My jobs today will be to conduct a deal-making discussion with Peggy Johnson (EVP of biz dev at Microsoft), Bill Maris (CEO of Google Ventures) and David Trujillo (partner at TPG), plus do a Dropbox session with CEO Drew Houston and COO Dennis Woodwide. If you've got questions for either one, email em on over.
• Today's big deal is that WME/IMG has agreed to acquire UFC, the mixed martial arts powerhouse, with private equity backing from Silver Lake (already a WME investor), KKR and entities affiliated with Michael Dell. No financial terms are being disclosed, but sources put the price tag at around $4 billion. Some notes on this one:
1. My understanding is that Silver Lake and KKR are investing the same amount of common equity for minority stakes, although Silver Lake has additional indirect exposure via its existing investment in WME. Dell's investment is preferred equity.
2. WME has represented UFC for over 10 years, but its representation of individual fighters has only been on media and endorsement deals. In other words, it won't be on both sides of (sometimes contentious) negotiations between UFC and its fighters.
3. ESPN had first reported on the sale process back in May, after which UFC president Dana White called the reports bogus, saying the company "is not for sale." At the time I reported in this space that White was either lying or misinformed (more likely the former), as UFC had already engaged bankers that had spoken with WME (among others). It is, however, worth noting what White said directly after the aforementioned statement: "If somebody shows up with $4 billion, we can talk."
4. We also reported at the time that prospective buyers viewed White's continuing involvement as integral to any deal. Indeed, he will remain UFC president going forward.
5. WME was sure to point out in its press release that UFC is "one of the largest contributors to the Cleveland Clinic’s Professional Fighters Brain Health Study," and UFC has talked about how its fighters take fewer repetitive hits to the head than do boxers or football players. That said, I'd have to believe that WME is assuming some serious liability risk in this area.
• Secondaries scoop: Luca Salvato has left Coller Capital, where he had been a partner since 2000. No words on the reason or his future plans. It's just the latest in a recent spate of senior departures from the private equity secondaries giant, all of which happened after the firm closed its seventh fund with $7.15 billion.
• Update: We reported last year that Ryan Drant was planning to launch a new venture capital/growth equity firm, after having spent 19 years making healthcare investments for New Enterprise Associates. Now we've learned that the firm is called Questa Capital Management, and Drant's partner is Bradley Sloan, a former partner with Parthenon Capital Partners. No word yet on their fundraising effort, which was expected to raise between $250 million and $300 million.
• Data dump: U.S. venture capital firms raised $8.8 billion for 67 funds in Q2 2016, according to a new report from Thomson Reuters and the NVCA. That's a 37% dollar dip from the blockbuster first quarter of 2016 — when more money was raised than in any other single quarter since Q2 2006 — but still a pretty heady figure. The largest Q2 21016 fund came from Andreessen Horowitz ($1.5 billion), while Liberty Mutual Strategic Ventures raised the largest first-time fund ($150m).
THE BIG DEAL
• WME/IMG, a Beverly Hills talent agency minority-owned by Silver Lake, has agreed to acquire mixed martial arts (MMA) organization UFC from Zuffa LLC. No financial terms were disclosed, but sources say that the deal is valued at around $4 billion. Silver Lake and KKR are providing new equity, alongside Michael Dell’s MSD Capital and MSD Partners. Read more.
VENTURE CAPITAL DEALS
• CornerJob, a Barcelona-based mobile jobs marketplace, has raised $25 million in Series B funding. Northzone led the round, and was joined by e.ventures. Read more.
