Term Sheet

By Dan Primack
October 13, 2016

Random Ramblings

Some quick items to kick off your Thursday…

• Apaxed: Dan O’Keefe began his growth equity career back in 1999 as an associate at Apax Partners which, at the time, had a thriving U.S. and international venture capital practice. But the firm later doubled down on buyouts and left the earlier-stage world largely behind. Now O’Keefe is rejoining the firm as a New York-based managing partner, charged with building out a focused growth equity team.

O’Keefe had spent the past six years with Technology Crossover Ventures, where his board seats included Rent the Runway and SeatGeek, while he also was involved with such portfolio companies as Avvo, Spotify and Vice Media.

He says that there already is capital to make new investments —targeting check sizes of between $25 million and $100 million — but declined to comment on if Apax will raise a dedicated growth equity fund, or on specific hiring plans.

• Secondary stuff: Adams Street Partners yesterday announced the pending retirement of secondaries chief Jason Gull, who will be succeeded by Jeff Akers. Gull strikes me as a bit young for real retirement (<50 years-old), but he tells me there is no next gig currently lined up.

Via email: “Next job is full time husband and father, volunteer for the summit county search and rescue team, volunteer ski patrol at park city mountain resort, and training for Ironman Arizona, etc. Something like that list anyway.  Taking it one day at a time.”

• Unclubbed: Last month I mentioned that we should keep a special eye on the carve-out process for CenturyLink’s data center business, because one of the suitors was a four-firm buyout consortium that might portend the return of complex club deals. So, it’s worth highlighting yesterday’s Reuters news that the club is out of the process, with BC Partners now in pole position.

• Corrections: Yesterday’s issue misidentified the stock exchange where Extraction Oil & Gas is trading following its $633 million IPO. The company listed on Nasdaq. Also, Stanley Black & Decker is buying the tools business of Newell Brands for $1.95 billion (we missed a very important decimal point).


THE BIG DEAL

• WeWork, the New York-based co-working space operator, has raised $260 million in additional Series F funding, according to the WSJ. The company held a $430 million first close back in March at a $16 billion valuation and, at the time, had authorized up to $780 million in Series F share sales. New backers include  Shanghai Jin Jiang International Hotels. Read more.


VENTURE CAPITAL DEALS

• TouchBistro, a Toronto-based maker of an iPad restaurant point-of-sale app, has raised C$17 million in Series B funding. BDC IT Venture Fund led the round, and was joined by Round13 Capital, Huff Capital and return backers Relay Ventures and Kensington Capital Partners. www.touchbistro.com

• Axial Healthcare Inc., a Nashville, Tenn.-based pain medication and pain care management startup, has raised $16.5 million in Series B funding. Oak HC/FT led the round, and was joined by return backers .406 Ventures, BlueCross BlueShield Venture Partners and Sandbox Advantage Fund. www.axialhealthcare.com

• VenueNext, a Santa Clara, Calif-based “connected venue technology platform,” has raised $15 million in Series B funding led by Causeway Media Partners. www.venuenext.com

• FourKites, a Chicago-based platform for real-time shipment tracking and visibility, has raised $13 million in Series A funding. Bain Capital Ventures led the round, and was joined by return backers Hyde Park Venture Partners, Hyde Park Angels and Otter Consulting. www.fourkites.com

• ComplyAdvantage, a London-based startup that uses AI and machine learning to help financial firms manage compliance obligations and reduce costs, has raised $8.2 million in Series A funding led by Balderton Capital. www.complyadvantage.com

• Zylo, an Indianapolis-based SaaS optimization platform, has raised $3.3 million in seed funding. Backers include High Alpha Capital, GGV Capital and SV Angel. www.zylo.com

• Astronomer, a Cincinnati-based platform for enterprise-scale big data integration, has raised $1.9 million in seed funding. CincyTech led the round, and was joined by AngelPad, 500 Startups, First Ascent, Connetic Ventures, Drummond Road Capital and CoreNetwork. http://www.astronomer.io


PRIVATE EQUITY DEALS

• Abraaj Group has acquired a minority equity stake in Indorama Fertilizers BV, the largest urea fertilizer manufacturer in sub-Saharan Africa, from Dutch petrochemicals company Indorama Corp. www.abraaj.com

• Berlin Packaging, a Chicag-based portfolio company of Oak Hill Capital Partners, has agreed to acquire a majority stake in Bruni Glass SpA, a Milan-based provider of premium and specialty glass packaging and accessories, from Ardian. No financial terms were disclosed. www.berlinpackaging.com

• The Blackstone Group and New Mountain Capital have completed their previously-announced recapitalization of JDA Software Group, a Scottsdale, Ariz.-based provider of supply chain and retail management software, via a $570 million equity investment. New Mountain was the company’s existing owner, and the deal came as an alternative to a reported $3 billion purchase offer from Honeywell International (NYSE: HON). www.jda.com

• Centerbridge Partners and Littlejohn & Co. have become the largest shareholders in Houston-based oil drilling services business Stallion Oilfield Holdings Inc., via a recap with secured lenders and certain equity holders. www.stallionoilfieldcom

• Clearlake Capital Group has sponsored an out-of-bankruptcy recapitalization of Light Tower Rentals Inc., an Odessa, Texas-based specialty equipment rental company focused on oil and gas operations in the prolific Permian Basin. No financial terms were disclosed. www.ltr.com

• Drilling Info Holdings Inc., an Austin, Texas-based portfolio company of Insight Venture Partners, has agreed to acquire GlobalView Software Inc., a Chicago-based provider of analytics and risk management tools for the energy industry, from CCP Equity Partners. No financial terms were disclosed. www.marketview.com

• Gazelle Transportation, a Bakersfield, Calif.-based provider of  crude oil transportation and logistics services, has raised $20 million in private equity funding from EIV Capital. www.gazelletrans.com

• Silver Lake and Thoma Bravo are prepping takeover bids for Imperva (NYSE: IMPV), a Redwood Shores, Calif.-based online security company currently valued at around $1.7 billion, according to Bloomberg. Earlier reports suggested interest from Cisco Systems, IBM and Forcepoint (owned by Vista Equity Partners and Raytheon). Read more.

