Term Sheet — Monday, February 12

February 12, 2018, 2:01 PM UTC


Good morning, Term Sheet readers.

The year-long legal saga between Uber and Waymo is finally over. On Friday, Uber settled the lawsuit with Alphabet’s Waymo over claims that Uber stole and inappropriately used trade secrets for self-driving vehicles.

Uber also agreed to refrain from using Waymo’s technology, along with ensuring no Waymo components were already in use. As part of the deal, Uber will give Waymo 0.34% of equity, which is valued at approximately $245 million.

Two things to note here:

1. Many are calling the settlement a win for new Uber CEO Dara Khosrowshahi. It appears that he is successfully ironing out trouble spots in the company’s business after numerous scandals under former CEO Travis Kalanick. In other words, Uber’s giving up a lot, but it could’ve been much worse.

2. As if the ride-sharing industry wasn’t incestous enough, now Waymo is in a position to benefit from Uber’s long-term success. The settlement could even open the door for potential collaboration between the two competitors, while leaving Khosrowshahi looking level-headed and cooperative.

My colleague David Z. Morris writes:

Many of [Uber’s] setbacks were triggered by Kalanick’s juvenile impulsiveness, which arguably helped the company grow in its early years. But as it seeks sustainability – and maybe even some profits – Khosrowshahi’s steadier hand, willingness to compromise, and recognition of past mistakes is shaping up as a better approach.

MORE LEGAL DRAMA: As one legal saga comes to an end, another one begins. New York Attorney General Eric Schneiderman sued Harvey Weinstein for creating a hostile work environment at the Weinstein Co. that allegedly featured “pervasive sexual harassment,” intimidation, and discrimination. This puts the sale of the Weinstein Company in question, which was due to be sold to an investor group led by Maria Contreras-Sweet for approximately $500 million. Contreras-Sweet has reportedly withdrawn her offer after Schneiderman filed the suit. Read more at Fortune.

WHY NOT MORE: Six years and $2 billion later, augmented reality tech startup Magic Leap somehow continues to raise more money with no public product. Axel Springer recently announced that it invested in Magic Leap because it wants to “participate in innovative technologies bearing the potential to present journalistic content and classifieds in new formats and environments.” Wait, classifieds? 🤔  Curious to see what an augmented reality company does with classifieds.

Magic Leap could be developing the most disruptive technology of our lifetime … or it could fail to meet the overblown expectations it's built up over the years.


The Equifax Hack Exposed More Data Than Previously Reported (by David Z. Morris)

Airbus Shows Off Its New Automated Delivery Drone Service in Singapore (by David Meyer)

Bullet Trains Are Transforming the World's Biggest Migration

BitGrail Cryptocurrency Exchange Claims $195 Million Lost to Hackers (by David Z. Morris)


General Dynamics to buy rival for $6.8 billion to bolster IT unit. Alibaba invests another $1.3 billion into its offline retail strategy. Trump wants to privatize the International Space Station. New tax law haunts companies that did ‘inversion’ deals. Blackstone weighs bidding for assets it sold to Anbang.


DataVisor, a Mountain View, Calif.-based provider of fraud detection solutions using unsupervised machine learning, raised $40 million in Series C funding. Sequoia China led the round, and was joined by investors including New Enterprise Associates and GSR Ventures.

Honest Buildings, a New York City-based project management platform, raised $21 million in Series B funding. Investors include Oxford Properties Group, The Durst Organization, Brookfield Property Partners, Rudin Ventures, C-III Capital Partners, Navitas Capital, The Westly Group, Rockport Capital, Circle Ventures and Thrive Capital.

HealthifyMe, an India-based mobile health and fitness platform, raised $12 million in Series B funding. Sistema Asia Fund led the round with participation from Samsung NEXT, Atlas Asset Management, Dream Incubator, IDG Ventures India, Inventus Capital, Blume Ventures and NB Ventures.

HomeCare.com, a McLean, Va.-based marketplace for private duty caregivers, raised $11 million in funding. Investors include 3TS Capital Partners, Blue Heron Capital, Maryland Venture Fund and Private Access Network.


Syndesi Therapeutics, a Belgium-based neurology drug discovery startup, raised 17 million euros ($20.8 million) in Series A funding. Investors inclide Novo Seeds, Fountain Healthcare, Johnson & Johnson Innovation – JJDC, Inc., V-BIO Ventures and the Walloon Investment Fund.


Thoma Bravo agreed to acquire a majority stake in Nintex, a Bellevue, Wash.-based provider of intelligent process automation solutions. Financial terms weren't disclosed. Nintex is a portfolio company of TA Associates.

Alliance Physical Therapy Management LLC, an affiliate of GPB Capital and Alliance Physical Therapy Partners, agreed to acquire the U.S. operations of Agility Health Inc, a Grand Rapids, Mich.-based healthcare operator. The deal is valued at $45 million.

Battery Ventures made a significant investment in Curve Dental, an Orem, Utah-based provider of web-based dental software and related services to dental practices. Financial terms weren't disclosed.

Blue Wolf Capital Partners LLC acquired a majority stake in Petrosmith, a provider of production equipment and oilfield tubular goods to the domestic oil and gas industry. Financial terms weren't disclosed.


Remington Outdoor Company Inc, a Madison, N.C.-based firearms manufacturer, has reached out to banks and credit investment funds in search of financing that will allow it to file for bankruptcy, according to Reuters. Read more.

Harvard Bioscience, Inc. (Nasdaq:HBIO) acquired  Data Sciences International, Inc. (DSI) in a deal valued at approximately $70 million acquisition.


Leo Holdings, a London-based blank check company, said it plans to raise $200 million in an IPO, down from a previously proposed $300 million. Leo was formed by executives of Lion Capital to acquire consumer or retail sector firms. Citigroup is underwriter in the deal. The firm plans to list on the NYSE as “LHC.U.”

Cardlytics, an Atlanta-based purchase intelligence platform, said it raised $70 million in an offering of 5.4 million shares priced at $13, the low end of its range. BofA Merrill Lynch, J.P. Morgan, Wells Fargo Securities, and SunTrust Robinson Humphrey are joint bookrunners in the deal. The firm plans to list on the Nasdaq as “CDLX.”


Stone Point Capital LLC agreed to acquire a majority stake in Genex Services, a Wayne, Penn.-based provider of cost containment services for the workers’ compensation, disability and auto industries. The seller was Apax Partners. Financial terms weren't disclosed.

Terratest acquired Geostructures, a Purcellville, Va.-based construction services firm. Financial terms weren't disclosed.

LogMeIn, Inc. (Nasdaq:LOGM) agreed to acquire Jive Communications, an Orem, Utah-based provider of cloud-based phone systems. Financial terms weren't disclosed. Jive had raised approximately $31.3 million in venture funding from investors including Lighter Capital and BYU Cougar Capital.


Aberdeen Asset Management, a U.K.-based asset management holding company, raised more than $268 million for its seventh U.S. private equity fund, according to an SEC filing.


ArchiMed appointed Benoît Adelus and André-Michel Ballester as partners.


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Polina Marinova produces Term Sheet, and Lucinda Shen compiles the IPO news. Send deal announcements to Polina here and IPO news to Lucinda here.

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