Greetings from the home office, where it’s good to be back after yesterday morning’s comedy of travel and tech errors. A bunch of notes before you take off early for the weekend…
• A peak into Dell’s future? Silver Lake managing partner Egon Durban said at Fortune Brainstorm Tech that Dell might follow the EMC “federation” playbook, by spinning out or combining high-growth assets. Durban: “I think what Mr. Tucci has done with VMWare is a good example of that, where you can take something that people don’t fully understand, buried in the portfolio, and unlock it while still having a partnership with the mothership.”
Moreover, Durban actually identified two potential Dell business units that could get the federation treatment: SecureWorks (cybersecurity) and Boomi (cloud integration software). Durban also acknowledged that while the value of Silver Lake’s equity in Dell has increased since its $24.9 billion buyout closed in late 2013, this particular year has been “challenging.”
• It’s all Greek to him: Dow Chemical CEO Andrew Liveris appeared Wednesday at Fortune Brainstorm Tech, to talk about his $60 billion company and to address an SEC investigation into alleged misuse of funds (he referred to it as “factless… I’m not staying awake, nor is my board”).
In addition to being CEO of Dow Chemical, Liveris — an Australian of Greek descent — is so popular in Greece that his face has on a postage stamp. So, following his Brainstorm Tech session, I asked if Greece should have taken the bailout deal. Liveris nodded affirmatively, and said: “I support keeping Greece in the Eurozone. But I empathize greatly with the Greek people and what they are going through.”
• Trump math: My colleague Stephen Gandel has created a “Donald Trump net worth calculator,” which lets you see how much you’d be worth if you used The Donald’s math. Check it out here.
• In market: Maven Ventures, a micro VC firm focused on pure-play consumer startups, has begun marketing its second fund with a $35 million target. This is the Palo Alto-based firm led by Jim Scheinman, whose angel investing portfolio included Bebo, Tango, NBCi and Check.
• What do unicorn employees know? One major topic of discussion at Brainstorm Tech was around whether or not most employees at ‘unicorn’ companies really understand what it means when their company raises money at a new valuation, particularly when it comes to stock preferences and the like.
So I put the question to Pinterest CEO Ben Silbermann, whose social sharing company is reported to be valued at around $11 billion. He said that Pinterest regularly makes information about its stock and broader finances available to all employees, adding that the inherent value of such transparency is worth taking the risk that Pinterest’s financial data will be leaked to the press.
• Not so fast? Earlier this week I reported that private equity firm Castle Harlan was “winding down,” after deciding to stop raising new funds (and the subsequent departure of its president and two investing partners). But it seems that Castle Harlan objects to my terminology, saying that it “as no plans to discontinue its business and will examine a host of options and business strategies.” As for what those options or business strategies will be — perhaps a BDC, fundless sponsor or some sort of conversion into a family office? — there was no further comment, nor suggestion that it had been determined.
• Publishing note: I will be off for the next two weeks, vacationing on my couch. Erin Griffith will be pinch-hitting, so please send all news, views, compliments and complaints to firstname.lastname@example.org. Also be sure to follow her on Twitter @eringriffith.
