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Term Sheet — Wednesday, May 4

Random Ramblings

Today’s column didn’t quite come together in time, so just some very quick notes to kick off National Candied Orange Peel Day:

• Steve says: Blackstone Group CEO Steve Schwarzman was on CNBC yesterday, and had two macro thoughts of note: (1) Throw out the anemic Q1 U.S. GDP numbers “because it’s been wrong tragically the last several years.” The real figure, he believes, is around 2%. (2) He believes the slower global economic growth will last “longer than you thing,” because of low interest rates.

• That’s so MAVEN: Bain Capital and Vista Equity Partners yesterday announced that they had acquired insurance software company Vertafore from TPG Capital. This comes just as Bain/Vista is competing with TPG for the core assets of Yahoo (both groups appear to have advanced to Round 2). Might have been easier to just go in as a trio (plus it would have saved TPG a bunch of calls to LPs for big co-invest commitments).

Also worth noting that neither KKR nor Silver Lake, both of which were tied to Yahoo, remain in the process.

• Specificity: When we originally reported on General Motors agreeing to purchase autonomous vehicle software maker Cruise, sources told us that the price was “north of $1 billion.” We’ve since learned that it’s closer to $1.25 billion.

• Just too easy: Insert “Carly Fiorina failed merger” joke here.

• New firm alert: Xiang He Fund has been launched as a new Palo Alto-based VC firm by Hesong Tang, former head of business development at Baidu (and, before that, an exec with both Microsoft and Cisco). According to a regulatory filing, Tang is seeking upwards of $250 million for its debut fund.


• In Memoriam: Tom Quinn, a longtime managing partner with private equity firm The Jordan Co., passed away last Friday after a battle with cancer. He was 68 years-old, and is survived by his wife and two children.

Quinn joined The Jordan Company in 1988, and is credited with forming its operations management group and continuing to lead both its U.S. and China operations management teams. His current portfolio company board seats included Healthcare Product Holdings, Sensus, Watchfire Enterprise and Worldwide Clinical Trials. Prior to joining the firm, Quinn was a group VP for Baxter International.

A memorial service will be held at First Presbyterian Church of Lake Forest tomorrow at 1pm. His family asks that, in lieu of flowers, that donations in Tom’s memory be made to Misericordia, Attn. Sister Rosemary Connelly.

Rest in peace Tom.


• Hellman & Friedman is in advanced talks to acquire MultiPlan, a New York-based healthcare services provider, from Starr Investment Holdings for around $7.5 billion (including assumed debt), according to the WSJ. Read more.


• VTS, a New York-based commercial real estate leasing and asset management platform, has raised $55 million in Series C funding. Insight Venture Partners led the round, and was joined by OpenView Venture Partners and Trinity Ventures. Read more.

• ChargePoint, a Campbell, Calif-based electric vehicle charging network, has raised $50 million in new VC funding. Linse Capital led the round, and was joined by return backers like Braemar Energy Ventures and Constellation Energy. Existing shareholders include Rho Ventures, Kleiner Perkins Caufield & Byers, BMW iVentures and Siemens. Read more.

• IDEAYA Biosciences Inc., a California-based developer of personalized synthetic lethality medicines, has raised $46 million in Series A funding. Backers include 5AM Ventures, Canaan Partners, Celgene, WuXi Healthcare Ventures, Novartis Institute of Biomedical Research and Alexandria Real Estate.

• ROLI, a London-based developer of connected music devices, has raised $27 million in Series B funding. Foundry Group led the round, making it Foundry’s first-ever deal outside the U.S. BGF Ventures and Founders Fund also participated, alongside return backers Balderton Capital, FirstMark Capital, Index Ventures, Horizons Ventures and Universal Music Group.

• Appboy, a New York-based “customer relationship suite for mobile-first marketers,” has raised $20 million in Series C funding. Battery Ventures led the round, and was joined by return backers like Blumberg Capital, Bullpen Capital, IDG Ventures, InterWest Partners, Metamorphic Ventures and Rally Ventures.

