Southern California’s Top M&A Deals of the Week
Southern California is home to some of the largest and most impactful M&A transactions in the nation, with the region’s multiple industries continually buying and selling to create better outcomes for their business streams. L.A. Times B2B Publishing is now tracking those deals, and will offer a weekly roundup of notable M&A deals involving Southern California companies.
Santa Monica-based Macerich announced that it purchased the remaining 40% of both Arrowhead Towne Center in Phoenix and South Plains Mall in Lubbock, Texas, for $36.5 million plus the debt from its joint venture partner, a global institutional investor. This transaction, which closed on May 14, gives Macerich full ownership of both properties. Simultaneously, the firm announced that it executed a contract for the sale of a retail asset in a major market. The transaction is expected to generate approximately $110 million of net proceeds and is expected to close this summer.
“With these transactions, Macerich is acting on its strategic plan that includes disposing of certain assets to reduce our leverage and simplifying our business through selectively consolidating certain JV interests over time,” said Jack Hsieh, Macerich president and chief executive in a statement.
On May 9, Mobix Labs Inc., based in Irvine, announced that it signed a definitive agreement to acquire RaGE Systems Inc., based in Massachusetts. The deal could be worth up to $20 million and includes approximately $2 million in cash, $10 million worth of Mobix Labs stock and possible earn-out payments of up to $8 million if certain financial metrics are met. The transaction is expected to close in May 2024.
Santa Monica-based investment firm Clearlake Capital partnered with Francisco Partners on an acquisition of the software integrity unit of Sunnyvale-based Synopsis in a transaction valued at up to $2.1 billion. The deal was announced on May 6 and is expected to close in the second half of 2024. It will establish the Software Integrity Group as a newly independent, leading application security testing software provider. The existing management team is expected to lead the newly independent, privately held company after the transaction closes. The name of the new standalone entity will be announced later.
“Advancements in generative artificial intelligence technology are likely to disrupt the software development lifecycle over time, increasing the velocity of code generation and introducing new forms of software risk. The Software Integrity Group’s strong portfolio of application security testing products provides enterprise customers with tools that integrate security into developer’s workflows. This ensures developers can create high quality, secure and compliant code that minimizes cybersecurity risks, including risks arising from generative artificial intelligence, and directly addressing a growing need in the market,” said Prashant Mehrotra, partner, and Sean Courtney, principal, at Clearlake in a statement.