Random Ramblings
SunGard is moving closer to an IPO, per a Reuters story that reports the financial services and compliance software company is prepping a $750 million offering at around a $7 billion valuation. You might recall that SunGard was acquired 10 years ago by a private equity consortium that included Silver Lake, Bain Capital, The Blackstone Group, GS Capital Partners, KKR, Providence Equity Partners and TPG Capital. Since then, the company has spun off its disaster recovery unit and paid its investors a $720 million dividend.
That 2005 buyout was originally supposed to include The Carlyle Group and TH Lee Partners, but both of them bailed at the last minute over price (and were quickly replaced by GS and Providence).
A few weeks later, I pulled Carlyle co-founder David Rubenstein aside at a conference, and asked him what happened. He replied that the firm was already at its breaking point on price and that he had no regrets: “It’s going to take forever to bleed out” of a deal that size with so many sponsors, he explained. A decade later, it seems he was correct.
• Direct attack: Today's big deal is a $275 million Series B round (plus some debt) for Affirm, the latest startup from PayPal co-founder Max Levchin. My colleague Leena Rao has the full story here but, in short, Levchin is hoping to challenge American Express. Not take out some niche side business of American Express, but rather its core credit business.
Reminds me a bit of how Marc Lore's Jet is hoping to go straight at the heart of Amazon, and how a number of startups are seeking to challenge Google in search (or at least in mobile search, which is fast becoming more important). Somewhere between hubris and courage lies lots of VC funding...
• Unicorns can fly: One of today’s other large deals is that DJI, a Chinese maker of consumer drones, has raised $75 million in new VC funding from Accel Partners. There had been reports last week that DJI was in talks to raise this round at a $10 billion valuation, but my understanding is that the actual mark was in the ballpark of $8 billion.
• Tweet of the Day comes from @azizshamim:
OH: SF tech culture is focused on solving one problem: What is my mother no longer doing for me?
• Big cloud: Salesforce shares were halted again yesterday, this time due to a Bloomberg report that Microsoft might have interest in making a takeover bid. The story also asserted that Microsoft was not the original suitor discussed last week, although I'm not so sure that's true. At the very least, Microsoft was thinking about it before last week's report arose. Still have no idea who's proactively leaking on this, since it doesn't seem to be in anyone's interest (except, perhaps, someone with Salesforce stock to sell on the open market).
• Quiz Time: Can you name yet another VC-backed, Bay Area tech startup that's on the block after being unable to pay off its venture debt? Hint: It's name is alliterative.
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THE BIG DEAL
• Affirm, a credit platform launched by PayPal co-founder Max Levchin, has raised $275 million in new equity and debt funding. Spark Capital Growth led the equity tranche, and was joined by Andreessen Horowitz and return backers Khosla Ventures and Lightspeed Venture Partners. Jefferies led the debt tranche. Read more.
VENTURE CAPITAL DEALS
• Zenefits, a San Francisco-based provider of HR services automation platform provider, has raised $500 million in Series C funding at a $4.5 billion post-money valuation. Fidelity and TPG Capital co-led the funding round, and were joined by Founders Fund, Khosla Ventures, Insight Venture Partners, Sound Ventures and return backers like Andreessen Horowitz and Institutional Venture Partners. Read more.
• eDaijia, a Chinese ride-hailing app, has raised $100 million in new VC funding. Warburg Pincus led the round, and was joined by return backers Matrix Partners and Lightspeed China Partners. www.edaijia.cn
• Delhivery, an Indian e-commerce logistics company, has raised $85 million in Series D funding. Tiger Global Management led the round, and was joined by return backers Multiples Alternate Asset Management, Nexus Venture Partners, and Times Internet Ltd. Read more.
• DJI, a Chinese maker of consumer drones, has raised $75 million in VC funding from Accel Partners. The company also is launching a drone operation software developer platform. Read more.
• Symbiomix Therapeutics, a Newark, N.J.-based developer of medicines for serious women's health infections, has closed on the final tranche of its $41 million Series A funding round. Backers include OrbiMed Advisors, Fidelity Biosciences and HBM Partners. www.symbiomix.com
• Cubic Telecom, an Ireland-based machine-to-machine connectivity platform provider, has raised €18 million in new VC funding from Audi Electronics Venture GmbH. Existing company shareholders include Sierra Wireless, ACT Venture Capital, TPS Investment Limited and Enterprise Ireland. www.cubictelecom.com
• Inkling Systems, a San Francisco-based digital textbook company, has raised $15 million in Series D funding, according to a regulatory filing. Existing shareholders include Sequoia Capital, Felicis Ventures, General Atlantic, Kapor Capital, McGrawe-Hill Education, Pearson and Tenaya Capital. www.inkling.com
• Wrike, a San Jose, Calif.–based work management platform, has raised $15 million in Series B funding. Scale Venture Partners led the round, and was joined by DCM and return backer Bain Capital Ventures. www.wrike.com
• SessionM, a Boston-based provider of mobile-first loyalty and engagement solutions, has raised $12 million in new VC funding. Causeway Media Partners led the round, and was joined by NTT Docomo Capital, Commerce Ventures and return backers Highland Capital Partners, Charles River Ventures and Kleiner Perkins Caufield & Byers. www.sessionm.com
• Digit, a San Francisco-based “automated savings tool,” has raised $11.3 million in Series A funding. General Catalyst Partners led the round, and was joined by return backers Baseline Ventures and Google Ventures. Former Visa president Hans Morris also participated. www.digit.co
• Automile, a Swedish platform that connects cars and their data to the cloud, has raised $5 million in Series A funding co-led by Dawn Capital and Point Nine Capital. www.automile.io
• CareLinx Inc., a San Bruno, Calif.-based provider of home-care access solutions for the elderly and the chronically ill, has raised $5 million in VC funding from Generator Ventures and Ziegler Link·age Longevity Funds. www.carelinx.com
• Omise, a Thailand-based payment gateway, has raised $2.6 million in Series A funding. SMDV led the round, and was joined by 500 Tuktuks, True Corp. and seed backer East Ventures. Read more.
