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Weekly M&A Roundup

110799

M&A roundup - week ending 7/2/16

Workday bought Zaption; Recruit Holdings purchased Simply Hired; Buddy Platform acquired Zentri

Innovation series by Steven Loeb
July 2, 2016
Short URL: http://vator.tv/n/4652

Buddy Platform,  a platform for collecting and processing Internet of Things data, acquired Zentri, an Internet of Things connected product platform. No financial terms of the deal were disclosed. 

The term sheet provides for up front consideration of one hundred million Buddy shares payable in three tranches over an eight month period , with two additional milestone payments payable in subsequent years subject to achievement of significant revenue targets. In order to realize the full consideration earn out value of the deal, Zentri will need to meet revenue targets of $14.4 million by end of calendar year 2017.

Buddy and Zentri had previously entered into a partnership agreement that allowed Zentri customers access to the Buddy Platform via ZentriOS.

Founded in 2014, Zentri had a roster of over 1,250 customers. The company had raised $3.4 million in venture funding. 

AllClear ID, a provider of identity theft products and services, acquired Encap Security, a provider of solutions and mobile phone based products for user security services. No financial terms of the deal were disclosed. 

Following the acquisition, Encap will continue to support and advance its Smarter Authentication platform for existing and new customers, partners and re-sellers, while leveraging the resources gained from AllClear ID. Over time, the Encap brand will be integrated with the AllClear ID brand.

The acquisition establishes an AllClear ID presence in Europe.

Founded in 2007, Encap had raised $8.27 million from Alliance Venture and ProVenture Management.

Cisco acquired cloud security company CloudLock. Cisco will pay $293 million in cash and assumed equity awards, plus additional retention-based incentives for CloudLock employees who join the company.  

The acquisition will further enhance Cisco’s security portfolio and build on Cisco’s Security Everywhere strategy, designed to provide protection from the cloud to the network to the endpoint.

Founded in 2007, CloudLock had raised $34.9 million in venture funding from Ascent Venture Partners, Bessemer Venture Partners, Cedar Fund and Salesforce Ventures. 

The acquisition is expected to close in the first quarter of fiscal year 2017, subject to customary closing.

Social discover app MeetMe acquired Skout, a mobile network for meeting new people. The deal is worth $28.5 million in cash and approximately 5.37 million common shares of MeetMe.

Skout is expected to remain a separate brand and standalone mobile application following the closing of the acquisition and its headquarters will remain in San Francisco. MeetMe has extended offers of employment to its approximately 30 employees. Skout’s founders Christian Wiklund and Niklas Lindstrom have agreed to assist with the transition for one year after the closing.

Founded in 2007, Skout was adding 42,000 new registered users added each day on average in 2016. It's 2015 revenue was $23.8 million. 

The company has raised $22 million in venture funding. 

The acquisition is subject to a number of closing conditions, and we and MeetMe are targeting the completion of the acquisition in October 2016.

NerdWallet, a personal finance website, acquired AboutLife, a provider of personal financial planning tools. No financial terms of the deal were disclosed.

The five-person aboutLife team, as well as founder Rajat Kongovi, joined NerdWallet in late May and will continue working together alongside other Nerds focusing on the retirement and investing space.

Founded in 2012, AboutLife raised $3 million in venture funding from Kleiner Perkins Caufield & Byers.

AMD, a provider of computing processors, graphics, and Immersive VR solutions, acquired HiAlgo, a developer of PC gaming technologies. No financial terms of the deal were disclosed. 

The acquisition lays the groundwork for future gaming innovation in Radeon Software that will benefit owners of Radeon RX Series GPUs.

Launching alongside the Radeon RX 480 graphics card are nine new features of Radeon Software Crimson Edition designed to give users more control over their computing experience, including multi-GPU, display, and power efficiency settings, and a redefined overclocking tool in Radeon WattMan.

Online scheduler Doodle acquired scheduling robot assistant Meekan. No financial terms of the deal were disclosed. 

