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Term Sheet — Monday, June 1

June 1, 2015, 2:01 PM UTC

Random Ramblings

Some notes to kick off your Monday...

Chips ahoy: Today's big deal is that Intel has agreed to acquire Altera Corp. for $16.7 billion in cash. The $54 per share deal represents a 10.5% premium over Altera's closing share price on Friday, and more than a 56% premium to where Altera was trading in late March before reports surfaced of a possible deal.

It's the second massive chip deal in the past week -- following Avago's $37 billion tie-up with Broadcom -- and seems to mean two things for future deal-making: (1) Consolidation will only increase, as there no longer seems to be much independent future for companies that only play in one segment of the semiconductor chain. (2) There could be new opportunity for ambitious startups that want to challenge the burgeoning hegemony.

 New firm alert: Geodesic Capital has been launched as a late-stage VC firm focused on enterprise and consumer tech companies. Its principals are Ashvin Bachireddy (ex-Andreessen Horoswitz) and John Roos (ex-CEO of Wilson Sonsini Goodrich & Rosati, and former U.S. Ambassador to Japan). According to a regulatory filing, the firm has held a $250 million first close on its debut fund, which could raise upwards of $400 million.

 Zzzzzzzz: Casper Sleep last week signed a term sheet that would see the mattress startup raise $55 million at a $500 million pre-money valuation, Fortune has learned. Institutional Venture Partners is the outside lead. We're also reporting that New York-based Casper is on a $75 million revenue run rate for 2015, but is privately projecting an even higher figure.

Once the funding is made official, I'll be interested to hear what comps IVP used, given that this seems to be a bedding products company valued like an Internet company. Read more.

 Answer Key: On Friday I asked you to "name the longtime corp dev exec at a publicly-traded Internet giant who is heading to the VC world?" Your hint was that the person had led one of the tech world's buzziest M&A deals of the past six months.

The answer was Jess Verrilli, who is stepping down as  director of corporate development and strategy at Twitter in order to join Google Ventures as a partner. No comment yet from Verrilli, Twitter or Google Ventures. Read more here.

 Update: After being fired from Men's Warehouse in 2013, George Zimmer told me that he didn't expect to launch another company. Then, earlier this year, Erin Griffith reported that Zimmer had pitched VCs on a tuxedo-rental startup. Today, Zimmer announced the creation of zTailors, which is basically Uber for tailoring that will launch with partnerships with Macy's and Bloomingdale's.

 50k and counting... Every time I add another thousand Twitter followers, I like to ask you to join the others so we can chat throughout the day. Follow me @danprimack.


 Intel (Nasdaq: INTC) has agreed to acquire rival chipmaker Altera Corp. (Nasdaq: ALTR) for $16.7 billion in cash, or $54 per share (10.5% premium to Friday’s closing price). Read more. 


 Sumo Logic, a Mountain View, Calif.-based machine data analytics company, has raised $80 million in new VC funding. DFJ Growth led the round, and was joined by Institutional Venture Partners and return backers Greylock Partners, Sequoia Capital, Sutter Hill Ventures, and Accel Partners. Read more.

 Hedvig, a Santa Clara, Calif.-based software-defined storage startup, has raised $18 million in Series B funding. Vertex Ventures led the round, and was joined by return backers True Ventures and Atlantic Bridge.

 Arsenal Medical, a Watertown, Mass.–based developer of polymer-based foam and nanofiber products, has raised $16 million in new VC funding from Polaris Partners, North Bridge Venture Partners, and Intersouth Partners. In related news, 480 Biomedical – a Watertown, Mass.-based maker of bioresorbable scaffold products – has raised $10.5 million from the same investor syndicate. 480 Biomedical was spun out of Arsenal Medical in late 2011, but are jointly led by the same CEO (Maria Palasis) and share lab space. Both rounds include a debt conversion.

 Aspire Health, a Nashville, Tenn.-based provider of home and outpatient-based palliative care has raised $15 million in Series C funding. Oak HC/FT led the round, with partner Annie Lamont joining the company’s board of directors.

 Tachyus, a San Mateo, Calif.-based developer of data tools for the oil industry, has raised $13 million in Series A funding led by Founders Fund. Read more.


 AGS, a slot machine and live table games company owned by Apollo Global Management, has acquired Cadillac Jack, a Duluth, Ga.–based provider of gaming machines for the North American tribal gaming market, from Amaya Inc. (TSX: AYA). The deal is valued at $370 million in cash, plus a $12 million promissory note.

 Altor Equity Partners and Goldman Sachs Merchant Banking have agreed to acquire a majority stake in Hamlet Protein, a Danish maker of soy-based protein solutions used in animal feed for young animals, from Polaris Private Equity and company founder Ole. K. Hansen. No financial terms were disclosed.

Apollo Global Management (NYSE: APO) has agreed to acquire OM Group Inc. (NYSE: OMG), a Cleveland–based diversified industrials company, for approximately $1.64 billion, or $54 per share. Following the deal, Platform Specialty Products (NYSE: PAH) will acquire OM Group’s electronic chemicals and photomasks businesses from Apollo for around $365 million in cash.

 JLL Partners said that it has acquired Point Blank Enterprises, a Pompano Beach, Fla.-based maker of bullet-proof vests for the police and military, from Sun Capital Partners,. No financial terms were disclosed.

 Sentinel Capital Partners has acquired Corporate Visions Inc., a Larkspur, Calif.–based provider of marketing and sales enablement solutions. No financial terms were disclosed. Sellers include Hammond, Kennedy, Whitney & Co.

