VENTURE-BACKED ACQUISITIONS BREAK ALL-TIME ANNUAL RECORD; DRIVEN BY CHINESE COMPANIES, NUMBER OF IPOS AT HIGHEST QUARTERLY LEVEL SINCE 2000
(Thomson Reuters ONE) -
New York, New York, January 3, 2011 - Venture-backed company exit activity was
driven by a record-breaking M&A market and the biggest quarter for IPOs since
the third quarter of 2000, according to the Exit Poll report by Thomson Reuters
and the National Venture Capital Association (NVCA). The fourth quarter ended
with 32 venture-backed IPOs, more than double the number of IPOs seen during the
third quarter of 2010 The quarterly volume was driven by 17 Chinese companies
funded by U.S. venture capital funds that went public on US exchanges. For
full-year 2010, there were 72 venture-backed IPOs, the biggest year for activity
since 2004. Over 400 acquisitions were completed during full year 2010, the
biggest year, by number of deals, for venture-backed M&A exits since records
began in 1985.
"In 2010 we moved from "abysmal to viable" in the venture-backed IPO market,"
said Mark Heesen, president of the NVCA. "The number of offerings has improved
in large part due to Chinese venture-backed companies going public on U.S.
exchanges. We would like to see U.S. company IPOs grow at this pace in the
coming year."
"The record acquisition level illustrates a recognition by larger corporations
that there is considerable innovation within these venture-backed companies,
while VCs and founders are acknowledging the acquisition as the smoother exit,"
continued Heesen. "However, volume is not the only important measure of the
health of the venture exit market. We are pleased to see improvements in IPO
performance and acquisition prices at the end of 2010 as well. We believe this
momentum will continue in 2011 and look forward to better returns."
Venture-Backed Liquidity Events by Year/Quarter, 2004-2010
+------------+-------+----------+----------+---------+--------+--------+-------+
| | | | | | | |Average|
| | |M&A Deals | *Total |*Average | | Total | IPO |
| |Total | with |Disclosed |M&A Deal | | Offer | Offer |
| | M&A |Disclosed |M&A Value | Size |**Number| Amount |Amount |
|Quarter/Year| Deals | Values | ($M) | ($M) |of IPO's| ($M) | ($M) |
+------------+-------+----------+----------+---------+--------+--------+-------+
|2004 | 349 | 188 | 16,043.8| 85.3| 94 |10,481.6| 111.5|
+------------+-------+----------+----------+---------+--------+--------+-------+
|2005 | 350 | 163 | 17,324.7| 106.3| 57 | 4,482.4| 78.6|
+------------+-------+----------+----------+---------+--------+--------+-------+
|2006 | 378 | 167 | 19,141.8| 114.6| 57 | 5,117.1| 89.8|
+------------+-------+----------+----------+---------+--------+--------+-------+
|2007-1 | 88 | 32 | 4,734.9| 148.0| 18 | 2,190.6| 121.7|
+------------+-------+----------+----------+---------+--------+--------+-------+
|2007-2 | 90 | 37 | 3,912.1| 105.7| 25 | 4,146.8| 165.9|
+------------+-------+----------+----------+---------+--------+--------+-------+
|2007-3 | 108 | 55 | 11,261.7| 204.8| 12 | 945.2| 78.8|
+------------+-------+----------+----------+---------+--------+--------+-------+
|2007-4 | 94 | 45 | 9,645.8| 214.4| 31 | 3,043.8| 98.2|
+------------+-------+----------+----------+---------+--------+--------+-------+
