Venture backed exits remain soft in third quarter with 90 acquisitions and 13 IPOs

Venture backed exits remain soft in third quarter with 90 acquisitions and 13 IPOs

Venture-backed exits remained soft in the third quarter with 90 M&A deals and 13 IPOs in the United States, according to a report by Thomson Reuters and the National Venture Capital Association. Twenty of the 90 deals reported an aggregate deal value of $5.1 billion, which was up 39 percent from the second quarter and marked the strongest quarter for M&A exits with a disclosed value this year. The 13 IPOs raised $1.7 billion. This was a 55 percent decrease in the number of offerings from the second quarter and a 54 percent decline in total amount of dollars raised, the report found. PRESS RELEASE M&A Value Hits $5.1 billion for Strongest Quarter This Year Market Volatility Drags Down Venture-Backed IPO Activity in Third Quarter NEW YORK, NY – Ninety venture-backed M&A deals were reported in the third quarter, 20 of which had an aggregate deal value of $5.1 billion, increasing 39 percent compared to the second quarter and marking the strongest quarter for M&A exits with disclosed value this year, according to the Exit Poll Report by Thomson Reuters and the National Venture Capital Association (NVCA).  Thirteen venture-backed initial public offerings (IPOs) raised $1.7 billion during the third quarter of 2015, a 55 percent decrease, by number of offerings, from the second quarter of this year and 54 percent decline in total amount of dollars raised during the previous three-month period. “While the number of companies making a public offering during the third quarter was down as a result of market volatility, M&A activity was robust, marking the strongest quarter by disclosed deal value this year.  Of the thirteen companies that did make an IPO, more than two-thirds are currently trading above their offering price in the middle of a choppy market, a strong indicator of the quality of venture-backed IPOs,” said Bobby Franklin, President and CEO of NVCA.  “In addition to market volatility weighing down IPOs, another recent and important trend that has impacted the venture-backed IPO market is the increased activity of both VCs and non-traditional investors making late-stage investments into private companies that might otherwise file for an IPO.  While these so-called ‘private IPOs’ are weighing down the current IPO market, it also means the venture-backed IPO pipeline is deep and we are hopeful exit activity picks up steam in future quarters.” IPO Activity Overview There were 13 venture-backed IPOs valued at $1.7 billion in the third quarter of 2015.  By number of deals, quarterly volume decreased 55 percent from the second quarter of this year and registered a 54 percent decrease, by dollars, compared to the previous quarter. Led by the biotechnology sectors, ten of the 12 offerings during the quarter were life sciences IPOs, representing more than three-quarters of the total listings in the third quarter. By location, 11 of the quarter’s 12 IPOs were from U.S.-based companies.  In the only non-U.S. offering of the quarter, Austria-based Nabriva Therapeutics AG (NBRV) raised $92.3 million on the NASDAQ stock exchange on September 17th. In the largest IPO of the quarter, Sunrun Inc (RUN), a San Francisco, California-based provider of solar energy, raised $250.6 million and began trading on the NASDAQ stock exchange on August 4th.  The company is currently trading 26 percent below its $14 offering price. Eleven companies listed on the NASDAQ stock exchange during the third quarter, while two listed on the New York Stock Exchange. Nine of the 13 companies brought to market this quarter are currently trading at or above their offering price.  There are 50 venture-backed companies currently filed publicly for IPO with the SEC.  This figure does not include confidential registrations filed under the JOBS Act, where many observers believe the majority of venture-backed companies now file. Mergers and Acquisitions Overview As of September 30th,  90 venture-backed M&A deals were reported for the third quarter of 2015, 20 of which had an aggregate deal value of $5.1 billion, a 42 percent uptick compared to the overall number of deals reported during the second quarter of this year, and a 39 percent increase, by disclosed deal value. The information technology sector led the venture-backed M&A landscape with 69 of the 90 deals of the quarter and had a disclosed total dollar value of $3.4 billion.  Within this sector, Computer Software and Services and Internet Specific deals accounted for the bulk of the targets with 47 and 17 transactions, respectively, across these sector subsets. The largest venture-backed M&A transaction during the third quarter was EMC Corp’s $1.2 billion million purchase of Virtustream, a Bethesda, Maryland-based provider of enterprise cloud solutions.  Infor Inc’s $675 million acquisition of Oakland, California-based Gt Nexus Inc ranked as the second largest venture-backed M&A deal during the quarter.

