CyberArk Software Ltd., an Israeli digital security solutions provider, will sell 5.36 million shares for between $13 and $15 per share. A sale price within that range would give the company an overall market cap of over $400 million. The company has generated around $40 million in revenue in 2014, and is backed by Jerusalem Venture Partners, Goldman Sachs, Vertex Venture Capital, and Caberet Security. CyberArk will list on the Nasdaq and trade under the CYBR ticker symbol. JP Morgan will lead the underwriting.
Despite accounting for strong demand, Alibaba’s bankers will reportedly stop accepting orders earlier than expected. If shares end up being sold at the high end (which seems all the more likely), Alibaba would receive $21.1 billion and a $162.7 valuation. This equates with roughly 24 times projected 2015 earnings, a favorable ratio compared to the 35x Facebook was traded for when it launched its IPO in 2012.
Rocket Internet, a German technology firm sometimes derisively referred to as an imitator incubator, announced Wednesday its intention to raise €750 million through the Frankfurt Stock Exchange before the end of the year. Rocket Internet began in 1999, when it molded the eBay model to the German market under the name Alando; four months later, eBay purchased Alando for $53 million. Since then the company, which acts as an accelerator by providing the early assistance necessary for a company’s launch in exchange for equity, has exported ideas from Airbnb, Pinterest, and GrubHub and adapted them for local markets. Rocket Internet is led by three brothers, Oliver, Alexander, and Marc Samwer.
After seeing its ad display revenue shrink 7% last quarter, Yahoo has acquired Luminate, a Mountain View, Calif-based online image advertising platform. Luminate raised $28.5 million from a host of backers, including Google Ventures, Shasta Ventures, and Ron Conway (founder of SV Angel). Since taking over the role in July 2012, CEO Marissa Mayer has overseen 40 acquisitions of various sizes. Terms of the Luminate deal have not been disclosed. While Yahoo hopes this most recent acquisition pays off, another corporate investment certainly will, and soon; Yahoo expects to earn as much as $8 billion for its stake in the upcoming Alibaba IPO.
The Japanese Internet conglomerate Rakuten reached an agreement Tuesday to acquire Ebates, an American online rebates service, for $1 billion. Ebates is a San Francisco-based cash back program that currently works with retailers like Home Depot and Macy’s. Founded in 1998, Ebates generated $167 million in revenue last year. “The combination of Rakuten and Ebates is entirely unique and will revolutionize e-commerce,” said Rakuten co-founder and CEO Hiroshi Mikitani in a statement. This is Rakuten’s second substantial purchase of the year. In February, Rakuten bought the Internet messaging service Viber for $900 million. It also is an investor in Pinterest.
Microsoft is believed to be close to purchasing Mojang AB, the Swedish video game developer behind the popular Minecraft game. Speculation puts the price tag at $2 billion, but because the deal can be funded with cash from Microsoft’s overseas operations, it wouldn’t be subject to American repatriation taxes. Majong told The Wall Street Journal that it generated $360 million in revenue last year charging users for copies of the game. Acquiring Majong would ensure that Minecraft was compatible with Windows 8 (it currently is not). If the deal does happen, it will follow another big splash in the video game sector made by Microsoft’s neighbor in the Pacific Northwest, Amazon, which spent $1 billion to acquire Twitch two weeks ago.
HP has acquired Eucalyptus Systems, a provider of open source software to customers interested in building private clouds through Amazon Web Services. The Golena, Calif.-based company had raised over $55 million from a host of investors, including Benchmark, New Enterprise Associates, Institutional Venture Partners, and e.ventures. Terms of the deal were not disclosed.
BlackBerry has acquired Movirtu, a provider of virtual identity solutions for mobile and a former Red Herring Top 100 award winner. Movirtu’s main offering is the Virtual SIM platform, which allows employees of a company to switch between business and personal profiles on their smartphones. “BlackBerry is the best partner to help us carry forward our vision of redefining the mobile experience by introducing virtual identities,” said Carsten Brinkschulte, CEO, Movirtu. “We address the challenges of BYOD and COPE by providing our unique and innovative technology solution through BlackBerry’s existing relationships with mobile operators and customers around the world.”