Rearview Mirror Sept 10, 2014: M&A and Private Placements

September 10, 2014

BLPA’s Rearview Mirror

 

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Shaw Memorial, Courtesy of the National Park Service www.nps.gov
Shaw Memorial, Courtesy of the National Park Service www.nps.gov

This is catch up week, so we’ll get down to business quickly. Twenty-two acquisitions and and 45 private placements are detailed here. We’re busy with the end of summer, the beginning of the school year,and regulatory business. Add to that an injured shoulder (rotator cuff) and a vicious attack on my new girl pug by a dog four times her size, and I think you have an idea.

The highlight of the past few weeks was a visit to the Saint-Gaudens National Historical Site, and the local, fresh-picked peaches, raspberries and blueberries. For those who don’t know, Saint-Gaudens is the sculptor that made Diana, who was on top of Madison Square Garden, and various highly recognized pieces at Columbus Circle in New York City and the Boston Common.

Closed Business

Lockheed Martin acquired substantially all o f the assets of Sun Catalytix Corporation, which is an innovation-based company that has been developing safe and scalable energy storage technology. Click here for a more detailed description. A huge congratulations to Bic Stevens for a job well done.

New Business

We have started approaching potential buyers for a medical display company that addresses the surgical / endoscopy markets, and sells to major medical device OEMs in the U.S. and internationally. Revenues just under $30 million and profitable.

Earnings and the Market[1]

[Click on the company name of the story and on the stock symbol for the stock chart] Nothing much to be said, but that the market is “showing impressive strength, with good earnings reports, decent economic data and an accommodative Federal Reserve.[2]

IPOs[3]

(0 IPO’s) No IPO’s have priced since August 13th.

Mergers & Acquisitions[4]

(22 transactions) Click on the highlighted text for more deal information.

Security

Location Labs, which has a platform of personal security products for mobile devices and industry partnerships, is being acquired by AVG Technologies, NV for up to $220m. Parka, the parent company of BruteProtect is being acquired by Automattic, the WordPress platform publisher.

Design

Nurun, which applies human-centered design to help businesses create digital products and thrive in a connected world, is being acquired by Publicis Groupe for $114m. Gecko Design Inc., a design company like Frog Design, is being acquired by Google. Zync Render, a SaaS rendering tool, is being acquired by Google. Ultravisual, a visual network, is being acquired by Flipboard.

Cloud

Meldium, a company that has developed a simple way for teams to access cloud services, manages passwords and helps administrators onboard users, is being acquired by LogMeIn for $15m.

Programming

Think Big Analytics, a hadoop consulting firm, is being acquired by Teradata.

Content/Tools

High Gear Media, which is a next generation automotive publisher that connects car-seeking audiences with content and tools to help them make better decisions, is being acquired by Internet Brands. SOFTPRO GmbH, which processes handwritten signatures in digital workflows, is being acquired by Kofax for $35m. BackupAgent, an OEM cloud service, is being acquired by Acronis. WaveGroup Sound, which offers full service audio production, sound design and mixing, is being acquired by Facebook.

Advertising/Media/Programming

Ebates, which focuses on cash back from 1,700 stores on their Ebates.com website is being acquired by Rakuten for $1.0b. Channel 5, a UK free-to-air TV network channel, is being acquired by Viacom for 450 GBP. Luminate, which focuses on images for ads, is being acquired by Yahoo! Cellfire, which provides coupons to PC and mobile users, is being acquired by Catalina Marketing.

Gaming

StarStreet, an online gaming platform, is being acquired by DraftKings. Twitch, an online streamer of video games and the gamers who play them, is being acquired by Amazon for $970m

Medical

MediStream, a Switzerland-based producer of orthopedic implants, is being acquired by ArchiMed. Sapheon, a venous disease treatment developer, is being acquired by Covidien.

Belgium

Clear2Pay, which provides payment and payment-related solutions for finance institutions and their clients, is being acquired by FIS for 375m EUR.

Kenya

yuMobile, a mobile operator, is being acquired by Safaricom for $120m.

Private Placements[5]

[45 transactions] Click on the highlighted text for more information.

Finance

IEX Group, the trading platform made famous by Michael Lewis’book, Flash Boys, and the NYT Magazine, raised $75m Series C round.

Gaming

FanDuel, developer of fantasy football and baseball platforms, raised a $70m Series D round. DraftKings, a fantasy sports platform, raised a $41m Series C round.

Software

Global Tranz, a logistics company focused on freight management, raised a $40m Series C round. Black Duck Software, which automates the process in such a way that we are able to gain all of the benefits of open source software while mitigating the risks, raised a $20m Series F round. One, Inc., an insurance software developer, raised a $17m Series A round. Conservis, which develops farm management software, raised a $10m Series A round.

Security

Light Cyber, which offers advanced breach detection systems, raised $10m.

Video

Vice Media, which claims to have the “best original videos, documentaries, and underground news from around the world; including travel, skate, and music videos,”raised $250m. Legend3D, an innovative stereoscopic and visual effects company which was behind Maleficent, raised a $10m Series C round.

