Here are six recent deals that caught our attention.
• Dosh Inc., a Bee Cave-based financial technology company, is being acquired by Cardlytics Inc. (Nasdaq: CDLX), an Atlanta-headquartered digital advertising platform, for $275 million in cash and stock.
Founded in 2015 by serial entrepreneur and CEO Ryan Wuerch, Dosh's software platform enables merchants to deposit cash into customers’ accounts immediately after they make a purchase. Dosh's diversion of billions of dollars from marketing and advertising budgets directly to millions of consumers caught the attention of investors like Chi-Hua Chien, co-founder and managing partner at Goodwater Capital LLC, a California venture capital firm, and Alex Ok, president of Forever 21 Inc., a popular California-based fashion clothing retailer.
The startup, which in 2017 launched its product, in August unveiled a white-label kind of technology that allows fintech companies like Venmo and neobanks such as Jelli Finance Co. to offer card-linked immediate cash back. Dosh raised at least $96 million in venture capital, including a $40 million series B round in 2019 and a $44 million series A round in 2018.
Bank of America Securities is financial adviser and Cooley LLP is legal adviser to Cardlytics. The transaction is expected to close later this quarter.
Wuerch said the merger is particularly satisfying due to the companies' shared vision of moving advertising to consumers and merchants. He remains Dosh CEO and the company will continue operations as is, Wuerch said. Dosh's roughly 90 employees will also keep their positions, he said. The combination of the businesses opens up for opportunities for international expansion, Wuerch said.
In 2020, Cardlytics had $186.9 million in revenue, down about 11% from $210.4 million in revenue in 2019, Atlanta Business Chronicle reported.
— Mike Cronin
• Digital Turbine Inc. (Nasdaq: APPS), an Austin-based mobile app development and mobile advertising company, announced Feb. 26 it is buying AdColony Holding AS from Otello Corp. ASA of Norway for $350 million to $375 million. The money will come in the form of $100 million in cash at closing, $100 million in cash to be paid six months after closing and an earn-out payment of $150 million to $175 million in cash, according to the announcement. Earn-out payments are based on the acquired company meeting specific financial goals.
AdColony is a mobile advertising platform servicing advertisers and publishers and, according to the announcement, reaches of more than 1.5 billion monthly global users. Digital Turbine, led by CEO Bill Stone, said the money for the acquisition would come from a mix of cash on hand and borrowing under its existing senior credit facility, plus with future capital financing.
Digital Turbine had the best stock performance of any Austin technology company in 2020, with its stock price climbing roughly 712% last year. Its up another 44% so far this year, opening Feb. 26 at $76.78.
— Will Anderson
• Trendline Interactive, a digital messaging consulting and professional services firm headquartered in Austin, announced Feb. 25 its purchase of Data Insight Group Inc., a Canadian data and analytics company. Financial terms were not disclosed but Trendline said the acquisition was completed with financial support from mid-market private equity firm Growth Catalyst Partners. Trendline framed the deal as a way to strengthen its "data science and analytics services in order to better help its customers understand their data and more effectively leverage its value." The company, which operates legally as Trendline Interactive Holdings LLC, is led by CEO Morgan Stewart.
This latest acquisition follows Trendline's buyouts of email agencies Inbox Marketer in 2019 and Inbox Pros in 2018. Trendline ranked No. 1,862 on the Inc. 5000 with three-year revenue growth of 228%.
— Will Anderson
• Phlur, an Austin company making fragrances for men and women, has been acquired by The Center, a Los Angeles-based beauty brand incubator and investor, WWD reported Feb. 24. Financial terms were not disclosed.
Husband and wife Eric Korman, a former Ralph Lauren executive, and Cynthia Korman founded Phlur in 2015. It sells its cruelty-free, vegan fragrances — such as X — through retailers such Credo and Sephora as well as direct to consumer on its website.
The Center was founded by Ben Bennett in 2019 after he sold cosmetics incuabtor HatchBeauty Brands to Lion Capital LLP.
— Will Anderson
• Austin-based hospital system St. David’s HealthCare announced March 1 its purchase of Urgent and Family Care at 10625 W. Parmer Lane, Suite D 400, in Austin's Avery Ranch neighborhood. The clinic will be rebranded to St. David’s CareNow Urgent Care, giving St. David's 15 CareNow locations in the region. Financial terms were not disclosed.
The urgent care centers are intended to treat "non-life-threatening illnesses and injuries, such as sprains and strains, minor burns, coughs, sore throats and flu-like symptoms, as well as physicals, vaccinations, general diagnostics and check-ups," according to the announcement. The clinic can also provide occupational medicine services, such as examinations and treatment of injured workers in worker’s compensation cases, pre-employment screenings and drug tests.
St. David's has more than 10,600 employees and 132 care sites in the Austin area. It is a partnership between hospital management company HCA Healthcare and two local nonprofits, the St. David’s Foundation and Georgetown Health Foundation.
— Will Anderson
• Rethink, an Austin-based maker of customer relationship management software for commercial real estate, has been acquired by Buildout, a Chicago-headquartered company making similar CRE dealmaking tools, according to a Feb. 23 announcement. Financial terms were not disclosed.
The announcement said "Rethink’s product suite and team" will be incorporated into Buildout. CEO Vijay Mehra founded Rethink in 2007 as Think Tech Labs LLC.
Buildout is backed by The Riverside Company, a New York City-based private equity firm.
— Will Anderson
