M&A Deal Summary

KKR and Warburg Pincus Acquire Internet Brands

On June 3, 2014, private equity firms KKR and Warburg Pincus acquired digital media company Internet Brands from Hellman & Friedman, Polaris Partners and JMI Equity

Acquisition Highlights
  • This is KKR’s 2nd and Warburg Pincus’ 1st transaction in the Digital Media sector.
  • This is KKR’s 66th and Warburg Pincus’ 137th transaction in the United States.
  • This is KKR’s 13th and Warburg Pincus’ 29th transaction in California.

M&A Deal Summary

Date 2014-06-03
Target Internet Brands
Sector Digital Media
Buyer(s) KKR
Warburg Pincus
Sellers(s) Hellman & Friedman
Polaris Partners
JMI Equity
Deal Type Secondary Buyout
Advisor(s) Munger Tolles & Olson (Legal)

Target

Internet Brands

El Segundo, California, United States
website
Internet Brands is an internet media company that owns and operates online media, community, and e-commerce websites in vertical markets. Internet Brands was founded in 1998 and is based in El Segundo, California.

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Buyer(S) 2

Buyer

KKR

New York, New York, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1976
PE ASSETS 510.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION
KKR's office in Menlo Park, California.
KKR's office in Menlo Park, California.

KKR is a global investment firm founded by Jerome Kohlberg, Henry Kravis, and George Roberts. The Firm is separated into several business segments including private markets, public markets, capital markets, and other principal activities. KKR's private equity practice invests in management buyouts, take privates, corporate divestitures, industry consolidations, and partnerships with family-owned companies. KKR will invest in a broad range of industries and companies and will consider businesses throughout North America, Europe, Asia, and Australia/New Zealand. Sectors of interest include chemicals, consumer products, energy and natural resources, financial services, healthcare, industrial, media/communications, retail, and technology. In addition to its traditional principal investment activity business, KKR also invests in infrastructure assets. KKR was formed in 1976 and is based in New York, New York.


DEAL STATS #
Overall 147 of 426
Sector (Digital Media) 2 of 7
Type (Secondary Buyout) 31 of 100
State (California) 13 of 41
Country (United States) 66 of 187
Year (2014) 9 of 25
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-05-27 Goodpack

Singapore, Singapore

Goodpack is a provider of packaging, transporting, and storage for global core industries. Goodpack was formed in 1990 and is based in Singapore.

Buy $1.1B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-06-05 Afriflora

Aalsmeer, Netherlands

Afriflora is a supplier of quality roses at fair trade standards to Europe. Established in 2005 by the Barnhoorn family, Afriflora has over 11,000 employees. The Company is headquartered in Aalsmeer, Holland and operates three farms in Ethiopia covering 500 hectares. It cultivates, produces and sells over 1.1billion stem roses annually with the majority of these to the European market.

Buy -
Buyer

Warburg Pincus

New York, New York, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1966
PE ASSETS 83.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Warburg Pincus is a mega-sized, global private equity firm focused on investment opportunities across North America, Asia, and Europe. Warburg will consider investing at various company stages, from early-stage opportunities to distressed situations. Warburg Pincus is organized by industry groups. Verticals include financial services, healthcare, technology, media & telecommunications, energy, consumer & industrial, and real estate. Within financial services, Warburg will consider asset/wealth managers, banks, exchanges, financial technology, insurance, transaction processing, private banking, and specialty/consumer finance. Within healthcare, specific areas of interest include medical devices, healthcare services, and biotech/pharmaceuticals. Within technology/media/communications, Warburg targets software, media/internet/information, financial technology, telecom, business services, and systems/semiconductors. Within energy, specific areas of interest include oil/gas exploration, power generation/transmission, and alternative energy. Warburg Pincus raised its first fund in 1966 and is based in New York City.


DEAL STATS #
Overall 256 of 473
Sector (Digital Media) 1 of 1
Type (Secondary Buyout) 33 of 62
State (California) 29 of 46
Country (United States) 137 of 234
Year (2014) 16 of 25
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-06-02 Turnitin

Oakland, California, United States

Turnitin is a provider of academic integrity and writing solutions and supports authentic work across the curriculum. Turnitin provides instructors with the tools to prevent plagiarism, engage students in the writing process, and provide personalized feedback. Turnitin was founded in 1997 and is based in Oakland, California.

