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Term Sheet — Tuesday, February 16

Random Ramblings

Greetings from the home office, where things have settled down a bit. Some quick notes to kick off your belated workweek.

• Bain Justice: It remains entirely unclear if President Obama will even get Senate consideration (let alone approval) for his upcoming Supreme Court nomination, but one name being floated is that of Deval Patrick, the former Massachusetts governor who last year joined Bain Capital to lead a new “social impact” investment platform.

Bain has not yet announced any additional hires for the platform, nor has it begun marketing a social impact fund. That said, word is that the program remains an active work in progress, with Patrick showing up regularly to the office to finalize the model (for which there isn’t really a precedent). Moreover, market sources say that Patrick already has been on the phone in the past 24 hours, assuring them that he won’t be Obama’s SCOTUS pick (i.e., he’s committed to Bain). It’s the right thing to say, but it’s hard to imagine him turning down the opportunity if asked…

• Speaking of SCOTUS: My Fortune colleague John Jeff Roberts has a smart piece about 5 ways that Justice Scalia’s passing will affect U.S. business. Read it here.

• First Roundup: First Round Capital this morning announced that Birchbox founder Hayley Barna is joining the early-stage VC firm as a venture partner. This is the New York-based role previously held by SinglePlatform founder Wiley Cerilli (who just announced a new startup called Good Uncle), with Barna saying that she’s spend most of her time on new investment activity.

As you might recall, Barna stepped down from the co-CEO role at Birchbox last summer. She says (and an outside source confirms) that she did not have any immediate job plans after Birchbox, and that she instead focused on advising other startups and making some angel investments. The opportunity with First Round ― and original Birchbox investor ― emerged sometime later, with her formally beginning earlier this month.

Barna plans to remain on thew Birchbox board, as does First Round partner Phin Barnes. Unclear if Barnes will step down if and when Birchbox eventually raises a new round of funding. The company had planned to raise in late 2015, but it didn’t ultimately come together (Barna declined to comment on fundraising). Since then it has cut costs by laying off around 15% of its staff, even though I’m told top-line revenue grew by more than 100% between 2014 and 2015.


• Kudos, CBS News: After a series of GOP presidential debates in which the economy was barely mentioned, this past Saturday night’s slug-fest finally delved into a variety of such issues. Included was even a question about carried interest taxation, directed to Jeb Bush (he replied that the treatment should be changed from capital gains to ordinary income).

• Beyond the junk: We’ve spent a bunch of time discussing the tightening credit markets, and how it will impact both the creation of new leveraged buyouts and the ability of existing ones to close. One common reader response has been to differentiate between high-yield and investment grade issues, suggesting that only the former have reason to worry.

But Thomson Reuters reports that U.S. marketed investment grade debt effectively shut down last week (very rare for non-holiday weeks), and that YTD activity is down 19% compared to the same period in 2015 (despite $45.8b to support InBev’s purchase of SAB Miller). Moreover, the actual number of issues is off 45% YTD, making it the slowest start to any year since 1996.


• Apollo Global Management has agreed to acquire ADT (NYSE: ADT), a Boca Raton, Fla.-based provider of electronic security services, for approximately $7 billion or $42 per share (56% premium to Friday’s closing price). Apollo then would merge ADT with existing portfolio company Protection 1. Read more.


• Snapdeal, an Indian e-commerce company, has raised $200 million in new equity funding led by The Ontario Teachers’ Pension Plan. Last summer, Snapdeal raised $500 million in an Alibaba-led round at a valuation of around $5 billion. Read more.

• Uber said that it has raised $200 million in new equity funding from LetterOne, an investment group led by Russian billionaire Mikhail Fridman. This appears to be part of the $2.1 billion funding round that Uber is in the midst of raising.

• LiveAction Inc., a Palo Alto, Calif.-based enterprise IT network visibility software platform, has raised $36 million in Series B funding. Insight Venture Partners led the round, and was joined by return backers investors Accelerate-IT Ventures and Cisco Investments.

• Zoomdata, a Reston, Va.-based business data visualization platform, has raised $25 million in Series C funding. Goldman Sachs led the round, and was joined by return backers Accel, Columbus Nova Technology Partners and NEA.

• Akarna Therapeutics Ltd., a developer of small molecule therapeutics that target inflammatory and fibrotic diseases for which there are no approved treatments, has raised $15 million in Series B funding. Forbion Capital Partners was joined by return backers New Science Ventures and Third Point Ventures. The company has offices in the UK and San Diego.

• Wavefront, a Palo Alto, Calif.-based IT analytics company designed to prevent outages, has raised $11.5 million in Series A funding. Backers include Sutter Hill Ventures, Sequoia Capital and the Webb Investment Network. The company previously raised $9 million.

• Mobify, a Vancouver-based mobile customer engagement platform, has raised C$10 million in venture funding led by Acton Capital Partners.

• EnTouch Controls, a Richardson, Texas-based provider of facility asset and energy management intelligence solutions, has raised $8 million in Series A funding. Egis Capital Partners led the round, and was joined by Traverse Venture Partners, Aster Capital, Calvert Investments and return backers SJF Ventures and Trailblazer Capital.

