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FinanceTerm Sheet

Term Sheet — Tuesday, May 5

By
Dan Primack
Dan Primack
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By
Dan Primack
Dan Primack
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May 5, 2015, 10:16 AM ET
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Random Ramblings

Flowers are finally beginning to bloom here in Boston, which means that it’s time for our Annual Reader Survey. It only should take about five minutes for you to complete, and your responses help improve Term Sheet and keep it free of charge (by giving us demographic data that attracts advertisers).

So please go here to fill out the survey. Much thanks in advance. Now some quick notes to kick off your Wednesday:

• Just asking: Yesterday's big deal was that AltSchool had raised $100 million in Series B funding from backers like Founders Fund, Andreessen Horowitz and Mark Zuckerberg. This is the San Francisco-based network of micro-schools that emphasizes personalized learning for children in grades K-8. It also is the latest in a series of large VC investments for what might best be described as "full-stack" education companies (Benchmark-backed Minerva is another), as opposed to education-tech companies that make products for existing school systems.

VCs have complained for years that ed-tech rarely pays, in large part due to the difficulties in selling district-to-district (or, even worse, school-to-school). Are startups like AltSchool the future of education-focused VC investing?

• About face: Remember a couple of years back, when a number of large Dell Inc. shareholders voiced opposition to the company’s planned privatization by Michael Dell and Silver Lake? Among them was T. Rowe Price, which was the company’s second-largest holder when the deal was announced, but its fifth-largest holder when it was time for a formal vote (after dumping some stock in May 2013).

Anyway, USA Today this morning reports that T. Rowe Price actually voted its 23.5 million or so shares in favor of the buyout. The investment firm is referring to this about-face as a "discrepancy in the communication of our voting instruction," and says it will not affect T. Rowe's continuing efforts to get more money out of Dell via a court appraisal in Delaware. Really? So you're going to keep asking a judge to give you more money for stock that you affirmatively agreed to sell for a certain price? Pretty sure it's the shareholder vote that counts -- not the press releases.

• Tragic transitions: PE-backed SurveyMonkey is not yet saying who will take over as chairman and CEO, following the sudden death of Dave Goldberg on Friday night. An email sent to company employees on Saturday morning said that SurveMonkey's board and management team would "come together over the weekend to begin transition planning."

• Recommended reading: Richard Stolley has a new feature in Fortune about Gregg Bemis, a retired venture capitalist who owns the salvage rights to the Lusitania. He thinks he can solve the mystery of why the passenger ship sank 100 years ago, but not if he can't convince the Irish government to get out of the way. Read it here.

• Coming attractions: This morning we announced a second wave of participants for Fortune BrainstormTech, our invite-only tech confab that takes place this July in Aspen. Among the new additions are: Susan Wojcicki (CEO of Google’s YouTube), Anthony Noto (CFO of Twitter), Devin Wenig (CEO of eBay), Bill Maris (Google Ventures), Dennis Woodside (COO of Dropbox), Brad Keywell (Lightbank, Groupon co-founder), Helena Foulkes (president of CVS Pharmacy), Blake Irving (CEO of GoDaddy), Austin Geidt (head of new market launches for Uber), Michael Dubin (CEO of Dollar Shave Club) and Tristan Walker (CEO of Bevel). See more participants by going here.

THE BIG DEAL

• PTC (Nasdaq: PTC) has agreed to acquire ColdLight, a Wayne, Penn.–based maker of machine learning technology that detects patterns in data collected from sensors embedded in medical devices, manufacturing equipment and consumer products. The deal was valued at $105 million.

ColdLight had raised VC funding from such firms as Intel Capital, Ben Franklin Technology Partners and Kayne Partners. Read more.

