VENTURE-BACKED IPOS HAVE STRONGEST OPENING QUARTER IN FIVE YEARS
(Thomson Reuters ONE) -
CONTACTS
Emily Mendell
NVCA
1.610.565.3904
emendell(at)nvca.org
Lauren Herman
Thomson Reuters
1.646.223.5985
lauren.herman(at)thomsonreuters.com
Market Stability and Favorable Legislation Positions Emerging Growth Companies
Well for 2012 Exits
New York, New York, April 2, 2012 - Venture-backed initial public offering (IPO)
activity marked its strongest opening quarter, by number of issues and dollars
raised, since the first quarter of 2007. Bolstered by increased stability in
the broader U.S. stock market indices, 19 venture-backed companies went public
in the United States during the first quarter of 2012, raising $1.5 billion,
according to the Exit Poll report by Thomson Reuters and the National Venture
Capital Association (NVCA). By dollars, the quarter registered a 10 percent
increase compared to the first quarter of 2011, when 14 venture backed companies
raised $1.4 billion. For the first quarter of 2012, 86 venture-backed M&A deals
were reported, 24 of which had an aggregate deal value of $2.7 billion.
"As we close the first quarter of 2012, venture-backed companies are extremely
well positioned to consider an initial public offering on a U.S. exchange," said
Mark Heesen, president of the NVCA. "The recently passed JOBS Act will grant
emerging growth companies temporary but significant regulatory relief during the
IPO process, allowing them to focus on accessing capital to grow their
businesses. We have two vibrant exchanges that are eager for venture-backed
company listings and we have a strong list of companies in registration poised
to enter, what appears for the time being, to be a relatively stable market.
This environment can only help the M&A market as well, as companies now have
two viable exit paths from which to choose."
Venture-Backed Liquidity Events by Year/Quarter, 2006-2012
+------------+------+----------+----------+---------+---------+--------+-------+
| | | | | | | |Average|
| | |M&A Deals | *Total |*Average | | Total | IPO |
| |Total | with |Disclosed |M&A Deal | | Offer | Offer |
| | M&A |Disclosed |M&A Value | Size |**Number | Amount |Amount |
|Quarter/Year|Deals | Values | ($M) | ($M) |of IPO's | ($M) | ($M) |
+------------+------+----------+----------+---------+---------+--------+-------+
| 2006 | 378 | 167 | 19,141.8 | 114.6 | 57 |5,117.1 | 89.8 |
+------------+------+----------+----------+---------+---------+--------+-------+
| 2007 | 382 | 170 | 29,556.6 | 173.9 | 87 |10,960.6| 126.0 |
+------------+------+----------+----------+---------+---------+--------+-------+
| 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 | 2,550.1 | 196.2 | 6 | 827.4 | 137.9 |
+------------+------+----------+----------+---------+---------+--------+-------+
| 2009-3 | 69 | 23 | 1,362.4 | 59.2 | 2 | 465.4 | 232.7 |
+------------+------+----------+----------+---------+---------+--------+-------+
| 2009-4 | 74 | 41 | 8,614.7 | 210.1 | 4 | 349.3 | 87.3 |
+------------+------+----------+----------+---------+---------+--------+-------+
| 2009 | 273 | 92 | 12,525.6 | 136.2 | 12 |1,642.1 | 136.8 |
+------------+------+----------+----------+---------+---------+--------+-------+
| 2010-1 | 121 | 32 | 5,426.6 | 169.6 | 9 | 936.3 | 104.0 |
+------------+------+----------+----------+---------+---------+--------+-------+
| 2010-2 | 99 | 23 | 2,924.6 | 127.2 | 18 |1,382.7 | 76.8 |
+------------+------+----------+----------+---------+---------+--------+-------+
| 2010-3 | 117 | 31 | 3,729.1 | 120.3 | 15 |1,558.0 | 103.9 |
+------------+------+----------+----------+---------+---------+--------+-------+
| 2010-4 | 108 | 43 | 6,324.2 | 147.1 | 32 |3,555.6 | 111.1 |
+------------+------+----------+----------+---------+---------+--------+-------+
| 2010 | 445 | 129 | 18,404.5 | 142.7 | 74 |7,432.5 | 100.4 |
+------------+------+----------+----------+---------+---------+--------+-------+
| 2011-1 | 133 | 51 | 6,127.2 | 120.1 | 14 |1,375.8 | 98.3 |
+------------+------+----------+----------+---------+---------+--------+-------+
| 2011-2 | 92 | 39 | 6,406.7 | 164.3 | 22 |5,454.2 | 247.9 |
