Amid a turbulent year caused by the coronavirus pandemic, plenty of tech deals still got done in 2020.
A handful of notable Chicago tech companies were acquired this year, including pioneering online babysitter marketplace Sittercity, food delivery giant Grubhub, and exercise startup Cubii, which reportedly sold for $100 million.
Here are some of the top Chicago acquisitions from 2020:
Grubhub gobbled up by European food delivery giant
After weeks of speculation that Grubhub would be bought by Uber, the Chicago food delivery company agreed to a deal in June to merge with Netherlands-based Just Eat Takeaway.com. The all-stock deal valued Grubhub at $7.3 billion. The acquisition was the first in a series of major food delivery deals that took place in 2020 as the Covid-19 pandemic propelled the industry to record growth. In November, Uber bought Postmates for $2.65 billion, and DoorDash went public in December and has a current market cap of more than $47 billion.
Cubii's $100M milestone
Private equity firm Gridiron Capital LLC bought a controlling stake in Fitness Cubed Inc., the maker of Cubii compact ellipticals. The companies didn’t disclose terms of the deal, but sources familiar with the transaction told Crain's the deal was worth about $100 million. The startup raised around $1 million in seed funding from investors such as HealthBox, 1871 CEO Howard Tullman and Fieldglass founder Jai Shekhawat.
Livongo's major health-tech deal
Livongo Health, a health care tech company founded by Chicago entrepreneur Glen Tullman, was acquired in August by New York telemedicine company Teladoc Health in an $18.5 billion deal. Founded in 2014, Livongo makes a blood glucose monitor and digital dashboard to help people manage diabetes and other chronic health conditions. The combined company is expected to do $1.3 billion in revenue this year, the companies said at the time of the deal.
FedEx buys Sam Yagan's ShopRunner
In December, FedEx agreed to acquire Chicago-based e-commerce company ShopRunner, a platform led by local entrepreneur and investor Sam Yagan that offers users free two-day shipping on over 100 brands. ShopRunner will now operate as a subsidiary of FedEx Services. Yagan joined ShopRunner as CEO in 2016, which was when the company moved its headquarters from California to Chicago. Yagan is the founder of OKCupid and leads Chicago VC firm Corazon Capital.
HelloFresh scoops up Factor75
Berlin-based meal kit company HelloFresh announced in November plans to acquire Chicago's Factor75, a ready-to-eat meal startup. HelloFresh agreed to pay $177 million for Factor75 upon the close of the deal, and another $100 million in performance-based earn-outs and management incentives. Factor75, which is expected to do around $100 million in revenue this year, raised less than $16 million in outside capital since its founding in 2013.
Avail finds a home with Realtor.com
Avail, a Chicago startup that makes software for landlords, got scooped up by Realtor.com in December. The startup, which aims to help landlords more easily screen tenants, collect rent and manage maintenance requests, was acquired by Realtor.com's parent company, Move Inc., which is a subsidiary of News Corp., the publicly traded media and publishing company led by the Murdoch family. Terms of the deal weren't disclosed. Founded in 2012, Avail raised just under $10 million in VC funding.
IBM goes shopping for two Chicago tech companies
IBM acquired two Chicago startups in the same week this November. First, it agreed to acquire TruQua Enterprises for an undisclosed price. Founded in 2010, TruQua provides SAP solutions to Fortune 500 companies. Then IBM announced plans to purchase Instana, an application performance monitoring (APM) startup that develops application performance management software, also for an undisclosed price. IBM's most noble Chiago tech deal was in 2015 when it paid $1.3 billion for Cleversafe.
Rinse cleans up with Dryv
Chicago on-demand dry cleaning startup Dryv was acquired by California competitor Rinse in November. Dryv was founded in 2013 and served the majority of the Chicago area. Terms of the deal were not disclosed, but Rinse CEO Ajay Prakash said in a statement to Chicago Inno that the company acquired exclusive rights to Dryv, including the domain name and customer list. Dryv will adopt the Rinse branding.
CUNA mutual buys insurance startup ForeverCar
ForeverCar, which sells extended vehicle service policies, was purchased by CUNA Mutual Group in November. Chicago-based ForeverCar sells four types of vehicle service plans online, which provide automotive protection beyond manufacturers' or powertrain warranties. CUNA Mutual said adding ForeverCar's digital platform and marketing capabilities will boost the Madison company's lending and insurance product portfolio.
Danone buys Real Food Blends
In October, Real Food Blends, a company that makes 100% real food for people with feeding tubes, was acquired by Nutricia, a nutrition company that's owned by yogurt giant Danone. Terms of the deal were not disclosed, but President and co-founder Tony Bombacino said Real Food Blends has been profitable since 2015 and has sold "tens of millions of dollars" of its feeding tube meals since the company started in 2014. Real Food Blends raised just $600,000 in outside funding.
YCharts strikes deal with PE firm
Chicago-based Investment research company YCharts was purchased by LLR Partners, a Philadelphia private equity firm, in October. YCharts employs about 65 people in Chicago and provides investment analytics for about 6,000 clients. Founded in 2010, its previous investors included Hyde Park Angels, I2a, REV Venture Partners and Morningstar.
Signal scooped up by TransUnion
Chicago ad-tech startup Signal was acquired by credit reporting agency TransUnion. Founded in 2009 as BrightTag, Signal gives brands data about their customers. The startup raised more than $60 million to date, and it counts I2A, Pritzker Group Venture Capital, Baird Capital and Yahoo! Japan among its backers.
Sittercity acquired by Bright Horizons
Sittercity, a Chicago tech company that pioneered online child care solutions with its marketplace that connects families and caregivers, was acquired in August by publicly-traded child care provider Bright Horizons. Founded in 2001 by Genevieve Thiers, Sittercity created the first online platform for finding in-home child care. Thiers stepped down as CEO in 2009, and the company is now led by CEO Elizabeth Harz, who previously held leadership roles at Yahoo and Electronic Arts. Harz will remain the company's CEO.
Level Ex lands deal with German firm
Level Ex, a Chicago tech company that makes video games for physicians to learn medical skills, was purchased in June by German firm Brainlab. Level Ex, which had 105 employees at the time of the acquisition, is now a wholly owned subsidiary of Brainlab. The five-year-old company raised more than $17 million.
1871 acquires ITA
In February, 1871 acquired the Illinois Technology Association in a move to consolidate two Chicago tech entities that aim to strengthen and support the city’s tech economy. The two organizations had long operated in a similar space, providing tech-focused events, programs and resources to Chicagoans. And with the acquisition, the goal is to provide more clarity and cohesion on where to find these resources, 1871 CEO Betsy Ziegler told Chicago Inno.