 Sycamore Partners has agreed to acquire 330 Family Dollar stores from Dollar Tree Inc. (Nasdaq: DLTR), contingent on the completion of Dollar Tree’s pending acquisition of Family Dollar Stores Inc. (NYSE: FDO).

 Vestar Capital Partners has completed its previously-announced acquisition of Woodstream, a Lititz, Penn.-based maker of branded pest control and lawn and garden products, from Brockway Moran & Partners and CHS Capital. No financial terms were disclosed, except that leveraged financing was provided by GE Capital and Ares Capital.


 Four companies are expected to price IPOs on U.S. exchanges this week. They are: Evolent Health, DavidsTea, PennTex Miudstream Partners LP and EndoChoice. Read more.

 Invuity, a San Francisco-based developer of medical devices to improve visualization in minimally-invasive surgeries, has set its IPO terms to four million shares being offered at between $14 and $16 per share. It would have an initial market cap of approximately $188 million, were it to price in the middle of its range. The company plans to trade on the Nasdaq under ticker symbol IVTY, with Piper Jaffrey, Leerink Partners and Stifel serving as lead underwriters. It reports nearly a $21 million net loss on $13 million in revenue for 2014. Invuity has raised around $96 million in VC funding from Wellington Management (16.3% pre-IPO stake), HealthCare Royalty Partners (14%), InterWest Partners (12.6%), Kleiner Perkins Caufield & Byers (11.2%) and Wexford Capital (5.8%).

 Teladoc, a Dallas-based provider of 24/7 tele-health consultations, has filed for a $100 million IPO. It plans to trade under ticker symbol TDOC, with JPMorgan and Deutsche Bank Securities serving as co-lead underwriters. The company reports a $12.7 million net loss on $16.5 million in revenue for Q1 2015. It has raised nearly $75 million in VC funding, from firms like Cardinal Partners, HLM Venture Partners, Kleiner Perkins Caufield and Byers, New Capital Partners, Trident Capital, Jafco Ventures, FLAG Capital Management, Greenspring Associates, Mellon and QuestMark Partners.


 ARM Holdings (Nasdaq: ARMH) is in talks to buy Sansa Security Inc., an Israeli developer of mobile device security solutions, according to the WSJ. The deal could be valued at between $75 million and $85 million. Read more. Sansa Security raised $20 million in a 2007 Series C round from Accel Partners, Sequoia Capital, SFK, Poalim Ventures, Genesis Partners, Pitango Venture Capital and Eurocom Group. Read more. (Nasdaq: CRM) has acquired Tempo AI, a Mountain View, Calif.-based smart calendar and mobile productivity startup that had raised more than $12 million in VC funding. No financial terms were disclosed. Tempo AI shareholders included Eniac Ventures, Relay Ventures, Sierra Ventures, Miramar Venture Partners, Seavest Capital Partners, Mayfield, Qualcomm Ventures, SingTel Innov8 and Horizons Ventures. Read more.

 Permira has completed its €2.6 billion sale of Iglo Foods Holdings to Nomad Holdings Ltd. (LSE: NHL).

 SoftBank has agreed to acquire an additional 22.7% stake in Finnish mobile gaming company Supercell, bringing its overall position to around 73%. Sellers include Accel Partners, which sold all of its remaining Supercell shares.

 TTM Technologies Inc. (Nasdaq: TTMI) has completed its previously-announced Viasystems Group Inc., a St. Louis-based circuitboard maker, for approximately $368 million in cash and stock (or $16.46 per share). Viasystems was majority owned by private equity firms HM Capital Partners (49.2% stake) and Black Diamond Capital Management (19.64% stake). Viasystems has delisted from the Nasdaq, in conjunction with the acquisition.

 Vista Equity Partners has completed the previously-announced sale of its 80% stake in San Diego-based network security company Websense Inc. to Raytheon Corp. (NYSE: RTN) for $1.9 billion (including debt). Vista will retain the other 20% of Websense, combined with Raytheon's existing cybersecurity entity.


 Citigroup is expected to shut down Bamamex USA, a Los Angeles-based unit that focuses on moving money between the U.S. and Mexico, according to the WSJ. The moves comes after the business has been “battered by accusations of weak money-laundering controls.” Read more.

 General Electric (NYSE: GE) has launched the sale process for a $40 billion portion of its U.S. commercial lending assets, including its corporate finance and commercial distribution finance units. Read more.

 Humana Inc. (NYSE: HUM) is exploring a sale after having been approach by strategic suitors, as first reported last Friday by the WSJ. The health insurance company’s shares jumped around 20% on the report, giving it a market cap north of $32 billion. Read more.


 Harbert Management Corp. has closed its debut European private debt fund with €122 million in capital commitments.

 Silverfleet Capital, a European mid-market private equity firm, has closed its second fund with €850 million in capital commitments.


 Chris Anderson has joined The Investment Fund for Foundations as a member of its private investments team. He previously was senior manager of private equity for Alcatel-Lucent Investment Management Corp.

 Michael DeSimone has joined executive search firm Korn Ferry as co-regional sector leader of the firm’s North American professional services practice. He previously was vice chairman of CTPartners Executive Search.

 James Howe has joined law firm Proskauer as a partner focused on M&A. He previously was with Kirkland & Ellis LLP.

 Amit Jain has joined Uber as its first president of India operators. He previously was president of and served as a “senior advisor of field operations” for TPG Capital between 2010 and 2012. Read more.

 J.P. Morgan Chase has named David Lau as head of global investment banking for Hong Kong, according to the WSJ. Read more.

 Dan Ouyang has joined Wilson Sonsini Goodrich & Rosati as a Beijing-based partner in the firm’s corporate and securities practice. She previously was a corporate partner with Paul Hastings.

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