• 3scan, a San Francisco-based computational pathology platform company, has raised $14 million in Series B funding. Lux Capital and Data Collective co-led the round, and were joined by fellow return backer Dolby Family Ventures and new investors OS Fund, Comet Labs and Breakout Ventures. www.3scan.com
• Vigilant Biosciences Inc., a Fort Lauderdale, Fla.-based developer of “solutions that aid clinicians in the early detection and intervention of cancer,” has raised $5 million in new Series B funding (round total is now $10.5m). Return backers include White Owl Capital Partners, venVelo, the Florida Institute for the Commercialization of Public Research. www.viligantbiosciences.com
PRIVATE EQUITY DEALS
• American Fast Freight Inc., a Fife, Wash.-based domestic ocean freight forwarder owned by The Jordan Co., has acquired Global Transportation Services Inc., a Kent, Wash.-based freight forwarding and third-party logistics company. Sellers include Comvest Partners. No financial terms were disclosed. www.americanfast.com
• Apax Partners has agreed to acquire the operating subsidiaries of Spanish generic pharma company Invent Farma SL, from an investor consortium that includes Silfurberg, Enterprise Investment Fund and Horn II. No financial terms were disclosed. Apax also has acquired German generics pharma company Neuraxpharm Arzneimittel GmbH, which focuses on CNS disorders, for an undisclosed amount from ATAX GmbH and Neuraxpharm Holding. www.apax.com
• Apollo Global Management has made an unsolicited takeover bid for listed Danish telecom operator TDC, according to a local media report. TDC subsequently confirmed an approach, without identifying the suitor. The company is currently valued at around $4.3 billion. Read more.
• BC Partners has rebuffed takeover offers for portfolio company Mergermarket Group, a UK-based provider of financial news and data, according to Bloomberg. The report says the approaches from firms like The Carlyle Group and Hellman & Friedman came in too low. Read more.
• cSuite, a mobile productivity application, has raised an undisclosed amount of growth equity funding from Caretta Partners. www.csuiteapp.com
• Equistone and Triton Private Equity are prepping final round bids for United Initiators, a German maker of peroxide-based initiators that is currently owned by Vision Capital, according to Reuters. The deal could be valued at between EUR 340 million and EUR 380 million, with an Asian chemicals company also reported to be a suitor. Read more.
• Freeman Spogli & Co. has acquired Batteries Plus LLC, a Hartland, Wis.-based retailer of batteries and light bulbs with 678 stores (mostly franchised), from Roark Capital Group. No financial terms were disclosed, except that the deal included $280 million in financing from Golub Capital. www.batteriesplus.com
• Onex Corp. and Baring Private Equity Asia have agreed to acquire the IP Property and Science business of Thomson Reuters (NYSE: TRI) for $3.55 billion. Read more.
• Riverstone Holdings has agreed to acquire a majority stake in Centennial Resource Development LLC, a Denver-based oil and gas exploration and production company, from NGP Energy Capital Management for upwards of $175 million. Read more.
• Snow Phipps Group has acquired Winchester Electronics Corp., a Middlebury, Conn.-based provider of interconnect tech solutions, from Audax Private Equity. No financial terms were disclosed. www.winchesterelectronics.com
• Topix Pharmaceuticals Inc., an Amityville, N.Y.-based provider of therapeutic and cosmetic skin care products, has secured an undisclosed amount of private equity funding commitments from New Mountain Capital. www.topixpharm.com
• Audentes Therapeutics Inc., a San Francisco-based developer of gene therapy products for patients with serious and rare diseases, has set its IPO terms to 5 million shares being offered at between $14 and $16 per share. It would have an initial market cap of around $315 million, were it to price in the middle of its range. The pre-revenue company plans to trade on the Nasdaq under ticker symbol BOLD, with BofA Merrill Lynch, Cowen & Co. and Piper Jaffray serving as lead underwriters. Audentes has raised around $108 million in VC funding from firms like OrbiMed Advisors (29.9% pre-IPO stake), 5AM Ventures (14.6%), Versant Ventures (11.1%), Sofinnova Venture Partners (7.8%) and Deerfield Management (6.3%). www.audentestx.com
• CBS Radio Inc., the radio unit of CBS Corp. (NYSE: CBS), has filed for a $100 million IPO. No exchange nor underwriter information was disclosed. The company reports $33.4 million in net income on $264 million in revenue for Q1 2016. Read more.