• Springboard Education in America, a Lexington, Mass.–based provider of before- and after-school educational programming, has raised an undisclosed amount of funding from Bridges Ventures. www.springboardafterschool.com
PRIVATE EQUITY DEALS
• Axis Private Equity Group and Navigator Partners have acquired Nelson Pipeline Constructors, a Fort Lupton, Colo.–based utility contractor specializing in the construction of underground sewer, water and storm sewer pipelines. No financial terms were disclosed. Headwaters MB managed the sale process. www.nelsonpipeline.com
• Microf LLC, an Albany, Ga.–based provider of rent-to-own (RTO) solutions for the residential HVAC industry, has raised $12.3 million from Rotunda Capital. www.microf.com
• The Sterling Group has acquired Process Equipment Inc., a Birmingham, Ala.-based provider of custom turn-key air and material handling solutions. No financial terms were disclosed. ww.sterling-group.com
IPOs
• Adaptimmune, a UK-based biotech company focused on the use of T-cell therapy to treat cancer and infectious disease, raised $191 million in its IPO. The company priced 11.3 million shares (increased from 9.4m) at $17 per share (high end of range), for a fully-diluted market cap of around $1.3 billion. It will trade on the Nasdaq under ticker symbol ADAP, while BofA Merrill Lynch, Cowen & Co. and Leerink Partners served as lead underwriters. The company last year raised $104 million in Series A funding, which followed up a strategic collaboration and licensing agreement with GlaxoSmithKline (LSE: GSK) that could be worth upwards of $350 million. Shareholders include New Enterprise Associates (16.59% pre-IPO stake), Immunocore Ltd. (7.55%), OrbiMed (7.11%), Wellington Management, Fidelity Biosciences, Foresite Capital Management, Ridgeback Capital Management, Novo AS, QVT, Rock Springs Capital, VenBio Select and Merlin Nexus. www.adaptimmune.com
• CoLucid Pharmaceuticals Inc., a Durham, N.C.-based developer of oral and intravenous treatments for migraine and other headache pain, raised $55 million in its IPO. The pre-revenue company priced 5.5 million shares at $10 per share (below $13-$15 range), and will trade on the Nasdaq under ticker symbol CLCD. Piper Jaffray and Stifel served as co-lead underwriters. It has raised around $56 million in VC funding from firms like Domain Associates (23.34% pre-IPO stake), Novo Ventures (18.22%), TVM Capital Life Science (10.33%), Care Capital (16.03%), Pappas Ventures (15%), Triathlon Medical Ventures (7%), Auriga Partners and Pearl Street Ventures. www.colucid.com
EXITS
• App Annie, a San Francisco-based mobile app intelligence platform, has acquired Mobidia, a Canadian mobile measurement service. No financial terms were disclosed. App Annie raised $55 million in Series D funding earlier this year from Institutional Venture Partners, Sequoia Capital, Greycroft Partners and IDG Capital Partners. Mobidia backers included BDC Venture Capital, Discovery Capital Management and the B.C. Advantage Funds. Read more.
• Recruit Holdings (Tokyo: 6098) has acquired an additional 70% stake in European hair and beauty marketplace Wahanda for £112.5 million. Recruit already held a 10% stake in the business, and the new deal sees it buy out shareholders like Ambient Sounds Investments, 14W, Fidelity Growth Partners and Lepe Partners. Read more.
OTHER DEALS
• Alfa Sab de CV (Mexico: ALFAA) and Harbour Energy Ltd. have agreed to acquire Pacific Rubiales Energy Corp. (TSX: PRE), a Canadian oil and gas company with major shale activities in Latin America, for nearly US$5 billion (including debt). Read more.
• Alexion Pharmaceuticals Inc. (Nasdaq: ALXN) has agreed to acquire Synageva BioPharma Corp. (Nasdaq: GEVA) for $8.4 billion, or $225.92 per share (more than twice Synageva’s closing price yesterday of $95.87 per share). Read more.
• BCG Partners (Nasdaq: BGCP) has acquired Computerized Facility Integration, a Southfield, Mich.-based provider of global property management software. No finasncial terms were disclosed. www.gocfi.com
• The Credit Junction, a New York–based online provider of working capital financing to small and mid-sized enterprises, has secured a $50 million credit facility from Victory Park Capital. www.thecreditjunction.com
• Western Union Co. (NYSE: WU) is in preliminary talks to acquire smaller rival MoneyGram International (Nasdaq: MGI), according to Bloomberg. MoneyGram closed trading yesterday with a market cap of $415 million, but also has around $960 million of debt on its balance sheet. Read more.
FIRMS & FUNDS
• Kayne Anderson Real Estate Advisors has closed its fourth fund with more than $1 billion in capital commitments. www.kaynecapital.com
• RiverVest Venture Partners, a St. Louis-based VC firm focused on life sciences, has closed its third fund with $80.2 million in capital commitments. www.rivervest.com
MOVING IN, UP, ON & OUT
• Brett Caughran has joined hedge fund manager D.E. Shaw as a healthcare portfolio manager. He previously was a managing director with Maverick Capital. www.deshaw.com
• Chris Cormier is joining Bank of America as a New York-based tech banker, effective this July, according to the NY Times. He previously was with Deutsche Bank as head of technology equity capital markets for the Americas. Read more.
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