M&A Round Up for the Software Tech Sector - November 2018

30 November 2018

Moderna: The Biggest Venture-Backed Biotech IPO Ever

Cambridge, US - 29th November 2018 - Moderna Therapeutics (MRNA) is set to become the largest initial public offering of a venture capital-backed biotech company, setting IPO terms that could raise $521 million. Founded in 2011, the company uses messenger RNA technology to convey genetic information within cells & develops drugs for the treatment of infectious diseases, genetic disorders, cancer and cardiovascular diseases. Through the IPO, Moderna plans to offer 21.7 million shares, priced between $22 and $24, which gives it a market valuation close to $8 billion and means that Moderna has the potential to raise $521 million. Moderna states its mission is to create "a new generation of transformative medicines for patients," Its IPO prospectus gives details of a pipeline of 21 development programs, of which 10 have already entered clinical studies and a further 3 have open Investigational New Drug submissions (INDs). The funds raised will be used to fund drug discovery and further development of the mRNA tech platform as well as general corporate purposes.

CVS Health Completes $69 billion Merger with Aetna, Creates New Healthcare Titan
Woonsocket, RI – 28th November 2018 - CVS Health has announced that it has completed its acquisition of Aetna, establishing CVS Health as the premier U.S. health innovation company. “Today marks the start of a new day in health care and a transformative moment for our company and our industry,” declared CVS Health President and Chief Executive Officer, Larry J. Merlo. “By delivering the combined capabilities of our two leading organizations, we will transform the consumer health experience and build healthier communities through a new innovative health care model that is local, easier to use, less expensive and puts consumers at the center of their care.” Merlo added, “By fully integrating Aetna's medical information and analytics with CVS Health’s pharmacy data, we can develop new ways to engage consumers in their total health and wellness through personal contacts and deeper collaboration with their primary care physicians. As a result, we expect patients will benefit from earlier interventions and better-connected care, leading to improved health outcomes and lower medical costs.”

HPE to acquire BlueData
Palo Alto, California – 27th November 2018 - Hewlett Packard Enterprise has announced a definitive agreement to purchase BlueData, a provider of software that transforms how enterprises deploy artificial intelligence and big data analytics. By 2022, the total addressable market for artificial intelligence/machine learning (AI/ML) and big data is expected to grow to approximately $160 billion. However, not all organizations will have the AI and data literacy skills needed to extract business value and actionable insights from their data, and demand is increasing for faster and more cost-effective solutions that can easily deploy AI/ML and big data analytics. “BlueData has developed an innovative and effective solution to address the pain points all companies face when contemplating, implementing and deploying AI/ML and big data analytics. Adding BlueData’s complementary software platform to HPE’s market-leading Apollo Systems and professional services is consistent with HPE’s data-first strategy and enables our customers to extract insights from data – whether on-premises, in the cloud, or in a hybrid architecture,” said Milan Shetti, SVP and GM, Storage and Big Data Global Business Unit at HPE.

United Technologies Announces Intention to Separate into Three Independent Companies; Completes Acquisition of Rockwell Collins
Farmington, Connecticut – 26th November 2018 - United Technologies Corp has announced the completion of its acquisition of Rockwell Collins and the company's intention to separate its commercial businesses, Otis and Carrier (formerly CCS), into independent entities. The separation will result in three global, industry-leading companies:  1) United Technologies, comprised of Collins Aerospace Systems and Pratt & Whitney, will be the systems supplier to the aerospace and defence industry; Collins Aerospace was formed through the combination of UTC Aerospace Systems and Rockwell Collins; 2) Otis, a manufacturer of elevators, escalators and moving walkways; and 3) Carrier, a global provider of HVAC, refrigeration, building automation, fire safety and security products. United Technologies Chairman and Chief Executive Officer, Gregory Hayes, said, "Our decision to separate United Technologies is a pivotal moment in our history and will best position each independent company to drive sustained growth, lead its industry in innovation and customer focus, and maximize value creation. As standalone companies, United Technologies, Otis and Carrier will be ready to solve our customers' biggest challenges, provide rewarding career opportunities and contribute positively to communities around the world."

Bright Health Announces $200 Million Series C Funding Round as Unique Care Partner Health Plan Model Ushers in the Next Generation of Healthcare
Minneapolis - 29th November 2018 - Bright Health, an insurance company that provides exclusive Care Partner Health Plans for everyday individuals at competitive prices, has announced it has raised $200 million in an oversubscribed Series C funding round. The financing includes two new investors, Declaration Partners and Meritech Capital, as well as existing investors Bessemer Venture Partners, Cross Creek Advisors, Flare Capital, Greenspring Associates, Greycroft Partners, New Enterprise Associates (NEA), Redpoint Ventures, and Town Hall Ventures. "Bright Health has continued to execute at a fast pace towards our goal of disrupting the old health care model that places insurers at odds with providers," said Bob Sheehy, Chief Executive Officer of Bright Health. "With our recently announced expansion, we will triple our geographic footprint in 2019. And Bright Health's current high re-enrollment rate shows that consumers are ready for this improved healthcare experience – especially when it is priced competitively."

