Private Equity
Zynga Game Network Inc. is the new king of social gaming M&A. Over the past six months, the company has made 6 acquisitions to stretch the boundaries of its realm. Roughly 320 million people have now played one of its 10 games (FarmVille, FrontierVille, Mafia Wars). And it has 1,300 employees. Founder and Chief Executive Mark Pincus says more acquisitions are likely on the way. “If you have a startup here, please call us,” Pincus (pictured) says during a brief on-stage appearance at the Web 2.0 Summit going on in San Francisco.
2 min read · 16 November 2010
It seems like the Carlyle Group is announcing a deal, or rumored to be involved in one, just about every day. The politically connected PE firm disclosed today that it is investing in Sandler O'Neill, the New York investment bank. On Monday, a Carlyle-led investor group agreed to inject up to $200 million in Brand Group Holdings, the parent company of Brand Banking Co. Carlyle was also said to be bidding on Indonesia's Matahari hypermart business earlier this week. South Korea's Lotte Shopping is also bidding, according to my co-workers at Thomson Reuters. Last week was also a busy time for the mega buyout shop. Carlyle announced two transactions: a $2.9 billion deal for CommScope and $2 billion agreement for Syniverse Technology.
2 min read · 04 November 2010
It’s been a few days since the Quebec City conference ended and I’ve learned that a survey found attendees are more positive about increased deal flow in fourth quarter, while a sale to a strategic is now the preferred exit route. More than one-fifth, or 22%, of those attending the conference expect to see a 50% surge in M&A during fourth quarter compared to the same time period in 2009, according to Thomson Reuters. Nearly half, or 47%, think M&A will increase by 10% in the fourth quarter. Another 24% expect deal flow to remain flat in fourth quarter. Amazingly, 2% of attendees think deal flow will jump by 100%, while 5% believe deal flow will drop in fourth quarter.
2 min read · 28 October 2010
Publicly traded Endologix has acquired venture-backed medical device company Nellix Endovascular for $15 million in stock, plus additional milestone-based stock payments totaling as much as $39 million. As part of the acquisition, Nellix’s majority investor, Essex Woodlands Health Ventures, will also invest $15 million in the newly combined company. Palo Alto, Calif.-based Essex Woodlands Health Ventures has $2.5 billion under management. Endologix is based in Irvine, Calif.
6 min read · 28 October 2010
Embanet Corp., which is backed by Technology Crossover Ventures, is merging with Compass Knowledge Group. Financial terms weren't disclosed. Embanet, of Toronto, provides online learning services to postsecondary educational institutions. Orlando, Fla.-based Compass also offers online learning support services including market research, program marketing, student recruitment as well as instructional design and technology. Technology Crossover Ventures provides growth capital to tech companies. Berkery Noyes, an investment bank, provided financial advice to Compass.
4 min read · 27 October 2010
Despite all the fuss about secondary sales, such transactions are a booming business for firms such as Millennium Technology Value Partners. The New York VC firm has completed 300 secondary liquidity transactions in the past nine years, valued at over $500 million in assets, says Samuel Schwerin, a Millennium managing partner. Secondary liquidity events, or secondary sales, refer to shareholders selling their positions or investments in pre-IPO companies to other investors. Schwerin expects such deals to become a $10 billion business within five years. This year, secondary sales are expected to hit more than $3 billion, up from the $1 billion in 2009, he says.
4 min read · 15 October 2010
Think Finance, which is backed by Sequoia Capital and Technology Crossover Ventures, has secured a $90 million credit facility that it will use to provide more products to consumers with less than stellar credit histories. Founded in 2001, Think Finance targets the needs of the “unbanked,” offering things like prepaid debit cards, lines of credit and payday or installment loans to consumers who don’t have traditional bank accounts. It plans to use the $90 million credit line, from Victory Park Capital Advisors, to offer more of these products, says Ken Rees, CEO of Think Finance.
2 min read · 22 September 2010
1 min read · 17 September 2010
GAIN Capital Holdings Inc., which provides online trading services to specialists in foreign exchange and contracts for difference, has agreed to acquire certain assets related to the U.S. operations of MG Financial LLC. The investor group behind GAIN Capital includes 3i, Cross Atlantic Capital Partners, Edison Venture Fund, Tudor Ventures and VantagePoint Venture Partners.
2 min read · 13 September 2010
Red Bend Software Inc., a venture capital-financed company, acquired VirtualLogix, a Santa Clara, Calif.-based provider of real-time virtualization technology for mobile handsets. Financial terms were not disclosed. Carmel Ventures, Greylock Partners, Infinity Venture Capital, Pitango Venture Capital and Poalim Ventures are backers of Waltham, Mass.-based Red Bend Software.
5 min read · 07 September 2010
