Rearview Mirror: Week Ending January 26th

Earnings, IPO’s &Private Placements

for the Week Ending January 26th

What’s Happenin’?

swimmersJanuary is “One Hour Swim” month, as in “How far can you swim in an hour?”  New England Masters is going for another 1st place finish among all USMS (US Masters Swimming) clubs, which means we all have to swim one [Hour] for the team.  This morning was my Hour, and I’ve managed to keep the yardage constant for the past few years.  Didn’t make the 6,000 yards that was the maximum number on the time sheet that we turn in.  Let’s see, that would be averaging one minute per hundred yards.  Not in many people’s playbook except perhaps Michael’s [Phelps] and Ryan’s [Lochte].

Earnings

Microsoft beat estimates, as did AMD, but the market’s emphasis is now on margins and outlook rather than the reported number.  “Geesh, it’s nice that you beat estimates, but what is the outlook for the next quarter and the next year?”

Manufacturing numbers in china fell, and China is thought to be going through a credit squeeze.  China’s Beige Book read “credit transmission broken.”  Not the car you want to buy.

IPOs[1]

Click on the Company name to see the IPO prospectus

Care.com (CRCM:  NYSE) went public at $17 per share, a dollar above the $14 to $16 range at a valuation of $506m, raising $91.8m.  Care.com connects families and caregivers in a reliable and easy way, whether your concern is quality care for your children, parents or pets.

The stock finished the week at $24.30 per share.  Pretty good trick, as Care.com went public on Thursday, the same day that the market experienced a huge downdraft.

For anyone interested in the immigrant debate, some of American’s most significant companies, including Intel, were founded by immigrants.  The founder of Care.com is Sheila Lirio Marcelo, who hales from the Philippines.  Ms. Marcelo is well known for giving back to the community, both in Boston and the Philippines.

Mergers & Acquisitions[2]

To read the acquisitions announcement, click on highlighted text.  If there is a second link, it will provide further description of the company or deal in question.

Mobile

AirWatch to be acquired by VMware for $1.5b .  AirWatch will provide a base from which VMware can build a full enterprise mobility management and content management suite.

SPARQ was acquired by Yahoo!  Sparq is a mobile marketing startup based in Seattle.  The app removes common barriers to purchase by detecting if an app is already installed on a mobile device, and will deliver the customer quickly to the place in the app where they want to go.

Content Optimization

Gravity to be acquired by AOL for $91m.  Gravity is a leader in multi-screen content optimization and personalization and the company that created the Interest Graph.

Predictive Analytics

Scout Analytics was acquired by Service Source for $32m.  Service Source is a leader in recurring revenue management, and Scout Analytics provides predictive analytics for subscription businesses.

Australia

IMG Worldwide was acquired by William Morris Endeavor for $2.4b.  What is interesting is that William Morris Endeavor is partnering the deal with Silver Lake Partners.  IMG Worldwide is the sports and media entity, and William Morris is a talent agency.  Nowhere is the deal mentioned on either company’s website.

O2 Networks (mobile security) was acquired by Telstra for $60m.  O2 Networks is Australia’s fastest growing provider of data networking and network security solutions and services.  Telstra is a mobile network and broadband supplier in Australia.  Note:  Nowhere on the Telstra website is a concise statement about who they are and what they do.  Very thing is implied.  How’s that for communication?!

Canada

uberVu, in Cambridge, Massachusetts is being acquired by Vancouver-based HootSuite.  uberVu provides best-in-class analytics, that measure the resonance and success of social media posts.

Japan

mindSHIFT Technologies to be acquired by Ricoh Japan. mindSHIFT is based in Malvern, Pennsylvania, and is a Managed Services provider for small and mid-sized businesses, providing managed IT, cloud, data center and professional services.

Private Placements[3]

This was truly the week of retail, as tabulated by number of deals of interest:

Retail

Harry’s raises a $122m seed round.  Harry’s sells shaving products, manufactured in a German factory. With more than 400 German engineers, designers and production workers.  The money is being used to buy that 93 year old factory.

BuildDirect, a retailer of building supplies including wood flooring, tile flooring, decking and outdoor living supplies, raised a $30m Series B round.

The Cambridge Satchel Company (“CSC”) raised a $21m round.  All of the CSC bags are made in the United Kingdom.  The company was founded in 1008, and is now distributed in over 100 countries.

1stdibs, which brings together more than 1,500 international dealers of antiques, estate jewelry, vintage couture, and oa myriad of other items, raised a $15m Series C round.

Lyst, a fashion e-commerce aggregator, raised a $14m Series B round.

StyleSeat, which enables you to find and book a professional stylist at a salon near you, raised a $10m Series A round.  But if you live in Londonderry, New Hampshire it’s catch-as-catch-can.

Software/Systems

MemSQL, which has an industry leading in-memory database platform, which accelerates applications and powers real-time analytics, raised $35m Series B round.

Kareo, which offers complete medical office solutions, raised a $30m Series G round.  Clearly wants to give AthenaHealth a run for their money

Mendix raised a $25m private placement.  Mendix is a platform for building, integrating and deploying powerful enterprise applications faster and with better results.

Bluebox Security raised an $18m Series B round. Bluebox is focused on assisting enterprise integrate and protect their mobile data.

Docker raised a $15m Series B round.  Docker is an open source project to pack, ship and run any application as a lightweight container.

HR platform, Zenefits, raised a $15m Series A.  Benefits payroll and HR outsourcing

Aorato , which protects from advanced attacks such as identity theft,  DDOS attacks and other cyber-attacks, raised a $10m Series B round.

Kenshoo Technologies raised a seed round of $10m.  Kenshoo provides social media marketing solutions, with a mission is to empower every marketer in the world with technology to build brands and generate demand across all media.

Communications

Nexmo, which enables you to connect directly to carriers all over the planet using their powerful SMS and Voice API’s, raised an $18m Series C round.

Wifi hotspot provider, Fon (global WiFi network) raised a $14m round.

Systems

Dropbox raised a $250m Series C round.  The rumored valuation of Dropbox is $10b.

Zepp Labs, a motion sensor startup, raised a $15m round.  Zepp Labs will halep you analyze your swing, be it in baseball, golf or tennis.

Mobile

Stripe raised an $80m Series C round.  Stripe is a mobile payment processing system for developers.   The Company’s valuation is said to be $1.7b.

Media/Advertising/Promotion

NewsCred, a company founded by three entrepreneurs from Bangladesh and based in New York, raised 15m GBP in a Series C round.  NewsCred licenses content from publication s like the New York Times and The Economist for use in brand marketing campaigns.

China

Linekong, a Chinese on-line gaming company, raised an $80m Series C round.

China-based YOHO raised a $30m Series C round.  YOHO is a Nanjing-based fashion service and e –commerce platform.  I’ll have to ask my Shanghai-based nephew about YOHO.

China-based QFPay, a mobile payment startup, raised a $16m Series B round.  Sequoia Ventures is one of the investors.

India

CommonFloor, a real estate search engine in India, raised a $10m Series D round.

Ireland

Dublin-based Intercom (customer communication software) raised $23m Series B round.  Intercom provides a single integrated platform for the whole company to use for support, marketing, product and sales communication.

That all for this week.

All the best,

Margaret Johns

Founder & Chairman

We love to hear your opinions and comments at mjohns@bluelakepartners.com.

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Content researched, edited and reviewed on a best efforts basis.

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


[1] Certain information provided by Renaissance Capital, in addition to the SEC and numerous business publications

[2] Certain information from TechCrunch, SEC documents, company websites and other news sources.

[3] Certain information from TechCrunch, SEC documents, company websites and other news sources.