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Term Sheet — Wednesday, September 16

Random Ramblings

Wow. It has been just 24 hours since we first put tickets on sale for our next Liquidity Event, which will take place in San Francisco on October 8, and you’ve already bought more than 650 of them. Easily a first day record, and likely ensures that we’ll be sold out by this time tomorrow. So if you want to come, please get your ticket today at:

A reminder that tickets cost just $20, which is a pretty good deal for free food and an open bar. Plus, all ticket proceeds (minus the small processing fee) will go to a local nonprofit focused on the education space (you can vote for the “winner” when buying your ticket).

Liquidity Events are only made possible through the generosity of our sponsors, which makes it particularly galling that I messed up one of their names in yesterday’s issue. That would be Winmark Capital, a provider of equipment leasing solutions. Were I to have equipment leasing needs, I would use Winmark (but I’m probably not their target market). Repeat thanks to our other sponsors: TPG Growth, Andreessen Horowitz, Gunderson Dettmer and PitchBook Data.

• New firm alert: Bret Wiener has quietly stepped down as a managing director with H.I.G. Capital, where he also was a founding managing director of the private equity firm’s middle market business. His next role is as founder and managing partner of Gemspring Capital, a new private equity firm focused on lower middle-market companies.

• Revolving unicorn: As we were first to report yesterday afternoon, former Evernote CEO Phil Libin has agreed to join VC firm General Catalyst as a general partner.

Libin helped create the digital note-keeping service back in 2007, and led its growth to more than 150 million users and a valuation north of $1 billion. Earlier this year, however, Libin said that Evernote was seeking a “professional CEO… who is going to be better than me at it.” That hire turned out to be longtime Google exec Chris O’Neill, who officially joined in July.

General Catalyst partner Hemant Tenaja explained the new addition: “Phil first and foremost shares the same cultural values as us. Phil has built a product that’s been used by over 150 million people, and I think he’ll be a great partner to entrepreneurs that are starting next-generation application businesses.”
• Recommended reading: Fascinating piece in yesterday’s WSJ about how some private equity firms are involved with — and profiting from — the management of refugee camps in Europe. Not surprisingly, the key is volume. And, unfortunately, there’s plenty of it right now. Read it here.

• Where in the World? This afternoon in Boston I’ll be leading a “private IPO” discussion that features Okta co-founder/COO Freddy Kerrest and CBInsights CEO Anand Sanwal. It takes place in Boston at the DEMO Traction Enterprise event. More info here.


• Anheuser-Busch InBev has notified its board “that it intends to make a proposal to acquire SABMiller.” If successful, the massive brewery merger would create a company with a combined market cap of around $245 billion (although each would likely be required to divest certain brands). Read more.


• Sunlight Financial LLC, a Teaneck, N.J.-based provider of financing for the residential solar market, has raised $80 million in growth capital from Tiger Infrastructure Partners and Hudson Clean Energy Partners. It also secured another $220 million in capital commitments, including a $120 million senior secured loan facility led by CIT Energy Finance.

• Lightspeed, a Montreal-based cloud POS platform for retailers and restaurants, has raised US$61 million in new VC funding. Caisse de dépôt et placement du Québec and Investissement Québec co-led the round, and were joined by return backers Accel Partners and iNovia Capital. The company previously raised $65 million.

• Califia Farms, a Bakersfield, Calif.-based natural beverage maker, has raised $50 million in minority equity funding from Stripes Group.

• Omada Health, a San Francisco-based provider of group-based “digital therapeutic” programs for chronic disease prevention, has raised $48 million in Series C funding. Norwest Venture Partners led the round, and was joined by Humana Inc., Providence Health & Services, GE Ventures, dRx Capital and return backers U.S. Venture Partners and Andreessen Horowitz.

• Oscar Health, a New York-based health insurance startup, has raised $32.5 million in new funding from Google Capital at a $1.75 billion valuation. Read more.

• Alector LLC, a San Francisco-based developer of immuno-modulatory therapies for Alzheimer’s disease and other neurodegenerative disorders, has raised $32 million in Series C funding. MRL Ventures led the round, and was joined by OrbiMed, Polaris Partners, Google Ventures, Topspin Partners and Mission Bay Capital.

• Agora Inc., a Palo Alto, Calif.-based startup that enables enterprises to add real-time voice and video communications for applications, has raised $20 million in Series B funding from Morningside Ventures, SIG, GGV Capital, ShunWei and IDG Ventures.

• Hola, an Israel-based developer of delivery solutions for digital video publishers, has raised $17 million in Series C funding led by Iris Capital. The company previously raised $13 million from firms like DFJ, Horizons Ventures, Magma Venture Partners, Tamir Fishman Ventures and Trilogy Equity Partners.

• Moviepilot, a Los Angeles-based “fan-centric entertainment website for millennials,” has raised $16 million in Series B funding. French publishing group Webedia led the round, and was joined by return backers like T-Venture of America.