• Assent Compliance, an Ottawa-based provider of SaaS solutions for managing supply chain and product compliance efforts, has raised Cdn$20 million in growth equity funding. Volition Capital led the round, and was joined by the OpenText Enterprise Application Fund, Business Development Bank of Canada, National Research Council of Canada Industrial Research Assistance Program.

• Winc (f.k.a. Club W), a Los Angeles-based online wine retailer, has raised $17.5 million in new VC funding co-led by Shining Capital and return backer Bessemer Venture Partners.

• Sirnaomics Inc., a Gaithersburg, Md.-based developer of RNAi therapeutics, has raised $10 million in Series B funding led by Hong Kong-based Value Measured Investment Ltd.

• Passport Inc., a Charlotte, N.C.-based provider of cloud software for city transit and parking apps, has raised $8 million in Series B funding. MK Capital led the round, and was joined by Grotech Ventures and Relevance Capital. Read more.

• Full Measure Education Inc., a Washington, D.C.-based mobile platform for post-secondary student communication and administrative management needs, has raised $6 million in Series B funding led by Safeguard Scientifics.

• DFLabs, an Italy-based provider of automated cyber incident management and response, has raised $5.5 million in Series A funding from Evolution Equity Partners.

• PowWow Mobile, a San Francisco-based enterprise app mobility startup, has raised $4.25 million in new VC funding. Vertical Venture Partners led the round, and was joined by IT-Farm, OurCrowd, Prabhakar Goel and VKRN.

• Observable Networks, a St. Louis-based provider of network security technology and threat detection services, has raised $2 million in new VC funding from MK Capital.


• Atos Medical,a Swedish medical device company owned by EQT Partners, has short-listed a group of private equity firms as prospective buyers, according to Reuters. The story does not disclose those firms that reached the second rounds, but does say that indicative bids were made by such groups as Astorg Partners, Montagu Private Equity, Hellman & Friedman, PAI Partners and Warburg Pincus. Atos Medical could be valued at around $1.5 billion. Read more.

• Centerbridge Partners has agreed to acquire Cascade Financial Services, a Gilbert, Ariz.-based lender to buyers of manufactured homes. No financial terms were disclosed.

• Confie Seguros, a personal insurance company focused on Hispanic consumers, has acquired three insurance agencies: Auto Insurance Specialists (Las Vegas), Trinity Insurance (Florida), Whitehead Insurance (Yakima, Wash.). No financial terms were disclosed. Confie Seguros is a portfolio company of ABRY Partners.

• Credit Suisse has agreed to sell a $1.27 billion portfolio of distressed assets to a credit and special situations affiliate of TPG Capital. Read more.

• Golden Gate Capital is in talks to acquire a 40% stake in corporate PR firm Sard Verbinnen & Co. for around $60 million, according to the NY Times. But it’s gotten kind of complicated. Read more.

• Gulf Capital has acquired Multibrands, a Saudi Arabian food and beverage distributor. No financial terms were disclosed. Read more.

• Silverfleet Capital has agreed to acquire a majority equity stake in the aerospace unit of Avingtrans PLC (AIM: AVG), at an enterprise value of £65 million.

• Southern Cross Group has agreed to acquire Chile Distribucion, a Chilean unit of Brazil state-owned oil company Petrobras, for around $90 million. Petrobras also agreed to sell its 67.2% stake in Petrobras Argentina SA to Pampa Energia SA (BASE: PAMP) for $892 million. Read more.

• Warburg Pincus has acquired DocuTAP Inc., a Sioux Falls, S.D.-based provider of healthcare technology for urgent care. Sellers include Bessemer Venture Partners. No financial terms were disclosed.


• Cleopatra Hospital Co., an Egyptian hospital group owned by Abraaj Group, is preparing a local IPO that could value the company at upwards of $300 million, according to Bloomberg. Read more.

