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Safeguard Scientifics Announces Sale Of Partial Stake In MediaMath

Safeguard Scientifics Announces Sale Of Partial Stake In MediaMath

Safeguard Scientifics, Inc.
Jul 09, 2018, 16:15 ET

RADNOR, Pa., July 9, 2018 /PRNewswire/ -- Safeguard Scientifics, Inc. (NYSE:SFE) today announced that it has completed the sale of 39.1% of Safeguard's ownership position in MediaMath Holdings. Inc. ("MediaMath") to MediaMath for $45.0 million in cash. The repurchase represents the equivalent of an implied cash-on-cash return of 4.5x on Safeguard's 39.1% ownership position in MediaMath, a global advertising and marketing technology leader. In connection with the sale, MediaMath has the right to repurchase an additional 10.9% of Safeguard's ownership position on or before the 180 day anniversary of the initial repurchase for $12.5 million in cash.

"This transaction is a 'win' for both parties," said Brian J. Sisko, Safeguard's President and Chief Executive Officer. "MediaMath has emerged as a leader in the digital marketing category and we're excited to continue our partnership as they continue to build value for their stakeholders. Meanwhile, the sale of a portion of Safeguard's MediaMath position is consistent with Safeguard's new business strategy of pursuing monetization opportunities, produces a significant cash-on-cash return, strengthens our balance sheet, enhances Safeguard's financial flexibility going forward and allows us to continue to participate in the future growth of MediaMath in a significant way. If MediaMath exercises the option to repurchase the additional 10.9% of Safeguard's ownership stake, we will have realized $57.5 million for 50% of our ownership stake in MediaMath," Sisko said.

"Safeguard has been a strong partner to MediaMath," said Franklin Rios, Global Head of Corporate Development for MediaMath. "They share our vision and have believed that MediaMath would rise to the top of the digital marketing category, showing commitment through multiple financing events."

In connection with the transaction, MediaMath and Safeguard have agreed that an independent industry expert to be approved by Safeguard will hold Safeguard's seat on the MediaMath Board of Directors to bolster MediaMath's strong Board of Directors that includes a number of industry leaders. Safeguard will hold a board observer right as well.

Safeguard first deployed capital in MediaMath in 2007. Measured by annual revenue, the business is the largest of Safeguard's portfolio of early-stage companies.

In January 2018, Safeguard began to implement a new business strategy designed to increase shareholder value. Under the new strategy, Safeguard has ceased to deploy capital into new partner companies. Safeguard remains focused on managing and financially supporting existing partner companies, with the goal of pursuing monetization opportunities and maximizing net proceeds distributable to shareholders. Safeguard will consider the sale of individual partner companies, the sale of certain partner company interests in secondary market transactions, or a combination thereof, as well as other opportunities to maximize shareholder value.

About Safeguard Scientifics

Historically, Safeguard Scientifics (NYSE:SFE) has provided capital and relevant expertise to fuel the growth of technology-driven businesses. Safeguard has a distinguished track record of fostering innovation and building market leaders that spans more than six decades. For more information, please visit or follow us on Twitter @safeguard.

