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Term Sheet — Wednesday, July 1

July 1, 2015, 2:04 PM UTC

Random Ramblings

Today's column didn't quite come together in time (plus, there was a ton of deal news to blurb), so just a couple quick notes:

 Gee, I wonder what prompted that? It seems that CalPERS yesterday sent an email to its private equity fund managers, asking them to provide the amount of carried interest that the pension giant has paid to CalPERS since fund inception through year-end 2014. It also has asked for a separate calculation of the amount of carried interest accrued. CalPERS is asking for all responses by July 13...

 Hey VCs: We are now less than two weeks away from Fortune Brainstorm Tech, our annual gathering of tech executives and investors in Aspen. Each year, Brainstorm Tech includes a startup pitch competition. Thus year we've changed it up a bit. Rather than having seed-stage (or pre-seed) companies present, each of our companies will have already raised institutional VC funding (last round valuation <$100m), with the audience voting on which one has the best chance of eventually becoming a unicorn.

This is where you come in: We've saved the final spot in this competition, so that Term Sheet readers can nominate one of their deserving portfolio companies. Again, the company must be VC-backed, valued at less than $100 million last round and have huge growth prospects. The one we pick will get a free pass to all of Brainstorm Tech (which is sold-out and invite-only), with the competition winner getting some pretty sweet prizes.

To nominate a company, send me an email ( of no more than three lines. Include the company name, what it does and why it will someday be worth more than $1 billion...


 GrabTaxi, a Singapore-based ride-hailing app, has raised over $200 million in new funding led by Coatue Management at a valuation north of $1.5 billion, according to the WSJ. Read more.


 Global Fashion Group, a Luxembourg-based fashion e-commerce company, has raised €150 million in new VC funding at a €3.1 billion valuation. The round was led by existing GFG backers Kinnevik and Rocket Internet. Read more.

 Chrome River Technologies, a Los Angeles-based provider of online expense reporting and automated invoice processing software, has raised $100 million in Series D funding from Great Hill Partners.

 Sweetgreen, a Washington, D.C.-based salad chain, has raised $35 million in sixth-round funding. T. Rowe Price led the round, and was joined by existing backer Revolution Growth. Read more.

 Nativo, a Los Angeles-based native advertising technology platform, has raised $20 million in Series B funding. Advance Vixeid Partners led the round, and was joined by RezVen Partners and return backers Greycroft Partners, Signia Ventures, Bertelsmann Digital Media Investment and

 PubNub, a San Francisco-based cloud-hosted messaging service for building real-time Web and mobile applications, has raised $20 million in Series C funding. Sapphire Ventures led the round, and was joined by return backer Relay Ventures and Scale Venture Partners.

 RewardStyle, a Dallas-based monetization platform for content creators and retailers, has raised $15 million in Series A funding at a $290 million post-money valuation. Maverick Capital Ventures led the round, and was joined by Miroslava Duma, Nasiba Adilova and Veronica Chou.

 SkyKick, a Seattle-based service provider to Office 365, has raised $10 million in new VC funding. Investors include Karl-Theodor zu Guttenberg, Navin Thukkaram and Tim Ferriss.

 SimplyInsured, a San Francisco-based health insurance marketplace and administration platform for small businesses, has raised $5.9 million in Series A funding. Polaris Partners led the round, and was joined by Bessemer Venture Partners, Altair.VC and Corazon Capital.

 Pneuron Corp., a Nashua, N.H.–based provider of distributed energy solutions, has raised $5 million in Series B-1 funding. Safeguard Scientifics led the round, and was joined by Osage Partners and Scott Group LLC.


 Arsenal Capital Partners has acquired Peach State Labs Inc., a Rome, Ga.–based provider of specialty polymers and chemicals. No financial terms were disclosed.

 Bain Capital has completed its previously-announced acquisition of TI Automotive, an Auburn Hills, Mich.-based car parts maker that had been owned by firms like Oaktree Capital. No financial terms were disclosed, although earlier press reports suggested that the deal could be valued at around $1.8 billion. Bain had tried two prior times to acquire TI Automotive, but apparently the third time was the charm.

 The Blackstone Group has completed its previously-announced acquisition of Philadelphia Financial Group Inc., a Philadelphia-based provider of insurance and investment management solutions, from Tiptree Financial Inc. (Nasdaq: TIPT). The deal is valued at approximately $155 million (plus up to $10 million in additional considerations to be paid over the next two years), and was originally announced last October.