• Philips (Amsterdam: PHIA) is planning to sell up to 25% of its lighting business via an Amsterdam IPO. Read more.

• Viamet Pharmaceuticals Holdings, a Durham, N.C.-based developer of inhibitors of validated metalloenzymes, has set its IPO terms to 5.7 million shares being offered at between $14 and $16 per share. It would have an initial market cap of approximately $389 million, were it to price in the middle of range. The company previously filed for a $75 million floatation in 2014, but withdrew its offering later that year. It plans to trade on the Nasdaq under ticker symbol VMET, with Morgan Stanley and Goldman Sachs serving as lead underwriters. Viamet has raised over $150 million in VC funding from firms like Novartis Bioventures (12.9% pre-IPO stake), Lilly Ventures (11.3%), Hatteras Venture Partners (7.8%) and Intersouth Partners (6.3%).


• Adobe (Nasdaq: ADBE) has agreed to acquire Livefyre, a San Francisco-based content curation and audience engagement. No financial terms were disclosed. Livefyre has raised around $82 million in VC funding from firms like Adobe, Cue Ball, Greycroft Partners, Hillsven Capital, Salesforce Ventures and U.S. Venture Partners. Read more.

• Clorox Co. (NYSE: CLX) has acquired Renew Life, a Palm Harbor, Fla.-based maker of probiotics and other digestive care supplements, from Swander Pace Capital. The deal was valued at $290 million. Read more.


• Adidas AG said that it is seeking buyers for its TaylorMade, Adams and Ashworth golf brands. Read more.

• Build-A-Bear (NYSE: BBW), a St. Louis-based toy maker and retailer with a market cap of around $215 million, said that it is exploring strategic alternatives. Read more.

• Pfizer (NYSE: PFE) has approached Medivation (Nasdaq: MDVN), a San Francisco-based prostate cancer drug-maker, about a rival bid to an existing $9.3 billion cash takeover offer from France’s Sanofi (Paris: SAN). Read more.

• Wayin, a Denver-based provider of real-time digital marketing software, has acquired UK-based social media marketing platform EngageSciences for an undisclosed amount. Wayin has raised VC funding from backers like U.S. Venture Partners, Hasso Plattner, Dave Duffield and Wayin CEO Scott McNealy. Read more.


• Asos (AIM: ASC), a British fashion retailer, has launched a corporate venture group (Asos Ventures) focused on fashion technology startups. It will be run in partnership with Waayra, a unit of Telefónica. Read more.

BlackRock has closed its third direct co-investment private equity fund with over $630 million in capital commitments.


• Greg Baletsa has joined JMC Capital Partners as an operating partner. He previously was CEO of Canadian fashion retailer Comark.

• Berkshire Partners has named three new advisory directors: Michael Grebe (board of Atlanta Fed’s Jacksonville division), Jeffrey Henderson (ex-CFO of Cardinal Health) and Lawrence Kingsley (chairman of Husky).

• Gary Gottlieb and Phyllis Gotlib have joined Flare Capital Partners, a healthcare tech-focused VC firm, as executive partners. Gary Gottlieb is CEO of Partners in Health, while Phyllis Gotlib was co-founder and CEO of iMDsoft.

• Angela Kerek has joined Morrison & Foerster as a Berlin-based partner in the law firm’s finance department, with a focus on debt capital markets. She previously was with Linklaters.

• Alvin Lim has agreed to join CVC Capital Partners with a focus on investment opportunities in Singapore and Malaysia, according to Bloomberg. He previously was a managing director and head of Southeast Asia banking advisory at HSBC. Read more.

• William Tyson has joined Fifth Third Bancorp (Nasdaq: FITB) as co-head of Fifth Third Capital Markets. He previously was with BB&T Capital Markets as a senior managing director and co-head of investment banking.

• Michael Weisser and Sarah Stasny have joined Kirkland & Ellis as New York-based partners in the law firm’s corporate practice group, with a focus on private equity. Both previously were partners with Weil, Gotshal & Manges LLP.

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