Forward-looking Statements

Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Our forward-looking statements are subject to risks and uncertainties. Forward-looking statements include, but are not limited to, statements regarding Safeguard's initiatives taken or contemplated to enhance and unlock value for all of its stockholders, Safeguard's efforts to execute on and implement its strategy to streamline its organizational structure, reduce its operating costs, pursue monetization opportunities for Partner Companies and maximize the net proceeds distributable to its shareholders, Safeguard's ability to create, unlock, enhance and maximize shareholder value, Safeguard's ability to have a smooth transition to a new management team, the timing of Safeguard's management succession plan and its effect on driving increased organizational effectiveness and efficiencies, the ability of the new management team to execute Safeguard's strategy, the availability of, the timing of, and the proceeds that may ultimately be derived from the monetization of Partner Companies, Safeguard's projections regarding the reduction in its ongoing operating expenses, Safeguard's projections regarding annualized operating expenses and expected severance expenses, monetization opportunities for Partner Company Interests, and the amount of net proceeds from the monetization of Partner Company Interests that are ultimately distributable to Safeguard shareholders after satisfying Safeguard's debt obligations and working capital needs and the timing of such distributions. Such forward-looking statements are not guarantees of future operational or financial performance and are based on current expectations that involve a number of uncertainties, risks and assumptions that are difficult to predict. Therefore, actual outcomes and/or results may differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties that could cause actual results to differ materially include, among others, our ability to make good decisions about the monetization of our Partner Companies for maximum value or at all and distributions to our shareholders, our ability to successfully execute on our strategy to streamline our organizational structure and align our cost structure to increase shareholder value, whether our strategy will better position us to focus our resources on the highest-return opportunities and deliver enhanced shareholder value, the ongoing support of our existing Partner Companies, the fact that our Partner Companies may vary from period to period, challenges to achieving liquidity from our partner company holdings, fluctuations in the market prices of our publicly traded partner company holdings, competition, our inability to obtain maximum value for our partner company holdings, our ability to attract and retain qualified employees, market valuations in sectors in which our Partner Companies operate, our inability to control our Partner Companies, our need to manage our assets to avoid registration under the Investment Company Act of 1940, risks, disruption, costs and uncertainty caused by or related to the actions of activist shareholders, including that if individuals are elected to our Board with a specific agenda, it may adversely affect our ability to effectively implement our business strategy and create value for our shareholders and perceived uncertainties as to our future direction as a result of potential changes to the composition of our Board may lead to the perception of a change in the direction of our business, instability or a lack of continuity that may adversely affect our business, and risks associated with our Partner Companies, including the fact that most of our Partner Companies have a limited operating history and a history of operating losses, face intense competition and may never be profitable, the effect of economic conditions in the business sectors in which Safeguard's Partner Companies operate, and other uncertainties described in our filings with the Securities and Exchange Commission. Many of these factors are beyond the Company's ability to predict or control. As a result of these and other factors, the Company's past operational and financial performance should not be relied on as an indication of future performance. The Company does not assume any obligation to update any forward-looking statements or other information contained in this press release.


John E. Shave III

Senior Vice President, Investor Relations and Corporate Communications

(610) 975-4952

SOURCE Safeguard Scientifics, Inc.

Keep your eye on Amazon and Netflix, says Philly investment pro. Here's why from CNBC.

A different point of view on Comcast / Disney / 21st Century Fox outcomes

Dan Primack (Axios Pro Rata) gives an alternative view on Comcast/Disney/Fox:

Unconventional wisdom: It may be time for Brian Roberts and Bob Iger to put their animosity and egos aside, and at least consider a Comcast-Disney merger. It would largely solve each company's primary problem (content for Comcast, distribution for Disney) and the added firepower could let them overpay for Sky without also overpaying for Fox (thus guaranteeing Comcast much of the international distribution it craves). It's not a perfectly elegant solution, particularly since ABC would probably have to be carved out. But, as things currently stand, the only person who knows he'll be smiling at the end is Rupert Murdoch.

Comcast is fighting hard to remain a top-tier media/telecom firm, but Primack suggests it
may not have enough financial weight to maintain that status during the ongoing consolidation.

Lambertville-based RobustWealth, Acquired by Principal Finance Group, is Staying in New Jersey and Hiring

Lambertville-based RobustWealth, Acquired by Principal Finance Group, is Staying in New Jersey and hiring.

Esther Surden
Publisher & Editor,

The RobustWealth team celebrates the startup's acquisition. | Courtesy RobustWealth

RobustWealth (Lambertville) a fintech startup we profiled here , was acquired by Principal Financial Group (Des Moines, Iowa) for an undisclosed amount. Principal completed its acquisition of RobustWealth on July 2, 2018

In an interview with RobustWealth founder Mike Kerins last month, learned that the company would be staying in New Jersey and hiring here. Financial details were not disclosed.

“We’d been working with Principal for over eight months, and it was a great relationship. It’s kind of like dating. Along the way we got to know each other really well, and it made a lot of sense for us to partner even deeper,” Kerins told us.