 Bunker Hill Capital has acquired ASPEQ Heating Group LLC, a St. Louis-based manufacturer of electric-heating and thermal-management technologies. No pricing terms were disclosed.

 Centerbridge Partners has agreed to acquire KIK Custom Products, a Canadian maker of pool and spa treatment products. No financial terms were disclosed.

 CVC Capital Partners has entered into exclusive talks to acquire an equity stake in Linxens, a French maker of smart card connectors, from Astorg Partners. Bain Capital also holds a position in Linxens.

 Data Device Corp., a Bohemia, N.Y.–based provider of connectivity, power, and control solutions, has acquired the electronic devices group of Emrise Corp. (OTCQB: EMRI) for an undisclosed amount. DDC is a portfolio company of Behrman Capital.

 Genstar Capital has acquired All Web Leads, an Austin, Texas-based customer acquisition marketing firm focused on the U.S. property and casualty, health and life insurance markets, from Great Hill Partners. No financial terms were disclosed.

 H-D Advanced Manufacturing Co. has acquired Firstmark Corp., a Richmond, Va.-based maker of components and subsystems for the aerospace and defense industries, for nearly $33 million. H-D is a Pittsburgh-based portfolio company of The Riverside Co., Hicks Equity Partners and Weinberg Capital Group.

 IGM Resins, a Dutch portfolio company of Arsenal Capital Partners, has acquired the Photoinitiator business of Italy’s Lamberti for an undisclosed amount.

 KSL Capital Partners has acquired WellBiz Brands Inc., a Highlands Ranch, Colo.-based fitness center franchisor, for an undisclosed amount.

 Lexmark Carpet Mills Inc., a Dalton, Ga.–based manufacturer of broadloom carpet, has acquired Dalton, Ga.-based Northwest Carpet Inc. for an undisclosed amount. Lexmark Carpet is a portfolio company of H.I.G. Capital.

 Madison Dearborn Partners has agreed to acquire the medical business of Patterson Companies Inc. (Nasdaq: PDCO) for approximately $715 million in cash.

 Metalmark Capital has acquired a majority stake in Camin Cargo Control Inc., a Linden, N.J.-based provider of testing, inspection, certification and additive services in the oil, gas and petrochemical industries. No financial terms were disclosed.

 MSA Security, a New York-based provider of “high consequence” threat protection, has raised an undisclosed amount of growth equity funding from PWP Growth Equity.

 Parthenon Capital Partners has sponsored a recapitalization of Stratose Inc., an Atlanta–based provider of healthcare cost containment solutions. No financial terms were disclosed.

 Paine & Partners has acquired Spearhead International Ltd., a UK-based agricultural producer with farms throughout Europe. No financial terms were disclosed.

 Pamplona Capital Management has agreed to acquire Precyse, a Wayne, Penn.-based provider of health information management performance solutions. No financial terms were disclosed. Sellers would include NewSpring Capital, Commerce Health Capital and Altaris Capital Partners.

 Rostra Precision Controls, a Laurinburg, N.C.-based portfolio company of Superior Capital Partners, has acquired the turn-signal-switch product line of Grote Industries for an undisclosed amount.

 TA Associates has agreed to invest around $500 million in Atria Convergence Technologies, a provider of high-speed broadband services in India. The shares will be purchased from existing Atria backers like current majority shareholder India Value Fund III, which will retain a minority position.

 The Watermill Group has acquired Quality Metalcraft Inc., a Livonia, Mich.–based provider of engineered structural metal components and assemblies, for an undisclosed amount.


 CNX Coal Resources LP raised $75 million in its IPO, by pricing 5 million shares at $15 per share. The company was recently formed by CONSOL Energy (NYSE: CNX) to manage and further develop its active thermal coal operations in Pennsylvania. It will trade on the NYSE under ticker symbol CNXC, while BofA Merrill Lynch and Wells Fargo served as lead underwriters.

 ConforMIS Inc., a Burlington, Mass.-based developer of medical devices for osteoarthritis treatment and joint damage, raised $135 million in its IPO. The company priced 9 million shares at $15 per share (middle of range), for an initial market cap of around $586 million, were it to price in the middle of its range. The company will trade on the Nasdaq under ticker symbol CFMS, while J.P. Morgan and Deutsche Bank Securities served as lead underwriters. ConforMIS reports a $46 million net loss on $48 million in revenue for 2014. It had raised nearly $220 million in VC funding, from firms like Abu Dhabi Investment Authority, Aeris Capital, AGC Equity Partners and Axel Johnson Inc.

