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Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

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Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

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Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there

M&A and IPOs

By
Dan Primack
Dan Primack
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By
Dan Primack
Dan Primack
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September 26, 2013, 2:53 PM ET

PayPal, a unit of eBay (Nasdaq: EBAY), has agreed to acquire Braintree, a Chicago-based payment platform for online and mobile commerce. The deal is valued at $800 million in cash. Braintree has raised nearly $70 million in VC funding from Accel Partners, New Enterprise Associates, RRE Ventures and Greycroft Partners. www.braintreepayments.com

Lixil (Tokyo: 5938) and the Development Bank of Japan have formed a 50/50 joint venture to acquire a majority stake in German bathroom fixtures maker Grohe. The total deal is valued at 3.06 billion. Sellers would include TPG Capital, Credit Suisse Private Equity and HarbourVest Partners.www.lixil-group.co.jp

TPG Capital has agreed to sell Chinese equipment leasing company UT Capital Group Co. Ltd. to a unit of Haitong Securities for $715 million. www.tpgcapital.com

Applied Optoelectronics Inc., a Sugar Land, Texas-based provider of fiber-optic networking product, raised $36 million in its IPO. The company priced 3.6 million shares at $10 per share (below $13-$15 range), for an initial market cap of approximately $126 million. The company will trade on the Nasdaq under ticker symbol AAOI, while Raymond James and Piper Jaffray served as lead underwriters. Applied Optoelectronics reports a $1.3 million net loss on around $34 million in revenue for the first half of 2013. Shareholders include Technology Associates Management. www.ao-inc.com

Covisint Corp., a Detroit-based cloud engagement platform being spun out of Compuware (Nasdaq: CPWR), raised $64 million in its IPO. The company priced 6.4 million shares at $10 per share (middle of $9-$11 range), for an initial market cap of approximately $364 million. The company will trade on the Nasdaq under ticker symbol COVS, while Credit Suisse and Pacific Crest Securities served as lead underwriters. It reports a $5.6 million net loss on $90 million in revenue for the year ending March 31, 2013. www.covisint.com

Montage Technology Group Ltd., a Chinese fabless chipmaker focused on the home entertainment and cloud computing markets, raised $71 million in its IPO. The company priced 7.1 million shares at $10 per share (below $12-$14 range), for an initial market cap of approximately $265 million. It will trade on the Nasdaq under ticker symbol MONT, while Deutsche Bank and Barclays served as lead underwriters. It reports $8.7 million of net income on $45 million in revenue for the first six months of 2013, compared to $8.3 million in net income on $34 million in revenue for the year-earlier period. Shareholders include AsiaVest Partners (19.2% pre-IPO stake) andIntel Capital (10%). www.montage-tech.com

Premier Inc., a Charlotte, N.C.-based healthcare alliance that connects various U.S. hospitals and health systems, raised $760 million in its IPO. The company priced 28.2 million shares at $27 per share (above $23-$26 per share range). It will trade on the Nasdaq under ticker symbol PINC, while J.P. Morgan, BoA Merrill Lynch and Wells Fargo served as lead underwriters. The company reports $375 million of net income on $519 million in revenue for the year ending June 30, 2013. Its fiscal 2012 figures were $327 million in net income on $473 million in revenue. www.premierinc.com

SFX Entertainment Inc., a New York-based producer of live events and entertainment content focused exclusively on the electronic music culture, has set its IPO terms to 16.67 million shares being offered at between $11 and $13 per share. It would have an initial market cap of $966 million, were it to price in the middle of its range. The company plans to trade on the NYSE under ticker symbol SFXE, with UBS, Barclays and Jefferies serving as lead underwriters. SFX Entertainment is controlled by founder Robert Sillerman, while Och-Ziff Capital and ID&T Holdings each hold minority positions.

Southeastern Grocers Inc. (f.k.a. Bi-Lo), a Jacksonville, Fla.-based grocery store chain owned by Lone Star Funds, has filed for a $500 million IPO. It plans to trade under ticker symbol SEG, with Citigroup serving as left lead underwriter. Southeastern Grocers last year paid $560 million to acquire Winn-Dixie Stores, and earlier this year bought 165 stores from the parent of Food Lion for $265 million. www.bi-lo.com

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