Term SheetTerm Sheet — Wednesday, August 30Polina Marinova9:41 AM ET
MEET ME AT THE BARRE
Good morning, Term Sheet readers. Here’s an interesting deal that caught my eye yesterday.
Hyatt Hotels & Resorts acquired Exhale Spa, a boutique fitness and spa brand, for an undisclosed amount. Exhale, which started with a single location in 2003, operates 29 boutiques in 11 markets across the U.S.
This is Hyatt’s second acquisition in the wellness space. In January, it acquired Miraval Group, a wellness resort and spa company, for $215 million. Both deals are part of a larger strategy to invest in what Hyatt CEO refers to as “adjacent spaces.”
It’s not just Hyatt. Other hotel companies, including giants like Marriott, are investing heavily in lifestyle brands in order retain old customers and attract new ones (read: millennials) who have flocked to Airbnb. But will these acquisitions be enough?
CRYPTO CRAZE: Messaging app company Kik is getting ready to hold its highly-anticipated ICO in two weeks. The company will sell 1 trillion “Kin” coins and expects to raise $125 million. Of that amount, $50 million has already been sold in a pre-sale to investors including Blockchain Capital, Pantera Capital, and Polychain Capital. The remaining 512 million tokens will be sold for $75 million on Sept. 12. The sale would make Kik the first non-blockchain social media application to create its own digital currency. More detail about this ICO here.
LET’S RIDE: I won’t spend a ton of time on this, but just an update that Dara Khosrowshahi has been officially named Uber CEO. Uber’s board reportedly voted unanimously, and Khosrowshahi will attend his first Uber all-hands meeting today. Ex-CEO Travis Kalanick issued a statement saying, “Casting a vote for the next chief executive of Uber was a big moment for me and I couldn't be happier to pass the torch to such an inspiring leader.” Read more for what Khosrowshahi had to say.
Pretty exciting day in deals today including: Yet another SoftBank investment, the largest-ever aerospace deal & a last-minute $18 billion bid.
THE LATEST FROM FORTUNE…
• Instagram’s plastic surgeons might not be all that they seem (by Natasha Bach)
• Anheuser-Busch repurposes its brewery to make drinking water for Harvey victims (by Claire Zillman)
• Nintendo is killing its social networking service (by Jonathan Vanian)
• Congress has been more productive than people think (by John Patrick Pullen)
Amazon and Microsoft’s voice assistants talk to each other. Inside Trump’s tax pitch. The fallout from Harvey will disrupt energy markets around the world. How Apple plans to change the way we use the iPhone.
• Grab, a Singapore-based ride-hailing company, raised funding of an undisclosed amount in Series G funding from Toyota Tsusho. The company’s round is expected to close at $2.5 billion.
• Appier, a Taiwan-based audience targeting platform, raised $33 million in Series C funding, according to TechCrunch. Investors include SoftBank Group Corp., Line Corp., Naver Corp., EDBI, and AMTD Group. Read more.
• LookingGlass Cyber Solutions, a Reston, Va.-based provider of threat protection against cyber attacks, raised $26.3 million in funding. Eastward Capital and Triangle Peak Partners led the round, and were joined by investors including Alsop Louie Partners, Neuberger Berman, and New Spring Capital.
• ALICE, a New York-based operations platform for hotels, raised $26 million in Series B funding from Expedia, Inc.
• Amplero, a Seattle-based artificial intelligence marketing company, raised $17.5 million in Series B funding. Greycroft and Ignition Partners led the round, and were joined by investors including Wildcat Venture Partners, Seven Peaks Ventures and Trilogy Equity Partners.
• Hookit, a Solana Beach, Calif.-based sports sponsorship analytics platform, raised $16 million in funding. Arrowroot Capital led the round, and was joined by investors including Bialla Ventures and Social Starts.
• Ember, a Westlake Village, Calif.-based temperature-controlled mug company, raised $13 million in Series C funding, according to TechCrunch. The investors were not named. Read more.
• Convey, an Austin, Texas-based delivery platform, raised $8.25 million in Series B funding. Investors include Techstars and RPM Ventures.
• Zūm, a Redwood City, Calif.-based provider of rides and care for kids, raised $5.5 million in Series A funding. Sequoia Capital led the round.
• Dwelo, a Provo, Utah-based provider of smart apartments, raised $4.9 million in funding. Peterson Ventures led the round.
• Homelike, a Germany-based startup targeting business travelers who need long-stay accommodations, raised €4 million ($4.8 million) in Series A funding, according to TechCrunch. Cherry Ventures led the round and was joined by Coparion. Read more.
• 7shifts, a Canada-based employee scheduling software provider, raised $3.5 million in funding. Investors include Tandem Capital and Relay Ventures.
• Athelas, a Mountain View, Calif.-based deep learning based biotech company, raised $3.7 million in funding. Sequoia Capital led the round, and was joined by investors including Initialized Capital and Liquid2.
• PriorAuthNow, a Columbus, Ohio-based platform for connecting the healthcare landscape using prior authorization automation, raised $3.6 million in funding. NCT Ventures led the round, and was joined by investors including Detroit Venture Partners.
