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.

Here is the original post:
Venture backed exits remain soft in third quarter with 90 acquisitions and 13 IPOs

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.

Go here to see the original:
Scout24 adds to German IPO jitters as shares drop below offer price: Reuters

Neiman Marcus leaves IPO bankers hanging: Reuters

(Reuters) — Investment bankers put on their best business attire to pitch luxury department store operator Neiman Marcus Group Inc for underwriter roles in an initial public offering. Yet more than a month after their beauty parade, banks are still in the dark. At stake for bankers are not just tens of millions of dollars in underwriting fees, but assignments in what was expected to be one of this year’s biggest and most high-profile IPOs in the United States. “For a marquee name such as Neiman Marcus, it is not just the fees you generated, but the ability to leverage that name. Everybody knows the name Neiman Marcus, whether you shop there or not,” said Timothy Golomb, executive director at Dresner Corporate Services, an investor relations and IPO advisory firm. Neiman Marcus’ delay in handing out roles finds IPO bankers already on the edge, with many of their deals having frozen due to the stock market turmoil that started last month. Among other high-profile IPOs that are waiting in wings are Spanish language broadcaster Univision Holdings Inc and payments processor First Data Corp. While Neiman Marcus has not provided a reason for the holdup to banks, carrying out underwriter interviews without following up with appointments is rare in investmentbanking, according to people familiar with the matter who requested anonymity to discuss the matter. “It’s like getting engaged without getting married,” one banking source said. Neiman Marcus, which also operates under the Bergdorf Goodman and MyTheresa brands, registered with the U.S. Securities and Exchange Commission on Aug. 4 for an IPO, close to two years after private equity firm Ares Management LLC (ARES.N) and Canada Pension Plan Investment Board acquired it for $6 billion. Earlier this month, Neiman Marcus reported that its adjusted earnings before interest, tax, depreciation and amortization were $710.6 million in the 12 months to Aug. 1, slightly up from $698.4 million the year prior.

Go here to see the original:
Neiman Marcus leaves IPO bankers hanging: Reuters

CVC mulls $3.4 bln IPO of Sweden’s Ahlsell, say sources: Reuters

Buyout firm CVC is mulling a stock market listing for Swedish construction products and tools supplier Ahlsell, which could be worth around 3 billion euros ($3.4 billion) including debt, people familiar with the matter said. The sources said CVC had invited banks to discuss options for an initial public offering (IPO) of Ahlsell which could happen next year, although no firm timing had been set. “They invited a few selected banks to pitch last week,” one source familiar with the matter said. CVC and Ahlsell declined to comment. The sources declined to be identified because the plans are not public. Plans to list Ahlsell add to a big IPO pipeline of private equity-owned Swedish companies after a record first half of the year, when 12 companies floated on the Stockholm bourse’s main board. Most of them have strongly outperformed the wider market. Ahlsell, which CVC bought in 2012 for 1.8 billion euros from Cinven and the private equity arm of Goldman Sachs, would probably be the biggest among known IPO candidates in Sweden in the next year. Private equity-owned companies on track for listings this year include Bain’s Bravida, EQT’s Dometic and AcadeMedia, as well as PAI’s Perstorp. Deutsche Bank advised CVC when it bought Ahlsell, whereas Goldman Sachs and Nordea advised the sellers. All three banks helped finance the deal. Ahlsell employs around 4,800 people and had earnings before interest, tax, depreciation and amortisation (EBITDA) of 1.9 billion Swedish crowns ($227 million) in 2014 on sales of 21.8 billion, most of it in Sweden. Apart from the Nordic countries, it has some sales in Estonia, Russia and Poland.

Link:
CVC mulls $3.4 bln IPO of Sweden’s Ahlsell, say sources: Reuters

Vizo raises $750,000

Vizo Inc. has raised about $750,000 in funding. Vizo develops and operates a mobile news app that delivers summaries of trending news stories to users. Greenberg Traurig LLP represented Vizo in the startup financing. PRESS RELEASE MCLEAN, VA. (PRWEB) SEPTEMBER 29, 2015 International law firm Greenberg Traurig, LLP represented client Vizo Inc. in its recent round of startup financing. Vizo Inc. develops and operates the “Vizo” mobile news application, delivering curated summaries of trending news stories to users, accessed through visual headlines, several times per day. The transaction provided Vizo with approximately $750,000 in funding, which it used to launch the Vizo application Sept. 28, 2015, on mobile devices. Greenberg Traurig’s Northern Virginia team, led by Corporate & Securities Practice Shareholder Scott Meza, along with Associate Ryan P. Kelley, advised Vizo on the structure and terms of the transaction and assisted in negotiations with investors, many of whom were returning to Vizo after making initial seed investments in 2014. Meza has more than 25 years of experience assisting businesses in complex transactions such as mergers, acquisitions, spin-offs of public and private companies, and sophisticated equity and debt financings and recapitalizations. Meza’s broad industry experience includes managing transactions for technology-based companies as well as companies operating in highly regulated environments like government contracting, telecommunications, and health care. His representative transactions include stock-for-stock combinations, cash-out mergers, tender and exchange offers, management buyouts, stock and asset purchases, distressed company acquisitions (e.g., bankruptcy auctions), corporate spin-offs and divestitures, and corporate governance matters. Kelley advises large and small companies on a broad range of legal needs arising from early inception to global operations. His practice focuses on both domestic and international corporate and securities matters, including financing, contracts, mergers and acquisitions, government contracting, anti-corruption and foreign investment. About Greenberg Traurig’s Emerging Technology Group Greenberg Traurig’s Emerging Technology Group is a multidisciplinary legal team focused on guiding emerging technology companies through all the stages of their development, from initial business formation through angel or venture capital financing to initial public offerings and mergers and acquisitions. Drawing on the firm’s broad platform, the group offers clients a streamlined approach to meeting their diverse legal needs – a single team that can scale up its services as clients’ businesses grow. The attorneys regularly advise clients on a host of pressing legal issues, from IP protection and software/IT matters through labor and employment, compensation, and tax issues. About Greenberg Traurig’s Corporate & Securities Practice Greenberg Traurig’s Corporate & Securities practice is comprised of more than 400 lawyers across more than 30 offices. The group provides advice and services to public and privately held companies and entrepreneurs throughout the Americas, Europe, the Middle East, Asia, and Africa. The team brings together the strategic business, legal, and market experience needed to manage and close the most complex transactions in addition to providing practical counsel on day-to-day operations. About Greenberg Traurig, LLP Greenberg Traurig, LLP is an international, multi-practice law firm with approximately 1800 attorneys serving clients from 37 offices in the United States, Latin America, Europe, Asia, and the Middle East. The firm is among the 2015 BTI Brand Elite and among the most “Tech Savvy.” It was on the 2013-2015 BTI Client Service 30 listings of firms “most recognized by clients for providing excellent client service,” and one of the 2014 BTI Client Relationship Scorecard “Power Elite,” based on the nature and strength of its client relationships. More information at: http://www.gtlaw.com.

Read more:
Vizo raises $750,000