Daily Deal Activity 11/05/12


Metropolitan Health Networks (NYSE:MDF), which operates a provider services network that provides and manages health care services to Medicare advantage, Medicaid, and other beneficiaries, was acquired for $798.4 million by managed healthcare company Humana (NYSE:HUM). The transaction gives the company an enterprise value of $754.1 million, and a valuation of 1.1x revenue and 9.1x EBITDA. Humana also announced the acquisition of Certify Data Systems, a provider of health information exchange technology, for an undisclosed amount. Certified Data Systems’ platform provides two-way sharing of clinical information across disparate electronic health record systems, connecting healthcare providers and allowing them to share relevant patient health information in real-time.

U.K.-based Xtrakter, a provider of regulatory transaction reporting, financial market data, and trade matching services to the European securities markets, was acquired for $42 million by an electronic trading platform operator MarketAxess Holdings (NasdaqGS:MKTX), from Euroclear, a Belgium-based post-trade financial services company. MarketAxess currently expects to complete the acquisition in the first quarter of 2013.

Mortgage software company Mortech, which offers a product and pricing engine to help lenders match the right mortgage products to potential borrowers, was acquired by Zillow (NasdaqGS:Z). The financial terms of the acquisition are approximately $12 million in cash and 150,000 shares of restricted stock, approximately $17 million at today’s stock price of $34.37 at the close of market. The deal is expected to close in the fourth quarter of 2012.

Vyatta, which provides network routing and security software and hardware appliances, was acquired by Brocade Communications Systems (NasdaqGS:BRCD), a provider of Internet protocol based Ethernet networking solutions and storage area networking solutions. The company’s technologies are relevant for applications in network virtualization, software-defined networking, and private/public cloud computing platforms. Terms were not disclosed.

Efficient Learning Systems, an online learning system provider in areas including professional finance and accounting, was acquired for $24 million by John Wiley & Sons (NYSE:JW.A), which offers content and workflow solutions supporting research, professional development, and education. The company’s flagship product comprises online self-study, videos, mobile apps, and planning tools that help professionals prepare for the CPA exam.

Dell’s (NasdaqGS:DELL) Revenue Cycle Solutions line of business for hospitals and healthcare systems, was acquired by Conifer Health Solutions, a subsidiary of Tenet Healthcare and a leader in business process management solutions for healthcare providers.  Financial terms of the deal were not disclosed.

This is the second acquisition for Conifer in a month, following the purchase of InforMed Health Care Solutions. Once integrated, the company expects Dell’s business to add $85 million in annual revenues to Conifer.

ActiveStrategy, a performance improvement technology and consulting firm with solutions for tracking and augmenting organizational effectiveness, was acquired by The Advisory Board (NasdaqGS:ABCO), which offers research and analysis, software tools, and management and advisory services to health care and education industries. ActiveStrategy serves hospital and health system leaders, medical group executives, and physicians. Terms were not disclosed.

SkuLoop, a provider of social commerce driven promotions for retailers and consumer brands, was acquired by Revionics, a company offerings end-to-end merchandise optimization solutions, from GIIV, which operates as an online gift-giving platform. Financial terms were not disclosed. SkuLoop’s clients included PacSun, Toyota, Paul Frank, 1-800 Flowers, and others, who used the firm’s software to drive flash and daily deals offers.


HubSpot, which engages in the acquisition, development, and trading of digital real estate through a network of Websites and a marketplace for domain names, raised $35 million in funding from Altimeter Capital and Cross Creek Capital, with participation from return backers included General Catalyst Partners, Matrix Partners, Scale Venture Partners, Sequoia Capital, Google Ventures, Salesforce.com, and Charles River Ventures. Fidelity Investments also participated. HubSpot has now raised $100 million in total funding, and reports that its annualized revenue run rate is now $60 million.

Kenshoo, a provider of a search engine marketing platform for campaign management to agencies, advertisers, and affiliate marketers, raised $12 million in funding led by Tenaya Capital, with participation from return backers Sequoia Capital, Sequoia Growth Fund, and Arts Alliance.

OrderGroove, a company offering a subscription management engine and optimization platform, raised $7 million from Fung Capital USA, with additional investment from Lerer Ventures, Legend and Swan Ventures, Allegro Venture Partners, Bee Partners, as well as private investors. The company, which was founded in 2008, also provides marketing and analytics services.

U.K.-based Qinec , which offers Web-based medical practice management software solutions, raised $2.5 million in funding from Amadeus Capital Partners and Archimedia Investments. In addition to enabling doctors to run their practices, the company also provides mobile apps for patients to interface with the practice.

24/7 Techies, a remote technical support company serving small and medium sized businesses, raised $0.6 million in funding led by 500 Startups, with participation from individual investors. The company uses an online service model to deliver fully managed, remote tech support for its customers. 24/7 Techies, which currently has 65 staff, was spun out of IT outsourcer Eureka Technology Partners, and initially focused on selling consumer IT support services.

Denmark-based Conferize, which operates a social customer acquisition platform for the conference industry that allows users to virtually discover and register for conference, raised an undisclosed amount of funding from Denmark-based Accelerace Invest, the venture capital arm of surgical facilities provider Symbion.

Spooky Cool Labs, a social mobile game developer, raised an undisclosed amount of funding from media giant Hearst. The transaction is unique for Hearst, which owns 15 daily and 36 weekly newspapers, 29 television stations, and hundreds of magazines.

About Petsky Prunier
Petsky Prunier is one of the leading investment banks in the technology, media, marketing, eCommerce, and healthcare industries. Our firm's mergers and acquisitions and private placements advisory services reflect a unique blend of product specialization and industry expertise. Together with strategic consulting firm Winterberry Group, a Petsky Prunier company, our organization represents one of the largest industry-specific advisors providing strategic and transactional services. In addition, we offer international reach through our partnership with investment bank Altium, which operates from nine offices across Europe. Securities transactions are processed through Petsky Prunier Securities LLC, a member of FINRA and an affiliated entity.

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