Boss Insights - Tech M&A Round Up - 22nd November 2019

PayPal to Acquire Honey Science Corporation for $4 Billion
San Jose, California – 20th November 2019 – PayPal Holdings, Inc. has announced it has agreed to acquire Honey Science Corporation, a rapidly-growing technology platform for shopping and rewards, for approximately $4 billion. Honey, in combination with PayPal’s two-sided network, will transform the shopping experience for PayPal’s consumers while increasing sales and customer engagement for its merchants. Founded in 2012, Honey is best known as a popular discovery tool that helps consumers find savings as they shop online. Honey has continued to grow and evolve, expanding its suite of products and services to include a mobile shopping assistant, offers and rewards program, and price-tracking tools and alerts. With approximately 17 million monthly active users, Honey has helped millions of people find more than $1 billion in savings in the past year. Honey currently works across approximately 30,000 online retailers ranging from fashion and technology, to travel and pizza delivery. The acquisition supports PayPal and Honey’s shared mission to simplify and personalize shopping experiences for consumers while driving conversion and increasing consumer engagement and sales for merchants. The combination will help accelerate growth across both companies.

Aon Acquires CoverWallet - Enters SMB Insurance Space
London – 20th November 2019 - Aon plc, a global professional services firm providing a broad range of risk, retirement and health solutions, has announced it has entered into a definitive agreement to acquire CoverWallet, a digital insurance platform for small and medium-sized businesses. The acquisition provides Aon with additional access to the fast-growing, $200+ billion premium digital insurance market for small and medium-sized businesses, as well as the opportunity to leverage CoverWallet's platform to develop and scale innovative digital client experiences that support the firm's Aon United growth strategy. "We are excited to combine Aon's expertise in data and analytics and global distribution with CoverWallet's market-defining platform to create new sources of value for our clients," said Greg Case, CEO of Aon. "CoverWallet's culture of innovation is transforming the insurance landscape, and together we have the opportunity to further strengthen and expand the application of their digital client experience."

MRI Software Acquires Multifamily Insurance Partners to Help Apartment Owners Reduce Risk and Provide Reliable Protection for Consumers
Solon, Ohio – 21st November 2019 – MRI Software, a real estate software solutions company, has announced that it has acquired Multifamily Insurance Partners, a company which offers resident insurance programs for the US multifamily rental market. The acquisition will enable property owners and operators to close insurance gaps and minimize loss by implementing resident insurance compliance programs for apartment renters. The new offering, MRI Multifamily Insurance, further streamlines the leasing and onboarding process for property owners and operators and is available through MRI Living, the company’s end-to-end suite of residential solutions. “Acquiring Multifamily Insurance Partners enhances MRI’s comprehensive residential offering,” says David Carner, Senior Vice President of Residential Solutions for MRI Software. “It enables MRI to make resident insurance available as part of a single, fluid leasing and onboarding process that protects both property owners and residents. Offering renters insurance via online portals gives MRI clients more options for creating a fully automated system that addresses the preferences and habits of modern renters; and a tightly integrated and intuitive insurance compliance program is crucial for property owners and managers to know their buildings are protected from any risk.”

Coretelligent and VSS Acquire SoundView IT Solutions, LLC
Westwood, Massachusetts – 19th November 2019 - Coretelligent, a provider of comprehensive managed IT and private cloud services and a portfolio company of VSS, a private investment firm, have jointly announced the acquisition of managed services IT firm SoundView IT Solutions, LLC. Morgan Partners was the exclusive financial advisor on this transaction, and the financial terms of the private transfer were not disclosed. Commenting on the deal, Coretelligent Founder, President, and CEO, Kevin J. Routhier, said:  “We are thrilled to have SoundView join the Coretelligent family. Both SoundView and Coretelligent bring deep expertise and a commitment to delivering a white glove IT experience through outstanding service. Together, our unrivaled suite of support, cloud and security solutions provide a robust platform to help companies navigate all areas of technology and compliance.” The SoundView team and their prestigious clientele further strengthen Coretelligent’s market leadership in the Financial Services sector.

Google Acquires CloudSimple
Santa Clara, California - 18th November 2019 – Google has announced it has acquired CloudSimple in a bid to help customers migrate VMWare workloads from on-premise data centres directly into Google Cloud. Apps can run exactly the same as they have done on-premise, but with the additional benefits of the cloud, such as performance, elasticity and integration with key cloud services and technologies. In a blog post, VP Engineering, Rich Sanzi, said CloudSimple is “a leading provider of secure, high performance, dedicated environments to run VMware workloads in the cloud. This acquisition builds on our existing partnership with CloudSimple that we announced earlier this year, allowing us to accelerate a fully integrated VMware migration solution with improved support for our customers.” In July this year, the two companies had announced the extension of their strategic partnership, so this acquisition comes as a next, logical step. Despite Google currently being the subject of a number of anti-trust investigations and concerns raised over competition, the tech giant hasn’t let these issues quench its thirst for further expansion via acquisition. CloudSimple will now join Google Cloud. Terms of the deal weren’t disclosed.

