Greetings from New York City, where I'm in town for a mix of meetings, conference sessions and holiday parties. Some very quick notes before I head across the street to Time Inc.'s new downtown headquarters:
• ABC: Google Ventures hosts its annual CEO Summit later today and, as it did before last year’s event, has released some information on its 2015 deal-making activity and its future plans. The big headline here seems to be that Google Ventures invested in fewer deals in 2015 than in 2014 (it did not disclose dollar disbursements), largely based on its decision to scale back seed and post-seed investment efforts.
As group CEO Bill Maris says: “We want to really work with these companies rather than just put our name on the cap table, so it makes less sense to have a high volume of $100,000 investments in rounds that are increasingly becoming party rounds.”
The Financial Times inexplicably refers to this pullback as a “bumpy ride” for Google Ventures, as if new deal activity is an accurate barometer of a firm’s performance (which, for the record, Google Ventures does not actually disclose). Or maybe the FT was preoccupied with the firm's decision to consolidate its European capital pool into its general pool.
More interesting to me is that life sciences continues to represent the firm's largest area of investment (so long as you separate consumer tech from enterprise tech from AI), with a 31% stake. When I asked Maris what type of company he's most interested in backing next, he replied: "The company I most wish we had done is Deepmind, so I'd like to find the next Deep Mind." Deepmind, of course, is an VC-backed AI company that was acquired last year by what is now Alphabet...
• What's in a name: Also worth noting that Google Ventures is formally rebranding as GV (rather than, say, as Alphabet Ventures). This follows Benchmark Capital dropping the “Capital” and Accel Partners dropping the “Partners.”
• Recommended reading: My Fortune colleague Katie Fehrenbacher has a fascinating look into KiOR, a huge biofuels bet by Vinod Khosla and his investment firm Khosla Ventures. Today the company is bankrupt, and both Khosla and company execs are being sued for fraud. Read Katie's piece by going here.
• Atlassian raises the stakes: Workplace collaboration software maker Atlassian has the only U.S. IPO on tap for this week, and this morning increased its terms to 20 million shares being offered at $16.50-$18.50 to 22 million shares being offered at between $19-$20 per share. On the high end, that would mean a $440 million raise at an initial market cap of around $4.17 billion. Its fully-diluted market cap would be around $5.27 billion.
It also is worth noting that while Atlassian has several institutional shareholders (all with lower cost bases than the aforementioned figures), it never really raised any primary capital. Both T. Rowe Price and Dragoneer Investments got into Atlassian via a late 2014 secondary deal, which largely involved shares being sold by a trio of senior company executives. Also selling some stock in that deal was venture capital firm Accel, which currently holds a 12.5% pre-IPO stake (and isn’t selling via IPO). Accel first invested in a July 2010 deal that technically was for preferred shares held by the company, but the proceeds were used to repay a secondary deal in which company founders sold stock back to the company.
• Data point: Last week we discussed how Uber is seeking to raise $2.1 billion in new equity funding, having already secured lead commitments from Tiger Global and T. Rowe Price. This morning, research firm Renaissance Capital points out that $2.1 billion also happens to be the same amount that VC-backed tech companies have raised so far in 2015 IPOs (excluding Atlassian, of course, which is scheduled to price this week).
• More deal data: Thomson Reuters reported on Friday that global announced M&A was at $4.3 trillion, which is 41% higher than this time last year. But the most interesting sub-headline was that Asia-Pacific deal activity is outpacing European deal activity for the first time since Thomson Reuters began keeping back back in 1980. Moreover, China is currently at an all-time market share high with 13%.
THE BIG DEAL
• JAB Holding has agreed to acquire Keurig Green Mountain Inc. (Nasdaq: GMCR) for approximately $13.9 billion in cash, or $92 per share. That's a 77.9% premium to Friday’s closing stock price, but lower than where the company's shares were trading earlier this year.
Joining JAB on the deal are Mondelēz International and BDT Capital Partners, which already were minority shareholders in the JAB-controlled parent company of D.E. Master Blenders. Sellers include Coca Cola (NYSE: KO), which currently holds a 17.37% stake in GMCR. Read more.
