Random Ramblings
Some very quick notes to kick off your Monday...
• Private prison equity: The U.S. Justice Department made business news last week, announcing that it would end its use of private prisons, following a report that such facilities "incurred more safety and security incidents per capita" than did government-run federal prisons.
It does not appear that the move directly impacts any private equity holdings, as the two big private operators of federal prisons are both publicly-listed ― Corrections Corp. of America (NYSE: CXW) and GEO Group (NYSE: GEO). But private equity does have limited exposure to private prison operators on the state level. For example, NewSpring Capital is among the shareholders in Community Education Centers, a New Jersey-based operator of jails an court-ordered rehab facilities (i.e., halfway houses). Such deals could prove problematic if the federal safety data is replicated at the state and local level.
More broadly speaking, private equity has all sorts of exposure within the prison system, from food to clothing to healthcare. For example, GTCR owns Correct Care Solutions, which provides mental and behavioral health services to inmates. Or Evergreen Pacific Partners' stake in Good Source Solutions, which provides food to prison cafeterias.
• Heaving Lyfting: Last week we discussed how Lyft had run a legitimate auction process (data room, etc.) but didn't receive any formal takeover offers. Not even from existing strategic investors General Motors or Didi Chuxing. On Friday, the NY Times moved the story forward by noting that other strategic suitors approached by Lyft's bankers at Qatalyst included Amazon, Apple, Google and Uber.
• Next up: The SEC is now investigating Silver Lake over its use of accelerated monitoring fees, per the WSJ. The issue is, per usual, whether or not the private equity firm adequately disclosed such fees to its limited partners (who, apparently, continue to be under very little obligation to pay attention). There has not yet been any allegation of wrongdoing by Silver Lake.
• New fund alert: Retired NBA star Kobe Bryant has been angel investing in tech startups for years, but today is formalizing the process via the launch of a firm called Bryant Stibel.
Its inaugural fund is $100 million, all coming from Kobe and his partner, Dun & Bradstreet vice chairman Jeff Stibel (who previously was CEO of D&B Credibility Corp., where LinkedIn profiles suggest that two of the new firm's junior staffers may still work). Unclear if the firm's investment thesis will be spray and pray, or if Kobe's on-court strategy isn't being transferred to the board room (note: Term Sheet is written by an unabashed Celtics fan).
• Watchoo got? Just a quick reminder that if you want to feed me some info without your fingerprints attached, please use our anonymous tip form.
THE BIG DEAL
• Pfizer Inc. (NYSE: PFE) has agreed to acquire cancer drug company Medivation (Nasdaq: MDVN) for around $14 billion in cash, or $81.20 per share (21.35% premium to Friday’s closing price). Read more.
VENTURE CAPITAL DEALS
• Virtru, a Washington, D.C.-based provider of encryption and data protection solutions, has raised $29 million in Series A funding. Bessemer Venture Partners led the round, and was joined by NEA, Soros Fund Management, Haystack Partners, Quadrant Capital Advisors and Blue Delta Capital. www.virtru.com
• InsiteVR, a provider of virtual reality-based modeling solutions for architects, has raised $1.5 million in seed funding. Backers include Y Combinator, CyberAgent Ventures, GREE VR Fund and individual angels. Read more.
PRIVATE EQUITY DEALS
• Charlesbank Capital Partners has completed its previously-announced acquisition of Polyconcept, a Dutch provider of promotional products, from Investcorp and 3i Group. Partners Group and company management also participated as equity investors. No financial terms were disclosed. www.polyconcept.com
• Goldman Sachs and EastBridge Partners have agreed to acquire a majority stake in Happycall Co. Ltd., a South Korean maker of cookware and kitchen appliances, from company founder Hyun Sam Lee (who will retain a minority stake). Read more.
