Top of the Morning
Verizon (Nasdaq: VZ) has agreed to acquire Straight Path Communications (NYSE MKT: STRP), a Glen Allen, Va.-based owner of nationwide rights to millimeter-wave spectrum, for $3.1 billion in stock.
- Why it's the BFD: This is a massive premium. AT&T had originally agreed to acquire Straight Path in April for $95.63 per share, which was nearly triple where Straight Path had been trading ($36.48 per share). Verizon's big-foot puts that stock price multiple north of 5x. And that doesn't even include the $38 million termination fee that Verizon will pay to AT&T, on Straight Path's behalf.
- Bottom line: "Straight Path is so sought after because it has high-frequency airwaves that will be crucial to building out 5G networks. Both AT&T and Verizon are working on building out 5G technology and need those airwaves, which travel short distances, to support robust coverage." ― Kim Hart, Axios
Venture Capital Deals
Private Equity Deals
• Kinder Morgan's (NYSE: KMI) Canadian unit will seek to raise upwards of C$1.75 billion via a Toronto IPO. http://reut.rs/2pnsd9K
• US LBM Holdings, a Buffalo Grove, Ill.-based building materials distributor backed by Kelso & Co., has filed for a $100 million IPO. It plans to trade under ticker symbol LBM, with Barclays listed as left lead underwriter. The company repots a $48 million net loss on around $2.66 billion in revenue for 2016. www.uslbm.com
• Google has acquired Owlchemy Labs, an Austin, Texas-based VR gaming studio that had raised $5 million in seed funding from groups like Capital Factory and Qualcomm Ventures. No financial terms were disclosed. http://tcrn.ch/2r2Ogi3
• Delta-v Capital, a Dallas-based private equity firm, has closed its latest private equity fund with $232 million in capital commitments. www.deltavcapital.com
• GoldPoint Partners, a unit of New York Life, has closed its fourth mezzanine fund with $1.3 billion in capital commitments. www.goldpointpartners.com
• SAIF Partners is raising its third India-focused VC fund with a target of between $350 million and $400 million, per The Economic Times. http://bit.ly/2qYhyyk
• Bowery Capital, a New York-based VC firm, has promoted Nic Poulos from principal to general partner. www.bowerycap.com
• Scott Kupor, managing partner at Andreessen Horowitz, has been named 2017-2018 chair of the National Venture Capital Association. He succeeds Venky Ganesan of Menlo Ventures. www.nvca.org
• Josh Mandel-Brehm, a former business development exec with both Biogen and Genzyme, has joined Polaris Partners as an entrepreneur-in-residence. www.polarispartners.com
• Heather Smith has joined the capital markets group of Houlihan Lokey as a managing director and head of structured equity. She previously was a managing director and head of private financing solutions at Sagent Advisors. www.hl.com