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Notable Consumer Electronics M&A Transactions
07-Mar-2018: Ecobee, developer of Wi-Fi enabled thermostats, raised $61 million of Series C venture funding in a deal led by Energy Impact Partners on March 7, 2018. Thomvest, Relay Ventures, Amazon Alexa Fund, North Consumer_Electronics_Analyst_Newsletter 3-12-18Leaf Capital Partners, Export Development Canada, Ontario Capital Growth Corporation, Tech Capital, GXP Investments and other undisclosed investors also participated in the round. The funds will be used to expand into different smart home categories. The Series C round included some capital raised through a secondary sale of shares. To date, the company has raised $146 million.
07-Mar-2018: Magic Leap, a developer of human computing interfaces and software designed to superimpose 3D computer-generated imagery over real world objects, raised $963 million of Series D venture funding in a deal led by Temasek Holdings and Saudi Arabia’s Public Investment Fund on March 7, 2018, putting the pre-money valuation at $5.45 billion. Alibaba Group, JPMorgan Chase & Company, T. Rowe Price, Temasek Holdings, Axel Springer, GV, Grupo Globo, Fidelity Management and Research, EDB Investments, Janus Henderson Group and other undisclosed investors also participated in the round.
02-Mar-2018: Filament Brands, a manufacturer of kitchen scales, thermometers, timers, outdoor weather measurement devices, was acquired by Lifetime Brands (NASDAQ: CLUT) for $313 million on March 02, 2018. This implies an enterprise value to revenue of 1.76x. Lifetime intends to fund the cash portion with proceeds obtained from a newly committed $275 million senior secured term loan and a $150 million new asset based loan.
01-Mar-2018: Laird (LRD), a provider of products and services that protect electronics from electromagnetic interference and heat, and enables connectivity through wireless apps and antenna systems, entered into a definitive agreement to be acquired by Advent International through a GBP 1.2 billion LBO on March 1, 2018. This equates to an enterprise of $1,678.8 million, or 1.92x revenue and 14.81x EBITDA. The company reached a 200p-per-share cash deal. Completion of the deal remains subject to the go ahead from shareholders, courts and regulatory bodies, including the European Commission and the Ministry of Commerce of the People’s Republic of China. Previously, the company completed its initial public offering on London Stock Exchange under the ticker symbol LRD on June 23, 1949.
27-Feb-2018: Ring, a developer of wireless frequency enabled smart security devices created to reduce crime in communities, was acquired by Amazon.com (NASDAQ: AMZN) for $1.2 billion on February 27, 2018. The deal supports Amazon’s initiatives in the emerging in-home delivery and in-home services market. The deal could also support the spread of Alexa to more smart home devices.
27-Feb-2018: Digital Doc Repair, a provider of cell phone repair and retail services, reached a definitive agreement to be acquired by CPR Cell Phone Repair for an undisclosed amount on February 27, 2018. The acquisition will enable the acquirer to expand its portfolio of tech repair stores.
26-Feb-2018: Spectrum Brands (SPB), a manufacturer of consumer products and appliances, entered into a definitive agreement to receive $374.295 million from HRG Group (NYS: HRG) on February 26, 2018. The transaction advances the wind down of the HRG parent company and eliminates its overhead. Importantly, the combination with Spectrum Brands provides HRG’s shareholders with the ability to participate in the upside potential of the combined company. Previously, the company raised $500 million in its second public offering on the New York stock exchange under the ticker symbol of SPB on May 13, 2015. A total of 5,405,405 shares were sold at a price of $92.5 per share. After the offering, there was a total of 58,703,198 outstanding shares (excluding the over-allotment option) priced at $92.5 per share, valuing the company at $5.43 billion. The total proceeds, before expenses, to the company was $490 million. The underwriters were granted an option to purchase up to an additional 810,811 shares from the company to cover over-allotments, if any.