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Venture backed exits remain soft in third quarter with 90 acquisitions and 13 IPOs

H.I.G. Capital-backed Surgery Partners unveils IPO

Surgery Partners, a portfolio company of H.I.G. Capital, has rolled out its IPO after pricing its 14.29 million shares at $19 per share. The stock began trading Thursday on the NASDAQ under the ticker symbol “SGRY.” BofA Merrill Lynch, Goldman Sachs and Jefferies LLC are serving as lead underwriters. Surgery Partners is surgical services provider. PRESS RELEASE NASHVILLE, Tenn., Sept. 30, 2015 (GLOBE NEWSWIRE) — Surgery Partners, Inc. (the “Company”), a leading healthcare services company, today announced the pricing of its initial public offering (“IPO”) of 14,285,000 shares of common stock at a public offering price of $19.00 per share. The underwriters have also been granted an option to purchase up to 2,142,750 secondary shares from certain of the Company’s stockholders at the public offering price less underwriting discounts and commissions. The Company’s common stock is expected to begin trading on the NASDAQ Global Market under the ticker symbol “SGRY” on October 1, 2015. The offering is expected to close on October 6, 2015, subject to customary closing conditions. BofA Merrill Lynch, Goldman, Sachs & Co. and Jefferies LLC will be acting as joint book-running managers and representatives of the underwriters for the offering. Citigroup, Morgan Stanley, Credit Suisse Securities (USA) LLC, Raymond James & Associates, Inc. and RBC Capital Markets will be acting as joint book-runners, and Stifel will be acting as co-manager. A registration statement relating to these securities has been declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on September 30, 2015. The offering is being made only by means of a prospectus. A copy of the final prospectus related to the offering will be filed with the SEC and copies may be obtained, when available, by contacting (i) BofA Merrill Lynch, 222 Broadway, New York, NY 10038, Attn: Prospectus Department, or by email at dg.prospectus_requests@baml.com, (ii) Goldman, Sachs & Co., 200 West Street, New York, NY 10282, Attn: Prospectus Department, or by telephone at (866) 471-2526, or by email at prospectus-ny@ny.email.gs.com, or (iii) Jefferies LLC, Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, NY 10022, or by telephone at (877) 821-7388, or by email at Prospectus_Department@Jefferies.com. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. About Surgery Partners Surgery Partners is a leading healthcare services company with a differentiated outpatient delivery model focused on providing high quality, cost effective solutions for surgical and related ancillary care in support of both patients and physicians. Founded in 2004, Surgery Partners is one of the largest and fastest growing surgical services businesses in the country, with a portfolio of 99 surgical facilities comprised of 94 ambulatory surgery centers and 5 surgical hospitals across 28 states.

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H.I.G. Capital-backed Surgery Partners unveils IPO