|2007 | 380 | 169 | 29,554.5| 174.9| 86 |10,326.3| 120.1|
+------------+-------+----------+----------+---------+--------+--------+-------+
|2008-1 | 109 | 42 | 4,983.2| 118.7| 5 | 282.7| 56.6|
+------------+-------+----------+----------+---------+--------+--------+-------+
|2008-2 | 85 | 26 | 3,267.9| 125.7| 0 | 0.0| 0.0|
+------------+-------+----------+----------+---------+--------+--------+-------+
|2008-3 | 89 | 33 | 3,235.2| 98.0| 1 | 187.5| 187.5|
+------------+-------+----------+----------+---------+--------+--------+-------+
|2008-4 | 65 | 18 | 2,390.9| 132.8| 0 | 0.0| 0.0|
+------------+-------+----------+----------+---------+--------+--------+-------+
|2008 | 348 | 119 | 13,877.2| 116.6| 6 | 470.2| 78.4|
+------------+-------+----------+----------+---------+--------+--------+-------+
|2009-1 | 65 | 15 | 666.0| 44.4| 0 | 0.0| 0.0|
+------------+-------+----------+----------+---------+--------+--------+-------+
|2009-2 | 65 | 13 | 2,570.1| 197.7| 5 | 720.7| 144.1|
+------------+-------+----------+----------+---------+--------+--------+-------+
|2009-3 | 69 | 23 | 1,392.4| 60.5| 3 | 572.1| 190.7|
+------------+-------+----------+----------+---------+--------+--------+-------+
|2009-4 | 74 | 41 | 8,924.3| 217.7| 4 | 349.3| 87.3|
+------------+-------+----------+----------+---------+--------+--------+-------+
|2009 | 273 | 92 | 13,552.9| 147.3| 12 | 1,642.1| 136.8|
+------------+-------+----------+----------+---------+--------+--------+-------+
|2010-1 | 122 | 31 | 5,586.6| 180.2| 9 | 936.3| 104.0|
+------------+-------+----------+----------+---------+--------+--------+-------+
|2010-2 | 99 | 23 | 3,022.2| 131.4| 17 | 1,274.9| 75.0|
+------------+-------+----------+----------+---------+--------+--------+-------+
|2010-3 | 111 | 30 | 4,022.7| 134.1| 14 | 1,249.1| 89.2|
+------------+-------+----------+----------+---------+--------+--------+-------+
|2010-4 | 88 | 36 | 5,675.7| 157.7| 32 | 3,557.3| 111.2|
+------------+-------+----------+----------+---------+--------+--------+-------+
|2010 | 420 | 120 | 18,307.2| 152.6| 72 | 7,017.5| 97.5|
+------------+-------+----------+----------+---------+--------+--------+-------+
Source: Thomson Reuters & National Venture Capital Association
*Only accounts for deals with disclosed values
**Includes all companies with at least one U.S. VC investor that trade on U.S.
exchanges, regardless of domicile.
IPO Activity Overview
There were 32 venture-backed IPOs valued at $3.6 billion in the fourth quarter
of 2010, almost three times the number of IPOs seen during full year of 2009.
Seventeen of the fourth quarter offerings were Chinese based venture-backed
companies. The offerings spanned a diverse set of industries.
Half of the 32 IPO exits for the quarter were outside of Information Technology
and Life Sciences, accounting for a total of $1.7 billion. Beijing, China-based
SinoTech Energy, Ltd. (CTE), a provider of enhanced oil recovery services, was
the largest offering outside of technology and life sciences, raising $167.8
million on NASDAQ.
FleetCor Technologies (FLT), a provider of credit card processing solutions for
the business fleet marketplace based in Norcross, Georgia, began trading on
December 15(th) and raised $291.5 million, marking the largest venture-backed
IPO of the quarter.