Media

xAd, which brings buyers and sellers of location with targeted ads, raised a $50m Series D round. Skyword, which are experts in scalable, sustainable content marketing, raised $11m.

Social

Backplane, with a goal of igniting a web of public and private social networks, raised a $112m Series A round. HootSuite, the social aggregation platform, raised a $35m Series C round. IFTTT, “if this then that”, which is a service that allows users to connect different web applications,raised a $30m Series B round.

App

Appcelerator, developer of a mobile development platform, raised a $22m Series D round. MindMixer,which is an app to “engage your community”raised a $17m Series C round.

Mobile

BLINQ Networks, [Don’t you love the name?) which develops mobile backhaul systems, raised a $15m Series B round.

Semiconductors

Avogy Inc., which develops, manufactures and sells vertical power semiconductor devices built in homo-epitaxial GaN layers formed on bulk GaN substrates, raised a $40m Series B round.

Education

Pluralsight, which claims to have the largest tech and creative training library, raised a $135m Series B round.

Travel

SeatGeek, an entertainment app that lets you search hundred of sites, knows where you’ll sit, and find the best deals, raised a $35m Series B round. GoEuro, a travel platform, raised a $27m Series A round. FlightCar, where you park at the airport and rent out your vehicle, raised a $14m Series B round. By the way, parking is free, but I don’t know about cleaning out my car for a renter.

Workplace

ZipRecruiter, which lets one post to 50-plus job boards with one submission, raised a $63m Series A round. Dynamic Signal, the leading employee advocacy platform, raised a $12m Series C round.

Fashion/Retail

Justfab, a personalized type of shopping club, raised an $85m Series D round. The Honest Company, your trusted source for non-toxic, safe products, raised a $70m Series C round. The Honest Company sells bath and beauty products for all ages, both male and female. 4moms, whose mission is to develop dramatically different and better juvenile products, raised $40m. The company is based in Pittsburgh with a distinctly Silicon Valley feel. Good Eggs, which claims to shop local markets and farms, raised a $21m Series B round. Frank & Oak, with monthly collections of curated style for under $50, raised a $15m B Series round. eShakti.com, which makes custom-made and custom-ordered clothing for women, raised a $14m Series B round. But forget about it if you want pants.

Health/Medical

Airstrip Technologies, which helps healthcare provider organizations meet challenges with mobility solutions that can transform the way they deliver care, raised $25m. Propeller Health, for better management of asthma and COPD (Chronic Obstructive Pulmonary Disease) raised a $14m Series B round. WHILL, a wheelchair design firm, raised an $11m Series A round.

Argentina

Avenida, an Amazon for Latin America, originating in Argentina, raised $18m.

Germany

Delivery Hero, a food ordering service operating in 23 countries, raised a $350m Series G round.

India (2)

hike, an online messaging startup, raised $65m. SSN Logistics (dba Delhivery),which provides logistics solutions to eCommerce partners, raised a $35m Series C round. FreeCharge, a prepaid mobile app, raised a $33m Series B round.

China (7)

DXY, the largest online healthcare service community, raised a $70m Series A round from Tencent. Jimubox, a peer-to-peer lender, raised a $37m Series B round. XSteach , which offers online software program education for Photoshop, Cored Draw, and other subjects, raised a $30m Series B round. ZAI Lab, which develops and commercializes novel medicines to transform patients lives, raised a $30m Series A round. Meilapp.com, an online cosmetics company, raised a $20m Series B round. XAircraft, a drone company, raised a $20m Series A round. Go to the website and watch the video. It is way too cool. International sales are in Australia. IndoorAtlas, a mapping software company raised a $10m Series A round from Baidu.

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All the best,

Margaret Johns

Founder & Chairman

Affiliates: SiVal_Logo   Jan Robertson SiVal Advisors, LLC

 

 

 

 

 

Bic Stevens

Stevens Capital Advisors

 

Chartworth2Chartworth Susan Woods and Vlad Harris

 

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Margaret Johns is the Founder and Chairman of BlueLake Partners, a boutique M&A investment bank based in the Greater Boston Area. Prior to founding BlueLake she was an employee founder and Managing Director at Needham & Company where she worked in Corporate Finance in New York City and headed up its Boston office. She now lives in Londonderry, New Hampshire with her husband, 16 year old step-daughter and three pugs. When she’s not working with clients, FINRA or writing blogs she competes on the Granite State Penguins Masters Swim Team, skis, rides her bike or is out walking her pugs.   Content researched, edited and reviewed on a best efforts basis.

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We make no claim to being comprehensive in our review, as the contents are companies and topics we, ourselves, find of interest.

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This newsletter is currently being proofed by Dave Henshaw, which is much appreciated. Dave is my USMS swimming lane mate, and Granite State Penguin team-mate. He is retired from MIT, where he used to produce and proof their annual financial report. Exactly what we need.

[1] WSJ Morning Moneybeat

[2] WSJ Morning Moneybeat September 8, 2014

[3]Renaissance Capital

[4] TechCrunch and company websites

[5] TechCrunch and company websites