Many analysts predicted the latter half of 2020 would be flush with M&A deals. Some fintechs are more open to exiting earlier than they had planned.
Daily Insights: September 01, 2020
Cyndx Insights is your daily window to the business world, focusing primarily on M&A activities, capital markets, and important technology trends.
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Fer Gregory / Shutterstock.com August M&A Highlight Reel
Many analysts predicted the latter half of 2020 would be flush with M&A deals. As the economic effects of the pandemic begin to take their toll, some fintechs are more open to exiting earlier than they had planned. August, which is typically a very sleepy month for fintech news turned into a busy time for M&A activity. Here’s an aggregation of some of the top deals this month.
Blue Planet Studio / Shutterstock.com M&A Wrap: J&J, Sanofi, KKR, Jim Momtazee, Patient Square, CD&R, Levine Leichtman, Red Lobster
The coronavirus pandemic has disrupted entire industries in 2020, but perhaps none so much as healthcare, which is developing Covid-19 treatments; producing, administering and interpreting tests; and adapting new technologies and better methods for healthcare delivery and interaction with patients. In recent weeks, there has been a slew of new deal announcements.
Vladimir Kazakov / Shutterstock.com Yearn. Finance: How Ethereum's DeFi Darling YFI Reached $1 Billion in 2 Months
YFI, is now the second-biggest decentralized finance (DeFi) coin in the cryptocurrency market. Its market capitalization has surpassed $1.1 billion just one and a half months after its launch. Four major components contributed to the rapid success of yearn.finance: unique supply, an active community, a respected developer, and innovative products.
dennizn / Shutterstock.com Robinhood's Dark Side: Irate Traders, U.S. Probes
Robinhood Markets has catapulted ahead of its online brokerage rivals with a smartphone app that has attracted an army of young investors. Yet with the company’s rise has come a litany of problems: trading outages, angry customers and regulatory probes.
pixelheadphoto digitalskillet / Shutterstock.com Merger Creates Largest Black-Owned US Bank
City First Bank in Washington and Broadway Federal Bank in Los Angeles are merging to form the largest Black-led bank in the US. The pair have more than $1 billion in combined assets under management. The banks also have approximately $850 million in total depository institution assets, as of 30 June 2020.
PopTika / Shutterstock.com What Banks Must Do to Ensure Online Security
Consumers are turning to the internet for far more substantial and sensitive financial matters. A majority of consumers are now doing most of their banking online, out of choice and necessity – the pandemic has forced many bank branches to operate with limited hours and other restrictions.
Image courtesy of commons.wikimedia.org Reid Hoffman, Zynga's Mark Pincus Aim to Raise $600M for Tech-Focused SPAC
Reinvent Technology Partners, a new special purpose acquisition company formed by famed investor and serial entrepreneur Reid Hoffman, Zynga founder Mark Pincus and veteran hedge fund manager Michael Thompson, filed Monday for a $600 million initial public offering.
Bruce Rolff / Shutterstock.com TPG Explores $8 Billion Sale of U.S. Cabler Operator Astound
Private equity firm TPG is exploring a sale of Astound that could value the owner of a U.S. network of regional cable TV and internet providers at more than $8 billion, including debt, according to people familiar with the matter.
Ken Wolter / Shutterstock.com CD&R to Buy KKR's Epicor Software for $4.7 Billion
Private equity firm KKR & Co Inc will sell business software maker Epicor Software Corp to Clayton Dubilier & Rice in a $4.7 billion deal, one of the U.S. sector’s largest so far this year and is the ninth investment by CD&R since March.
Alexey Ulashchick / Shutterstock.com Silicon Valley Truisms That Aren't True
The idea of the MVP is that you should ship your product as fast as possible, even if it means delivering the most basic and imperfect version, because speed to market is everything. But "minimal viable' is almost an oxymoron.