VENTURE CAPITAL DEALS
• EndoGastric Solutions, a Redmond, Wash.-based provider of incisionless procedural therapy for gastroesophageal reflux disease, has raised $50 million in new VC funding. CRG led the round, and was joined by return backers Advanced Technology Ventures, Canaan Partners, Chicago Growth Partners, Foundation Medical Partners and Radius Ventures. www.endogastricsolutions.com
• MD Revolution, a San Diego-based provider of chronic care management and patient engagement solutions, has raised $23 million in new VC funding led by Jump Capital. www.mdrevolution.com
• Shoes of Prey, a Santa Monica, Calif.-based startups that lets women design and order custom shoes, has raised $15 million in Series B funding. Blue Sky Capital (Australia) led the round, and was joined by Greycroft Partners, Nordstrm Inc. and return backer Khosla Ventures. www.shoesofprey.com
• Masabi, a London-based provider of mobile ticketing and fare collection solutions for transportation, has raised $12 million in new VC funding from Keolis, Lepe Partners, MasterCard, and return backer MMC Ventures. www.masabi.com
• Gigster, an app AI creation platform to which users send and idea and Gigster sends back the finished product, has raised $10 million in Series A funding led by Andreessen Horowitz. Read more.
• Teforia, a Mountain View, Calif.-based maker of a connected tea brewing device, has raised $5.1 million in seed funding. Upfront Ventures led the round, and was joined by Lemnos Labs, PreAngel and InnoSpring. Read more.
• Feeligo, a France-based creator and manager of native ad campaigns, has raised €1.5 million in VC funding from Iris Capital. www.feeligo.com
• Vanitee, a Singapore-based online booking destination for beauty services, has raised S$5 million in first-round funding from Japanese beauty portal Cosme and entrepreneur Ivan Lee. www.vanitee.com
PRIVATE EQUITY DEALS
• Alphabroder, a Trevose, Penn.-based distributor of imprintable sportswear and accessories, has acquired Bodek and Rhodes, a Philadelphia-based maker of imprintable activewear. No financial terms were disclosed. Alphabroder is a portfolio company of Littlejohn & Co. www.bodekandrhodes.com
• The Blackstone Group has completed its previously-announced $820 million investment into NCR Corp. (NYSE: NCR), a Duluth, Ga.-based maker of automated teller machines, in the form of perpetual convertible preferred shares. The deal gave Blackstone around a 17% equity stake in NCR, which will use the proceeds to help fund a share repurchase through a self-tender of up to $1 billion of its common stock. Blackstone originally held discussions about taking NCR private, but no such deal was consummated. www.blackstone.com
• CVC Capital Partners has acquired a 40% stake in British motor services network Moto from Universities Superannuation Scheme, for £400 million. Read more.
• GE (NYSE: GE) has agreed to sell its Mexico equipment lending and leasing business to Linzor Capital Partners. The deal comes four years after Linzor acquired GE Capital’s trailer fleet services business in Mexico. www.linzorcapital.com
• Harren Equity Partners has sponsored a recapitalization of Circa Corp., a San Francisco-based maker of men’s and women’s private label belts. No financial terms were disclosed. www.harrenequity.com
• Pouschine Cook Capital Management and Yukon Partners have partnered to form Golden State Dermatology, which will provide exclusive practice management services to California-based Walnut Creek Skin & Laser LLC. No financial terms were disclosed. www.walnutcreekskinandlaser.com
• TPG Asia and Tillman Global Holdings have signed a non-binding agreement to acquire more than 43,000 cellular towers in India from Reliance Communications Ltd. Read more.
• Atlassian Corp., an Australia-based provider of cloud-based workplace collaboration software, has increased its IPO terms to 22 million shares being offered at between $19 and $20 per share. It previously filed to offer 20 million shares at between $16.50 and $18.50 per share. The company plans to trade on the Nasdaq under ticker symbol TEAM, with Goldman Sachs listed as left lead underwriter. It reports nearly US$7 million of net income on $319.5 million in revenue for the year ending June 30, 2015 — compared to $19 million of net income on $177 million in revenue for the year-earlier period. Shareholders include venture capital firm Accel (12.5% pre-IPO stake), T. Rowe Price and Dragoneer Investment Group. www.atlassian.com
• Archer Capital has agreed to sell Australian private hospital operator Healthe Care Australia for A$700 million to China’s Luye Medical. Read more.