The startup had been working to integrate RobustWealth’s robo solution with Principal’s investment products and was coming up to a product launch when serious discussions ensued. “They began to look at it as an opportunity for them to get into the digital advice space,” he said. “Culturally, we are a great fit, and the two organizations look to provide solutions to clients in the same way.”

RobustWealth is staying in Lambertville, said Kerins. “We have just booked another 9,000 square feet [an addition to 8,000 square feet in existing space] in Lambertville which we are building out. We are trying to hire one employee a week until the end of the year, so we are expanding here.”

For their part, Principal Financial Group wants “us to maintain our startup culture, the ability to pivot quickly, and launch products fast. The management team will remain the same,” Kerins explained.

Being acquired offers RobustWealth a number of benefits, too. “This will allow us to develop a better product," Kerins said. “Our group will get to connect with Principal’s solutions, such as 401Ks, annuities and mutual funds, which are things we don’t currently have… Also, rather than spending a lot of time raising capital, now I can focus on the products and the company,”

“Plus, the sale gives a lot of certainty to the employees, he added. “There are some benefits to being part of a big company.” Kerins told his employees “that they get all the benefits of being in a startup including doing cool stuff and wearing jeans and a T-shirt to work, but also getting benefits like a great 401K, certainty around funding, job security and such.”

“Having a big company behind RobustWealth will allow us to complete our mission of having a complete robotized platform faster," Kerins noted. “The mission is the same, but with money to hire people, we can accomplish it faster and better now.”

Kerins had nothing but praise for the VCs who had invested in RobustWealth from the start. “Waldon [Venture Capital] is a great firm and Larry [Marcus] has become a good friend. They’ve been extremely helpful over this journey and I’m grateful to have had them support us,” he said.

According to an article in Investment News, RobustWealth will remain open architecture, offering investment products from other providers to advisers outside Principal, and the company is still actively looking to add more custodians to the platform.

When asked why Principal is taking this approach instead of making RobustWealth proprietary, Executive Vice President and Chief Investment Officer Tim Dunbar said “the company realized an opportunity to invest in a relatively early-stage company and develop a unique product” the article continued.

RobustWealth also provides Principal an inroad to the Registered Investment Advisor, investment banking divisions of larger banks and community banks market, which Principal manages a combined $8.9 trillion, the article stated.

"We would hope to provide a lot of our investment solutions," Dunbar also said in the article. "We really want to continue to help advisers grow, and that's part of it."

"More than anything we share a common vision for where we think digital advice should go," he added.

Esther Surden is Publisher and Editor of NJTechWeekly, and a contributor to Philly Tech News. This article originally appeared in NJTechWeekly, and is republished here with her permission.

Philly Tech News Daily Page 7/2: Axciom sells Mrktg Services unit; renames as LiveRamp; Delaware awards $738,000 single-bid blockchain contract to IBM

PhillyTechNews Daily Page 6/25-26

Looking back at some past GE ads

Tom Paine

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Its too early to be writing obituaries for GE. But in anticipation of that time, we can start reminiscing about some of its great ads:

GE: "We bring good things to life" was the main corporate umbrella ad for many years (BBDO, 1979-2003, which ia a very long time). It was an effort to convince consumers that GE was more than nuclear bombs, nuclear plants, airplane engines that occasionally malfunctioned, and an awful NBC before Comcast took control.

The GE Healthcare / Matrix ad was classic, really pushing the envelope in corporate advertising. GE hired Agent Smith of 'The Matrix'. (Connected Hospital,BBDO, 2013)

Today GE announced plans to sell 20% of GE Healthcare and spin off the remainder to shareholders.

And a recent ad targeted for the Olympics:

PhillyTechNews Daily Page 6/24: Comcast could be forced to raise Sky bid ; SAP aims to double CRM business in two years: sales chief

PhillyTech PeopleNews 6/24: Troubled Outcome Health names Publicis' McNally CEO; N.Y. Mayor Taps Drexel Professor For First Algorithm Quality-Control Task Force

Matt McNally / Publicis

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Sarah Sanders not welcome in public place in Virginia