I will not be checking my regular email so, if it is imperative that you interrupt my stay-cation, please use BotherDan@gmail.com. Otherwise, we’ll talk again in August. Have a great weekend…
THE BIG DEAL
• Stericycle Inc. (Nasdaq: SRCL) has agreed to acquire Shred-it International, a Canada-based provider of secure information destruction services, for $2.3 billion in cash. Sellers include Birch Hill Equity Partners, Cintas Corp. and Westerkirk Capital. www.shredit.com
VENTURE CAPITAL DEALS
• Plated, a New York-based cook-at-home meal box service, has raised $35 million in Series B funding from return backers Greycroft Partners and Formation8. www.plated.com
• Main Street Hub, an Austin, Texas-based marketing platform for local businesses, has raised $25 million in Series C funding from Vista Equity Partners. www.mainstreethub.com
• Accolade, a Plymouth Meeting, Penn.-based consumer health engagement platform for large employers and insurers, has raised $22.5 million in new VC funding from Independence Health Group and McKesson Ventures. www.accolade.com
• Chrono24, a Germany-based marketplace for luxury watches, has raised $22.8 million in Series A funding from Insight Venture Partners. www.chrono24.com
• Cinarra Systems, a Singapore-based developer of analytics software architecture, has raised $20 million in Series B funding. SoftBank Corp. led the round, and was joined by Siguler Guff & Co. and return backer Almaz Capital.www.cinarra.com
• Common, a New York-based provider of flexible shared housing in major cities, has raised $7.35 million in Series A funding. Maveron led the round, and was joined by Lowercase Capital, Slow Ventures and individual angels investors. www.hicommon.com
• Workspot, a Cupertino, Calif.-based provider of cloud-based mobile workspace solutions, has raised $5 million in new VC funding. Helion Ventures led the round, and was joined by Translink Capital and Qualcomm Ventures. www.workspot.com
PRIVATE EQUITY DEALS
• ArcLight Capital Partners has agreed to acquire the U.S. wind energy business of Infigen Energy (ASX: IFN) for approximately US$272.5 million. www.arclightcapital.com
• Phoenix Rehabilitation and Health Services Inc., a Blairsville, Penn.-based operator of outpatient physical therapy centers, has acquired Virginia-based Advanced Center for Physical Therapy for an undisclosed amount. Phoenix Rehab is a portfolio company of 3 Rivers Capital. www.phoenixrehab.com
• Sterling Partners has acquired Hoffman Southwest Corp., a Mission Viejo, Calif.-based provider of underground pipeline condition assessment and repair and the largest Roto-Rooter franchisee in the U.S. No financial terms were disclosed. www.pro-pipe.com
• Chiasma Inc., a Newton, Mass.-based developer of oral therapies for orphan diseases otherwise only treatable via injections, raised $102 million in its IPO. The company priced nearly 6.37 million shares at $16 per share, compared to its original plans to offer 5.36 million shares at between $13 and $15 per share. It has an initial market cap of around $450 million, and will trade on the Nasdaq under ticker symbol CHMA. Barclays and Cowen & Co. served as lead underwriters. Chiasma had raised over $170 million in VC funding, from firms like MPM Capital (39.7% pre-IPO stake), Fidelity (16%), Abingworth (15.3%), Med Health Ventures (13.4%), F2 Capital (11.2%), ARCH Venture Partners (7.9%), Rock Springs Capital and Sofinnova Ventures. www.chiasmapharma.com
Jupai Holdings Ltd., a Chinese provider of wealth management services, raised $53 million in its IPO. The company priced 5.3 million shares at $10 per share, compared to earlier plans to offer 5.9 million shares at between $10 and $12 per share. It will trade on the NYSE under ticker symbol JP, while Credit Suisse and China Renaissance served as lead underwriters. The company reports $14.6 million of net income on around $39 million in revenue for 2014. Shareholders include e-House (China) Capital (33.1% pre-IPO stake) and SINA Hong Kong (11%). www.jpinvestment.cn
• NantKwest (f.k.a. Conkwest), a Cardiff-by-the-Sea, Calif.-based company that leverages “natural killer cells” to treat cancer, infectious diseases and inflammatory diseases, has set its IPO terms to 7 million shares being offered at between $20 and $23 per share. It would have an initial market cap of around $1.65 billion, were it to price in the middle of its range. The company plans to trade on the Nasdaq under ticker symbol NK, with BofA Merrill Lynch listed as left lead underwriter. Shareholders include Patrick Soon-Shiong (61.59% pre-IPO stake), Sorrento Therapeutics Inc. (8.53%) and the Bonderman Family LP (6.81%). www.conkwest.com