• Arle Capital has agreed to sell Stork, a Dutch engineering and construction firm, to Fluor Corp. (NYSE: FLR) for around $755 million. Read more.
• Bumble Bee Foods, a canned tuna company owned by Lion Capital, has called off its proposed $1.51 billion purchase of Thai Union Group (owner of Chicken of the Sea, following U.S. Department of Justice concerns. Read more.
• Charterhouse Capital Partners has retained LEK Consulting to advise on strategic options for Italian generic drugmaker Doc Generici, according to Reuters. A sale could be worth around €600 million. Read more.
• Conmed Corp. (Nasdaq: CMND) has acquired AppianFx, maker of a soft tissue fixation system, from KFx Medical. No financial terms were disclosed. KFx Medical backers include Alloy Ventures, Arboretum Ventures, Charter Life Sciences, MB Venture Partners and Montreaux Equity Partners. www.kfxmed.com
• EnCap Flatrock Midstream has agreed to sell Tall Oak Midstream LLC, a midstream energy company focused on Mid-Continental North America, for $1.55 billion to EnLink Midstream Partners (NYSE: ENLK) and Enlink Midstream LLC (NYSE: ENLC). www.talloakmidstream.com
• GreatCall Inc., a San Diego-based provider of “usable technology for active aging,” has acquired Lively Inc., a San Francisco-based connected home health platform for older adults. No financial terms were disclosed. GreatCall has raised over $70 million from firms like Court Square Ventures, CRV, Nauta Capital, Steelpoint Capital Partners and Sumitomo Corp. Lively backers included Accelerator Ventures, BrainStorm Ventures, Cambia Health Solutions, Highway1 and Maveron. www.greatcall.com
• KKR has retained Citi and Deutsche to explore exit options for WMF, a German maker of tableware and coffee machines, according to Reuters. WMF reportedly is expected to generate around €150 million in 2015 EBITDA, with a sale to be valued at upwards of 12 times that amount. Read more.
• Lincare, a Clearwater, Fla.-based provider of respiratory therapy services, has agreed to acquire Brentwood, Tenn.-based American HomePatient Inc. from Highland Capital Management. No financial terms were disclosed. www.ahom.com
• OMERS Private Equity is in talks to sell Give and Go Prepared Foods Corp., a Canadian maker of thaw-and-serve baked goods like Two-Bite Brownies, to Hostess Brands LLC, according to Reuters. Read more.
• Ve Interactive, a Boston-based digital advertising and onsite conversion platform, has acquired the display retargeting business of eBay Enterprise Marketing Solutions, which is a portfolio company of Banneker Partners and Permira. No financial terms were disclosed. www.veinteractive.com
• Dexus Property Group (ASX: DXS) has offered to acquire rival Australian commercial landlord Investa Office Fund (ASX: IOF) for approximately A$2.5 billion. Read more.
• General Electric (NYSE: GE) has called off the planned $3.3 billion sale of its home appliances business to Sweden's Electrolux, four months after the U.S. Justice Department filed suit to block the deal based on antitrust concerns. Read more.
FIRMS & FUNDS
• Saw Mill Capital, a Briarcliff Manor, N.Y.-based middle-market private equity firm, is raising upwards of $300 million for its next fund, according to a regulatory filing. www.sawmillcapital.com
MOVING IN, UP, ON & OUT
• Dave McJannet has joined VC firm Greylock Partners as an executive-in-residence. He previously was VP of marketing at Github and, before that, VP of marketing at HortonWorks. www.greylock.com
• EnerTech Capital Partners has promoted Dean Sciorillo to managing director, and said he will become a general partner when the firm closes its fifth fund. www.enertechcapital.com
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