Private Equity

AV Homes, Inc. (Nasdaq: AVHI) announced that TPG, a leading global private investment firm, has agreed to make a $135 million investment in the Company at a price of $14.65 per share, which represents a 9.6% premium to the 30-day trailing average closing price of AV Homes' common stock. AV Homes will use the proceeds to accelerate the implementation of its strategic growth plan in its existing and new high-potential housing markets. In addition the Company has adopted a shareholder rights plan effective today designed to protect its net operating loss assets from the application of Section 382 of the Internal Revenue Code.

Since 2011, AV Homes has strategically re-engineered the Company to position it to benefit from the recovery of the homebuilding industry. It reduced overhead, launched initiatives to improve internal processes, invested in a new scalable IT platform, and developed a strategic plan to guide its growth.

Google (Nasdaq: GOOG) may be looking to private equity firms for advice or financing partnerships as it looks to acquire more companies.

Bloomberg noted Wednesday that the move comes as Google is closing about one deal every other week, though the majority wouldn't be considered material to the search giant's operations.

Google mergers and acquisitions chief Don Harrison, speaking at Bloomberg's Next Big Thing Summit in California, noted that Google applies the "toothbrush test" to potential acquisitions, which evaluates whether a person uses the device or service once or twice a day and does it solve a problem.

Bloomberg-compiled data shows that 11,000 M&A deals have been announced in 2013, with the average transaction size at $168 million. The average technology deal was said to be about $93.4 million.

While Harrison didn't mention any specific deals Google was working on, he commented, "there are opportunities." Last week, it was announced that Google acquired social navigation and mapping firm Waze. Purchase price wasn't disclosed, but speculated to be about $1.1 billion.

Shares of Google are lower in early trading.

Johnson Controls (NYSE: JCI) is opening talks with private equity firms over the sale of its automotive electronics unit.

The Detroit Free Press reports that the PE firms might be interested in parts of Johnson Controls' unit versus the entire thing.

China's SAIC is said to have taken an interest and Delphi Automotive (NYSE: DLPH) was also said to have take a look, but has since backed out.

Johnson Controls was first speculated to be mulling a sale of the unit earlier this year. Shares of the company are flat in early trading.

Jefferies reiterated a Buy rating and $41 price target on Bright Horizons (NYSE: BFAM) after an analysis of IPOs with high private equity ownership showed they perform best.

Analyst Dan Dolev notes, "Following BFAM's secondary offering by Bain (8.5m shares), we conducted an analysis of 117 private equity backed IPOs and a study of the Dunkin' Brands offering. The analysis shows that Bain will likely seek to rapidly reduce its high ~67% stake (~80% pre-secondary) but that 1) companies with 50%+ insider ownership tend to outperform those with <50%, and 2) the negative share impact following the 2nd and 3rd offerings is more muted."

For an analyst ratings summary and ratings history on Bright Horizons click here. For more ratings news on Bright Horizons click here.

Shares of Bright Horizons closed at $33.26 yesterday, with a 52 week range of $27.50-$38.39.

ISI Group today maintained a Buy rating on Strategic Hotels & Resorts (NYSE: BEE) and raised its price target to $11.00 (from $9.75). Yesterday it was rumored that Strategic Hotels is seeking a sale.

Analyst Ian Weissman, citing talks with industry contacts, said he thinks private equity are likely buyers and not Host Hotels & Resorts (NYSE: HSI). He also said he thinks the company might be purchased for more than $11/ share.

Potential suitors include Carlyle, TPG, and Blackstone, thinks ISI.

For an analyst ratings summary and ratings history on Strategic Hotels & Resorts click here. For more ratings news on Strategic Hotels & Resorts click here.

Shares of Strategic Hotels & Resorts closed at $8.44 yesterday, with a 52 week range of $5.44-$9.69.