| | | | | | | Presented By Fidelity | | | | Axios Pro Rata | | By Dan Primack ·Jun 28, 2021 | | 🖥️ Please join Kia Kokalitcheva and me tomorrow at 12:30pm ET for a virtual event on cryptocurrency policymaking and regulation. Guests include Rep. Bill Foster (D-Ill.) and Grayscale Investments CEO Michael Sonnenshein. Register here. 🎧 Axios Re:Cap digs into America's plummeting birth rate. Listen via Apple podcasts, Spotify or Axios. | | | | | | Top of the Morning |  | | | Illustration: Shoshana Gordon/Axios | | | | The IPO market is lighting its fireworks a bit early, with a whopping 17 companies planning to list this week on U.S. exchanges. Driving the news: Chinese ride-hail company Didi is expected to be the week's top float, with plans to raise nearly $4 billion. - Other big issuers should be cybersecurity company SentinelOne, Turkish e-commerce platform D-Market and doughnut chain Krispy Kreme.
- Many of this week's companies began prepping their IPOs late last fall.
By the numbers: This would be the third time in 2021 that U.S. markets saw 17 IPOs, following weeks in February and March, per Renaissance Capital. Before that, however, it hadn't happened since December 2006. - Q2 2021 is expected to go down as the busiest quarter for U.S. IPOs since 2000, while June 2021 will be the busiest month since that same year.
- Renaissance Capital's Matthew Kennedy emails: "We're all drowning in work! Buy-side, sell-side, lawyers & advisors ... I know the virtual roadshows of some sizable deals are sparsely attended since fund analysts have only so much time. And we've definitely noticed an uptick in prospectus typos."
Part of this week's boom is about getting out before the July 4 holiday. Another part is companies trying to price before quarter-end, so they needn't provide another set of financials. - But a top Wall Street banker tells me not to expect a July lull, with dozens of companies expecting to price. He adds that we should see a slew of new IPO filings over the next week or two.
The bottom line: The IPO window isn't just open. The glass has been smashed and the framing has been removed. |     | | | | | | The BFD |  | | | Illustration: Aïda Amer/Axios | | | | Mark Walter and Todd Boehly agreed to buy a 27% stake in the Los Angeles Lakers from Philip Anschutz at around a $5.5 billion enterprise value. The franchise continues to be majority owned by the Buss family. - Why it's the BFD: This may be more about the next deal than the current one. Financiers Walter and Boehly are part of the Los Angeles Dodgers ownership group, and now are well-positioned to buy out the Buss family were it to want to sell. Kind of like Laurene Powell Jobs did several years ago with the Washington Wizards.
- Backstory: This was a proprietary process that wasn't shopped to the handful of investment funds that have formed to buy pro team stakes. Sources say the deal size was just too large for the current funds and that the NBA still frowns on the prospect of a fund as a majority owner (even if it's just an unofficial option).
- Coming attractions: Word is that Dyal Capital Partners is in advanced talks to buy a small piece of the Phoenix Suns, while part of the Sacramento Kings has been in market for months. Plus, there's still up to 10% available of the San Antonio Spurs, which recently sold a 20% stake to Sixth Street and another 10% to Michael Dell.
