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FinanceTerm Sheet

Term Sheet — Thursday, February 18

By
Dan Primack
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By
Dan Primack
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February 18, 2016, 10:06 AM ET

Random Ramblings

Lots of deal news this morning, so just time for a few quick notes to kick off your Thursday:

• The Disruptive 15: Fortune's new issue includes a package of profiles on 15 entrepreneurs who are changing their industries. Among those included are Laura Weidman Powers & Tristan Walker (tech), Anya Pogharian (renal care), Michael Mente (clothing) and the three co-CEOs of Sweetgreen (food).

Also included is a profile I wrote on Scooter Braun, the music manager and burgeoning entertainment mogul who is best known for discovering Justin Bieber via YouTube back in 2008.

Of particular note for Term Sheet is something called Ithaca, which has been referred to in the press as a $120 million venture capital fund through which Braun has invested in such companies as Uber, Spotify and Bkstg. But Ithaca is about much more than just venture capital; it also acts as a holding company for both SB Projects and previously-unreported ownership interests in seven of the country’s largest music management companies. Read the full piece by going here.

• Waiting game: CVC Capital Partners has gotten a bit of extra time to respond to the lawsuit brought by former employee Lisa Lee, which alleged such things as inappropriate "fondling" by a senior executive, violations of the Family Leave Act and retaliation for reporting such behaviors.

The private equity firm originally was required to file its version of events 21 days after receiving its summons on January 20, but since has received a waiver that extends the period to 60 days. So expect CVC's response sometime early next month.

• Marc, where art thou? Most venture capitalists use Twitter, but none have been more prolific on the medium than Marc Andreessen (at least for the past couple of years). Well, until he caused an international incident of sorts last week, with a tweet about India, anti-colonialism and Facebook's Free Basics program (for which he subsequently apologized, and which Mark Zuckerberg publicly disowned).

Since then, not a single tweet or retweet from Andreessen. I emailed to ask if he was just taking a break from the service or if it was a permanent vacation. His reply: "We'll see :)" If nothing else, it's the first time I've ever included an emoticon in a quote...

THE BIG DEAL

• IBM (NYSE: IBM) has agreed to acquire Truven Health Analytics, an Ann Arbor, Mich.-based provider of healthcare data to hospitals and physicians, from Veritas Capital for $2.6 billion. Veritas had purchased the company from Thomson Reuters for $1.25 billion in 2012, and reportedly had considered a 2015 IPO. www.ibm.com

VENTURE CAPITAL DEALS

• Jana, a Boston-based startup focused on expanding mobile Internet connectivity to emerging markets, has raised $57 million in Series C funding. Verizon Ventures led the round, and was joined by return backers Spark Capital and Publicis Group. Read more.

• Indigo, a Cambridge, Mass.-based startup that is using bacteria to improve agricultural production, has raised $56 million in first-round funding led by Flagship Ventures. Read more.

• Pliant Therapeutics Inc., a Redwood City, Calif.-based developer of new therapies to treat the pathologic process of fibrotic disorders, has been formed via $45 million in Series A funding led by Third Rock Ventures. www.pliantrx.com

• Corvidia Therapeutics, a Boston-based developer of precision cardiovascular therapies, has raised $26 million in Series A funding co-led by Sofinnova Partners and Apple Tree Partners. www.corvidiatx.com

• Vera, a Palo Alto, Calif.-based data protection startup, has raised $17 million in Series B funding. Sutter Hill Ventures led the round, and was joined by return backers Battery Ventures, Amplify Partners and Clear Venture Partners. www.vera.com

• GridGain Systems, a Pleasanton, Calif.-based provider of an enterprise-grade version of the Apache Ignite in-memory data fabric, has raised $15 million in Series B funding. Sberbank and MoneyTime Ventures co-led the round, and were joined by Almaz Capital and RTP Ventures. www.gridgain.com

• Motive Drilling Technologies, a Dallas-based drilling decision automation startup, has raised $10.5 million in Series A funding co-led by Formation 8 and GE Ventures. www.motivedrilling.com

• Orion Labs, a San Francisco-based provider of group voice communication accessories, has raised $9 million in new VC funding from Avalon Ventures and Motorola Solutions Venture Capital. www.orionlabs.co

• Nimble Collective, a cloud-based platform for professional and amateur animators, has raised $8.5 million in new VC funding led by New Enterprise Associates. www.nimblecollective.com

• Adbrain, a London-based multi-screen advertising platform, has raised $7.5 million in new VC funding. Cisco Investments was joined by return backers Notion Capital and Octopus Ventures. www.adbrain.com

• Triptease, a UK-based provider of SaaS solutions for helping hotels increase direct sales, has raised $7 million in Series A funding from return backers like Notion Capital and Episode 1. Read more.