VENTURE CAPITAL DEALS

• SMS Assist, a mobile and cloud-based multisite property management company, has raised $45 million in equity funding from Insight Venture Partners. SMS Assist is headquartered in Chicago. www.smsassist.com

• NatureBox, a San Carlos, Calif.-based subscription box service focused on healthy snack food, raised $30 million in Series C funding. Global Founders Capital led the round, and was joined by Neuberger Berman Equity Funds, Kensington Capital Holdings, Valley Oak Investment Partners and return backers General Catalyst Partners, Canaan Partners and Softbank Capital. www.naturebox.com

• CloudGenix, a Santa Clara, Calif.-based provider of software-defined wide area network solutions, has raised $25 million in Series B funding. Bain Capital Ventures led the round, and was joined by Charles River Ventures and Mayfield Fund. www.cloudgenix.com

• Kano, a provider of make-your-own computer kits for kids, has raised $15 million in Series A funding. Breyer Capital led the round, and was joined by Collaborative Fund and Jim O’Neill (ex-Goldman Sachs). Read more.

• Wonder Workshop, a Sunnyvale, Calif.-based provider of dash and dot robots that help teach kids to code, has raised $6.9 million in new VC funding. WI Harper Group led the round, and was joined by return backers Madrona Venture Group, CRV, Maven Ventures and Bright Success Capital. www.makewonder.com

• PureWow, a New York-based digital media company specializing in women’s lifestyle content, has raised $2.5 million in seed funding. Pilot Group led the round, and was joined by VaynerRSE, Lerer Hippeau Ventures, Pritzker Group Venture Capital, Melo7Tech, Great Oaks Venture Capital and Galvanize. www.purewow.com

• Parkifi, a Denver-based real-time parking spot occupancy platform, has raised $2 million in first-round funding from Galvanize Ventures, Foundry Group Angels and Access Ventures. www.parkifi.com

PRIVATE EQUITY DEALS

• CITIC Capital has acquired Mark Styler Co Ltd., a Japanese maker and retailer of women’s clothing under such brands as MercuryDuo, Emoda, Murua, Dazzlin and Ungrid. No financial terms were disclosed. www.mark-styler.co.jp

• EQT Partners has acquired the 49% stake it did not already own in Energy from Waste, a German waste-burning business valued at around $1.45 billion, from E.ON. Read more.

• Greenbriar Equity Group has acquired SEKO Logistics, an Itasca, Ill.–based provider of supply chain solutions. No financial terms were disclosed. www.sekologistics.com

• HandStands, a Draper, Utah-based maker of auto air care and technology accessory products, has acquired Lexol, a Marietta, Ga.-based maker of leather care products, from Summit Industries. No financial terms were disclosed. HandStands is a portfolio company of Trivest Partners. www.handstands.com

• Helios Investment Partners has agreed to invest $100 million for a 12.4% stake in Africa Oil Corp. (TSX: AOI), a Canadian oil and gas company with assets in Kenya, Ethiopia and Somalia. www.africaoilcorp.com

• KRG Capital Partners has acquired Palladium Energy Inc., a Lisle, Ill.–based provider of customized power solutions, from Marlin Equity Partners. No financial terms were disclosed. www.palladiumenergy.com

• Marlin Equity Partners has acquired Fidelis Cybersecurity, a Waltham, Mass.–based provider of cybersecurity threat prevention, from General Dynamics (NYSE: GD). No financial terms were disclosed. www.fidelissecurity.com

• Microbrush International, a Grafton, Wisc.–based developer of consumables used in dental restorative procedures, has acquired DentiSmart LLC, a Grand Haven, Mich.–based maker of a sectional matrix system used in dental restorative procedures. No financial terms were disclosed. Microbrush is a unit of Young Innovations, which is owned by private equity firm Linden LLC. www.microbrush.com

• Orchid Underwriters Inc., a Vero Beach, Fla.-based specialty underwriter of property insurance focusing on coastal properties, has acquired Coastal Agents Alliance, a West Atlantic City, N.J.-based managing general agent. No financial terms were disclosed. Orchid Underwriters is a portfolio company of Gryphon Investors. www.orchidinsurance.com

• Palatine Private Equity has acquired WHP Group, a UK–based provider of support services to the mobile telecoms infrastructure sector, from Key Capital Partners. The deal was valued at £38 million. www.palatinepe.com

• Southfield Capital has completed a dividend recap for portfolio company BioPharm Communications, via an undisclosed amount of debt provided by Crescent Capital Group and Siguler Guff. BioPharm is a New Hope, Penn.-based provider of marketing programs for the pharma and biotech industries. www.biopharmcommunications.com

