85 billion, Neustar said.
San Francisco-based Golden Gate Capital had a stake of about 2.4 million shares in Neustar as of Sept. 30, according to a regulatory filing.
An affiliate of Singapore's sovereign wealth fund GIC Private Ltd will also make an investment and become a minority owner in Neustar, which was formerly a part of Lockheed Martin Corp (LMT.N).
http://www.reuters.com/article/us-neustar-m-a-golden-gate-idUSKBN1431J8
The usual modus operandi here is strip off assets, pay out cash to new owners and take on a whole lot of debt. You can see what happens when it all goes wrong though,
Bankrupt Orchard Brands Corp. subsidiaries sued various Golden Gate Capital Corp. funds Wednesday in Delaware, seeking to claw back a $310 million special dividend that allegedly helped cast the retailer into insolvency.
The Golden Gate funds, which own a controlling stake in Orchard Brands, paid themselves and their investors the extravagant dividend after orchestrating the retailer’s 2007 leveraged buyout of Blair Corp. that heaped $650 million in secured debt onto the company’s balance sheet, according to a bankruptcy court adversary proceeding filed by the litigation trustee..
http://www.law360.com/articles/241957/orchard-trustee-sues-golden-gate-over-310m-payout