• Vyopta Inc., an Austin, Texas-based provider of video and unified collaboration analytics, has raised $5 million in Series A funding led by AVX Partners. www.vyopta.com

• Student Loan Genius, an Austin, Texas-based provider of student loan benefits, has raised $3 million in seed funding. Gibraltar Ventures led the round, and was joined by Kapor Capital, Capital Factory and Village Capital. www.studentloangenius.com

• Datapath.io, a German developer of network performance management solutions, has raised around $1.1 million in seed funding from Target Partners and Speedinvest. www.datapath.io

PRIVATE EQUITY DEALS

• Affinity Equity Partners has agreed to acquire the Burger King franchise in South Korea for approximately $170 million from local private equity firm VIG Partners, according to the WSJ. Read more.

• East West Copolymer, a Baton Rouge, La.-based supplier of synthetic rubber to the industrial and tire markets, has secured an undisclosed amount of private equity funding from Trive Capital and TerraMar Capital. www.ewcopolymer.com

• GTCR has agreed to acquire Lytx Inc., a San Diego-based provider of video telematics, for “more than $500 million” from Welsh Carson Anderson & Stowe. www.lytx.com

• KKR has acquired a 9.95% equity stake in Max Financial Services (BSE: 500271), a newly-formed entity that owns around a 72% stake in Indian life insurance company Max Life. www.kkr.com

• Roark Capital Group has made a growth equity investment in Orangetheory Fitness, a Durham, N.C.-based chain of fitness clubs. No financial terms were disclosed. www.o2fitnessclubs.com

• Thoma Bravo and Vista Equity Partners each submitted first-round bids to acquire printer-maker Lexmark International Inc. (NYSE: LXK), according to Bloomberg. Goldman Sachs is managing the process for Lexmark, which has a market cap of around $1.7 billion. One possibility is that Lexmark might split up its software and hardware unit, with both Canon Inc. and Ricoh Co. said to have interest in the latter. Read more.

• United Flexible Inc., a Romeoville, Ill.-based portfolio company of Arlington Capital Partners, has acquired Fulton Bellows LLC, a Knoxville, Tenn.-based maker of precision bellows and thin-walled metal components utilized in gas and fluid control systems. No financial terms were disclosed. www.ushosecorp.com

• Wynnchurch Capital has acquired Texas Hydraulics, a Temple, Texas-based maker of custom-designed hydraulic cylinders, swivels and related components for mobile equipment applications. The seller was Dover Corp. (NYSE: DOV). No financial terms were disclosed. www.texashydraulics.com

IPOs

• 3i Group is considering an IPO for Dutch fitness club chain Basic-Fit, according to Bloomberg. The float could value the company at around $1.1 billion. Read more.

• Nets Holding AS, a Nordic payment processor owned by Bain Capital and ATP, has hired Deutsche Bank and Morgan Stanley to advise on an IPO or sale of the company, according to Bloomberg. The business reportedly could be valued at upwards of $4 billion. Read more.

EXITS

• Web.com (Nasdaq: WEB) has agreed to acquire Yodle Inc., a New York-based provider of online marketing solutions to local merchants, for $342 million in cash. Yodle had raised over $54 million in VC funding from firms like DFJ, Icon Venture Partners, Bessemer Venture Partners, MentorTech Venture Partners, Stevens Ventures and Hudson River Ventures. www.yodle.com

OTHER DEALS

• Fandango, a unit of NBC Universal, has agreed to purchase both Rotten Tomatoes and Flixter from Time Warner (NYSE: TWX) for an undisclosed amount. Time Warner will retain a minority stake in both sites. Read more.

• HNA Group has agreed to acquire Santa Ana, Calif.-based electronic distributor Ingram Micro Inc. (NYSE: IM) for around $6 billion. Read more.

FIRMS & FUNDS

• 500 Startups is raising upwards of $50 million for a Japan-focused seed-stage fund, according to a regulatory filing. www.500startups.com

• BlackRock Inc. plans to raise an Asia-focused private equity fund-of-funds later this year, according to Bloomberg. Read more.

• Campbell Soup Co. (NYSE: CPB) has formed a $125 million venture capital fund that will invest in food startups. It’s called Acre Venture Partners, and will be led by Jeff Dunn, head of the company’s fresh foods unit. Read more.

• Castle Creek Capital, a Rancho Santa Fe, Calif.-based private equity firm, is raising upwards of $200 million for its sixth fund, according to a regulatory filing. It already has closed on more than $47 million. www.castlecreek.com

• Clayton Associates is raising upwards of $75 million for its sixth venture capital fund, according to a regulatory filing. So far, the Bentwood, Tenn.-based firm has closed on $15 million. www.claytonassociates.com

• Illinois Ventures is raising $15 million for its third fund, according to a regulatory filing. www.illinoisventures.com

• Weathergage Capital is raising upwards of $200 million for its fourth venture capital and growth equity fund-of-funds, according to a regulatory filing. www.weathergagecapital.com

MOVING IN, ON & UP

• Adams Street Partners has promoted seven principals to partner. They are: Thomas Bremner, Joseph Goldrick, Doris Guo, Ross Morrison, Tobias True, Morgan Webber and Michael Zappert. www.adamsstreetpartners.com

• Josh Woodbridge has joined Gemspring Capital as VP of business development. He previously was with Axial. www.gemspring.com

About the Author
By Dan Primack
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