When Uber sprang onto the scene less than 10 years ago as another hot new startup out of Silicon Valley, no one would’ve guessed that it would be worth upwards of $65 billion after garnering nearly $13 billion of funding. However, as the economy has fundamentally transformed since 2009, Uber’s business model has been shockingly effective. The sharing economy – one in which full ownership is less and less common – has highlighted the importance of services themselves over the vehicles that accomplish them.
MULESOFT IPO: MOST IMPORTANT TECH IPO OF 2017?
Earlier this month, Snap Inc dominated headlines when it made its initial public offering. One of the hottest and most well-known tech startups had finally made it big, generating around $3.4 billion and attaining a valuation of $24 billion as of its initial pricing of $23.50 per share. However, a less hot but arguably more important IPO for the Valley and for the tech industry occurred just two weeks later March 17th.
SOFTBANK ACQUIRES FORTRESS INVESTMENT GROUP
On February 14th, SoftBank announced that it would acquire Fortress Investment Group: a private equity giant with $70 billion in assets under management. The Japanese conglomerate agreed to buy the asset management company for $3.3 billion, representing a 39% premium above the closing price of the stock on the day prior. J.P Morgan and Morgan Stanley served as financial advisers for SoftBank and Fortress, respectively.
INVESTORS FLOCK AROUND GOOS
Peter Lynch is known for his ideology: “Invest in what you know.” The growing number of Canada Goose coats spotted on the streets, the chaotic coat department in the Canada Goose section around Christmas time, and the $900 price tag failing to deter shoppers are all reasons Canada Goose may have caught investors’ attention. In an era where technology ventures are the main focus, noticing the quality, tangible, profitable Canada Goose product follows Lynch’s advice to “invest in what you know.” However, Canada Goose’s IPO is muddled with as much enthusiasm from investors as skepticism.
ADVENT INTERNATIONAL MAKES OFFER FOR STADA
As of February 23rd, Boston-based Advent International Corporation has submitted a legally binding offer to purchase all STADA Arzneimittel Aktiengesellschaft shares to the management team of the German pharmaceutical company. The offer price will be at 58 Euros per share, totaling the offer at close to 4 billion Euros. This offer is in response to London headquartered private equity firm Cinven Partners LLP’s indication that it may offer 3.5 billion Euros for Stada, or 56 Euros per share.