Internet companies are pushing smaller portions of their equity onto public markets at a volatile time and still seeing stock values increase almost instantaneously. For now, the practice is helping tack bigger price tags onto VCs’ assets, but if and when a major market disruption occurs, these newly-listed darlings may later see secondary offering attempts flounder. Low-float IPOs are all the rage right now....
The results of this week's poll were surprising (to me). Yesterday, I asked you whether PE execs are overpaid. This was in response to reports that PE firms are raiding investment banks for relatively inexperienced analysts. I also mentioned the Blackstone Group, where named executives get a $350,000 base annual salary plus a possible chunk of the carry.
Rally Software, the Colorado-based software technology firm, has secured a $20 million round of fundraising from Meritech Capital Partners. Prior investors and debt providers include Mohr Davidow Ventures, Boulder Ventures, Mobius Venture Capital and Vista Ventures as well as Square 1 Bank.
RAE Systems shareholders have voted to approve its merger agreement with Vector Capital. Over 75% of holders of RAE's outstanding shares voted for the sale to Vector and more than 95% of shares voted at the Special Meeting were tallied for the deal. The sale to Vector is expected to close on or about June 16. Vector Capital is paying $2.25 a share, or $134 million, for RAE, which makes instruments to detect gas and hazardous materials. UBS advised RAE's special committee. Silicon Valley Bank is providing financing for the deal. Vector was locked in a bidding war with Battery Ventures-SFW Capital Partners for RAE.
Huntington Capital Fund II, the San Diego-based lower middle market private equity mezzanine fund, has invested in Vertical Management Systems Inc., a California-based technology company working with financial services companies. Madison Street Capital, LLC acted as the exclusive financial advisor in arranging the financing. Specifics were not publicized.
(Reuters) – Private equity-backed Avaya Holdings Corp, a telecom equipment maker, on Thursday became the latest in a rush of IPOs and filings by technology sector companies. The Basking Ridge, New Jersey-based company was taken private by Silver Lake Partners and TPG in 2007 for just over $8 billion. On Thursday, it filed to raise […]
Polish media mogul Zygmunt Solorz-Zak has put in a final bid for mobile operator Polkomtel, Reuters reported, though the size of the bid was kept under wraps. Polkomtel, which was put up for sale by Vodafone and a handful of Polish state-linked companies, could reportedly fetch as much as $6.6 billion. Private equity firms Apax and Bain Capital are also among those in the running for Polkomtel.
Nokia says its in talks with “multiple parties” about its stake in Nokia Siemens Networks, Reuters reported Friday. Previous reports have said that Kohlberg Kravis Roberts & Co. and TPG decided not to bid on Nokia Siemens Network after they failed to agree on a price for the majority stake. Nokia didn’t name any other potential suitors for the telecom equipment business.
Avaya Holdings Corp., a telecom equipment maker backed by Silver Lake Partners and TPG Capital, has filed to raise up to $1 billion in an initial public offering, Reuters reports. Basking Ridge, New Jersey-based Avaya was taken private by the two private equity firms in 2007 for just over $8 billion.
Buyout firm Charterhouse will buy French call-centre business Webhelp from Astorg Partners, Reuters reported, adding that Charterhouse had secured a 165 million euro ($238 million) loan to help fund the deal. The loan was arranged by Bank of Ireland and Citigroup, Reuters reported. Astorg bought a controlling stake in Webhelp in June 2007 from Barclays Private Equity, which remained a minority shareholder in the business.