Austin Weekly Deal Highlights for August 5th, 2018

From: “Mason Rathe” <[email protected]> on behalf of “Mason Rathe” <[email protected]>
Sent: Sunday, 05 August 2018 14:09
To: [email protected]
Subject: Austin Weekly Deal Highlights 8-5-18
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Austin Weekly Deal Highlights

By Mason Rathe – August 5, 2018

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When jet lag has me waking up at 5am, the newsletter gets written early.. A couple big ticket acquisitions this week, including physical resource management software company Accruent getting picked up for $2B. Since Genstar acquired the company in 2016, Accruent had been active in the M&A space, acquiring 9 companies itself. Bringing you the Austin Weekly Deal Highlights bright and early, at least for a Sunday that is

Austin Financing News

• Fetch Package, a Dallas-based last-mile delivery startup for apartment complexes and multifamily dwellings, raised $3M in seed funding led by Silverton Partners. Venn Ventures, Tech Wildcatters and Capital Factory also participated in the round. Fetch says it will move its headquarters to Austin by the end of 2018
• VUV Analytics, a developer of UV spectroscopy instruments to help companies analyze pharmaceuticals, gases and other materials, raised $2M of convertible debt funding. According to Pitchbook, the company has raised over $19M to date from investors including S3 Ventures and New Science Ventures.
• Man Outfitters, a menswear company, raised $1M of angel funding from undisclosed investors, according to Pitchbook.

Austin M&A Activity

• Accruent, a provider of enterprise contract management software, reached a definitive agreement to be acquired by Fortive (NYS: FTV), a manufacturer of industrial products, for $2B in cash. Fortive expects Accruent to generate approximately $270M of revenue in 2018. Accurent was acquired by Genstar in 2016 for an undisclosed amount. Accruent has made 9 acquisitions in the past 2 years.
• Alchemy Systems, a provider of workforce training software, reached a definitive agreement to be acquired by Intertek (LON: ITRK) for $480M. Intertek Group is a multinational inspection, product testing and certification company. Alchemy was last acquired by The Riverside Company and Wild Basin Investments in 2012 for an undisclosed amount.
• The merger between Austin-based PeopleAdmin and California-based PowerSchool has completed. Both education technology firms are owned by Austin based Vista Equity, and now have a combined valuation of approximately $3B. The new company will have annual revenue of roughly $400M.
• GoDaddy finalized the $127M cash acquisition of Austin-based Main Street Hub, and now using the company to hit social media harder.

Other Relevant Deal Activity

• Duo Security, a Michigan-based provider of access security and multi-factor authentication tools with a growing office in Austin, is being acquired by Cisco for $2.35B in cash. Duo, founded in 2010, previously raised $122M in venture funding.
• Frisco-based Jamba Juice to be acquired by Focus Brands in $200M deal.
• Richardson-based property management software provider RealPage is acquiring LeaseLabs, a provider of digital marketing services and software to the multifamily housing industry. RealPage will pay $103M in cash and stock, plus up to $14M in earnout.
• Dowley Security Systems, a developer of turnkey security products and services, raised $2.4M of convertible debt from undisclosed investors. The company has raised over $35M to date according to Pitchbook.

Austin People

• The Top Austin Tech and Startup Hires and Departures in July 2018
• Adam Lyons, founder and chairman of insurance-comparison startup The Zebra, announced he is leaving the company, hints at something new. The Zebra raised a $40M Series B in September, and at the same time Keith Melnick took over as CEO. Melnick was previously president of travel search engine Kayak.
• Austin-based private equity firm Tritium Partners announced a new investment platform to be led by Mark Parise, the former CEO of First Advantage. Parise will prioritize investment opportunities in information services.
• Q2 Holdings (NYS: QTWO), a digital banking company, named IBM veteran, Rekha Garapati, is its senior VP of client operations and services.
• GroupBy, an e-commerce solutions company, named Mark Stibbe as its chief information officer. Stibbe joined GroupBy as a partner in 2013, and previously worked at Oracle Endeca as its practice director for North America East. GroupBy has offices in Austin and Toronto, and recently raised an undisclosed amount from PeakSpan Capital.

Austin News

• Austin tech raised over $120M in July. Here are the top 5 rounds.
• Austin Startup Funding, Acquisitions and Venture Capital Activity July 2018
• Collaboration software provider Atlassian, who is based in Australia but is the second largest software company is Austin, intends to cut over 100 jobs in the wake of news that its cornerstone products, HipChat and Stride, are shutting down, and Slack is buying them for an undisclosed amount. Atlassian will receive a small stake in Slack, which is privately held and valued at about $8B.
• Austin Technology Incubator celebrates its 30th birthday and is the longest running technology incubator in the country
• HomeAway–which opened up a new, 20,000-square foot office at The Domain–said it now has over 3,000 employees, with well over half of those in Austin
• Austin’s SparkCognition is #9 on WSJ Top 25 Tech Companies to Watch 2018
• San Francisco-based customer experience optimization software provider Optimizely opened its Austin office, marking the software firm’s eighth global office location.
• Pivot3, a hyperconverged infrastructure and hybrid cloud tech company, grew 70%-plus year-over-year in Q2. The company last closed a $67M Series C a year ago from investors including Argonaut Private Equity, S3 Ventures, Western Digital Capital.

Upcoming Events

• August 6th, Intro to the Austin Media Scene
• August 8th, Our Decentralized Future with Dhruv Bansal, cofounder of Unchained Capital
• August 9th, Summer Startup Pitch and VC Panel: Turn Your Dreams Into Reality
• August 15th, MassChallenge Texas Awards Ceremony
• September 14th, applications due for DisrupTexas, an undergraduate pitch competition hosted by Herb Kelleher Center for Entrepreneurship at UT Austin, with $50k in cash and prizes.

LiveOak Venture Partners

Think you might be a fit for LiveOak, if I missed a deal, or have feedback, you can reach me at [email protected] If your company is recruiting for a senior level position, happy to include a shout-out.

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