Slideshow: Top 10 VC-Backed Acquisitions for Q1

Acquisitions of venture-backed companies appear to be continuing at a decent pace, with the announcement yesterday that eBay has agreed to buy VC-backed mobile ad startup Where Inc.

Given that the purchase price wasn’t disclosed, it’s unclear how Where’s backers will fare on the deal. The Boston-based company raised a total of $16.1 million over three rounds from GrandBanks Capital, Kodiak Venture Partners and Venrock Associates, including an $11 million Series C in May 2007 that had a post-money valuation of $22.5 million, according to Thomson Reuters (publisher of this blog). The three firms also provided Where with a bridge loan for an undisclosed amount in December 2009.

I took a look back at VC-backed M&A data for Q1 and the numbers look encouraging. A total of 119 VC-backed companies were acquired, up from 101 in Q4 and just below the 122 venture-backed companies bought in Q1 2010.

Of the 119 deals done in Q1, 46 had disclosed deal values totaling $5.91 billion. That was down a bit from Q4, when 41 companies had a combined disclosed deal value of about $6 billion. But it was up from Q1 2010, when 31 companies had a combined disclosed deal value of $5.59 billion.

It is also worth noting that Q1 was above average for the past five years. Since Q1 2006, the average number of VC-backed companies acquired per quarter is 92 and the average disclosed deal amount per quarter is $4.78 billion.

Which VC-backed deal topped the list in Q1? Watch my slideshow to find out.

Some notes on the list. The data are only for deals that officially closed in Q1, so deals that were announced but didn’t close aren’t in the results. Also, I tweaked the rankings to reflect the full potential amount of a deal, as opposed to just the initial payment. There were three deals in the top 10 where the VC-backed company stands to make significantly more if it meets performance benchmarks over the next few years.


[slide title=”No. 10: Metastorm”]

Metastorm Inc.

  • Description: Develops business process management (BPM), business process analysis (BPA) and enterprise architecture (EA) software.
  • Deal Value: $182M
  • VC Raised: $99.79M
  • Acquiror: Open Text Corp.
  • VC Backers: W Capital Partners, 3i Group, Allianz Capital Partners GmbH, Internet Capital Group, ABS Capital Partners, Diamond Point Capital Management, Axiom Venture Partners, Dresdner Kleinwort Capital, Riggs Capital Partners, Undisclosed Firm
  • Date of Deal Announcement: 2/2/11

[slide title=”No. 9: Vocollect”]

Vocollect Inc.

  • Description: Provides voice-directed work solutions for warehouse applications.
  • Deal Value: $190M
  • VC Raised: $29.8M
  • Acquiror: Intermec Inc.
  • VC Backers: Riverside Partners, Spring Capital Partners, SRK Management Co., Wood Investment, Dime Capital Partners.
  • Date of Deal Announcement: 1/18/11

[slide title=”No. 8: PlaySpan”]

PlaySpan Inc.

  • Description: Operates an in-game commerce network.
  • Deal Value: $190M
  • VC Raised: $46.25M
  • Acquiror: VISA Inc.
  • VC Backers: Easton Hunt Capital Partners, Menlo Ventures, Novel TMT Ventures, Softbank China & India Holdings, STIC Investments, Vodafone Ventures, 3 undisclosed firms.
  • Date of Deal Announcement: 2/9/11

[slide title=”No. 7: Heroku”]

Heroku Inc.

  • Description: Provides cloud platform for Web applications developers.
  • Deal Value: $212M
  • VC Raised: $13M
  • Acquiror: Inc.
  • VC Backers: Baseline Ventures, Ignition Partners, Redpoint Ventures, Undisclosed Firm
  • Date of Deal Announcement: 12/8/10

[slide title=”No. 6: HauteLook”]

HauteLook Inc.

  • Description: Provides online flash sales for brand name products.
  • Deal Value: $270M
  • VC Raised: $41M
  • Acquiror: Nordstrom
  • VC Backers: Insight Venture Partners
  • Date of Deal Announcement: 2/17/11
  • Notes: Nordstrom paid $180M in stock and will pay up to $90M more if HauteLook meets performance goals.

[slide title=”No. 5: Huffington Post”]

Huffington Inc.

  • Description: Operates online news site and political blog.
  • Deal Value: $315M
  • VC Raised: $35M
  • Acquiror: AOL Inc.
  • VC Backers: Greycroft Partners, Oakstone Venture Partners, SoftBank Capital, Undisclosed Firm
  • Date of Deal Announcement: 2/7/11

[slide title=”No. 4: Sadra Medical”]

Sadra Medical Inc.

  • Description: Develops medical devices for the percutaneous replacement of aortic valves.
  • Deal Value: $386M
  • VC Raised: $63.6M
  • Acquiror: Boston Scientific Corp.
  • VC Backers: Accuitive Medical Ventures, Boston Scientific, FirstMark Capital, Finistere Ventures, Oakwood Medical Investors, Onset Ventures, SV Life Sciences Advisors, Yellowstone Capital, Undisclosed Firm
  • Date of Deal Announcement: 11/19/10
  • Notes: Boston Scientific paid $196M in cash and will pay another $196M if Sadra Medical meets performance goals.

[slide title=”No. 3: Aprimo”]

Aprimo Inc.

  • Description: Offers Web-based platform that enables marketers to manage business-critical services such as e-mail marketing.
  • Deal Value: $525M
  • VC Raised: $62.07M
  • Acquiror: TDC Merger Sub Inc.
  • VC Backers: Blue Chip Venture Co., First Analysis Corp., Frazier Healthcare and Technology Ventures, Jordan, Edmiston Group, PricewaterhouseCoopers Venture Partners, Sigma Partners, Undisclosed Firm
  • Date of Deal Announcement: 12/22/10

[slide title=”No. 2: Ardian”]

Ardian Inc.

  • Description: Develops catheter-based device that treats congestive heart failure and hypertension. Deal Value: $800M
  • VC Raised: $66.84M
  • Acquiror: Medtronic Inc.
  • VC Backers: Advanced Technology Ventures, Emergent Medical Ventures, Foundry LLC, Morgenthaler Ventures, Split Rock Partners, St. Paul Venture Capital, Undisclosed Firm
  • Date of Deal Announcement: 11/22/2010

[slide title=”No. 1: BioVex Group”]

BioVex Group Inc.

  • Description: Develops vaccines for cancer and chronic infectious disease.
  • Deal Value: $1B
  • VC Raised: $220.48M
  • Acquiror: Amgen Inc.
  • VC Backers: Credit Agricole Private Equity SA, Forbion Capital Partners, Harris & Harris Group, Scottish Equity Partners, Triathlon Medical Ventures, and 18 other investors
  • Date of Deal Announcement: 1/24/2011
  • Notes: Amgen paid $425M in cash and agreed to pay another $575M if BioVex meets regulatory and sales milestones.