• Domuso, a Santa Monica, Calif.-based financial platform for renters, raised $3.1 million in funding. Investors include David Kim, founder of Bascom Group.
• ExplORer Surgical, a Chicago-based platform for intraoperative surgical and interventional procedure workflow management and analytics, raised $3 million in Series A funding. Aphelion Capital led the round, and was joined by investors including Elliott Management, the University of Chicago, M25 Group and the Harvard Business School Angels of Chicago.
• Bestow, a Dallas, Texas-based developer of an on-demand life insurance platform, raised $2.5 million in seed funding. New Enterprise Associates led the round, and was joined by investors including Core Innovation Capital, Morpheus Ventures and 8VC.
• FlowAccount, a Thailand-based cloud accounting software platform, raised $1.15 million in funding. Investors include Kasikorn Bank, SBI Group, 500 Startups, and Golden Gate Ventures.
• UNLTD, a virtual and augmented reality content and technology studio raised $1.1 million in seed funding. Richard D. Adler led the round, and was joined by investors including David Reckziegel.
HEALTH AND LIFE SCIENCES DEALS
• Akeso Biopharma, a China-based contract research organization that provides services to pharmaceutical companies, raised $45 million in Series B funding, according to China Money Network. GTJA Investment Group led the round, and was joined by investors including Shenzhen Capital Group, Qianhai Fund of Funds and TriWise Capital. Read more.
PRIVATE EQUITY DEALS
• The Advisory Board Company (Nasdaq:ABCO) agreed to sell its education business, which includes Royall & Company, to Vista Equity Partners, for $1.55 billion. Additionally, the Advisory Board will sell its healthcare business to Optum, a health services company, for $1.3 billion.
• May River Capital acquired BJM Pumps, an Old Saybrook, Conn.-based provider of submersible pumps. Financial terms weren’t disclosed.
• Meltwater, which is backed by Vector Capital and Silicon Valley Bank, acquired Algo, a Norway-based real-time data analytics platform. Financial terms weren’t disclosed.
• United Technologies Corp will buy Rockwell Collins (NYSE:COL) for approximately $30 billion (about $22.5 billion in equity value and a little over $7 billion in debt), according to The Financial Times. Read more.
• A consortium led by Bain Capital and including Apple Inc has offered a revised last-minute bid for Toshiba Corp’s (TSE:6502) memory chip unit worth about 2 trillion yen ($18.2 billion), according to Reuters. Read more.
• Cognizant (Nasdaq: CTSH) acquired TMG Health, a King of Prussia, Penn-based national provider of business process services to the Medicare Advantage, Medicare Part D and Managed Medicaid markets. Financial terms weren’t disclosed.
• Asian logistics companies GoGoVan and 58 Suyun will merge, to create a startup worth more than $1 billion. The combined business will be known as 58 Suyun in China and GoGoVan overseas, according to the Financial Times. Read more.
• ContourGlobal, a renewable energy company based out of New York City, is reportedly seeking an IPO that could raise as much as $1 billion. J.P. Morgan Chase and Goldman Sachs have been named underwriters for a potential listing in London. Bloomberg.
• Best Inc., a Chinese delivery logistics firm backed by Alibaba, increased the size of its IPO to $1 billion. The company plans to list American depository shares on the NYSE as "BSTI." Reuters.
• Sol-Gel Technologies, an Israeli acne cream maker, files for an IPO to raise up to $86 million on the Nasdaq. The company posted loss of $20.8 million in 2016, and has yet to post a revenue. Arkin Dermatology backs the company. Jefferies and BMO Capital Markets are joint bookrunners in the deal.
• CCMP Capital Advisors acquired Eating Recovery Center, a Denver, Colo.-based provider of specialized treatment for individuals with eating disorders, from Lee Equity Partners.
• Zenith Energy U.S., which is backed by Warburg Pincus, agreed to acquire Arc Logistics, (NYSE:ARCX) for $16.50 per share. The sellers include Lightfoot Capital Partners.
• Canal Partners sold its stake in Hat Club, a Phoenix, Ariz.-based headwear retailer. Financial terms weren’t disclosed.
• Lightyear Capital acquired eCommission Financial Services, an Austin, Texas-based real estate commission, from Milestone Partners. Financial terms weren’t disclosed.
• CSL Behring agreed to acquire Calimmune Inc, a Tucson, Ariz.-based gene therapy company, for an upfront payment of $91 million. Calimmune’s backers include Alexandria Venture Investments, RA Capital Healthcare Fund LP and Translational Accelerator LLC.
FIRMS + FUNDS
• Macquarie Infrastructure Partners, the private equity arm of Macquarie Infrastructure Group, raised more than $3.3 billion for its fourth fund, Macquarie Infrastructure Partners IV, according to an SEC listing.
• DSG Consumer Partners, a Singapore-based investment company, raised $50 million for its second fund, according to an SEC filing.
• Ryan Hoover, founder of ProductHunt, raised approximately $3 million for his new venture capital fund called, “Weekend Fund,” according to Axios. Read more.
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Polina Marinova produces Term Sheet, and Lucinda Shen compiles the IPO news. Send deal announcements to Polina here and IPO news to Lucinda here.