• Lumity, a San Mateo, Calif.-based benefits platform, has raised $14 million in Series A funding. The Social+Capital Partnership led the round, and was joined by True Ventures and Rock Health.

• DJ HealthUnion Systems Corp., a provider of digital hospital solutions in China, has raised US$12.5 million in funding from HAO Capital.

• TeamSnap, a Boulder, Colo.-based “tool for organizing and communicating every aspect of team life,” has raised $10 million in Series B funding. Northgate Capital led the round, and was joined by the Colorado Impact Fund, Crawley Ventures and return backer Foundry Group.

•, a San Francisco-based “event-driven compute platform for developers and  enterprises,” has raised $8 million in Series A funding. Baseline Ventures led the round, and was joined by Bain Capital Ventures, Divergent Ventures, Ignition Partners and Cloud Capital Partners.

• LearnUp, a San Francisco-based provider of online training and interview coaching for job applicants, has raised $8 million in Series A funding. New Enterprise Associates and Shasta Ventures co-led the round, and were joined by reylock Partners, Floodgate, and High Line Venture Partners.

• Source3, a New York-based platform for licensing and distribution of 3D content, has raised $4 million in seed funding. Contour Venture Partners led the round, and was joined by Western Technology Investments, Autodesk, Correlation Ventures, Crosslink Capital, 645 Ventures and individual angels.

• Enbala Power Networks, a Canadian developer of distributed energy resource management solutions, has raised US$3 million from Obvious Ventures.

• AlphaClone, a San Francisco-based investment advisor and equity research firm, has raised $2.25 million in Series A funding led by Operative Capital.

• Comfy, an Austin, Texas-based student rental marketplace, has raised $1.25 million in Series A funding led by ATX Seed Ventures.


• Berkshire Partners is in advanced talks to acquire Affordable Care, a Raleigh, N.C.-based denture services provider currently owned by American Capital, according to Reuters. The deal would be worth north of $800 million (including debt). Read more.

• CIC Partners has acquired a majority stake in Willie’s Grill & Icehouse, a Houston -based regional fast casual restaurant concept operating 17 restaurants across Central Texas. No financial terms were disclosed.

• Coalfire, a Louisville, Colo.-based provider of cybersecurity risk management and compliance services, has raised an undisclosed amount of funding from The Carlyle Group and The Chertoff Group. Existing shareholders include Baird Capital.

• Cybera, a Nashville, Tenn.-based provider of virtual application networks, has raised an undisclosed amount of equity funding from Sumeru Equity Partners and return backer Adams Street Partners. The company also named Andrew Lev, former chief product officer for NTT Com Security, as CEO.

• Go2mobi, a Canadian mobile advertising platform, has raised an undisclosed amount of equity funding from H.I.G. Growth Partners.

• Lyceum Capital has acquired an undisclosed stake in TotalMobile, a UK-based developer of enterprise mobility software. No financial terms were disclosed. Sellers included MMC Ventures.

• Motor Vehicle Software Corp., an Agoura Hills, Calif.-based provider of process management software for state government agencies and businesses, has raised an undisclosed amount of growth equity funding from Accel-KKR.

• Serco Group PLC (LSE: SRP) has agreed to sell its business processing outsourcing business to The Blackstone Group for approximately $384 million. Serco had originally purchased the business from Blackstone in 2011 for $630 million. Read more.

• TA Associates has agreed to acquire a majority stake in Mitratech, an Austin, Texas-based provider of enterprise legal management solutions for corporate legal departments, from Vista Equity Partners. No financial terms were disclosed.

• Tonka Bay Equity Partners has acquired United Skin Specialists LLC, a Minnesota-based provider of management services to dermatology offices in the Midwest. No financial terms were disclosed.


• Regenexbio Inc., a Rockville, Md.-based gene therapy company, has narrowed its IPO pricing range from$17-$19 to $22 per share. It still plans to offer 5.56 million shares, and now would have an initial market cap of around $541 million, were it to price at its target. The company plans to trade on the Nasdaq under ticker symbol RGNX, with Morgan Stanley, BofA Merrill Lynch and Piper Jaffray serving as co-lead underwriters. Regenexbio has raised over $100 million in VC funding, including a $70.5 million in Series D round earlier this year. Shareholders include Venrock (9.5% pre-IPO stake), Brookside Capital (9.2%), Deerfield Management (6.1%), Fidelity (5.7%), GlaxoSmithKline (5.7%), Vivo Capital, Janus Capital Management, Jennison Associates, Perceptive Advisors, QVT Financial, Tourbillon Global Ventures, Sectoral Asset Management, Cormorant Asset Management, Foresite Capital Management and RTW Investments.

