Genstar Capital to Acquire CRF Health from Vitruvian Partners and Combine with Bracket
Genstar Capital to Acquire CRF Health from Vitruvian Partners and Combine with Bracket English
NEWS PROVIDED BY
CRF Health
15:56 ET
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LONDON and WAYNE, Pennsylvania, July 17, 2018 /PRNewswire/ --
https://www.prnewswire.com/news-releases/genstar-capital-to-acquire-crf-health-from-vitruvian-partners-and-combine-with-bracket-839745719.html
Combined organization will bring together complementary strengths with a shared focus on accelerated customer value through patient-centric clinical technology solutions
Genstar Capital, a leading investor in healthcare technology and services companies, is pleased to announce the acquisition of CRF Health, a global provider of eCOA and eConsent solutions for the life sciences industry. As part of the transaction, CRF will be combined with Bracket, a provider of software and technology-enabled solutions utilized in clinical trials. Bracket is a portfolio company of Genstar.
CRF Health has been majority-owned by Vitruvian Partners, a leading growth-and technology-focused investment firm, since 2015.
The newly combined organization will drive accelerated value for pharmaceutical companies and CRO customers, providing patient-centric solutions, combined with deep and broad therapeutic area expertise, across a strong and efficient global footprint.
"CRF Health earned an outstanding reputation with 20 years of experience providing eCOA and now eConsent solutions to the biopharma industry around the world," said Mike Nolte, who will lead the combined organization as CEO. "CRF's technology and therapeutic experience dovetail well with our solutions, and they expand our ability to support increasingly complex clinical research. I am excited to bring two outstanding teams together to provide a reliable and scalable platform that accelerates the development of life changing medicines for our families and communities across the globe."
The combined company will have over 1,500 employees worldwide, and will be in a position to accelerate the penetration of user-friendly technologies across the clinical trial spectrum - driving the transfer from manual, paper based services to electronic while improving service quality and data integrity.
"This is an exciting step forward for patients, clients, and our new combined team," said Rachel Wyllie, CEO of CRF Health, who will become the Executive Chairman of the combined company. "The complementary nature of the two businesses provides us with the platform and scale for future growth in our dynamic markets, while ensuring our customers have more access to the latest patient-centric innovations in clinical research."
Jean-Pierre Conte, Chairman and Managing Director at Genstar Capital, added, "Bringing CRF and Bracket together will create a world-class healthcare technology company supporting clinical trials and will accelerate adoption and growth in eCOA, eConsent, patient engagement, rater training and trial supply management solutions. We look forward to working with the outstanding leaders at both organizations. This notable event in pharmaceutical services is another example of Genstar's private equity strategy of driving change at our portfolio companies to create high-growth and extremely valuable companies. Healthcare is an important sector for Genstar and we continue to identify great opportunities to apply our growth model to build great companies."
Philip Russmeyer, Partner at Vitruvian Partners, commented, "We are delighted to support the combination of Bracket and CRF to further accelerate, and build upon, the excellent advances that our partnership with the strong management team at CRF has produced over the past years."
The transaction is expected to be completed by the end of 2018 and is subject to customary closing and regulatory approvals.
Jefferies International Limited served as exclusive financial adviser and Dickson Minto as legal adviser to CRF. Ropes & Gray LLP served as legal adviser to Genstar Capital.
About Bracket
Bracket (http://www.bracketglobal.com) is a technology company that accelerates clinical research and improves the experience of patients accessing potentially life-changing therapies. Our solutions, combined with deep scientific and clinical insight, link engaged patients to researchers, provide faster, more reliable decision making, and help provide longer, healthier and more productive lives for our families and communities around the globe. Bracket has over 800 employees and delivers services in more than 90 countries to a diverse base of global customers, including 15 of the top 20 biopharma companies.
About CRF Health
CRF Health is the leading provider of patient-centered eSource technology solutions for the life sciences industry. With experience in more than 800 clinical trials, over 100 languages and across 74 countries, CRF Health's TrialMax® platform consistently demonstrates the industry's highest data accuracy, patient and site compliance, and patient retention. The integrated TrialMax platform includes eCOA solutions for collecting PROs (Patient Reported Outcomes), ObsROs (Observer Reported Outcomes), ClinROs (Clinician or Rater Reported Outcomes), and PerfOs (Performance Outcomes), and features TrialConsent®, an electronic solution for collecting and managing informed consent in clinical trials. CRF Health's eSource solutions improve trial engagement by making the patient the center of the clinical trial process.
About Genstar Capital
Genstar Capital (http://www.gencap.com) is a leading private equity firm that has been actively investing in high quality companies for more than 25 years. Based in San Francisco, Genstar works in partnership with its management teams and its network of strategic advisors to transform its portfolio companies into industry-leading businesses. Genstar manages funds with total capital commitments of approximately $10 billion and targets investments focussed on targeted segments of the healthcare, financial services, software, and industrial technology industries.
About Vitruvian Partners
Vitruvian is a European growth-focused investment firm specialised in 'dynamic situations', where companies undergo growth and change typically driven by technology. Vitruvian helps portfolio companies scale their operations by providing an operational support system and assistance with strategic initiatives including acquisitions. Other notable investments to date include global market leaders in their field such as Just Eat, FarFetch, Skyscanner, EasyPark, Snow Software, Trustpilot, Voxbone, Callcredit, Ebury and others. The €2.4bn Vitruvian Investment Partnership III ("VIP III") is among the largest pools of capital in Europe supporting innovative and higher growth companies. Vitruvian has backed 30 companies in its first two funds and has assets under management of c. €5 billion, operating out of offices in London, Munich, Stockholm, Luxembourg and San Francisco. More information can be found at: http://www.vitruvianpartners.com
Safeguard Scientifics Announces Sale Of Partial Stake In MediaMath
Safeguard Scientifics Announces Sale Of Partial Stake In MediaMath
REPRESENTS CASH-ON-CASH RETURN OF 4.5X
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Safeguard Scientifics, Inc.
Jul 09, 2018, 16:15 ET
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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 www.safeguard.com 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.
SAFEGUARD CONTACT:
John E. Shave III
Senior Vice President, Investor Relations and Corporate Communications
(610) 975-4952
jshave@safeguard.com
SOURCE Safeguard Scientifics, Inc.
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.
https://www.axios.com/newsletters/axios-pro-rata-a94f3b40-b748-4864-9249-
bf09e37c39eb.html
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, NJTechWeekly.com
 |
| 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, NJTechWeekly.com 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.
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