As members of the Doodle management team, the founders Lior Yavor, Eyal Yavor and Matty Marianksy will continue to be responsible for the development of Meekan.

Founded in 2013, Meekan raised $870,000 in funding from Horizons Ventures. 

Home cleaning service Handy acquired the customer list from Move Loot, an online marketplace for the buying and selling of secondhand furniture. No financial terms of the deal were disclosed. 

No other assets or employees are a part of the deal. Move Loot will be shutting down and will be offering one free hour of any of Handy's services for existing customers.

Founded in 2013, Move Loot had raised $21.8 million in venture funding from FoundersClub, First Round, Index Ventures, Metamorphic Ventures and Sherpa Ventures, among others.

Telehealth platform Teladoc signed a definitive agreement to acquire mobile patient engagement platform HealthiestYou. The purchase price consists of $45 million cash and 6.96 million shares of Teladoc’s common stock.

HealthiestYou generated $10 million in revenue in 2015 and approximately $8 million for the first six months of 2016.

Thanks to this acquisition, Teladoc updated its outlook for the full year 2016. It previously communicated revenue expectation ranged from $118 to $122 million dollars and is now increasing to a new range of $126 million to $130 million.

Teladoc expects the acquisition of HealthiestYou to close on July 1.

iDAvatars, creator of Avatar apps for healthcare, merged with CodeBaby, a virtual assistant provider. No financial terms of the deal were disclosed. 

iDAvatars will be the surviving entity, headquartered in Mequon, WI, with operations in Colorado Springs, CO and Edmonton, Canada. The company will have over 35 employees and 10 full-time contractors.  Norrie Daroga, Founder and CEO of iDAvatars, will remain CEO while Dennis McGuire, CEO of CodeBaby CEO, will spearhead the organization's growth as Chief Strategy Officer.

Founded in 2001, CodeBaby had raised $7.78 million in venture funding. iDAvatars had raised $1.14 million in funding. 

Wirecard, a financial services and technology company, acquired Citigroup's Prepaid Card Services. No financial terms of the deal were disclosed. 

The operations of Prepaid Card Services, including its approximately 120 employees, will be transferred to Wirecard upon closing.

Subject to obtaining regulatory approvals and other customary closing conditions, the transaction is anticipated to close in the fourth quarter of 2016.

Citi’s Institutional Clients Group advised Citi on this transaction. Skadden, Arps, Slate, Meagher & Flom LLP, Sidley Austin LLP and Schwartz & Ballen LLP served as legal advisors to Citigroup.

Wizeline, a provider of intelligent product strategy and roadmapping software, acquired Wize Services, a software services provider. No financial terms of the deal were disclosed. 

This acquisition significantly expands the capabilities available to Wizeline’s customers, giving them access to proven technology and expert, full-stack product development teams.

Wizeline will continue to sell its product management platform individually or as part of a larger solutions engagement, through which Wizeline will provide platform subscriptions and services.

Following the acquisition, Wizeline will have over 110 employees and aims to grow to over 200 by the end of 2016. The transaction is an all-stock deal and will immediately make venture-backed Wizeline cash-flow positive. This acquisition positions the business to be profitable by the end of 2017.

Founded in 2015, Wize Services' clients include News Corp, Yahoo!, Nuance and Wandera.

Blue Star Sports, a provider of youth sports team and league management software, acquired PrimeTime Sports, a sports-event management company. No financial terms of the deal were disclosed. 

With this acquisition, Blue Stars Sports adds the feature of sport-events management.

PrimeTime Sports currently manages about 168 events on 51 weekends and holds a spot as one of the top 5 basketball event operators in the country.

Intelex Technologies, a provider of development of environmental, health, safety and quality management software, acquired Ecocion, a SaaS provider of environmental management information systems. No financial terms of the deal were disclosed. 

Included in the purchase is Ecocion’s Asset and Compliance Tracking System. Intelex plans to integrate Ecocion’s calculation engine and content library.

Over the next three months the Ecocion name will be transitioned under the Intelex brand. Additional ongoing investment will be made to grow capacity for the Denver area office and its 60 employees.