• Ollie‘s Bargain Outlet Holdings, a Harrisburg, Penn.-based extreme value retailer owned by CCMP Capital, raised $143 million in its IPO. The company priced 8.93 million shares at $16 per share (above $13-$15 range), for an initial market cap of approximately $914 million. It will trade on the Nasdaq under ticker symbol OLLI, while JPMorgan, Jefferies and BofA Merrill Lynch servedas lead underwriters. Ollie’s reports nearly $30 million in net income on $638 million in revenue for 2014. www.ollies.us
• ProNAi Therapeutics Inc., a Plymouth, Minn.-based developer of nucleic acidtherapeutics, raised around $138 million in its IPO. The company priced 8.1 million shares at $17 per share, compared to original plans to offer 6.7 million shares at between $14 and $16 per share. It has an initial market cap of approximately $490 million, and will trade on the Nasdaq under ticker symbol DNAI. Jefferies and BofA Merrill Lynch served as lead underwriters. ProNAi had raised around $80 million in VC funding, from firms like Vivo Ventures (11% pre-IPO stake), Frazier Healthcare Ventures (9.8%), Orbimed Advisors (9%), Adams Street Partners (5.8%), RA Capital Management, Caxton Alternative Management, Hopen Life Science Ventures, Sectoral Asset Management, Janus Capital Management, Capital Midwest Fund, Apjohn Ventures Fund, Amherst Fund and Grand Angels. www.pronai.com
• Rapid7, a Boston-based provider of security analytics software and services, raised $103 million in its IPO. The company priced 6.45 million shares at $16 per share (above $13-$15 range), for an initial market cap of around $605 million. It will trade on the Nasdaq under ticker symbol RPD, while Morgan Stanley and Barclays served as lead underwriters. The company reports a net loss of nearly $33 million on $47 million in revenue for 2014, and has raised nearly $90 million in VC funding from firms like Bain Capital Ventures (29.1% pre-IPO stake) and Technology Crossover Ventures (29.6% pre-IPO stake) and Bain Capital Ventures (29.1%). www.rapid7.com
• Groupon (Nasdaq: GRPN) has acquired OrderUp, a Baltimore-based food delivery service operating in 40 cities. No financial terms were disclosed. Sellers include Revolution Ventures. www.orderup.com
• Nimbus BV has sold Stork Food & Dairy Systems BV, a Dutch provider of filling and sterilization solutions, to JBT Corp. (NYSE: JBT) for €47 million. www.fds.storkgroup.com
• Oculus VR, a unit of Facebook (Nasdaq: FB) has agreed to acquire Israeli gesture-control startup Pebbles for around $60 million. Pebbles had raised over $11 million in VC funding from firms like Giza Venture Capital, iNetworks 360, Robert Bosch Venture Capital, SanDisk Ventures, Shunwei Fund and Xiaomi. Read more.
• Magna International (NYSE: MGA) has agreed to acquire Getrag Group of Companies, a German supplier of automotive transmissions, for around $1.9 billion. Read more.
FIRMS & FUNDS
• Castlelake, a Minneapolis-based private equity firm, has closed its fourth fund with $1.9 billion in capital commitments. Credit Suisse served as placement agent. www.castlelake.com
• OpenGate Capital, a Los Angeles-based private equity firm, is raising upwards of $300 million for a new fund, according to a regulatory filing. UBS is serving as placement agent. www.opengatecapital.com
• Reach Capital is raising $50 million for its debut fund focused on education startups, according to a regulatory filing. The Palo Alto, Calif.-based VC firm was formed by former NewSchools Venture Fund investors Jennifer Carolan and Shauntel Poulson. www.reachcap.com
• Runa Capital, a Russia-based venture capital firm, said that it will open a San Francisco office led by partner Andre Bliznyuk (who will relocate). The firm is in the midst of raising its second fund, which is expected to be larger than its $135 million debut fund.www.runacap.com
MOVING IN, UP, ON & OUT
• KPMG Corporate Finance has named Mark Belford and Robert Glowniak as co-heads of U.S. consumer and retail investment banking. www.kpmgcorporatefinance.com
• Marcos Sanchez has joined Runa Capital as head of global communications. He previously was VP of corporate communications with App Annie. www.runacap.com
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