• RKSV Securities, an India-based online discount stock brokerage, has raised $4 million in Series A funding from firms like Kalaari Capital and GVK Davix.

• Naritiv, a platform that connects brands and Snapchat influencers, has raised $3 million in Series A funding. Backers include Walt Disney Co., FreeForm, Third Wave Capital and Luminary Capital. Read more.

• D-EYE, an Italian developer of a smartphone-based retinal imaging system, has raised €1.5 million in seed funding from Innogest, Invitalia Ventures,Giuseppe e Annamaria Cottino Foundation and Si14 Spa.


• Argosy Private Equity has acquired Nationwide Industries Inc., a Tampa, Fla.-based provider of hardware products and components for the building materials industry, from P&F Industries Inc. (Nasdaq: PFIN). The deal was valued at around $22.2 million.

• Asciano (ASX: AIO), an Australian ports operator, has accepted a US$6.3 billion takeover offer from an investor group that includes rival Qube (ASX: QUB), Global Infrastructure Partners, the Canada Pension Plan Investment Board and CIC Capital. The company previously had accepted a lower bid from Brookfield Asset Management, which now will be in line for an A$88 million breakup fee. Read more.

• CTI Foods, a Wilder, Idaho-based portfolio company of Thomas H. Lee Partners and Goldman Sachs, has acquired Liguria Foods, a Humboldt, Iowa-based maker of pepperoni and other protein pizza toppings for both pizzerias and sandwich shops. No financial terms were disclosed. Sellers include Ancor Capital Partners and BBH Capital Partners.

• DNS Capital has acquired IMI Holding Corp. ― the Boyne City, Mich.-based parent company of Industrial Magnetics, Prater Industries and Sterling Controls ― from River Associates Investments for an undisclosed amount.

• Grand Transformers, a Grand Haven, Mich.-based portfolio company of Blackford Capital Partners, has acquired Warner Power, a Warner, N.H.-based designer and manufacturer of electrical transformers and power systems. No financial terms were disclosed, exc ept that debt financing was provided by existing GTI lender Comerica Bank.

• Insight Venture Partners has agreed to acquire Diligent Corp. (NZX: DIL), a New York-based provider of secure online collaboration and document sharing solutions for boards, committees and leadership teams. The deal is valued at around US$624 million, or US$4.90 per share (31% premium over Friday’s closing price).

• Nexif Energy, a Singapore-based independent power platform backed by Denham Capital, has acquired a controlling interest the 30 MW Coc San hydro power project in Vietnam. No financial terms were disclosed.


 No IPO news this morning.


• OMERS has agreed to sell Marketwired, an El Segundo, Calif.-based press release distributor, to Nasdaq (Nasdaq: NDAQ). No financial terms were disclosed.

• Stryker Corp. (NYSE: SYK) has agreed to acquire Physio-Control International Inc., a Redmond, Wash.-based maker of medical devices like automated external defibrillators, for $1.28 billion in cash from Bain Capital. Read more.

• YouTube, a unit of Google, has acquired BandPage, a San Francisco-based platform for musicians to manage their online profiles. No financial terms were disclosed, but TechCrunch pegs the purchase price at $8 million. BandPage had raised over $25 million in VC funding from firms like GGV Capital and Mohr Davidow Ventures. Read more.


• Liberty Global (Nasdaq: LBTY) and Vodafone (LSE: COD) have agreed to merge their Dutch businesses to form a $21 billion mobile and cable operator that can challenge KPN. Read more.

• SoftBank (Tokyo: 9984) announced plans for a $4.4 billion share buyback, the largest in the Japanese company’s history. Read more.


• The Carlyle Group has secured $550 million in capital commitments for its Metropolitan Real Estate Partners secondaries and co-investments program.

• Investindustrial has closed its sixth Southern Europe-focused private equity fund with €2 billion in capital commitments.

• Thoma Bravo has closed its first private equity fund dedicated to the lower middle markets, with $1.074 billion in capital commitments.


• GenNx360 Capital Partners has promoted Matthew Guenther to managing partner. He has been with the private equity firm since 2007.

• Ryan Gilbert has joined Propel Venture Partners as a venture partner. He previously was co-founder and CEO of Better Finance and, before that, served as CEO of PropertyBridge (acquired by Moneygram).

• Upacala Mapatuna has joined Victory Park Capital as chief investment officer. She previously was a managing director with Goldman Sachs, and a member of its alternative investments and manager selection group.

• Schwark Satyavolu has joined Trinity Ventures as a general partner focused on the financial technology sector. He is the co-founder and former CTO of Yodlee (acquired by Evenstnet) and also co-founded Trinity portfolio company Truaxis (f.k.a. BillShrink). Read more.

• Christopher Seaver has joined The Rohatyn Group as a Hong Kong-based partner. He previously was CEO of CLSA Capital Partners Ltd. and, before that, was a managing director for China with Darby Overseas.

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