• InfoVista, a France-based portfolio company of Apax Partners, has agreed to acquire TEMS, a provider of wireless networks monitoring solutions, from Ascom (Swiss: ASCM). No financial terms were disclosed. www.infovista.com
• Kelso & Co. has acquired Physicians Endoscopy LLC, a Charlotte, N.C.-based owner and manager of 42 endoscopic surgery centers, from Pamlico Capital. No financial terms were disclosed. www.pamlicocapital.com
• Pathway Partners Vet Holding LLC, an Austin, Texas-based veterinary hospital owner and operator, has raised an undisclosed amount of private equity funding from Morgan Stanley Global Private Equity. www.pathwayvets.com
• Patricia Industries, a portfolio company of Investor AB, has agreed to acquire Laborie Medical Technologies, an Ontario-based provider of medical devices for urological, pelvic health and gastrointestinal applications. No financial terms were disclosed. The seller is Audax Private Equity. www.laborie.com
• Platinum Equity has agreed to acquire the Foam Plastic Solutions and Flow Control Devices businesses of Singapore-listed Broadway Industrial Group Ltd. for an undisclosed amount. www.bw-grp.com
• Weller Equity Partners has acquired KFI Seating, a Louisville, Ky.-based provider of business and institutional furniture products. No financial terms were disclose.d
IPOs
• Everbridge Inc., a Burlington, Mass.-based provider of critical communications and enterprise safety applications, has filed for a $90 million IPO. It plans to trade on the Nasdaq under ticker symbol EVBG, with Credit Suisse and BofA Merrill Lynch serving as co-lead underwriters. The company reports a $6 million net loss on $35.6 million in revenue for the first half of 2016, compared to a $3.2 million net loss on $27.3 million in revenue for the year-earlier period. Shareholders include ABS Ventures (31.2% pre-IPO stake). www.everbridge.com
• Meitu, a Chinese selfie-app maker, has filed in Hong Kong for an IPO that could raise between $500 million and $1 billion. Shareholders include China Resources Capital, Trustbridge, Tencent, DST Global, TBP Capital Canada Pension Plan Investment Board, Baillie Gifford, CDB Kai Yuan Capital Management, Capital Today and Temasek. Read more.
• Thar Pharmaceuticals Inc., a Pittsburgh-based developer of oral therapies for serious or life-threatening conditions like complex regional pain syndrome, has filed for a $50 million IPO. It plans to trade on the Nasdaq under ticker symbol THAR, with SunTrust Robinson Humphrey serving as lead underwriter. Backers include Innovation Works. www.tharpharma.com
EXITS
• ABRY Partners has agreed to sell Language Line Services, a Monterey, Calif.-based provider of on-demand language interpretation services, to Teleperformance (Paris: RCF) for $1.52 billion. Language Line had pulled a proposed IPO in 2013, and last year refinanced its debt. ABRY paid $720 million to purchase the company in 2004. www.languageline.com
OTHER DEALS
• Apple has acquired Gliimpse, a personal health data startup Glippmpse, according to Fast Company. Read more.
• Renesas Electronics (Tokyo: 6723) reportedly is in talks to acquire Intersil (Nasdaq: ISIL), a Milpitas, Calif.-based chipmaker, for around $3 billion. Read more.
• Zhang Zhiyong, chairman of telecom firm Beijing Miteno Communication Technology, is leading a Chinse investor consortium that has agreed to acquire Austin, Texas-based adtech company Media.net for around $900 million in cash. Read more.
FIRMS & FUNDS
• Brooklyn Bridge Ventures has closed its second fund with $15 million in capital commitments. www.brooklynbridge.vc
MOVING IN, ON & UP
• Ben Davis has joined law firm Proskauer as a London-based partner in the firm’s finance practice, with a particular focus on leveraged transactions. He previously was with Reed Smith. www.proskauer.com
• Lydia Gavalis has joined Hamilton Lane as deputy general counsel, in preparation of the early 2017 retirement of existing general counsel Robert Cleveland. Gavalis previously was general counsel for SEI (Nasdaq: SEIC). www.hamiltonlane.com
• Urjit Patel has been named head of India’s central bank, where he had been a deputy governor. Read more.
• Philippe Schenk has joined private equity firm J.W. Childs Associates as a managing director and head of investor relations. He previously was a principal with Grove Street Advisors. J.W. Childs also has hired Kyle Casella (ex-Weston Presidio) as a vice president and Jess Yuan as an associate. www.jwchilds.com
• Ken Trent has joined Hidden Harbor Capital Partners as an operating partner, with a focus on industrial businesses. He previously was owner and president of Professional Power Products. www.hh-cp.com
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