• SynCardia Systems Inc., a Tucson, Ariz.-based developer of an artificial heart, has set its IPO terms to 2.5 million shares being offered at between $10 and $12 per share. It would have an initial market cap of approximately $86 million, were it to price in the middle of its range. The company plans to trade on the Nasdaq under ticker symbol AHT, with Roth Capital Partners serving as underwriter. SynCardia reports an $18.6 million net loss on $8.7 million in revenue for the first six months of 2015. Shareholders include SWK Holdings (30.4% pre-IPO stake), Athyrium Capital Management, Highway 12 Ventures and Delta Electronics Capital.


• ABRY Partners has agreed to sell One Source Networks, a San Antonio, Texas-based data services provider, to GTT Communications (NYSE: GTT). The deal is valued at $175 million, including $165 million in cash and around $10 million in GTT stock.

• Accenture has acquired Cloud Sherpas, an Atlanta, GA-based cloud consultant. No financial terms were disclosed. Cloud Sherpas had raised more than $60 million in funding from firms like Columbia Capital, Syncarpha Capital, Delta-v Capital, Greenspring Associates, Queensland Investment Corp., Vento Security Holdings and Hallett Capital. Read more.

• NBCUniversal, a unit of Comcast Corp. (Nasdaq: CMCS), is in talks to acquire a majority stake in Universal Studios Japan for around $6 billion from an investor consortium that includes Goldman Sachs, MBK Partners and PAG, according to the WSJ. The current owners had previously been prepping a flotation in Tokyo. Read more.

• Qualcomm (Nasdaq: QCOM) has acquired Capsule Technologie, a French provider of medical device integration and clinical data management solutions. No financial terms were disclosed. Sellers include JMI Equity and Bulger Capital Partners.


• AMC Networks (Nasdaq: AMCX) is in talks to acquire premium cable broadcaster Starz (Nasdaq: STRZ.A) from John Malone, according to Bloomberg. Starz has a market cap of nearly $4 billion. Read more.

• Dentsply International Inc. (Nasdaq: XRAY) has agreed to acquire fellow dental products maker Sirona Dental Systems Inc. (Nasdaq: SIRO) in an all-stock deal valued at around $5.5 billion. The combined company would be worth around $13.3 billion and it expected to have more than $900 million in combined EBITDA. Under terms of the deal, Sirona Dental holders will receive 1.8142 shares of Dentsply stock for each Sirona share. Read more.

• Fubon Financial Holding Co Ltd. (Taiwan: 2881) is considering a bid for a 39% stake in PT Bank PanIndonesia Tbk, according to Reuters. The position currently is held by Australia and New Zealand Banking Group Ltd., and would be worth around $612 million. Read more.

• Gray Television Inc. (NYSE: GTN) has agreed to acquire all of the television and radio stations of Indiana-based Schurz Communications Inc. for approximately $442.5 million.

• Persivia, a Lowell, Mass.-based provider of chronic care management solutions, has acquired IHM Services Co., a Burlington, Mass.-based provider of clinical intelligence solutions for hospitals. No financial terms were disclosed.

• Noribachi, an Albuquerque-based manufacturer of commercial and industrial LED lighting solutions, has secured a mezzanine loan from HCAP Partners (f.k.a. Huntington Capital).

• Snapchat has acquired Looksery, a Castro Valley, Calif.-based developer of selfie animation technology. No financial terms were disclosed. Read more.

• Sun Pharmaceutical Industries Ltd., a listed Indian drugmaker, has agreed to acquire InSite Vision Inc. (OTC BB: INSV), an Alameda, Calif.-based maker of specialty ophthalmic products, for approximately $48 million.

• Technicolor (Paris: TCH) has acquired The Mill, a Colwell, Iowa-based provider of moving image visual content for advertising. No financial terms were disclosed. Harris Williams & Co. managed the process.


• The Carlyle Group has closed its seventh U.S. real estate fund with $4.2 billion in capital commitments.


• Betsy Booth and Michael LaBelle have joined Twin Brook Capital Partners, the direct lending subsidiary of Angelo Gordon, as vice presidents of underwriting. Booth previously was with Ares Capital Management, while LaBelle was with National Express Corp.

• John Dyment has joined Dyal Capital Partners, a unit of Neuberger Berman Private Equity, as head of the firm’s business services platform. He previously was COO and head of business development with Lutetium Capital.

• Mitch Finer has joined healthcare-focused MPM Capital as a managing director. He previously was chief scientific officer of Bluebird Bio (Nasdaq: BLUE), and currently serves on the board of MPM portfolio company Semma Therapeutics Inc.

• Bob Kent III has joined Brown Gibbons Lang & Co. as a managing director in charge of financial sponsor coverage. He previously was a Philadelphia-based managing director in the financial sponsors group at Stifel.

• Bharath Srikrishnan has joined private equity firm Pine Brook as a managing director. He previously was a managing director with Five Mile Capital Partners. Pine Brook also said that it has promoted Nicholaos Krenteras, who has been with the firm since 2006, to managing director. Both will focus on investments in the financial services sector.

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