• Vision Media Management, a Valencia, Calif.-based portfolio company of CenterGate Capital, has acquired Cinema Scene Marketing, an Overland Park, Kansas-based provider of digital display networks and related promotional products. No financial terms were disclosed. www.visionmediamgmt.com


IPOs

• Snapchat has chosen Morgan Stanley and Goldman Sachs to lead what is expected to be an early 2017 IPO, according to Bloomberg. Read more.


EXITS

• Aston Capital has agreed to sell The Radiant Group Inc., a Chantilly, Va.-based provider of Earth imagery and geospatial information solutions to the government sector, to DigitalGlobe Inc. (NYSE: DGI) for $140 million in cash. www.digitalglobe.com

• Attero, a Dutch waste management company owned by Waterland Private Equity, has received first-round takeover bids from China Gezhouba Group Corp., Beijing Enterprises Holdings Ltd., China Communications Construction and CECEP, according to Bloomberg. The deal could be valued at between $800 million and $1 billion. Read more.

• Hartford Steam Boiler, a unit of Munich Re, has acquired Meshify, a Houston-based startup that connects disconnected devices via industrial IoT. No financial terms were disclosed. Sellers include Mercury Fund, Surge Ventures and two Texas-based angel networks. www.meshify.com

• Modern Times Group (Oslo: MTG) has agreed to acquire a 35% stake in InnoGames, a German developer and publisher of online and mobile games like Tribal Wars and Forge of Empires, at an enterprise value of €260 million. Sellers include Eight Roads Ventures. www.mtg.com

• Sun Capital Partners has sold Critical Flow Solutions, a Sandy, Utah-based provider of products and services to the petroleum refining industry, to CIRCOR International Inc. (NYSE: CIR) at a $210 million enterprise value. www.suncappart.com

• Ultimate Software (Nasdaq: ULTI) has acquired Kanjoya Inc., a San Francisco-based workforce intelligence and analytics platform for enterprises. No financial terms were disclosed. Kanjoya had raised over $16 million in VC funding from firms like Baseline Ventures, Floodgate, Allegro Venture Partners and D.E. Shaw. www.kanjoya.com


OTHER DEALS

• Affirm Inc., the consumer-focused financial products company led by Max Levchin, has secured a $100 million lending facility from Morgan Stanley.

• Beltone Financial Holding, an Egypt-listed investment bank, has acquired a 60% stake in Auerbach Grayson, a New York-based brokerage focused on global trade execution and market research for institutional investors. No financial terms were disclosed. www.agco.com

• CarThera, a French developer of medical devices to treat brain disorders, has secured a €5.7 million grant from France’s General Investment Commission. www.carthera.eu

• Kellogg Co. (NYSE: K) has agreed to acquire a control stake in Brazilian biscuit-maker Parati Group via a purchase of Ritmo Investimentos for approximately $431 million in cash. Read more.


FIRMS & FUNDS

• Arsenal Capital Partners, a New York-based provider equity firm focused on lower middle-market specialty industrial and healthcare companies, has closed its fourth fund with $1.3 billion in capital commitments. Limited partners include UC Regents, Northwestern Mutual, PPM America, The Eli and Edythe Broad Foundation, PKA AIP, Pictet Alternative Advisors, SAMpension, Unigestion, CalSTRS, PensionDanmark and Sentry Insurance. www.arsenalcapital.com

• Impact Venture Capital has been launched as a VC firm that will co-invest alongside corporate venture firms, with a focus on several “global challenges” (security, energy, etc.). Its co-founders are Dixon Doll (founder of DCM), Eric Ball (ex-Oracle treasurer) and Jack Crawford (ex-Velocity Venture Capital).

• J-STAR, a Japanese mid-market private equity firm, has secured around $150 million in commitments for a third buyout fund that is targeting a total of $200 million, according to Private Equity International.
www.j-star.co.jp

• New State Capital Partners, a New York-based private equity firm focused on the industrial, healthcare services and business services sectors, has closed its first institutional investment fund with $131 million in capital commitments. www.newstatecp.com

• Redpoint Ventures has raised $180 million for its first China-dedicated private equity fund, per a regulatory filing. www.redpoint.com


MOVING IN, UP AND ON

• Amit Mahajan has joined Crestline Investors, a credit-focused institutional alternative asset manager, to co-lead a new private equity and fund restructuring team (alongside David Philipp, who has been with Crestline since 2013). Mahajan previously was a managing director with Macquarie Asset Management. www.crestlineinvestors.com

• Claudia Simon has joined Schulte Roth & Zabel as a New York-based partner in the law firm’s M&A and securities group. She previously was with Paul Hastings. www.srz.com

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