Within our sector focus, venture-backed companies comprised half of the 40 M&A transactions whose value was between $25 million – $1 billion in Q2 2010. This was up nicely from the first quarter in terms of the number of transactions and the median size increased to well above $130m. The other good news was that the returns on investment showed good results. Our analysis indicates that the median multiple of invested capital was 7.5x(a). Quite respectable.
A number of VCs had a very good quarter with more than one solid M&A exits within our sector:
Trinity Ventures: Ankeena (Fred Wang & Ajay Chopra) and two-year-old CubeTree (Gus Tai & Jim Taber)
Accel Partners: Omneon (Peter Wagner) and Coremetrics (Arthur Patterson)
Norwest Venture Partners: Omneon (Matthew Howard, Promod Haque) and Jigsaw (Jeff Crowe)
T-ventures: CoreOptics (Dr. Georg Schwegler) and Cinterion Wireless (Stephan Noll)
Austin Ventures: Jigsaw (Jim Casella) and CreditCards.com (Craig Milius, Kenneth DeAngelis, Philip Siegel)
Highland Capital Partners: Coremetrics (Dan Nova) and Turbine (Corey Mulloy, Matthew Nichols, Richard de Silva and Robert Davis)
For additional information on many of these transactions, please click our M&A Alert as indicated below.
(a) Information derived from sourced deemed reliable although Architect Partners cannot be sure fully complete.