VC-backed Mirna Therapeutics debuts IPO

Austin, Texas-based Mirna Therapeutics Inc, a biopharmaceutical company focused on developing cancer-treating drugs, has raised almost $44 million for its IPO after pricing its 6.25 million shares at $7 per share. The stock began trading Thursday on the NASDAQ under the ticker symbol “MIRN.” Citigroup and Leerink Partners are the lead underwriters. Mirna’s backers included Sofinnova Ventures, New Enterprise Associates, Pfizer Ventures, Osage University Partners and Correlation Ventures. PRESS RELEASE AUSTIN, Texas–(BUSINESS WIRE)–Mirna Therapeutics, Inc., a clinical-stage biopharmaceutical company developing a broad pipeline of microRNA-based oncology therapeutics, today announced the pricing of its initial public offering of 6,250,000 shares of common stock at a public offering price of $7.00 per share. The shares are expected to begin trading on The NASDAQ Global Market under the ticker symbol “MIRN” on October 1, 2015. In addition, Mirna has granted the underwriters a 30-day option to purchase up to an additional 937,500 shares of common stock at the initial public offering price to cover over-allotments, if any. The offering is expected to close on October 6, 2015 subject to customary closing conditions. Citigroup and Leerink Partners are acting as joint book-running managers for the proposed offering. Oppenheimer & Co. and Cantor Fitzgerald & Co. are acting as co-managers. A registration statement relating to these securities was declared effective by the U.S. Securities and Exchange Commission on September 30, 2015. The offering is being made only by means of a prospectus forming part of the effective registration statement. A copy of the final prospectus relating to these securities will be filed with the SEC and may be obtained, when available, from Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by email at prospectus@citi.com or by phone at (800) 831-9146 or from Leerink Partners LLC, Attention: Syndicate Department, One Federal Street, 37th Floor, Boston, MA 02110, by email at syndicate@leerink.com or by phone at (800) 808-7525. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. About Mirna Therapeutics, Inc. Mirna is a clinical-stage biopharmaceutical company developing a broad pipeline of microRNA-based oncology therapeutics and is the first to establish clinical proof-of-concept for a microRNA replacement therapy for cancer. Mirna’s lead product candidate, MRX34, a mimic of naturally occurring microRNA-34 (miR-34), is currently being studied in a Phase 1 clinical trial in patients with primary liver cancer, advanced solid tumors and hematological malignancies. miR-34 is one of the most widely published microRNAs and is considered a key regulator of multiple oncogenes across key oncogenic pathways, with the capacity to regulate more than 30 different oncogenes and repress the immune checkpoint signaling molecule PD-L1. The potential capacity to simultaneously affect multiple pathways and processes that are critical to cancer cell viability may make mimics of tumor suppressor microRNAs potent anti-cancer agents and less susceptible to drug resistance. Mirna plans to develop MRX34 as a monotherapy and in combination with other therapeutic modalities, such as targeted therapies and immuno-oncology agents. The company was founded in 2007 and is located in Austin, Texas. For more information, visit www.mirnarx.com.

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VC-backed Mirna Therapeutics debuts IPO

VC-backed Edge Therapeutics goes public

Berkeley Heights, New Jersey-based Edge Therapeutics, a biotech company focused on developing therapies for neurological conditions, has debuted its IPO after pricing its over 7.3 million shares at $11 per share. The stock began trading Thursday on the NASDAQ under the ticker symbol “EDGE.” Leerink Partners and Credit Suisse are serving as the lead underwriters. Edge Therapeutics’ backers included Venrock, Sofinnova Ventures, Janus Capital Management LLC, New Leaf Venture Partners and BioMed Ventures. PRESS RELEASE Edge Therapeutics, Inc. (Nasdaq:EDGE) today announced the pricing of its initial public offering of 7,315,151 shares of its common stock at a public offering price of $11.00 per share, before underwriting discounts and commissions. All of the shares of common stock are being offered by Edge Therapeutics. In addition, Edge Therapeutics granted the underwriters a 30-day option to purchase up to an additional 1,097,272 shares of common stock at the same price, to cover over-allotments, if any. The shares are scheduled to begin trading on The NASDAQ Global Select Market on October 1, 2015 under the ticker symbol “EDGE.” Leerink Partners and Credit Suisse are acting as joint book-running managers for the offering. Guggenheim Securities and JMP Securities are acting as co-managers. The offering is being made only by means of a prospectus. A copy of the final prospectus related to this offering will be filed with the Securities and Exchange Commission and may be obtained, when available, from Leerink Partners LLC, Attention: Syndicate Department, One Federal Street, 37th Floor, Boston, MA 02110, or by email at syndicate@leerink.com, or by phone at (800) 808-7525, ext. 6124, or Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, One Madison Avenue, New York, NY 10010, or by telephone at (800) 221-1037, or by email at newyork.prospectus@credit-suisse.com. A registration statement relating to the securities being sold in this offering was declared effective by the Securities and Exchange Commission on September 30, 2015. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful, prior to registration or qualification under the securities laws of any such state or jurisdiction. About Edge Therapeutics Edge Therapeutics, Inc. is a clinical-stage biotechnology company that discovers, develops and seeks to commercialize novel, hospital-based therapies capable of transforming treatment paradigms in the management of acute, life-threatening neurological conditions. EG-1962, our lead product candidate, has the potential to fundamentally improve patient outcomes and transform the management of aneurysmal subarachnoid hemorrhage, or aSAH, which is bleeding around the brain due to a ruptured brain aneurysm. EG-1964, our second product candidate, is being evaluated as a potential prophylactic treatment in the management of chronic subdural hematoma, to prevent recurrent bleeding on the surface of the brain. For additional information about Edge Therapeutics, please visit www.edgetherapeutics.com.

