Syniverse’s Merger With M3-Brigade Acquisition II Corp.

Wachtell, Lipton, Rosen & Katz served as legal counsel for MBAC, while Kirkland & Ellis and DLA Piper acted as legal counsel to Twilio in the transaction. Debevoise & Plimpton served as legal counsel for Syniverse and Carlyle. Simpson Thacher advised J.P. Morgan Securities LLC and Moelis & Company LLC as placement agents on the deal.

Syniverse has entered into a definitive merger agreement with M3-Brigade Acquisition II Corp. (NYSE: MBAC), a publicly traded special purpose acquisition company, which will result in Syniverse becoming a publicly traded company. The transaction implies an initial enterprise value for Syniverse of $2.85 billion, and will provide Syniverse with up to $1.165 billion in cash through a combination of equity and  equity-linked capital. Upon closing of the transaction, the publicly traded company will be named Syniverse Technologies Corporation and its common stock will be listed on the New York Stock Exchange under the ticker “SYNV.”

As part of the merger, J.P. Morgan Securities LLC and Moelis & Company LLC acted as placement agents in the PIPE financing of $265 million, consisting of $69.2 million of common stock at $10.00 per share and $195.8 million of 7.5 percent dividend convertible preferred stock, with a conversion price of $11.50 per share.

Twilio agreed to make an equity investment of up to $750 million in Syniverse, with a minimum commitment of $500 million. In addition, as a part of this transaction, Twilio will become a significant minority owner of Syniverse.

Moelis & Company LLC served as financial advisor to Syniverse and Carlyle and joint placement agent. Syniverse obtained committed debt financing from Barclays, Bank of America, Goldman Sachs, Credit Suisse, Mizuho and Deutsche Bank.

Syniverse is a leading global provider of unified, mission-critical platforms enabling seamless interoperability across the mobile ecosystem. Syniverse’s capabilities are expected to become increasingly valuable to its mobile carrier and enterprise customers during the transition to 5G mobile networks, which will accelerate growth in devices, traffic volumes, speed and lower-latency communications.

M3-Brigade Acquisition II Corp. (NYSE: MBAC) is a special purpose acquisition company formed for the purpose of effecting a merger, stock purchase or similar business combination with one or more businesses. MBAC is led by key executives of M3 Partners, LP, a leading financial advisory services firm that specializes in assisting companies at inflection points in their growth cycle, and Brigade Capital Management, LP, a leading global investment advisor that was founded in 2006 to specialize in credit-focused investment strategies and has approximately $30 billion in assets under management.

JP Morgan Securities LLC served as financial advisor to MBAC and served as lead placement agent in the transaction. Cantor Fitzgerald & Co. acted as a capital markets advisor for MBAC. Centerview Partners LLC served as financial advisor to Twilio.

The Wachtell Lipton’s team was led by Corporate Partner John L. Robinson (Picture) and included Alon B. Harish, Associate, Nathaniel R. Ludewig, Associate, Yasmina Abdel-Malek, Associate (Corporate), Damian G. Didden, Partner, Lori S. Sherman, Associate (Antitrust), Adam J. Shapiro, Partner, Sasha F. Belinkie, Associate (Executive Compensation and Benefits), Scott K. Charles, Partner, John R. Sobolewski, Partner, Adriane V. Sanchez, Associate (Finance), Tijana J. Dvornic, Partner, and Alexandra M. Ferrara, Associate (Tax).

The Kirkland team was led by corporate partners Carlo Zenkner and Edward Lee and associate Patty Liu, capital markets partner Pippa Bond, debt finance partner Christopher Kirkham and associate Jessica Tjang, tax partner Sara Zablotney and associate Liz Allison, antitrust partners Ian John and Chuck Boyars, and also included corporate partner Adam Phillips.

The Debevoise team was led by M&A partners Jonathan Levitsky and Christopher Anthony and includes partner William Chua, counsel Philipp von Holst and Molly Stockley, associates Erik Andren, Fengjian Ao, Benjamin Collins-Wood, Christina Heil, Johanna Marniok, Priscila Park, Sergio Torres and Kirstie Yu, finance partner Jeffrey Ross, counsel Katarina Molnarova and associates Mihai Chitulescu, Shira Huberfeld and Wesley Moore, benefits partner Jonathan Lewis and associates Spencer Mizerak and Wendy Widman, tax partner Peter Furci and associate Robert Nelson-Sullivan, capital markets partners Morgan Hayes and Matthew Kaplan, counsel Joshua Samit and associate Carly Hill, intellectual property partner Henry Lebowitz and associates Tigist Kassahun, Marissa MacAneney and Emily MacKay, and antitrust partners Timothy McIver and Michael Schaper, counsel Kyra Bromley and associates Megan MacDonald, Nathan Richards and Laurah Samuels.