Venture-Backed IPO Industry Breakdown
+--------------------------------------------+---------------------------------+
| | Q4 2010 |
+--------------------------------------------+----------------+----------------+
| | *Number of | |
| | Venture-Backed | Total Venture- |
| | IPO's in the |Backed Offering |
| Industry | U.S. | Size ($M) |
+-------------------+------------------------+----------------+----------------+
| |Internet Specific | 4 | 662.1|
| +------------------------+----------------+----------------+
| |Communications and Media| 3 | 206.3|
| +------------------------+----------------+----------------+
| |Computer Software | 1 | 91.0|
| +------------------------+----------------+----------------+
| |Semiconductors | 1 | 67.5|
| +------------------------+----------------+----------------+
| |Computer Hardware | 1 | 291.5|
| Information +------------------------+----------------+----------------+
| Technology | | 10 | 1,318.3|
+-------------------+------------------------+----------------+----------------+
| |Biotechnology | 3 | 301.5|
| +------------------------+----------------+----------------+
| |Medical/Health | 3 | 203.0|
| +------------------------+----------------+----------------+
| Life Sciences | | 6 | 504.5|
+-------------------+------------------------+----------------+----------------+
| |Other Products | 7 | 757.9|
| +------------------------+----------------+----------------+
| |Consumer Related | 6 | 643.5|
| +------------------------+----------------+----------------+
| |Industrial/Energy | 3 | 333.0|
| +------------------------+----------------+----------------+
| Other | | 16 | 1,734.4|
+-------------------+------------------------+----------------+----------------+
| TOTAL| 32 | 3,557.3|
+--------------------------------------------+----------------+----------------+
Source: Thomson Reuters & National Venture Capital Association
*Includes all companies with at least one U.S. VC investor that trade on U.S.
exchanges, regardless of domicile
For the full year 2010, 26 number of companies listed on the New York Stock
Exchange (NYSE) and 46 listed on the NASDAQ stock exchange.
Of the 32 IPOs in the fourth quarter, 20 were trading at or above their offering
prices as of 12/31/2010. 42 venture-backed companies are currently filed for an
initial public offering with the SEC.
Mergers and Acquisitions Overview
As of December 31, 2010, 88 venture-backed M&A deals were reported for the
fourth quarter, 36 which had an aggregate deal value of $5.7 billion. The
average disclosed deal value was $157.7 million up 18 percent from Q3 2010.
Fourth quarter volume marks a 21 percent decrease from the third quarter of
2010, but brings the total number of venture-backed M&A exits to 420 - the
largest full year for M&A exits since records began in 1985. The previous
record was set in 2007, when 380 venture-backed companies were sold.
The information technology sector led the venture-backed M&A landscape, with 72
deals and a disclosed total dollar value of $2.8 billion. Within this sector,
internet specific and computer software companies accounted for the bulk of the
targets with 32 and 21 transactions, respectively, across these sector subsets.
Venture-Backed M&A Industry Breakdown
+----------------------------------------+-------------------------------------+
| | Q4 2010 |
+----------------------------------------+-----------+------------+------------+
| | | Number of | |
| | | Venture- | Total |
| | Number of |Backed M&A | Disclosed |
| | Venture- |deals with a| Venture- |
| |Backed M&A | disclosed |Backed Deal|
| Industry | deals | value | Value ($M) |
+---------------+------------------------+-----------+------------+------------+
| |Internet Specific | 32 | 7 | 295.8|
| +------------------------+-----------+------------+------------+
| |Computer Software and | | | |
| |Services | 21 | 6 | 726.3|
| +------------------------+-----------+------------+------------+
| |Communications and Media| 11 | 5 | 1,179.5|
| +------------------------+-----------+------------+------------+
| |Semiconductors/Other | | | |
| |Elect. | 7 | 3 | 583.9|
| +------------------------+-----------+------------+------------+
| |Computer Hardware | 1 | 1 | 31.2|
| Information +------------------------+-----------+------------+------------+
| Technology | | 72 | 22 | 2,816.6|
+---------------+------------------------+-----------+------------+------------+
| |Medical/Health | 7 | 5 | 1,227.0|
| +------------------------+-----------+------------+------------+
| |Biotechnology | 3 | 3 | 766.6|
| +------------------------+-----------+------------+------------+
| Life Sciences | | 10 | 8 | 1,993.6|
+---------------+------------------------+-----------+------------+------------+
| |Other Products | 4 | 4 | 520.5|
| +------------------------+-----------+------------+------------+
| |Industrial/Energy | 2 | 2 | 345.0|
| Non-High +------------------------+-----------+------------+------------+
| Technology | | 6 | 6 | 865.5|
+---------------+------------------------+-----------+------------+------------+
| TOTAL| 88 | 36 | 5,675.7|
+----------------------------------------+-----------+------------+ |
Source: Thomson Reuters & National Venture Capital Association
In the biggest venture-backed deal of the quarter, HealthSpring Inc acquired
Bravo Health, Inc, a Baltimore, Maryland-based provider of healthcare services,
for $545.0 million.
