A TALE OF MANY MANY MERGERS
Hello again, Term Sheet readers! I hope y’all had a grill-filled Memorial Day. This is Lucinda, filling in for Polina who is on the West Coast until Friday. In the meantime, please send deals and thoughts to Lucinda.firstname.lastname@example.org—especially if you have an epiphany about Uber and Morgan Stanley.
Traditional payments players have been combining to stave off the threat of more e-commerce and tech savvy foes (think Square, Stripe, Ant Financial, and Adyen).
On Tuesday, Global Payments agreed to merge with Total System Services (TSYS) in a $21.5 billion deal. Under the agreement, TSYS shareholders will receive 0.8101 of Global Payments shares per TSYS stock. That values TSYS at about $119.86 apiece, a 6% premium to Friday’s close.
“TSYS’ ecommerce and omnichannel business in the United States will substantially enhance Global Payments’ existing domestic business and provide numerous additional multinational opportunities for cross-sell internationally,” the press release reads. Moreover, TSYS has also ventured into the realm of business-to-business and customer-to-customer payments, an area that Global has yet to develop.
The deal comes two months after the largest electronic payments deal yet. FIS acquired Worldpay for about $35 billion in March—a deal that, among other things, gave FIS access to fast-growing emerging markets such as India and Brazil. Four months after that, Fiserv agreed to acquire First Data Corp. for about $22 billion.
Venture capital land hasn’t been quiet either. Just a week earlier, payments processing startup Marqeta raised $260 million in Series E financing led the round by Coatue Management, valuing the firm at about $2 billion.
Fiat Chrysler Automobiles has proposed a $40 billion merger with French rival Renault in a deal to create third largest in the world behind Toyota and Volkswagen.
The car deal also comes after the exit of two major players in the space, former Chrysler CEO Sergio Marchionne and former Renault Chairman Carlos Ghosn. Marchionne died in July from an undisclosed condition, while Ghosn is currently facing allegations of financial misconduct—a charge he denies.
The deal may also allow current Fiat Chairman John Elkann, who controls the carmaker, the pare down his stake there and cycle into one of his passions: tech, the Wall Street Journal reports.
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• DoorDash, a San Francisco-based food delivery service, raised $600 million in Series G funding. The investors were Darsana Capital Partners, Sands Capital, Coatue Management, Dragoneer, DST Global, Sequoia Capital, Softbank Vision Fund, and Temasek.
• JumpCloud, a Boulder, Colo.-based identity management SaaS, raised $50 million in funding. General Atlantic, Foundry Group, and OpenView Partners invested.
• Zero Financial Inc, a San Francisco-based financial tech company, raised $20 million in Series A funding. New Enterprise Associates led the round.
• Motionsoft, a Rockville, Md.-based provider of software and business management services to fitness clubs, raised $17 million in funding from investors including Edison Partners, Route 66 Ventures, and Roofdeck Partners.
• Jackpocket, a New York-based lottery app, raised $5 million in funding. PROOF, BlueRun Ventures, Bullpen Capital, Conductive Ventures, DCM Ventures, Digital Currency Group, former NBA Commissioner David Stern, and Subversive Capital back the firm.
• Ride Report, a Portland-based firm that seeks to integrate bikes, scooters, and small electric vehicles into the city-scape, raised $3.4 million in seed funding. Homebrew led the round and was joined by investors including Urban Innovation and Better Ventures.
• Pliant, a Boston-based workflow automation platform, raised $2.5 million in funding. Vess Bakalov led the round and was joined by investors including Newfund Capital and New Stack Ventures.
HEALTH AND LIFE SCIENCES DEALS
• Alphamab Oncology, a Suzhou, China-based cancer therapy firm, raised $60 million in Series B funding.Hudson Bay Capital Management led the round.
• Domain Therapeutics, a Strasbourg, France-based firm focused on immuno-oncology and rare diseases, raised 3.5 million euros ($3.9 million) from existing backer Seventure Partners.
PRIVATE EQUITY DEALS
• Charterhouse bid for Tarsus, a London-listed media company that values the firm at about 561 million pounds ($711 million). Reuters.
• Golding Farms Foods, backed by Centre Partners, acquired Arcobasso Foods, a Hazelwood, Miss.-based maker of dressings. Financial terms weren't disclosed.
• Vopne Capital invested in Coronado Manufacturing, a Sun Valley, Calif.-based maker of precision-machined components for aerospace. Financial terms weren't disclosed.
• Gold Medal Group, a portfolio company of Kinderhook Industries, acquired Earthtech Contracting, a Woodbine, N.J.-based, provider of trash and recycling collection services. Financial terms weren't disclosed.
• Ares Management Corp acquired a minority stake in Volery Capital Partners, a New York based private equity firm. financial terms weren't disclosed.
• HarbourVest invested in Travelstart, a Capetown-based online travel planning firm. Financial terms weren't disclosed.
• Sports Illustrated, the New York-based magazine backed by Meredith, sold to Authentic Brands Group for $110 million.
• BridgeBio Pharma, a Palo Alto, CA-based Phase 3 biotech for genetic diseases, plans to raise $225 million in an IPO. It has yet to post a revenue and posted loss of $144 million in 2018. KKR and Viking back the firm. J.P. Morgan, Goldman Sachs, Jefferies, SVB Leerink, KKR, Piper Jaffray, Mizuho Securities, BMO Capital Markets, and Raymond James are underwriters.It plans to list on the Nasdaq as “BBIO.” Read more.
• Atreca, a Redwood City,-Calif-based preclinical biotech for immunotherapies focused on solid tumors, filed on Friday for an $100 million IPO. It has yet to post a revenue, and posted loss of $37.9 in 2018. Baker Brothers (22.8%), Bill and Melinda Gates (9%) and Wellington Management (12.5%) back the firm. Cowen, Evercore ISI and Stifel are underwriters. It plans to list on the Nasdaq as “BCEL.” Read more.
• Prevail Therapeutics, a New York-based early stage gene therapy maker focused on neurodegenerative diseases, filed for a $100 million IPO. It has yet to post a revenue, and posted loss of $19.1 million in 2018. OrbiMed (48.6%) backs the firm. Morgan Stanley, BofA Merrill Lynch, and Cowen are underwriters. It plans to list on the Nasdaq as “PRVL.” Read more.
• Dermavant Sciences, a London-based Phase 3 biotech for dermatological diseases, filed for a $100 million IPO. It has yet to post a revenue, and posted loss of $42.7 million in 2018. Roviant backs the firm. Jefferies, SVB Leerink and Guggenheim Securities are underwriters. It plans to list on the Nasdaq as “DRMT.” Read more.
• CSSC, a Chinese shipping firm, plans to raise HK$2.2 billion ($280 million) in an IPO in Hong Kong. The Standard.
FIRMS + FUNDS
• Accel-KKR plans to raise $2.55 billion for its sixth fund, per an SEC filing.
• MaC Venture Capital, an LA-based early stage fund, plans to raise $100 million. Read more.
• Fika Ventures raised $76million for its second fund, per an SEC filing.