Sungevity, a solar energy company, entered into a merger agreement with Easterly Acquisition, an asset management firm. No financial terms of the deal were disclosed, 

Upon completion of the transaction Easterly will change its name to Sungevity Holdings, and will trade on the NASDAQ stock exchange under the ticker symbol SGVT.

Sungevity’s management team will remain with Sungevity Holdings under the leadership of current Chief Executive Officer and Co-Founder, Andrew Birch. Sungevity Holdings’ board of directors will be composed of members from the current boards of both Easterly and Sungevity.

Pursuant to the transaction, which is subject to customary closing conditions and approval by Easterly and Sungevity stockholders, all of the outstanding equity and convertible debt of Sungevity will be converted into shares of Easterly common stock. 

Global Healthcare Exchange, a provider of healthcare supply chain management solutions, acquired Hap-X, an automated payment management solution. No financial terms of the deal were disclosed. 

Hap-X will operate as a wholly owned subsidiary.

The acquisition  expands GHX;s financial products portfolio to deliver greater payment choice and value. The Hap-X payment exchange will be an important component to the GHX portfolio by enabling providers and suppliers to select the best value payment type per trading partner through a multi-mode payment platform that delivers mutual benefit to each party.

Main Capital, an investment management and consultancy, acquired a majority stake in Axxerion, a provider of SaaS solutions for facility management, real estate and general business automation software. No financial terms of the deal were disclosed. 

Main Capital will actively support Axxerion in expanding its international business growth. The company already has a partner network in place in the USA, Germany and Poland.

Founded in 2003, Axxerion, has over 300 customers and more than 150,000 registered end-users. Customers include CBRE Global Investors, KPMG, Rabobank, Facilicom, and Liberty Global.

Digital agency Vector Media Group acquired BrilliantRetail, an eCommerce platform for ExpressionEngine. No financial terms of the deal were disclosed. 

As Vector Media Group assumes control with its eCommerce experience, existing BrilliantRetail customers will enjoy quality support, as well as an option to upgrade to their top-of-the-line platform, CartThrob.

CartThrob allows users of the ExpressionEngine CMS to add eCommerce capabilities to their websites. It allows publishers to sell both physical and digital products, works with any credit card gateway, tracks inventory, and syncs with storefronts and online stores.

Infor, a provider of business applications specialized by industry and built for the cloud, acquired Predictix, a provider of cloud-native, predictive, and machine-learning solutions for retailers. No financial terms of the deal were disclosed. 

Predictix will become part of Infor CloudSuite Retail, a suite of enterprise applications delivered in the cloud and designed for today's retailing landscape. The acquisition comes six months after Infor announced an investment in Predictix.

Founded in 2005, Predictix experienced more than 40 percent growth in SaaS subscriptions in 2015, and is growing at 60 percent in 2016. It manages more than $60 billion in weekly forecasts, with customers including The Home Depot and Whole Foods Market as well as 5 of the top 15 global retailers.

The company had raised $40 million in venture funding from Marlin Equity Partners, Kinetic Ventures, and ITC Holding Company..

Bounce Exchange, a marketing software company, acquired direct marketing startup GoChime. No financial terms of the deal were disclosed. 

GoChime will be converted into a product called “Behavioral Audiences," operating under the Boucne Exchange umbrealla. 

Founed in 2011, GoChime is graduate of the Techstars Seattle startup accelerator. It raised $1.75 million in venture funding from Geoff Entress and Keith Smith, among others. 

Kraken Bitcoin Exchange acquired bitcoin exchange CleverCoin. No financial terms of the deal were disclosed.  

The company plans to fold the CleverCoin brand into Kraken’s global umbrella while providing existing clients with access to Kraken’s suite of features. CleverCoin clients will be automatically transferred to Kraken’s platform. CleverCoin will halt service.

Founded in 2013 CleverCoin is a graduate of Boost VC. 

HR software provider Workday acquired video learning company Zaption. Financial terms of the deal were not disclosed.