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The following capital raises were reported yesterday and this morning:
Headset, the leading provider of data and analytics to the cannabis industry, announced it has raised $3.2 million in a bridge round from existing investors, led by Canopy Rivers. VCNewsdaily.com
Turing.com, a Palo Alto, Calif.-based provider of an automated platform that allows companies to hire software engineers, raised $14m in seed funding. The round was led by Foundation Capital. Finsmes.com
Pyramid Biosciences, Inc., a Boston, MA-based biotechnology company, closed a $28m funding round, supported by Adage Capital Management, Averill Master Fund, Ltd., J.W. Childs Associates L.P. Finsmes.com
Erasca, creating oncology drugs intended to provide precision oncology options, closed on an additional $36 million to bring its Series B financing round, with new investors - Partner Fund Mngmnt and OrbiMed. Crunchbase.com
ExsoMed Corporation, an Aliso Viejo, Calif.-based medical device company providing orthopaedic surgeons with innovative solutions in hand surgery, completed its second round of financing, comprised of private investors. Finsmes.com
Capchase, an online platform for rapidly getting cash from your accounts receivable, closed on $4.6 million in VC seed funding led by Caffeinated Capital, Bling Capital, and SciFi VC along with BoxGroup, ONEVC, and others. Techcrunch.com
NeuroPace, a Silicon Valley-based medical technology company, today announced it has raised $67 million in a funding round led by Accelmed Partners. VCNewsdaily.com
Dorianhopes to empower fiction writers and storytellers to create their own games, has raised $3.25 million in seed funding led by March Capital Partners. Techcrunch.com
MITO Material Solutions, a developer of additives that enable polymer manufacturers to enhance product performance, announced an oversubscribed $1M Series Seed round led by two Chicago-based firms. VCNewsdaily.com
Cosmose tracks foot traffic in brick-and-mortar stores to help predict customer behavior. The startup announced it has raised a $15 million Series A led by Tiga Investments. Techcrunch.com
U.S. Deals of the Day: M&A and Strategic Investments
The following bids, mergers, acquisitions and disposals were reported yesterday and this morning:
Acadia Pharmaceuticals Inc., a biopharmaceutical company acquired CerSci Therapeutics, a clinical-stage biotechnology company with worldwide rights to a portfolio of novel compounds for neurological conditions. Finsmes.com
RealPage, Inc., a Richardson, Texas-based global provider of software and data analytics to the real estate industry, acquired STRATIS IoT, which connects smart apartment systems and devices into a single resident app. Finsmes.com
Job.com, an Austin, TX-based digital recruitment platform, acquired HireVergence, a Tampa FL-based Information Technology and Cyber Security recruiting firm. Finsmes.com
Sonde Health, a Boston, MA-based vocal biomarker technology platform, acquired NeuroLex Laboratories, Inc., a voice-enabled survey and data acquisition platform. Finsmes.com
Banzai, a Seattle, WA provider of an event marketing SaaS platform, acquired High Attendancee, a provider of virtual and hybrid event management software for the enterprise. Finsmes.com
Hippo, a Palo Alto, CA-based home insurance and ownership company, closed its acquisition of Spinnaker Insurance Company, a national property and casualty insurer licensed in 50 states. Finsmes.com
Akcea Therapeutics is returning to its parent company, Ionis Pharmaceuticals, in a $500 million deal that brings an end to a tumultuous three years as a standalone company. Xconomy.com
Hightower made a strategic investment in Argent Wealth Management, a $1.7 billion advisory practice based in Waltham, Mass. The transaction amount was not disclosed. Finsmes.com
OfferUp, the recommerce marketplace has integrated with similar app letgo and will combine its app with the letgo app for a new marketplace promising an increased amount of deals and more access to buyers and sellers. PYMNTS.com
Cyndx International News - Europe & Asia
ImageFlow / Shutterstock.com Investment Bankers to Reap Bumper Fees Thanks to Pandemic Deals Spree
Investment bankers are set to reap bumper fees this year despite the coronavirus slump as they work on a series of emergency fundraisings, takeovers and stock market listings. Already this year, they have raked in £2.8billion in fees as UK companies have issued bonds, sold new shares, or combined with their rivals, according to data from Refinitiv.
Ronnie Chua / Shutterstock.com Spain's Economy Growing Over 10% in Third Quarter After Pandemic Hit
The Spanish economy has been growing at a rate of more than 10% so far in the third quarter after a record drop in the preceding quarter due to the impact of the coronavirus pandemic, Economy Minister Nadia Calvino said on Monday.
Willy Barton / Shutterstock.com Credit Suisse to Move Investment Banking Hub to Madrid
Credit Suisse is planning to move its investment banking hub to Spain from its current London headquarters as a part of its post-Brexit plans. The bank is now seeking approval from the Bank of Spain and the European Central Bank to upgrade its brokerage permission to banking license.
Rawpixel.com / Shutterstock.com NerdWallet Goes International With U.K. Know Your Money Acquisition
NerdWallet’s interest in expanding to the U.K. likely comes as welcome news to a financial services community that has seen a number of fintech departures from the country in 2020.
