KING OF CRYPTO
Good morning, Term Sheet readers.
SCOOP: The co-CEO of Bitmain Technologies, the world’s largest cryptocurrency mining company, recently revealed plans to conduct an initial public offering in Hong Kong, or in an overseas market with U.S. dollar-denominated shares. The IPO would give early investors, including Sequoia Capital and IDG Capital, an opportunity to cash out.
Term Sheet has obtained an email from a source close to the company, which includes some of Bitmain’s latest financials ahead of its planned IPO.
— Bitmain is raising further cash in addition to a $400M round reported in early June. The new funding would value Bitmain at approximately $14 billion, implying a 10 to 11x earnings multiple, according to the email. This is a 16.6% increase from the company’s most recently reported $12 billion valuation.
— The email cites a KPMG audit of the business and reports that Bitmain produced $1.2 billion in net profit and an approximately 50% net margin in 2017.
— Bitmain reportedly brought in $1.1 billion in net profit just in the first quarter of 2018. According to the email, a conservative estimate of what the company could earn in net profit for the full year hovers at approximately $2 to $3 billion.
— The email also says that “Bitmain plans to file for an IPO very soon.”
Fortune recently sat down with Bitmain co-founder and co-CEO Jihan Wu, in which the billionaire addresses some of the controversy and conspiracy theories that have swirled around his company. Read the full story here. Wu was also featured on Fortune’s Ledger 40 Under 40 last week.
SOFTBANK STRIKES AGAIN: ARM Holdings Plc, the U.K.-based computer-chip designer owned by SoftBank Group Corp., agreed to buy U.S.-based data analytics firm Treasure Data for approximately $600 million, according to Bloomberg. Treasure Data has raised roughly $54 million in funding from investors including Scale Venture Partners, Sierra Ventures, and AME Cloud Ventures.
The news is not surprising as it aligns well with Masayoshi Son’s Big Data and AI ambitions. Treasure Data develops products to help companies analyze data for various purposes. As Son has said previously, “Those who rule chips will rule the entire world. Those who rule data will rule the entire world. That’s what people of the future will say.”
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...AND ELSEWHERE
Behind the spectacular collapse of a private equity titan. Les Moonves and CBS face allegations of sexual misconduct. A sex scandal toppled a Silicon Valley chief — investors say, so what? This reporter is deleting all of her old tweets. The U.S. housing market looks headed for its worst slowdown in years. Bird & Skip get Portland’s blessing.
VENTURE DEALS
• Improbable, a U.K.-based game infrastructure company, raised $50 million in funding from NetEase.
• Grover, a Berlin-based provider of pay-as-you-go subscriptions as an alternative to technology product ownership, raised €37 million ($43 million) in Series A funding. (The round consists of €12 million in equity & €25 million in debt.) Circularity Capital LLP led the round, and was joined by investors including Coparion, Samsung NEXT, Varengold Bank, Commerzbank’s Main Incubator and June Fund.
• Olive, Inc., a healthcare-focused robotic process automation and artificial intelligence company, raised $32.8 million in Series D funding. Investors include Oak HC/FT and Ascension Ventures.
• Survata, a San Francisco-based advertising measurement and market research company, raised $14 million in Series B funding. Conductive Ventures led the round, and was joined by investors including Industry Ventures, Uncork Capital, PivotNorth, Ridge Ventures, Bloomberg Beta and Initialized Capital.
• Shuttl, an India-based mobile-based minibus service, raised $11 million in Series B funding. Investors include Amazon India, Amazon Alexa Fund, and Dentsu Ventures. Existing investors Sequoia Capital, Times Internet and Lightspeed Ventures also participated.
• SkinVision, a Netherlands-based provides of a mobile app that allows users to keep track of skin health, raised $7.6 million in funding. Investors include LEO Pharma and PHS Fund.
• Waldo, a London-based direct-to-consumer contact lens brand, raised £3.7 million ($5 million) in Series A funding. Investors include PROfounders Capital, YYX Ventures, Tectonic Capital and Tinder co-founders Sean Rad and Justin Mateen.
• Bright Network, a London-based media technology platform for employers to reach, find and recruit students and young professionals, raised £2.5 million ($3.3 million) in funding. Maven Capital Partners led the round.
• Ciitizen, a Redwood City, Calif.-based platform that helps patients collect and share their personal health data, raised $3 million in seed funding. Andreessen Horowitz led the round.
HEALTH AND LIFE SCIENCES DEALS
• Sutro Biopharma Inc, a South San Francisco-based drug developer, raised $85.4 million in Series E funding. Samsara BioCapital and Surveyor Capital led the round, and was joined by investors including Alta Partners, Amgen Ventures, Celgene Corporation, Lilly Ventures, Skyline Ventures and SV Health Investors.
PRIVATE EQUITY DEALS
• Aleph Capital Partners LLP and Crestview Partners will invest €260 million ($304 million) in DARAG Deutsche Versicherungs-und Rückversicherungs-AG, a Germany-based insurance company.
• PennSpring Capital acquired Professional Systems Software & Technology, a Louisville, Ky.-based software firm that provides data integration solutions for school districts and municipalities. Financial terms weren't disclosed.
• Halyard Capital acquired SRAX’s (Nasdaq: SRAX) healthcare and pharmaceutical business SRAXmd for up to $52.5 million.
• Vance Street Capital LLC recapitalized Jet Parts Engineering, Inc, a Seattle-based designer of proprietary OEM-alternative parts and repair services for the commercial aerospace industry. Financial terms weren't disclosed.
IPOs
• Mallplaza, a Chilean commercial mall operator, raised $533 million in the nation’s largest IPO. Read more.
• Mesa Air Group, a Phoenix, Ariz.-based regional air carrier, said it plans to raise $160.5 million in an IPO of 10.7 million shares priced between $14 to $16. It booked $643.7 million in the year ending September. American Airlines (19.8% pre-offering), Corre Opportunities (16.8%), and Citigroup (13.2%) back the company. Raymond James, BofA Merrill Lynch, Cowen, Stifel, and Imperial Capital are the joint bookrunners. It plans to list on the Nasdaq as as “MESA.” Read more.
EXITS
• Johnson & Johnson Consumer Inc agreed to acquire Zarbee’s Naturals, a Draper, Utah-based company that sells over-the-counter products such as vitamins and supplements. Sellers include L Catterton and Sorenson Capital. Financial terms weren't disclosed.
• Wendel agreed to sell CSP Technologies, an Auburn, Ala.-based manufacturer of custom polymetric and specialty protecting packaging products, to Aptar Group for $555 million.
• Chequers Capital and IGI Private Equity agreed to sell Rollon Group, an Italy-based maker of linear rails and actuators, to The Timken Company. Financial terms weren't disclosed.
• Platinum Equity acquired a majority stake in Yak Access LLC, a Columbia, Miss.-based provider of temporary roadway solutions to remote construction sites. The sellers include Jones Companies and Beasley Forest Products. Financial terms weren't disclosed.
• Apax Partners agreed to acquire Genius Sports Group, a London-based sports data technology company, from Three Hills Capital Partners and other minority shareholders. Financial terms weren't disclosed.
FIRMS + FUNDS
• The Carlyle Group, a Washington D.C.-based investment firm, raised $18.5 billion for its new fund, Carlyle Partners VII.
• March Capital Partners, a Santa Monica, Calif.-based venture capital firm, raised more than $120 million for its second fund, according to an SEC filing.
PEOPLE
• Evan Mintz joined VMG Partners as an associate.
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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.
