We've tracked seven Austin companies involved in or on the verge of making significant mergers or acquisitions in the past two weeks.
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Michigan-based Blake’s Beverage Co., now the largest independent cider company in the U.S., merged with Austin Eastciders on Nov. 1 as it works to create a sophisticated supply chain in the hard cider realm.
Negotiations with Austin Eastciders began in October 2022. It now operates under the umbrella of Blake's Beverage Co., along with Oregon-based Avid Cider Co. and Blake's own brand, Blake's Hard Cider.
Terms of the deal were not disclosed. Blake's CEO Andrew Blake said it was a cashless merger to keep capital in the business and fund the company's growth as it competes with Boston Beer, which is also behind Samuel Adams, Dogfish Head and Truly Hard Seltzer beverages. The Blake family is the majority shareholder of the parent company that oversees Austin Eastciders, Avid Cider and Blake's Hard Cider.
As the company charts its growth, Blake said the plan is to make no major changes to all three brands. Instead, the company plans to double down on distribution. Read more here.
—Sahar Chmais
Austin-based travel tech company Mondee Holdings Inc. said Nov. 15 it has acquired Silicon Valley-based AI and virtual agents startup Purplegrids Inc. for an undisclosed amount. Purplegrid's 50-person team, along with founders Joseph John and Shibi Sudhakaran, will join Mondee as part of the deal.
“This is a game-changer for Mondee, as it significantly enhances the prowess of our AI vertically integrated travel platform and provides another boost to our first-mover advantage when it comes to AI in travel," Mondee founder and CEO Prasad Gundumogula stated. "It also accelerates our plan to infuse AI across all aspects of our business, beyond Abhi, the leading AI travel platform we have already launched."
Mondee, founded in 2011, went public on the Nasdaq last year and moved its HQ from San Mateo, Calif. to Austin. It operates 17 offices in the U.S. and beyond. Earlier this year, it acquired Dallas-based corporate and humanitarian travel company Skypass Travel Inc. for about $15M.
—Brent Wistrom
Austin-based private equity firm Presidio Investors LLC said Nov. 7 it has acquired a majority share of Santa Clara, Calif.-based supply chain marketing company Almaden.
Terms of the deal weren't disclosed.
The deal adds to Presidio's portfolio of about 14 investments, according to its website. Almaden was founded in 1998; it doesn't appear to have raised venture funding, according to Crunchbase.
—Brent Wistrom
A couple years ago, Austin-based 3D printer manufacturer Essentium Inc. was poised to go public through a SPAC deal. At the time, the company had a nearly $1 billion valuation.
The deal ended up cratering as economic winds complicated things. But now it appears Essentium might get acquired by Ventura, Calif.-based Nexa3D, which is also in the 3D printing business.
The companies announced Nov. 6 that they've signed a letter of intent that puts the deal on track to be closed by the end of 2023. Terms of the deal weren't disclosed.
"Nexa3D and Essentium share a vision of empowering manufacturers to create what was once considered impossible," Essentium CEO Blake Teipel stated. “Our alignment will enable us to offer game-changing 3D printing solutions for our clients. When we considered potential combination partners from around the industry, we were blown away by the growth, technology, and delivery velocity underpinning Nexa3D."
—Brent Wistrom
Austin-based sports analytics startup Zelus Analytics said Nov. 2 that it has acquired fellow Austin-based startup TourIQ Golf, which has an analytics platform for PGA golfers. Financial details weren't provided.
The move comes less than a month after Zelus announced it had completed the first tranche of its series A funding round. It didn't disclose the amount. The funding came from new investors Teamworthy Ventures, Gametime Capital, Kevin Durant and Rich Kleiman's 35V and Billy Beane, former executive VP of the Oakland Athletics.
The startup is led by co-founder and CEO Doug Fearing, who founded the R&D department of the Los Angeles Dodgers. He's also a former University of Texas faculty member. Zelus is focused on predictions, player improvement and team performance in baseball, basketball, hockey, football, cricket and soccer. The company's site shows it is currently hiring for four data and engineering roles, all of which are remote. TourIQ, meanwhile, was founded in 2021 by Cory Jez.
Jez used to lead analytics for the Utah Jazz and, later, Austin FC.
–Brent Wistrom
Austin-based bone cancer treatment company QSAM Biosciences Inc. said Nov. 14 it has agreed to be acquired by Australian biotech company Telix Pharmaceuticals Limited for $33.1 million in Telix stock and up to $90 million more based on achieving certain clinical and commercial milestones. The companies signed a non-binding term sheet for the merger that also calls for Telix to pay QSAM a $2 million pre-closing and option fee.
QSAM, led by co-founder and Executive Chairman Dr. C. Richard Piazza, develops nuclear medicines to treat cancer. Its initial product, CycloSam, is in a phase one safety trial for bone cancer that has metastasized from the breast, lung, prostate or other organs.
“Over the last few months, we have gotten to know Telix’s unique strengths and resources in the radiopharmaceutical space and believe a business combination with them would provide the greatest chances of success for CycloSam and for our shareholders,” Piazza stated. “We will be working diligently to try to get this transaction completed in the first quarter of 2024.”
– Brent Wistrom
Immersed Inc., a startup developing virtual reality workspaces and a VR headset, is moving forward with its plans to go public through a merger with a special purpose acquisition company.
The Austin-based startup is set to merge with Miami-based Maquia Capital Acquisition Corp., according to a Nov. 15 filing with the U.S. Securities and Exchange Commission. The company's Nov. 8 registration statement, which could be updated before the company begins trading shares, shows Immersed is being valued at $150 million.
Maquia and Immersed boards of directors already approved the deal and expect it to be completed in early 2024, though the companies' stockholders would still need to sign off on it. It remains unclear when Immersed might be listed, but the companies have agreed to complete the deal by Feb. 7, 2024 – otherwise it could be dissolved. Read more here.
—Brent Wistrom
