ON THE ROAD
Ride-hailing company Lyft begins its road show today, and it’s aiming high. The startup hopes to raise a maximum of $2.4 billion from its public debut at a valuation that could reach $23 billion. The company will offer a little more than 30 million shares, and the IPO range is currently set between $62 and $68 a share.
Even at the lower end of Lyft’s expected range, the company would still top its last private market valuation, which was pegged at $15.1 billion in June 2018. If all goes according to Lyft’s plan, the tech giant is poised to become one of the largest U.S.-listed new tech offerings since Alibaba Group went public in 2014.
But let’s not forget, Uber’s shadow is looming. Ride-hailing rival Uber is hoping for a valuation of as much as $120 billion, so its IPO has the potential to blow Lyft out of the water. Since Lyft is significantly less valuable than Uber, it could also lose out on investors who are holding out for Uber's IPO.
Then again, my prediction is that Lyft will be viewed as an attractive proposition because of its steady gain of market share from its much-larger rival as well as its potential for rapid growth across the country from a smaller base. Now, we wait and see.
BIG DEAL: Fidelity National Information Services Inc. agreed to acquire Worldpay Inc. for approximately $34 billion in cash and stock, which marks the biggest ever deal in the white-hot payment processing sector. Florida-based FIS will also take on Worldpay’s net debt of $7.7 billion, bringing the enterprise value of the deal to around $43 billion. Worldpay, spun off from Royal Bank of Scotland in the aftermath of the 2008 financial crisis, became the U.K.’s largest payments firm before it was taken over by Vantiv in a $10.4 billion deal that closed in January 2018.
Fortune’s Grace Dobush reports that the FIS deal is part of wider consolidation within the payment processing sector brought on by the fact that traditional merchant payment services focused for too long on their business with brick-and-mortar retailers and neglected the growing e-commerce sector. Read the full story here.
THE #METOO CLAUSE: Tech investors are now increasingly including “#MeToo clauses” in startup deals, which would require founders to disclose any complaints about sexual harassment in the workplace, according to The Financial Times. You might remember that in August 2018, Wall Street did something similar except they called it “the Weinstein clause.” It was reported that advisers were adding guarantees to certain merger agreements that legally vouch for the behavior of a company’s leadership. “...Certainly for the more progressive firms, we are seeing that this is being included,” Carson Burnham, co-chair of the M&A practice at Ogletree Deakins, told the FT.
...Meanwhile, Wall Street’s first major #MeToo case could head to trial.
THE LATEST FROM FORTUNE...
• Exclusive: PepsiCo Has a New CEO of Latin America (by Beth Kowitt)
• Where Electronic Health Records Went Wrong (by Erika Fry and Fred Schulte)
• To Design Great A.I., Get 'Covered in Blood' (by Timothy McDonald)
• Leonardo DiCaprio Has a New Job: Advising a Climate Tech Fund (by Emily Chasan)
Young unicorns are scooping up startups sooner. Academic behind Cambridge Analytica data mining sues Facebook for defamation. Colleges are re-thinking athletic special admissions. How podcasts exploded.
• OneWeb, a U.K.-based developer of a constellation of satellites, raised $1.25 billion (£940 million) in funding. Investors include Softbank, Virgin Group, Coca-Cola and Qualcomm.
• Alcatraz AI, a company working on facial authentication frictionless access control for the enterprise, raised approximately $6 million in funding. Investors include Hardware Club, Ray Stata, JCI Ventures, Ruvento Ventures, and Hemi Ventures.
• DeHaat, an India-based agritech platform, raised more than $4 million in A funding. Investors include Omnivore and AgFunder.
HEALTH AND LIFE SCIENCES DEALS
• Surrozen Inc., a South San Francisco-based biopharmaceutical company, raised $50 million in Series B funding. Investors include Horizons Ventures, Hartford HealthCare Endowment, NS Investment and the Column Group.
PRIVATE EQUITY DEALS
• Signify Health, a portfolio company of New Mountain Capital, acquired TAVHealth, a San Antonio, Texas-based provider of cloud-based tools to connect health providers to community health services. Financial terms weren't disclosed.
• The Sterling Group acquired Polychem, a Mentor, Ohio-based provider of securement packaging. Financial terms weren't disclosed.
• DFW Capital Partners acquired a controlling stake in Sev1Tech, a Woodbridge, Va.-based provider of enterprise IT and program management support services. Financial terms weren't disclosed.
• Aldrich Capital Partners invested $41 million in eHealth Technologies, a West Henrietta, N.Y.-based provider of medical record retrieval and organization services.
• One Rock Capital Partners acquired Process Solutions, a manufacturer of material sciences, from Newell Brands. Financial terms weren't disclosed.
• Cinedigm Corp (NASDAQ: CIDM) agreed to acquire Future Today, Inc, an OTT platform and AVOD channel network, for $45 million in cash and $15 million in Cinedigm common stock.
• Nexi, an Italian payments firm, launched an IPO to raised 600 million to 700 million euros. Bain Capital, Advent, and Clessidra back the firm. Read more.
• Precision BioSciences, a Durham, N.C.-based early stage biotech focused on cancer, plans to raise $126 million in an offering of 7.9 million shares priced between $15 to $17. venBio backs the firm. J.P. Morgan, Goldman Sachs, Jefferies and Barclays are underwriters. It plans to list on the Nasdaq as “DTIL.” Read more.
• PagerDuty, a San Francisco-based operations and analytics platform maker, filed for a $100 million IPO. Andreessen Horowitz, Bessemer, and Accel back the firm. Morgan Stanley, J.P. Morgan, RBC Capital Markets, and Allen & Company are underwriters. It plans to list on the NYSE as “PD.” Read more.
• Change Healthcare, a Nashville, Tenn.-based healthcare payment management software maker, filed for a $100 million IPO. McKesson and Blackstone back the firm. Barclays, Goldman Sachs and J.P. Morgan are underwriters. It plans to list on the Nasdaq as “CHNG.” Read more.
• Palomar Holdings, a La Jolle, Calif.-based specialty property insurance provider focused of floods, earthquakes, and wind, filed on for a $50 million IPO. Genstar Capital backs the firm. Barclays, J.P. Morgan and Keefe Bruyette Woods are underwriters. It plans to list on the Nasdaq as “PLMR.” Read more.
• Minute Media acquired The Big Lead, a New York-based sports and news digital publication. Financial terms weren't disclosed. Minute Media had raised approximately $77 million in funding from investors including Battery Ventures, Dawn Capital, Gemini Ventures, North Base Media, ProSieben, Qumra Capital, Goldman Sachs, La Maison, Vintage Investments and Remagine Ventures.
• Littlejohn Capital acquired Western Industries Plastic Products LLC, a Winfield, Kansas-based manufacturer of large blow-molded products. Financial terms weren't disclosed. The seller was Speyside Equity LLC.
• Gryphon Technologies Inc, a portfolio companies of AE Industrial Partners, will buy Schafer Intermediate Holding, a provider of scientific, advanced engineering, and technical advisory services specializing in protecting against national security threats. Financial terms weren’t announced. Belcan was the seller.
• Vestar Capital Partners promoted Winston Song and Nikhil Bhat to managing director, and Jonathan Williams to vice president.