- The bottom line: "Based on the 2018-19 season, the last full season completed before the pandemic, the $5.5 valuation places a revenue multiple of 12.7 on the Lakers. That multiple is the second-highest for the league, behind only to the 13.7 times revenue in Steve Ballmer's 2014 purchase of the Los Angeles Clippers." — Mike Ozanian, Forbes
| | | | | | | | Venture Capital Deals | | 🚑 Carbon Health, a San Francisco-based primary and urgent healthcare company, is in talks to raise new funding from firms like The Blackstone Group at around a $3 billion valuation, per Bloomberg. We've learned that other new investors are expected to include Lux Capital and Silver Lake. 🚑 CMR Surgical, a British developer of surgical robotics, raised £425 million in Series D funding. SoftBank Vision Fund 2 and Ally Bridge co-led, and were joined by RPMI Railpen, Tencent, Chimera and insiders LGT, Watrium, Cambridge Innovation Capital, PFM Health Sciences and GE Healthcare. http://axios.link/T9GP • ClearScore, a British credit marketplace, raised $200 million from Invus Opportunities at a $700 million valuation. http://axios.link/lUYe • Voyager Innovations, the Manila-based creator of the PayMaya payment and financial services app, raised $167 million from KKR, Tencent and IFC. http://axios.link/nq1m • BreezoMeter, an Israeli air quality analytics platform, raised $30 million in Series C funding led by Fortissimo Capital. http://axios.link/9dmb • Slice, an Indian maker of a digital credit card for millennials, raised $20 million from insiders like Gunosy and Blume Ventures. http://axios.link/XThi • Edge Delta, a Seattle-based distributed monitoring stack, raised $15 million in Series A funding. Menlo Ventures and former Splunk CTO Tim Tully co-led, and were joined by insiders MaC VC and Amity Ventures. http://axios.link/rGiG • Fintual, a Chilean passive investment platform, raised $15 million led by Kaszek Ventures. http://axios.link/ZlCL • Mercuryo, a London-based cross-border payment network, raised $7.5 million in Series A funding led by Target Global. http://axios.link/XmIg • Xclaim, a Los Angeles-based bankruptcy claims platform, raised $6.6 million in new seed funding. General Catalyst led, and was joined by First Round Capital, Freestyle VC, Innovation Ventures, Luge Capital, Quiet Capital and Tribe Capital. http://axios.link/3IKK • Minly, an Egyptian version of Cameo, raised $3.6 million in seed funding co-led by 4DX Ventures, B&Y Venture Partners and Global Ventures. http://axios.link/2cSO • Infina, a Vietnamese savings and investment app, raised $2 million in seed funding from Saison Capital, Venturra Discovery, 1982 Ventures, 500 Startups and Nextrans. http://axios.link/SjmM | | | | | | | | A message from Fidelity | | Going public, you only get one chance to ring the bell | | |  | | | | Fidelity Stock Plan Services is here to provide strategic, actionable insights from decades of helping companies with equity compensation plans. Learn how Fidelity Stock Plan Services can help you make key equity plan decisions–from day one. | | | | | | Private Equity Deals | | • Audax Private Equity acquired S.J. Electro Systems, a Detroit Lakes, Minn.-based maker of control solutions for the water and wastewater industry. www.sjeinc.com • The Blackstone Group invested in Simpli.fi, a Fort Worth, Texas-based provider of programmatic ad and agency management software. Blackstone and existing backer GTCR will serve as majority shareholders, with the company valued at $1.5 billion. www.simpli.fi 🚑 Brighton Park Capital invested $75 million for a minority stake in XSOLIS, a Nashville-based healthcare operations platform. www.xsolis.com • Brookfield Asset Management agreed to buy Modulaire Group, a London-based modular workspace maker, from TDR Capital for around $5 billion. http://axios.link/Po8Q • Gamut Capital Management and BCI agreed to invest in PS Logistics, a Birmingham, Ala.-based flatbed transportation company. www.pslogistics.com • LLR Partners invested in WizeHive, a Conshohocken, Pa.-based SaaS platform for grant and scholarship lifecycle management. www.wizehive.com • RLDatix agreed to buy Allocate Software, a British provider of medical workplace SaaS, for £970 million from Vista Equity Partners and Hg Capital. RLDatix backers include TA Associates, Five Arrows Capital and Susquehanna Growth Equity. http://axios.link/LvF6 • Thoma Bravo agreed to buy QAD (Nasdaq: WADA), a Santa Barbara, Calif.-based provider of manufacturing and supply chain solutions in the cloud, for around $2 billion, or $87.50 per share (20% premium over Friday's closing price). http://axios.link/9uF7 • Ultra Electronics, a British developer of missiles and naval systems, is preparing to fight off a takeover approach from Advent International, per The Daily Telegraph. http://axios.link/rIqr | | | | | | | | Public Offerings | | 🚑 Candel Therapeutics, a Needham, Mass.