• STATS LLC, a Chicago-based portfolio company of Vista Equity Partners, has acquired Prozone, a UK–based provider of athlete tracking and sports performance analytics. No financial terms were disclosed. www.stats.com

• Summit Partners has sponsored a recapitalization of MedOptions LLC, a –based provider of behavioral health services to skilled nursing and assisted living facilities. No financial terms were disclosed. Existing MedOptions shareholder Point Judith Capital will retain an ownership stake. Sellers include Housatonic Partners. www.medoptionsinc.com

• TA Associates has acquired a majority stake in NorthStar Financial Services Group, an Omaha-based financial services firm with more than $300 billion in assets under management and administration. No financial terms were disclosed. www.nstar-financial.com

• Virgo Capital has sponsored a recapitalization of Sayers, a Mount Prospect, Ill.-based provider of IT and software consulting services. No financial terms were disclosed. www.sayers.com

IPOs

• Evolent Health, an Arlington, Va.-based provider of a population health managed services solution, has filed for a $100 million IPO. It plans to trade on the NYSE under ticker symbol EVH, with J.P. Morgan and Goldman Sachs serving as co-lead underwriters. The company reports a $52 million net loss on $101 million in revenue for 2014. Last year the company raised $100 million in Series B funding from TPG Growth, The Advisory Board Co. and UPMC Health Plan. www.evolenthealth.com

EXITS

• KKR is planning to sell around $200 million worth of shares in Hong Kong-based equipment leasing company Far East Horizon (HK: 3360), via a private placement, according to the WSJ. Read more.

• Platinum Equity has agreed to sell Bridge Terminal Transport Services Inc., a Charlotte, N.C.-based provider of marine container transportation services, to XPO Logistics Inc. (NYSE: XPO).  No financial terms were disclosed. www.bttinc.com

OTHER DEALS

• Cavco Industries Inc. (Nasdaq: CVCO) has acquired Fairmont Homes Inc., a Nappanee, Ind.-based builder of manufactured and modular homes and park model RVs. No financial terms were disclosed. www.fairmonthomes.com

• Delivery Hero, a German food delivery service backed by Rocket Internet, has acquired Turkish food delivery company Yemeksepeti for $589 million. www.yemeksepeti.com

• Post Holdings Inc. (NYSE: POST) has completed its previously-disclosed acquisition of Lakeville, Minn.-based breakfast cereal maker MOM Brands Co. for around $1.15 billion in cash and stock. www.mombrands.com

• Rapid7, a Boston-based provider of security analytics software and services, has acquired NT Objectives, an Irvine, Calif.–based web and mobile application security testing company. No financial terms were disclosed. Rapid7 has raised nearly $90 million in VC funding from firms like Bain Capital Ventures and Technology Crossover Ventures. www.rapid7.com

FIRMS & FUNDS

• Mission Bay Capital, a VC firm focused on University of California spinouts, has raised $25 million for its second fund, according to a regulatory filing. www.missionbaycapital.com

• The Oregon Investment Council will commit $500 million to The Blackstone Group’s seventh flagship buyout fund. www.oregon.gov/treasury

• Pfingsten Partners, a Chicago-based middle-market private equity firm, is raising upwards of $350 million for its fifth fund, according to a regulatory filing. www.pfingstenpartners.com

• Summit Park, a Charlotte, N.C.-based private equity firm focused on the lower middle-markets, has closed its second fund with $118.5 million in capital commitments. LPs include J.P. Morgan Asset Management, Private Advisors, Adveq, SCS Financial and Texas Children’s Hospital. www.summitparkllc.com

MOVING IN, UP, ON & OUT

• Luke Barrett has joined TPG Capital as director of external affairs. He previously was with PR firm Abernathy McGregor. www.tpg.com

• Blue Wolf Capital Partners has named former investment banker Victor Caruso as a managing director, and head of the firm’s business development activities. Caruso joined Blue Wolf last year as a senior advisor focused on the aerospace and defense industries. www.blue-wolf.com

• Tom Loverro has joined Institutional Venture Partners as a vice president. He previously was a principal with RRE Ventures. www.ivp.com

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