+------------+------+----------+----------+---------+---------+--------+-------+
| 2011-3 | 125 | 39 | 6,611.3 | 169.5 | 5 | 442.9 | 88.6 |
+------------+------+----------+----------+---------+---------+--------+-------+
| 2011-4 | 117 | 37 | 4,936.6 | 133.4 | 12 |2,648.9 | 220.7 |
+------------+------+----------+----------+---------+---------+--------+-------+
| 2011 | 467 | 166 | 24,081.8 | 145.1 | 53 |9,921.9 | 187.2 |
+------------+------+----------+----------+---------+---------+--------+-------+
| 2012-1 | 86 | 24 | 2,730.1 | 113.8 | 19 |1,517.9 | 79.9 |
+------------+------+----------+----------+---------+---------+--------+-------+
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 19 venture-backed IPOs valued at $1.5 billion in the first quarter of
2012, which represented a 10 percent increase in dollar value and a 36 percent
increase in volume compared to the first quarter of 2011. Eleven of the 19 IPOs
of the quarter were IT-related IPOs representing 58 percent of the total issues
for in the quarter.
By location, 18 of the quarter's 19 IPOs were by U.S.-based companies with six
coming from the state of California. Guanghzhou, China-based online retailer,
Vipshop Holdings (VIPS), was the lone initial public offering from a non-U.S.
company. The company raised $71.5 million on the New York Stock Exchange in
March.
In the largest IPO of the quarter, ExactTarget (ET), an interactive marketing
company based in Indianapolis, raised $161.5 million and began trading on the
New York Stock Exchange on March 22(nd).
Venture-Backed IPO Industry Breakdown
+---------------------------------------------+--------------------------------+
| | Q1 2012 |
+---------------------------------------------+----------------+---------------+
| | *Number of | |
| | Venture-Backed |Total Venture- |
| | IPO's in the |Backed Offering|
| Industry | U.S. | Size ($M) |
+-------------------+-------------------------+----------------+---------------+
| |Internet Specific | 8 | 671.8|
| +-------------------------+----------------+---------------+
| |Computer Software and | | |
| |Services | 2 | 181.7|
| +-------------------------+----------------+---------------+
| |Communications and Media | 1 | 93.6|
| Information +-------------------------+----------------+---------------+
| Technology | | 11 | 947.1|
+-------------------+-------------------------+----------------+---------------+
| |Biotechnology | 4 | 265.1|
| +-------------------------+----------------+---------------+
| |Medical/Health | 1 | 50.4|
| +-------------------------+----------------+---------------+
| Life Sciences | | 5 | 315.5|
+-------------------+-------------------------+----------------+---------------+
| |Industrial/Energy | 2 | 122.6|
| +-------------------------+----------------+---------------+
| |Other Products | 1 | 132.6|
| +-------------------------+----------------+---------------+
| | | 3 | 255.2|
+-------------------+-------------------------+----------------+---------------+
| TOTAL| 19 | 1,517.9|
+---------------------------------------------+----------------+---------------+
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 first quarter of 2012, 10 companies listed on the NASDAQ stock exchange
and nine companies listed on the New York Stock Exchange.
Seventeen of the 19 companies brought to market this quarter are currently
trading above their offering price. There are 50 venture-backed companies
currently filed for an initial public offering with the SEC.
Mergers and Acquisitions Overview
As of March 30th, 86 venture-backed M&A deals were reported for the first
quarter of 2012, 24 of which had an aggregate deal value of $2.7 billion. The
average disclosed deal value was $113.8 million, down 5 percent from the first
quarter of 2012.
The information technology sector led the venture-backed M&A landscape with 68
of the 83 deals of the quarter and had a disclosed total dollar value of $1.9
billion. This was an increase of 37 percent from the first quarter of 2011.
Within this sector, Computer Software and Services and Internet Specific deals
accounted for the bulk of the targets with 28 and 23 transactions, respectively,
across these sector subsets.