-based developer of oncolytic viral immunotherapies for cancer, filed for an IPO. The pre-revenue company plans to list on the Nasdaq (CADL) and raised $68 million from firms like PBM Capital (26.6% pre-IPO stake), Northpond Ventures (8.8%), Sands Capital Ventures, H7 Holdings and Level One Partners. http://axios.link/8BhY • CS Disco, an Austin, Texas-based provider of software to law firms, filed for an IPO. It plans to list under ticker LAW, and reports a $23 million net loss on $68 million in revenue for 2020. The company raised over $230 million from firms like Bessemer Venture Partners (26.4% pre-IPO stake), LiveOak Venture Partners (19.2%) and Georgian Partners (12%). http://axios.link/6Ocw 🚑 Dynacure, a French developer of treatments for neuromuscular diseases, filed for an IPO. The pre-revenue company plans to list on the Nasdaq (DYCU) and raised $115 million from firms like Bpifrance, Eurazeo, Pontifax, Tekla Healthcare, Sphera Funds, Perceptive Advisors and Kurma Partners. http://axios.link/ekIl 🚑 Erasca, a San Diego-based precision oncology startup, filed for an IPO. The pre-revenue company plans to list on the Nasdaq and raised $420 million from firms like Arch Venture Partners (11.2% pre-IPO stake), Cormorant (9.7%), Colt Ventures (6.6%) and OrbiMed. http://axios.link/Qs51 • Gambling.com Group, a provider of digital marketing services to the online gaming market, filed for an IPO. It plans to list on the Nasdaq (GSMB) and reports $15 million of net income on $28 million in revenue for 2020. Backers include Edison Partners. http://axios.link/svg2 🚑 Imago BioSciences, a South SF-based biotech focused on bone marrow cancers, filed for an IPO. The pre-revenue company plans to list on the Nasdaq (IMGO) and raised $160 million from Clarus Ventures (14.4% pre-IPO stake), Frazier Healthcare Partners (12.4%), Omega Funds (12.3%), Farallon (8.8%), Celgene (6.7%), BlackRock (6.6%), T. Rowe Price (6.6%), MRL Ventures (5.3%) and Amgen Ventures (5.3%). http://axios.link/ZlDK 🚑 Rapid Micro Biosystems, a Lowell, Mass.-based developer of microbial detection tech for biopharma manufacturing, filed for an IPO. It plans to list on the Nasdaq (RPID) and raised over $500 million from firms like Bain Capital Life Sciences, Longitude Venture Partners, Endeavour Vision and Ally Bridge. http://axios.link/tBpS • Xponential Fitness, an Irvine, Calif.-based rollup of franchised boutique fitness brands like Pure Barre and Club Pilates, filed for an IPO. It plans to list on the NYSE (XPOF) and reports a $5 million net loss on $29 million in revenue for Q1 2021. http://axios.link/kqhH | | | | | | | | SPAC Stuff | | • Inception Growth Acquisition, a SPAC led by venture capitalist Paige Craig, filed for a $90 million IPO. http://axios.link/pMiA | | | | | | | | Liquidity Events | | • Amazon (Nasdaq: AMZN) agreed to buy Wickr, a New York-based encrypted messaging platform that had raised over $50 million from firms like CME Ventures, Alsop Louie Partners, Breyer Capital and SingTel Innov8. http://axios.link/AR6h • Charme Capital Partners is seeking a buyer for Witherslack Group, a British operator of 25 homes and schools for children with special needs, per the FT. It could fetch around £600 million. http://axios.link/rF2Z • Etsy (Nasdaq: ETSY) agreed to buy Elo7, a Brazilian marketplace for handmade items, for $217 million in cash. Sellers include Startupi, Insight Partners and Accel. www.elo7.com.br • FAT Brands (Nasdaq: FAT), owner of restaurant concepts like Johnny Rockets and Fatburger, will pay $442.5 million to buy Global Franchise Group, operator of quick-serve concepts Round Table Pizza, Great American Cookies, Hot Dog on a Stick, Marble Slab Creamery and Pretzelmaker. Sellers are Serruya Private Equity and Lion Capital. www.fatbrands.com • Warburg Pincus is considering an auction process for Duravant, a Downers Grove, Ill.-based food processing and packaging equipment company that could fetch more than $4 billion, per Bloomberg. http://axios.link/OxvF | | | | | | | | More M&A | | 🚑 API Holdings, parent company of Indian unicorn PharmEasy, agreed to buy a 66.1% stake in listed diagnostic lab chain Thyrocare for around $613 million. http://axios.link/y7aW • Coca-Cola HBC (LSE: CCH) agreed to buy a 30% stake in Italian coffee company Casa Del Caffè Vergnano. http://axios.link/pOUf • JD Sports Fashion (LSE: JD) said its Spanish unit agreed to buy an 80% stake in online sports equipment retailer Deporvillage for €140.4 million. http://axios.link/LfiJ • MJ Hudson (LSE: MJH) acquired Clarus Risk, a Guernsey-based regulatory risk and risk reporting automation company. www.mjhudson.com | | | | | | | | Fundraising | | • Twin Bridge Capital Partners of Chicago is raising $300 million for a fund-of-funds focused on large North American PE funds, per the WSJ. http://axios.link/hTBa | | | | | | | | Final Numbers | Data: BEA via FRED Chart: Axios Visuals - This chart comes from Axios Markets, which as of this morning is being helmed by former Yahoo Finance managing editor Sam Ro. 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