Alberto Garcia Guillen / Shutterstock.com Facebook Threatens to Pull News From Australia if New Law Passes
Facebook said Monday that it will block users in Australia from sharing news on Facebook and Instagram if a controversial law forcing tech giants like Facebook and rival Google to pay publishers to distribute portions of their content passes this fall.
Frederic Legrand - Comes / Shutterstock.com Jack Ma's $30 Billion Ant IPO Could Push Tech Fundraising to Highest Levels Since Dot-Com Bubbl's Peak
Jack Ma's Alibaba empire is targeting a valuation of $225 billion and could raise roughly $30 billion in the stock sale. Should demand for Ant's IPO hold strong, the debut would push global first-time stock offerings by tech companies above $57 billion, according to data collected by Bloomberg.
Image courtesy of IDNow.io IDnow acquires Wirecard Communication Services
Provider of Identity Verification-as-a-Service solutions IDnow and Wirecard Communication Services GmbH have announced the signing of an agreement for the acquisition of Wirecard Communication Services by IDnow. IDnow will retain the Leipzig location preserving the majority of the 150 employees.
Jenson / Shutterstock.com UK Factories See Big Upturn in August, But from Low Ebb - PMI
British factory output recovered some ground lost to the COVID-19 pandemic as output rose in August at the fastest pace in more than six years, albeit from a low level. The IHS Markit/CIPS manufacturing Purchasing Managers’ Index (PMI) rose to 55.2 in August from July’s 53.3.
AB Visual Arts / Shutterstock.com Britain Must Find its Tech Champions or Be Left Behind
Europe may have some fine universities, brainy entrepreneurs and a few exciting start-ups but it has so far utterly failed to produce genuine competitors to Silicon Valley. As Britain looks ahead to Brexit, an opportunity exists to differentiate itself by becoming a better place for technology companies to invest and grow.
EQRoy / Shutterstock.com Hedge Fund Oceanwood Urges UK Government to Promote Rail Transport
British hedge fund manager Oceanwood Capital Management has written to the UK government, asking it to redirect public transport policy towards railways rather than short-haul flights and cross-channel ferry transport.
The following capital raises were reported yesterday and this morning:
Mito Material Solutions, an Indianapolis based developer of additives that enable polymer manufacturers to enhance product performance, raised $1M in seed funding, led by Dipalo Ventures and Clean Energy Trust. Finsmes.com
Vessi Medical, a Misgav, Israel-based developer of a cryoablation solution for superficial bladder cancer, secured $1.7m in funding, which included Agriline, The Trendlines Group, the Israel Innovation Authority, and ExitValley investors. Finsmes.com
Semalytix, a German AI-based solution that supports pharma companies in becoming more customer-focused, has announced closing a Series A round of ~€4.3 million. The round was led by btov Partners. Eu-startups.com
Farmy, a rapidly growing Swiss online market, has secured around €9.2 million in a further financing round from impact investing fund Triodos Organic Growth Fund and other investors. Eu-startups.com
G-ray Switzerland, a Neuchatel, Switzerland-based medical imaging and industrial diagnosis startup, raised CHF 2.6m funding round, enabling the company to close out its Series A funding round at CHF 28m. Finsmes.com
Apna's Nirmit Parikh is helping India’s workers learn new skills, connect with one another, and find jobs. The startup has raised $8 million in its Series A financing round led by Lightspeed India and Sequoia Capital India. Techcrunch.com
BioVersys, a Basel, Switzerland-based pharmaceutical company, closed a CHF 19m Series B financing round. Finsmes.com
Coot, which simplifies family organization, has raised €3.7 million from a family office and Bpifrance, and re-branded as Share(d). Eu-startups.com
Klassroom, a Paris, France-based provider of a parent-teacher communication platform for pre-kindergarten and all elementary school grades, raised $3m in seed funding round led by Bpifrance. Finsmes.com
Making the News
The following stories have made financial news:
Shares of TikTok U.S. suitors Microsoft Corp, Oracle Corp and Walmart Inc fell on Monday after China’s move to restrict some technology exports spurred worries Beijing might block any deal for the video app’s U.S. assets. Reuters.com
J.C. Penney Co Inc’s talks with landlords for a rescue from bankruptcy proceedings reached an impasse, pushing the department store to the brink of collapse unless it can reach a deal within days to be taken over by lenders. Reuters.com