 Natera Inc., a San Carlos, Calif.-based provider of non-invasive genetic testing solutions, has increased its IPO terms to 10 million shares being offered at between $17 and $18 per share (prior terms were 6.25m shares at $15-$17). It would have an initial market cap of approximately $847 million, were it to price in the middle of its range. The company plans to trade on the Nasdaq under ticker symbol NTRA, with Morgan Stanley, Piper Jaffray and Cowen & Co. serving as lead underwriters. It reports a $5 million net loss for 2014 on around $159 million in revenue. Natera has raised over $150 million in VC funding, from firms like Sequoia Capital (20.2% pre-IPO stake), Claremont Creek Capital (19.3%), Lightspeed Venture Partners (10.4%), Sofinnova Ventures (6.1%), Capital Research and Management, Franklin Templeton Investments, Jennison Associates, RA Capital Management, Healthcor Partners and OrbiMed Advisors.

 Teladoc, a Dallas-based provider of 24/7 tele-health consultations, raised $157 million in its IPO. The company priced 8.3 million shares at $19 per share, compared to original plans to offer 7 million shares at between $15 sand $17 per share. The company plans will trade on the NYSE under ticker symbol TDOC, while J.P. Morgan and Deutsche Bank Securities served as co-lead underwriters. The company reports a $12.7 million net loss on $16.5 million in revenue for Q1 2015. It had raised nearly $75 million in VC funding, from firms like Cardinal Partners (13.9% pre-IPO stake), HLM Venture Partners (13.9%), Trident Capital (13.6%), Kleiner Perkins Caufield and Byers (9.3%), New Capital Partners, Jafco Ventures, FLAG Capital Management, Greenspring Associates, Mellon and QuestMark Partners.

 Zynerba Pharmaceuticals Inc., a Devon, Penn.-based developer of synthetic cannabinoid therapeutics formulated for transdermal delivery, has filed for a $57.5 million IPO. It plans to trade on the NYSE under ticker symbol ZYNE, with Jefferies and Piper Jaffray serving as lead underwriters.


Cisco has agreed to acquire OpenDNS, a San Francisco-based provider of cloud-delivered security solutions, for $635 million in cash. OpenDNS had raised around $51 million in VC funding from Greylock Partners, Sequoia Capital, Sutter Hill Ventures, Glynn Capital, Cisco, Evolution Equity, Lumia Capital, Mohr Davidow Ventures and Northgate Capital.

Interactive Data Corp., a Bedford, Mass.-based financial information provider owned by Silver Lake and Warburg Pincus, has picked banks for a dual exit process that could value the company north of $5 billion, according to Reuters. Credit Suisse and Goldman Sachs are running an auction process, while Morgan Stanley and Barclays will work on an IPO backup plan. Read more.


 Genoa, a Tukwila, Wash.-based affiliate of pharmacy organization QoL Meds, has acquired West Bend Assisted Living Pharmacy (Jackson, Wis.) for an undisclosed amount.

 Natixis (Paris: KN) has completed its previously-announced acquisition of a 71.2% stake in French asset manager DNCA for €549 million.

 Pep Boys (NYSE: PBY), a Philadelphia-based provider of auto aftermarket products and services, said that it has retained Rothschild to explore a possible sale. Read more.


 Encore Consumer Capital, a San Francisco-based private equity firm focused on the consumer products sector, has closed its third fund with $260 million in capital commitments.


 Anthony Bissanti has joined Bain Capital as a finance manager. He previously was with State Street as an assistant VP of alternative investment solutions.

 Shou Zi Chew has stepped down as a partner with DST Capital, in order to join Chinese smartphone maker Xiaomi as chief financial officer. Read more.

 Anshu Jain, former co-CEO of Deutsche Bank, is in talks for an executive position with Japan’s SoftBank, according to the NY Post. Read more.

 Luke Tarbi has joined Primary Venture Partners (f.k.a. High Peaks Venture Partners) as an operating partner. He previously was VP of marketing with Yieldmo. He also has joined solar marketplace EnergySage as VP of marketing.

 Qiming Venture Partners, a Chinese venture capital firm, has promoted William Hu to managing partner.

 Thoma Bravo has promoted both Arvindh Kumar and Chip Virnig from vice president to principal.

 Fabian Walesch has joined German private equity firm Premium Equity Partners as a partner. He previously was a senior investment manager with Cross Equity Partners.

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