Hippo Acquires Home Maintenance Platform Sheltr
Palo Alto, California – 20th November 2019 - Home insurance start-up, Hippo, has acquired home maintenance start-up, Sheltr, in its first acquisition, Assaf Wand, CEO & Co-Founder announced in a blog. Hippo sells home insurance, using technology to find issues in homes before they become large, expensive problems. The idea has found wide backing, with the company, which has raised $209 million in total funding to date. In taking a more proactive approach to home insurance, Hippo had conducted a variety of pilot programs, which included using Sheltr to spot issues in homes before they became larger problems. Commenting, he said: “As we were doing that over the last couple of years, the Sheltr team really stood out not only in the quality of technology, as well as the operational sort of sophistication that they brought to their business, but more so it was their alignment with Hippo on customers, value of services,”  The blog post continued that Sheltr was founded in 2018 by Andrew Wynn and Praveen Chekuri and that it makes home maintenance effortless via twice annual home check-ups in order to protect valued assets and reduce unplanned expenses.

Accelya Announces Acquisition by Vista Equity Partners
Barcelona, Spain - Accelya, a global provider of financial, commercial and analytics solutions to the airline and travel industry, has announced that it is being acquired by Vista Equity Partners, an investment firm focused on enterprise software, data and technology-enabled businesses. Vista’s investment in Accelya is the first made by the firm’s permanent capital investment fund, Vista Equity Partners Perennial, which is focused on growing industry-leading vertical software companies through long-term investments in product expansion and feature enhancement. John Johnston, Chief Executive Officer of Accelya, said, “Our clients count on us to deliver data-driven insights, efficiency and unrivalled value in a highly competitive industry, while also managing risk and compliance and delivering an excellent customer experience. Vista shares with us a long-term view and focus on product innovation that will allow us to accelerate the expansion of our solutions to propel our clients forward in the dynamic travel marketplace. On behalf of the team, I’d also like to thank Warburg Pincus for their valuable contribution and strategic insight over the years.”

HKW Announces Acquisition of John M. Floyd & Associates, Inc.
Indianapolis – 18th November 2019 - HKW, a middle-market private equity firm, focused on growth-oriented companies, has announced the acquisition of John M. Floyd & Associates, Inc (JMFA), a provider of software and consulting solutions designed to optimize overdraft programs for regional/community banks and credit unions. Financial terms of the transaction were not disclosed. Headquartered in Houston, Texas, JMFA serves more than 350 regional/community bank and credit union customers with its core overdraft privilege program, and also provides vendor contract negotiation services. The Company uses proprietary software and ongoing consulting to confirm compliance and identify areas of improvement with client overdraft programs. JMFA aligns with HKW’s Business Services sector focus, notably within the Tech-Enabled Business Services subsector.  “JMFA has a long track record of successfully assisting community/regional banks and credit unions with their overdraft programs on an ongoing basis. This is important because overdraft programs are difficult for these customers to manage in terms of compliance and processes,” added Chris Eline, a Principal at HKW. “We look forward to helping JMFA continue to develop their software and services offering, as well as push to reach more customers throughout the United States.”

GatherUp Is Acquired By Alpine Software Group (ASG)
San Jose, California – 14th November 2019 - ASG and its family of companies, a fast-growing software business that buys, builds, and operates market-leading vertical SaaS companies, has announced the acquisition of GatherUp, a customer experience and online review engine that enables insights and empowers marketing. GatherUp will join ASG MarTech, a robust group of seven marketing technology businesses, including, expanding ASG MarTech’s reviews and reputation management business. GatherUp’s success recently landed them on the INC 5000 fastest growing private companies list for 2019. CEO of GatherUp, Aaron Weiche, who joined the company in 2015, will continue as CEO. “This is an exciting new chapter for GatherUp as we double down on our commitment to make customer experience the backbone of business,” said Weiche. “ASG MarTech brings an exceptional foundation of SaaS operations and marketing expertise that will allow GatherUp to grow faster while continuing to innovate in our industry.” This deal marks the 15th acquisition in 18 months for ASG and its affiliates.

Check Point Software Technologies Acquires Cymplfy – Revolutionising IoT Cyber Security
San Carlos, California – 14th November 2019 - Check Point® Software Technologies Ltd, provider of cyber security globally, has announced its acquisition of Cymplify, a new IoT cyber security technology.  Check Point is the first vendor to provide a consolidated security solution that hardens and protects the firmware of IoT devices and makes them secure against the most sophisticated attacks. The technology is provided through the acquisition of Cymplify, a startup based in Tel Aviv.  The new technology will be integrated into Check Point’s Infinity architecture. Dr. Dorit Dor, Check Point’s VP Products, said: ”Today’s announcement represents our continuous effort to provide the best cyber security on all digital platforms. The 5th and 6th generations of cyber threats are leveraging the growing usage of new and developing platforms, including IoT devices which require extending cyber security solutions capabilities. Incorporating Cymplify  into Check Point’s Infinity architecture will strengthen our ability to reduce our customers’ exposure to the IoT cyber risk, and proactively tackle IoT related threats and vulnerabilities without disrupting critical operations.”

22 November 2019