Zaption will be shutting down on September 30. Its technology will be woven into Workday's applications, including Workday Learning.

Until Zaption shuts down, users will still have access to their content, which will be deleted at the end of September. While users will no longer be able to post lessons to the Zaption Gallery or to purchase or renew paid subscriptions, the company has extended all individual Pro subscriptions that were set to expire before the company closes up shop at no additional charge.

The company, which was founded in 2012, had raised $1.5 million in seed funding in April of last year from investors that included NewSchools Venture Fund, Redcrest Enterprises, Scion Capital and Telegraph Hill Capital.

Recruit Holdings, a provider of information services, acquired the assets of job search engine Simply Hired. No financial terms of the deal were disclosed. 

Simply Hired will continue to operate as a job search destination and will be a publishing partner of Indeed, the job search engine already owned by Recruit.

Founded in 2004, Simply Hired had raised $34.3 million in venture funding from Dave McClure, Foundation Capital, Guy Kawasaki, Fox, IDG Ventures and Ronald Conway. The company was reported to be shutting down in May.

Media company Gannett acquired digital marketing company ReachLocal. The price was for $4.60 per share in cash, or roughly $156 million.

Initially, ReachLocal will expand Gannett’s digital revenue by roughly 50% with its more than 16,000 customers in markets throughout North America, Latin America, Europe and Asia/Pacific.

The transaction has been unanimously approved by the Boards of Directors of both companies and is expected to be completed in the third quarter of 2016. 

E2open, a supply chain operating network, acquired Orchestro, a provider of demand signal repositories and preemptive analytics for retail and omni-channel fulfillment. No finanicial terms of the deal were disclosed. 

Orchestro’s data, visibility and analytics solutions strategically complement E2open’s recent acquisition of Demand Sensing solutions from Terra Technology. 

Founded in 1999, Orchestro has over 210 global brands from multinational manufacturers including Newell Brands, Del Monte, and General Mills, as customers 

The company has raised $20.02 million in venture funding.

(Image source: impactauctions.org)

Tim Chen, NerdWallet cofounder and CEO, shared that the deal has closed and added that although the AboutLife site will be shut down, that’s “not something immediate,” and there are still details to be figured out.

Launched in September, AboutLife offered a way to plan your financial future without worrying about a lot of detailed paperwork. The service asks you a few questions about yourself and uses data analysis to derive the rest of the story, pulling information from the U.S. Census, the Bureau of Labor Statistics, academic studies, and more. While similar services, like Mint.com and Level, planned out day-to-day savings, AboutLife encouraged more long-term thinking.

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The relationship between AboutLife and NerdWallet came about when Chen and AboutLife CEO Rajat Kongovi realized that both of them had similar approaches to retirement. They said that they wanted to take the best of both of their products and create something special on the NerdWallet service. “What struck a chord with me was really feeling like NerdWallet has been doing well…to have the commitment…to affect the financial lives of people,” Kongovi explained.

 

 

“We’re always looking for the best way to drive our mission forward,” he continued. “I’m excited about the platform we built and to really help our users understand their retirement. As we worked hard on it, over time it became apparent the best way to accelerate it and reach a large audience was to join forces with someone like NerdWallet.”

For NerdWallet, it wants to be the “go to” place for all things relating to making and managing financial decisions. Chen said that it is expected to hit $100 million in revenue this year and currently has more than 350 employees — 500 by the end of 2016. It has dabbled in the retirement space but hasn’t been able to spend resources there, as its attention was directed elsewhere. For a while, it has provided recommendations on good brokers and even had a light retirement calculator, but the company lacked an offering to help you think holistically about your financial life in retirement.

AboutLife was founded by Kongovi, Bill Gossman, and Michael Owens, all of whom have extensive experience in the startup space. It had previously raised $3 million in funding from Kleiner Perkins Caufield & Byers (KPCB). Kongovi said that his investors “have been supportive” of the deal, and Chen echoed that sentiment, suggesting that NerdWallet’s investors were excited too: “Being able to accelerate the technology and bring on good people is music to our board’s ears.”

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