Venture-Backed M&A Industry Breakdown
+----------------------------------------+-------------------------------------+
| | Q1 2012 |
+----------------------------------------+-----------+------------+------------+
| | | Number of | |
| | | Venture- | Total |
| | Number of | Backed M&A | Disclosed |
| | Venture- | deals with | Venture- |
| |Backed M&A |a disclosed |Backed Deal|
| Industry | deals | value | Value ($M) |
+---------------+------------------------+-----------+------------+------------+
| |Computer Software and | | | |
| |Services | 28 | 6 | 447.7|
| +------------------------+-----------+------------+------------+
| |Internet Specific | 24 | 2 | 285.1|
| +------------------------+-----------+------------+------------+
| |Communications and Media| 10 | 6 | 519.9|
| +------------------------+-----------+------------+------------+
| |Semiconductors/Other | | | |
| |Elect. | 5 | 3 | 628.0|
| +------------------------+-----------+------------+------------+
| |Computer Hardware | 1 | 0 | 0.0|
| Information +------------------------+-----------+------------+------------+
| Technology | | 68 | 17 | 1,880.7|
+---------------+------------------------+-----------+------------+------------+
| |Medical/Health | 7 | 1 | 325.0|
| +------------------------+-----------+------------+------------+
| |Biotechnology | 3 | 2 | 350.2|
| +------------------------+-----------+------------+------------+
| Life Sciences | | 10 | 3 | 675.2|
+---------------+------------------------+-----------+------------+------------+
| |Industrial/Energy | 4 | 3 | 147.3|
| +------------------------+-----------+------------+------------+
| |Other Products | 3 | 1 | 27.0|
| +------------------------+-----------+------------+------------+
| |Consumer Related | 1 | - | 0.0|
| Non-High +------------------------+-----------+------------+------------+
| Technology | | 8 | 4 | 174.3|
+---------------+------------------------+-----------+------------+------------+
| TOTAL| 86 | 24 | 2,730.1|
+----------------------------------------+-----------+------------+------------+
Source: Thomson Reuters & National Venture Capital Association
The two largest venture-backed M&A deals of the first quarter were in the Life
Sciences sectors as Celgene Corp acquired Avila Therapeutics, a Waltham,
Massachusetts-based developer of small molecule therapeutics, for $350 million
and Covidien PLC acquired Sunnyvale, California-based BARRX Medical for $325
million.
Deals bringing in the top returns, those with disclosed values greater than four
times the venture investment, accounted for 54 percent of the total disclosed
transactions during first quarter of 2012, up from 42 percent in the third
quarter. Venture-backed M&A deals returning less than the amount invested
accounted for 21 percent of the quarterly total.
Analysis of Transaction Values versus Amount
Invested
+-----------------------------------------------+-----------------+------------+
|Relationship between transaction value and | | |
|investment | Q4 11 M&A ** |Q1 12 M&A **|
+-----------------------------------------------+-----------------+------------+
|Deals where transaction value is less than | | |
|total venture investment | 12 | 5 |
+-----------------------------------------------+-----------------+------------+
|Deals where transaction value is 1-4x total | | |
|venture investment | 7 | 6 |
+-----------------------------------------------+-----------------+------------+
|Deals where transaction value is 4x-10x total | | |
|venture investment | 5 | 11 |
+-----------------------------------------------+-----------------+------------+
|Deals where transaction value is greater than | | |
|10x venture investment | 9 | 2 |
+-----------------------------------------------+-----------------+------------+
|Total Disclosed Deals | 33 | 24 |
+-----------------------------------------------+-----------------+------------+
Source: Thomson Reuters & National Venture
Capital Association
** Disclosed deals that do not have a disclosed total investment
amount are not included
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About National Venture Capital Association
Venture capitalists are committed to funding America's most innovative
entrepreneurs, working closely with them to transform breakthrough ideas into
emerging growth companies that drive U.S. job creation and economic growth.
According to a 2011 Global Insight study, venture-backed companies accounted for
12 million jobs and $3.1 trillion in revenue in the United States in 2010. As
the voice of the U.S. venture capital community, the National Venture Capital
Association (NVCA) empowers its members and the entrepreneurs they fund by
advocating for policies that encourage innovation and reward long-term
investment. As the venture community's preeminent trade association, NVCA serves
as the definitive resource for venture capital data and unites its more than
400 members through a full range of professional services. For more information
about the NVCA, please visit www.nvca.org.
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Datum: 02.04.2012 - 14:00 Uhr
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