Sell $752M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-06-05 Navitas Midstream

The Woodlands, Texas, United States

Navitas Midstream is a producer-focused midstream company that provides a full slate of midstream services including gathering, treating, processing, fractionation, and pipeline transportation of natural gas, natural gas liquids, condensate and crude oil. Navitas Midstream is based in The Woodlands, Texas.

Buy -

Seller(S) 3

SELLER

Hellman & Friedman

San Francisco, California, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1984
PE ASSETS 50.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Hellman & Friedman (H&F) is a large private equity firm on the West Coast of the US. H&F focuses on control and minority investments in a variety of transaction structures and will consider opportunities across the US and Europe. H&F seeks buyouts and business in need of restructurings that operate in defensible markets with predictable revenue and earnings growth. Target sectors include financial services, healthcare, indusrial, energy, insurance, media, marketing, professional services, software, and information services. H&F's target equity investment size is $300 million to $1 billion. Hellman & Friedman was formed in 1984 and has offices in San Francisco, New York City, and London.


DEAL STATS #
Overall 38 of 59
Sector (Digital Media) 2 of 2
Type (Secondary Buyout) 11 of 15
State (California) 6 of 8
Country (United States) 28 of 43
Year (2014) 6 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-05-29 Sheridan Healthcare

Sunrise, Florida, United States

Sheridan Healthcare, Inc. is a multi-specialty physician practice management company that provides outsourced physician staffing services to hospitals and ambulatory surgery centers.

Sell $2.4B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-08-04 ABRA Auto Body & Glass

Brooklyn Park, Minnesota, United States

ABRA Auto Body & Glass is a provider of vehicle damage repair services specializing in collision repair, paintless dent removal, and auto glass repair and replacement. ABRA Auto Body & Glass was founded in 1984 and is based in Brooklyn Park, Minnesota.

Buy -
SELLER

Polaris Partners

Investor Investor Investor Investor Investor

website


Category Growth Capital Firm
Founded 1996
PE ASSETS 5.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Polaris Partners is primarily a seed, first round, and early stage venture capital investor in information technology and life science businesses. However, Polaris also focuses on private equity investments in established companies. In this area, Polaris targets high growth middle market companies in industries including technology, healthcare, digital media, consumer products and services, and business services. The firm's investments include minority growth equity investments, recapitalizations with liquidity, and leveraged buyouts. Polaris Partners was formed in 1996 and has offices in Seattle, Washington and Waltham, Massachusetts.


DEAL STATS #
Overall 10 of 30
Sector (Digital Media) 1 of 1
Type (Secondary Buyout) 1 of 8
State (California) 2 of 5
Country (United States) 8 of 28
Year (2014) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-04-03 TRG Screen

New York, New York, United States

TRG Screen is a provider of software used to monitor and manage subscription spend and usage across the entire enterprise. TRG Screen’s clients realize immediate ROI and significant long-term cost savings, transparency into their purchased subscriptions, improvements of their workflows and a higher degree of compliance with their vendor contracts. TRG Screen was founded in 1998 and is based in New York City.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-06-19 Navitor

Cambridge, Massachusetts, United States

Navitor is pioneering the development of novel therapeutics for a wide range of diseases by targeting the primary cellular pathway involved in nutrient signaling and regulation of cell growth and function. Navitor was founded in 2010 and is based in Cambridge, Massachusetts.

Buy -
SELLER

JMI Equity

La Jolla, California, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1992
PE ASSETS 7.5B USD
Size Mega
Type Sector Focused
DESCRIPTION

JMI Equity is a private equity firm focused on investments in software, internet, business service, and healthcare IT. Targeted businesses typically help automate and optimize business and information technology processes. The Firm will consider investments at all stages of development, including early-stage companies, self-funded businesses requiring growth capital, and later stage businesses in need of buyout or recapitalization funding. JMI looks to commit at least $10 million per transaction. JMI Equity was formed in 1992 and maintains offices in San Diego and Baltimore.


DEAL STATS #
Overall 62 of 105
Sector (Digital Media) 1 of 1
Type (Secondary Buyout) 4 of 18
State (California) 11 of 18
Country (United States) 56 of 93
Year (2014) 2 of 7
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-04-07 Vocus

Beltsville, Maryland, United States

Vocus, Inc. is a provider of cloud marketing software that enables businesses to attract, engage and retain customers.

Sell $447M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-06-09 Autotask

East Greenbush, New York, United States

Autotask Corp. is a provider of hosted IT business management software to streamline and optimize business processes for technology solution providers.

Sell -