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VC-backed Edge Therapeutics goes public

Scout24 adds to German IPO jitters as shares drop below offer price: Reuters

(Reuters) Shares in German digital classified ads firm Scout24 dropped below their offer price on their trading debut on Thursday, casting a shadow over other pending flotations in Frankfurt, with some already scaling down their ambitions. Scout24 shares opened at 30.75 euros, above the issue price of 30.00 euros, but later dropped below that level, as investors viewed them as overvalued relative to their peers in Europe. The shares were down 1.8 percent at 29.45 euros by 1248 GMT, after losing as much as 2 percent, underperforming a 0.5 percent drop in Germany’s benchmark DAX index. Scout24’s market debut is being scrutinized by investors amid jittery equities markets. Volkswagen’s emissions scandal has also scared off investors, forcing plastics group Covestro to lower the price range and the number of shares on offer after failing to win enough offers for a planned 2.5 billion euro ($2.8 bln) Frankfurt IPO. Car parts maker Schaeffler is also considering scaling down the size of its flotation and will postpone it by at least a couple of days after investors voiced concern over the Volkswagen scandal and wobbly markets, sources familiar with that deal said. Still, some investors remained hopeful. “It needs more to cancel other IPOs,” said a Frankfurt-based trader. The Scout24 IPO had already been delayed from last year due to volatile equity markets, something Chief Executive Greg Ellis tried to play down on Thursday. “This was the best time to go,” Ellis told Reuters just after the shares started trading. The company had just completed an internal revamp and would not have been ready to float earlier this year when equity valuations were higher, he said. The initial public offering values Scout24’s equity at 3.2 billion euros, or about 19 times its expected core earnings including debt. That compares with an average earnings multiple of 18 times for its European peers, which include Rightmove , REA Group, Zoopla and Autotrader . After selling shares in the IPO, private equity firms Hellman & Friedman and Blackstone will own 45.7 percent in Scout24 if an overallotment option is fully exercised. German telecoms operator Deutsche Telekom will hold 12.1 percent while 35.9 percent will be widely held. Scout24 runs Germany’s biggest digital advertising portal for real estate and the country’s No. 2 car sales portal, behind Ebay’s mobile.de. It expects the digital classifieds market in those two sectors to roughly double by 2018. The company aims to use the proceeds of 230 million euros from a capital increase to reduce its debt, which stood at about 950 million euros at the end of June. It has no plans to acquire peers.

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Scout24 adds to German IPO jitters as shares drop below offer price: Reuters

Australia’s I-MED Radiology pulls $350 mln IPO due to volatility, says source: Reuters

(Reuters) Australia’s largest X-ray provider I-MED Radiology Network cancelled a A$500 million ($350.45 million) initial public offering because of volatility in global markets, a person with direct knowledge of the situation told Reuters on Thursday. I-MED’s owner, Swedish private equity firm EQT Holdings AB, pulled the sale of a 50 percent stake in the company after company representatives finished a roadshow in Asia, added the source, who asked not to be identified because he was not authorised to comment publicly. The decision to pull the sale came a day after smaller rival Integral Diagnostics priced its IPO at the bottom of a target range of A$133 million to A$157 million, but the catalyst behind EQT’s decision was overall market volatility, said the source. Australian shares have experienced substantial gyrations in 2015 as concerns about a slowdown in top trading partner China hit commodities prices. Stocks are down 6 percent so far in 2015 and the three months to end-September were their worst quarter in four years. An I-MED spokeswoman and the bank appointed to advise on the IPO, Rothschild, were not immediately available for comment. Private equity-backed IPOs have slumped accordingly, to about a quarter of 2014’s record level, as buyout firms consider holding on to their investments or trade sales to sidestep a skittish market. In June, South African insurer Hollard Group pulled a listing of its Australian unit that sought to raise nearly A$1 billion while New Zealand wood products firm Carter Holt Harvey delayed a dual Australian-New Zealand IPO worth about the same amount because of investor uncertainty. The biggest Australian listing of the year so far, software maker MYOB Ltd, is trading below its issue price, while fruit and vegetable producer Costa Group Holdings is trading at a 1 percent premium to its issue price.

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Australia’s I-MED Radiology pulls $350 mln IPO due to volatility, says source: Reuters