Box Reports Record Revenue and Surpasses Estimates for Fiscal Third Quarter 2019
Redwood City, California – 28th November 2018 - Box, Inc. a cloud content management company, has announced financial results for the third quarter of fiscal 2019, which ended October 31, 2018. Reported revenues were $155.9 Million, up 21 per cent year-over-year, with an adjusted loss of 6 cents per share, lower than analysts predicted. Aaron Levie, co-founder and CEO of Box, said, “Box continues to expand its role as a strategic technology partner to power digital transformation for enterprises. Businesses need a single, open platform for cloud content management with enterprise-grade security and powerful workflow capabilities, and Box is the only solution with this uncompromising focus.” Dylan Smith, also a co-founder and CFO at Box, said, “In the third quarter, we delivered solid revenue growth and continued to drive operational efficiencies, and we're on track to deliver our first quarter of non-GAAP profitability in Q4,” said “With more than 40% growth in deals worth more than $100K and our attach rate for add-on products increasing to over 80% of these deals, we are capturing our market opportunity while driving continued leverage for long-term growth.”

Red Hat Acquires Hybrid Cloud Data Management Provider NooBaa
Raleigh, NC – 27th November 27, 2018 - Red Hat, Inc, a provider of open source solutions, has announced that it has acquired NooBaa, an early stage company developing software for managing data storage services across hybrid and multi-cloud environments. The addition of NooBaa's data management technology augments Red Hat's existing portfolio of hybrid cloud offerings and helps advance Red Hat's position as a leading provider of open hybrid cloud technologies. Ranga Rangachari, Vice President and General Manager, Storage and Hyperconverged Infrastructure, Red Hat, said, “Data portability is a key imperative for organizations building and deploying cloud-native applications across private and multiple clouds. NooBaa’s technologies will augment our portfolio and strengthen our ability to meet the needs of developers in today’s hybrid and multicloud world.”https://www.redhat.com/en/about/press-releases/red-hat-acquires-hybrid-cloud-data-management-provider-noobaa

Forrester Acquiring SiriusDecisions, Creating Expansion opportunities across industries and regions
Cambridge, MA and Wilton, CT – 27th November 2018 – Forrester have entered into a definitive agreement to acquire SiriusDecisions, a leading business-to-business research and advisory firm, for $245 million in cash, subject to adjustment. The combination of Forrester and SiriusDecisions creates an innovative strategy and operations platform that can help business and technology leaders make the far-reaching changes needed to adapt to a customer-led, disruption-rich market while maximizing performance every day. “Today’s announcement was driven by our clients,” said George F. Colony, Forrester’s Chairman and Chief Executive Officer. “Empowered customers and the disruptive power of technology are forcing business and technology leaders to take decisive action and make deep-rooted changes while delivering quarterly results. The combined value of Forrester’s strategic and SiriusDecisions’ operational capabilities will help our clients change and grow in tumultuous times.”

Oriente Raises US$105 million in Initial Funding
Singapore and Hong Kong – 27th November 2018 - Oriente, a Hong Kong-based financial services and technology company committed to unlocking financial inclusion in emerging Asia, has announced that it has completed a US$105 million initial funding round. This included investment from the founders and a group of family offices including members of the Berjaya Group, JG Summit Holdings, Inc., and Sinar Mas. The round ranks as one of the largest initial funding rounds by any start up in Asia, and also for a FinTech company worldwide. The financing will be used to accelerate technology and product development, scale multi-market operations and power the growth of Oriente's digital solutions into new markets, expanding its reach to millions of new customers in Southeast Asia's fastest-growing economies. "How Oriente is using data science and technology to unlock the economic potential of millions of people who are undervalued by traditional financial systems is exciting and meaningful," said Mark Tluszcz, CEO of Mangrove Capital Partners and Chairman of Wix. Further adding, "Oriente's world-class management team is already on track to transform the lives of millions of consumers."

OpenLegacy Raises $30 Million from Worldwide Strategic & Financial Investors
Tel Aviv – 28th November 2018 – OpenLegacy, a company offering microservices-based API integration for back-end applications, has closed a funding round of $30 million. The investment will strengthen its market position of enabling established enterprises to go truly digital. The funding round brings together major global investors with added value in both funding and promoting the technology. Round participants include: Silverhorn Investment Advisors (lead investor); CommerzVentures, the VC unit of Commerzbank; C. Entrepreneurs, the VC created by BNP Paribas Cardif with Cathay Innovation; Leumi Partners; O.G. Tech Ventures - Eyal Ofer’s VC arm; Prytek-GFS Group; and RDC, a major investor from the seed stage, which is a joint venture between Elron and Rafael. “We have a clear perspective on OpenLegacy’s advantages,” said Patrick Meisberger, CommerzVentures Managing Director. “We understand the size of the potential market because we can see first-hand the challenges of adopting new technologies in legacy environments. OpenLegacy helps with a variety of use cases, from creating APIs quickly for any backend system all the way to a full, phased cloud migration.”