• First Hawaiian Inc., a Honolulu-based bank with $16.1 billion in deposits, has filed for a $100 million IPO. It plans to trade on the Nasdsaq under ticker symbol FHB, with Goldman Sachs listed as left lead underwriter. www.fhb.com
• Forterra Inc., an Irving, Texas-based manufacturer of pipe and precast products, has filed for a $100 million IPO. Goldman Sachs, Citigroup and Credit Suisse are serving as co-lead underwriters. It reports a $13.4 million net loss (pro forma) for Q1 2016 on $362 million in revenue. www.forterrabp.com
• Impinj Inc., a Seattle-based provider of UHF RFID solutions, has set its IPO terms to 4.6 million shares being offered at between $12 and $14 per share. It would have an initial market cap of around $229 million, were it to price in the middle of its range. The company plans to trade on the Nasdaq under ticker symbol PI, with RBC Capital Markets, Pacific Crest Securities and Piper Jaffray serving as lead underwriters. Impinj reports a $2.33 million net loss on around $21.6 million in revenue for Q1 2016. The company has raised $138 million in VC funding since its 2000 inception, from firms like Arch Venture Partners (10.7% pre-IPO stake), Polaris Partners (9.9%), Madrona Venture Group (9.4%), Mobius Venture Capital (9.2%), Intel Capital (8.1%), GF Private Equity (7%) and AllianceBernstein (5.8%). The company previously attempted to go public in 2012. www.impinj.com
• Svoboda Capital Partners has sold Cape Electrical Supply LLC, a Cape Girardeau, Mo.-based distributor serving electrical contractors and large engineering construction firms, to Graybar Electric Co. No financial terms were disclosed. www.graybar.com
• Terra Firma Capital Partners has picked state-owned China Huadian Corp. as the preferred bidder for the UK wind farms business of Infinis Energy PLC, according to Bloomberg. The deal could be valued at around $500 million, although Huadian may bail if it determines the Brexit vote impact is too great. Read more.
• Vestar Capital Partners has sold its majority stake in The StayWell Co., a Yardley, Penn.-based health engagement company for large corporate clients, to a subsidiary of Merck & Co. (NYSE: MRK) for an undisclosed amount. Vestar will retain a minority equity stake. www.staywell.com
• Doosan Heavy Industries & Construction of South Korea has acquired 1Energy Systems, a Seattle-based provider of software for integrating distributed energy resources into the electric power system. No financial terms were disclosed. www.1energysystems.com
• LafargeHolcim (Swiss: LHN) has agreed to sell its Indian concrete business to local conglomerate Nirma at a $1.4 billion enterprise value. Read more.
• Nichi-Iko Pharmaceutical Co. (Tokyo: 4541) has agreed to acquire Sagent Pharmaceuticals Inc. (Nasdaq: SGNT), a Schaumburg, Ill.-based provider of drugs to the hospital market, for approximately $750 million. www.sagentpharma.com
• Southern Co. (NYSE: SO) has acquired a 50% stake in the Southern Natural Gas pipeline system from Kinder Morgan (NYSE: KMI) for around $1.5 billion. Read more.
FIRMS & FUNDS
• Farallon Capital Management has closed a new special situations fund focused on Asia and Latin America, with $1.12 billion in capital commitments. www.fallaroncapital.com
• PWP Growth Equity, the private equity unit of Perella Weinberg Partners, is pre-marketing its second fund with a $600 million target, according to Bloomberg. Read more.
• RLJ Capital Markets has been launched as a new investment bank by The RLJ Companies and Roth Capital Partners. www.rljcapitalmarkets.com
• Sienna Ventures, a Sausalito, Calif.-based early-stage tech VC firm, has closed its fourth fund with $100 million in capital commitments. www.siennaventures.com