The Simpson Thacher team included Art Robinson, Tony Rim, Nicole Fu and Ben Pittenger (Capital Markets); and Kate Mirino (Intellectual Property).

Involved fees earner: Erik Andrén – Debevoise & Plimpton; Christopher Anthony – Debevoise & Plimpton; Fengjian Ao – Debevoise & Plimpton; Kyra Bromley – Debevoise & Plimpton; Mihai Chitulescu – Debevoise & Plimpton; William Chua – Debevoise & Plimpton; Benjamin Collins-Wood – Debevoise & Plimpton; Peter Furci – Debevoise & Plimpton; Morgan Hayes – Debevoise & Plimpton; Christina Heil – Debevoise & Plimpton; Carly Hill – Debevoise & Plimpton; Matthew Kaplan – Debevoise & Plimpton; Tigist Kassahun – Debevoise & Plimpton; Henry Lebowitz – Debevoise & Plimpton; Jonathan Levitsky – Debevoise & Plimpton; Jonathan Lewis – Debevoise & Plimpton; Marissa MacAneney – Debevoise & Plimpton; Megan MacDonald – Debevoise & Plimpton; Emily Mackay – Debevoise & Plimpton; Johanna Marniok – Debevoise & Plimpton; Timothy McIver – Debevoise & Plimpton; Spencer Mizerak – Debevoise & Plimpton; Katarina Molnarova – Debevoise & Plimpton; Wesley Moore – Debevoise & Plimpton; Robert Nelson-Sullivan – Debevoise & Plimpton; Nathan Richards – Debevoise & Plimpton; Jeffrey Ross – Debevoise & Plimpton; Joshua Samit – Debevoise & Plimpton; Laurah Samuels – Debevoise & Plimpton; Michael Schaper – Debevoise & Plimpton; Molly Stockley – Debevoise & Plimpton; Priscila Sun Min Park – Debevoise & Plimpton; Sergio Torres – Debevoise & Plimpton; Philipp von Holst – Debevoise & Plimpton; Wendy Widman – Debevoise & Plimpton; Kirstie Yu – Debevoise & Plimpton; Liz Allison – Kirkland & Ellis; Philippa Bond – Kirkland & Ellis; Chuck Boyars – Kirkland & Ellis; Ian John – Kirkland & Ellis; Christopher Kirkham – Kirkland & Ellis; Edward Lee – Kirkland & Ellis; Patty Liu – Kirkland & Ellis; Adam Phillips – Kirkland & Ellis; Jessica Tjang – Kirkland & Ellis; Sara Zablotney – Kirkland & Ellis; Carlo Zenkner – Kirkland & Ellis; Nicole Yingting Fu – Simpson Thacher & Bartlett; Kate Mirino – Simpson Thacher & Bartlett; Benjamin Pittenger – Simpson Thacher & Bartlett; Tony Rim – Simpson Thacher & Bartlett; Arthur Robinson – Simpson Thacher & Bartlett; Adriane Sanchez – Skadden Arps Slate Meager & Flom; Yasmina Abdel-Malek – Wachtell, Lipton, Rosen & Katz; Sasha Belinkie – Wachtell, Lipton, Rosen & Katz; Scott K. Charles – Wachtell, Lipton, Rosen & Katz; Damian Didden – Wachtell, Lipton, Rosen & Katz; Tijana Dvornic – Wachtell, Lipton, Rosen & Katz; Alexandra Ferrara – Wachtell, Lipton, Rosen & Katz; Alon Harish – Wachtell, Lipton, Rosen & Katz; Nathaniel Ludewig – Wachtell, Lipton, Rosen & Katz; John Robinson – Wachtell, Lipton, Rosen & Katz; Adam Shapiro – Wachtell, Lipton, Rosen & Katz; Lori Sherman – Wachtell, Lipton, Rosen & Katz; John Sobolewski – Wachtell, Lipton, Rosen & Katz;

Law Firms: Debevoise & Plimpton; Kirkland & Ellis; Simpson Thacher & Bartlett; Skadden Arps Slate Meager & Flom; Wachtell, Lipton, Rosen & Katz;

Clients: Carlyle Group; J.P. Morgan Securities LLC; M3-Brigade Acquisition II; Moelis & Company; Syniverse; Twilio, Inc.;

Author: Martina Bellini