Deals bringing in the top returns, those with disclosed values greater than four
times the venture investment, accounted for 45 percent of the total during full
year 2010. Venture-backed M&A deals returning less than the amount invested
accounted for 22 percent of the annual total.
Analysis of Transaction Values
versus Amount Invested
+-------------------------+---------+---------+--------+--------+--------------+
|Relationship between | | | | | |
|transaction value and | | | | | |
|investment |Q1 10 M&A|Q2 10 M&A|Q310 M&A|Q410 M&A|Full Year 2010|
+-------------------------+---------+---------+--------+--------+--------------+
|Deals where transaction | | | | | |
|value is less than total | | | | | |
|venture investment | 9 | 3 | 7 | 5 | 24 |
+-------------------------+---------+---------+--------+--------+--------------+
|Deals where transaction | | | | | |
|value is 1-4x total | | | | | |
|venture investment | 7 | 4 | 11 | 14 | 36 |
+-------------------------+---------+---------+--------+--------+--------------+
|Deals where transaction | | | | | |
|value is 4x-10x total | | | | | |
|venture investment | 9 | 9 | 4 | 9 | 31 |
+-------------------------+---------+---------+--------+--------+--------------+
|Deals where transaction | | | | | |
|value is greater than | | | | | |
|10x venture investment | 4 | 4 | 5 | 5 | 18 |
+-------------------------+---------+---------+--------+--------+--------------+
|Total Disclosed Deals | 29 | 20 | 27 | 33 | 109 |
+-------------------------+---------+---------+--------+--------+--------------+
Source: Thomson Reuters & National Venture
Capital Association
** Disclosed deals that do not have a disclosed total
investment amount are not included.
About Thomson Reuters
Thomson Reuters is the world's leading source of intelligent information for
businesses and professionals. We combine industry expertise with innovative
technology to deliver critical information to leading decision makers in the
financial, legal, tax and accounting, healthcare and science and media markets,
powered by the world's most trusted news organization. With headquarters in New
York and major operations in London and Eagan, Minnesota, Thomson Reuters
employs 55,000 people and operates in over 100 countries. For more information,
go to www.thomsonreuters.com.
About National Venture Capital Association
The National Venture Capital Association (NVCA) represents more than 400 venture
capital firms in the United States. NVCA's mission is to foster greater
understanding of the importance of venture capital to the U.S. economy and
support entrepreneurial activity and innovation. According to a 2008 Global
Insight study, venture-backed companies accounted for 12.1 million jobs and $2.9
trillion in revenue in the United States in 2008. The NVCA represents the public
policy interests of the venture capital community, strives to maintain high
professional standards, provides reliable industry data, sponsors professional
development, and facilitates interaction among its members. For more information
about the NVCA, please visit www.nvca.org.
CONTACTS
Emily Mendell
NVCA
1.610.565.3904
emendell(at)nvca.org
Jeanette Volpi
Thomson Reuters
1.646.223.5517
jeanette.volpi(at)thomsonreuters.com
Press release (PDF):
http://hugin.info/142273/R/1476621/412787.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Thomson Reuters Corporation via Thomson Reuters ONE
[HUG#1476621]
Unternehmensinformation / Kurzprofil:
Datum: 03.01.2011 - 14:00 Uhr
Sprache: Deutsch
News-ID 50173
Anzahl Zeichen: 21308
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 143 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"VENTURE-BACKED ACQUISITIONS BREAK ALL-TIME ANNUAL RECORD; DRIVEN BY CHINESE COMPANIES, NUMBER OF IPOS AT HIGHEST QUARTERLY LEVEL SINCE 2000"
steht unter der journalistisch-redaktionellen Verantwortung von
Thomson Reuters Corporation (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
