The Real Deal

Southeast Startups: +$50 Billion in 5 Years

By February 15, 2017 No Comments

As I travel discussing the opportunity Valor presents to sophisticated investors, I get questions on the Southeast, where our venture firm is headquartered. Some of those questions are on exits–what’s the climate like in the Southeast?

You know–HOT. Here are some of the exits in just the last year–not an exhaustive list:

MicroMass Communications MicroMass Communications acquired by UDG Healthcare UDG Healthcare 14-Sep-17 $75,800,000
eVestment eVestment acquired by NASDAQ NASDAQ 5-Sep-17 $705,000,000
Numerex Numerex acquired by Sierra Wireless Sierra Wireless 2-Aug-17 $107,000,000
NCI NCI acquired by HIG Capital HIG Capital 3-Jul-17 $283,000,000
Comverge Comverge acquired by Itron Itron 8-May-17 $100,000,000
TopTix TopTix acquired by SeatGeek SeatGeek 19-Apr-17 $56,000,000
Preferred Systems Solutions Preferred Systems Solutions acquired by STG Group STG Group 21-Feb-17 $119,000,000
Invincea Invincea acquired by Sophos Sophos 8-Feb-17 $120,000,000

We invest nationally and we love the value in the South.

Around Valor’s headquarters, there’s a great cost of living, serious natural resources, powerful education not only available but culturally valued, and plenty of people who want to work at reasonable rates. Put in a few nice-to-haves like a world class international airport, a deep water port, and a booming acquisitions landscape and you have all the makings of the next technology frontier.

To put some numbers on the situation, I pulled a list of exits over $50 million from the Southeast in the last 5 years. To be on the list, the exit had to be $50 million or more and the company had to have its headquarters in the Southeast (not including Texas just FYI).

Southeast Startups

Acquired Company NameAcquiring Company NameAnnounced On DatePrice
Atlas Paper MillsResolute Forest Products11/25/15$156,000,000
DatamyneDescartes Systems Group12/23/16$52,700,000
IPC SystemsCenterbridge Partners LP12/1/14$1,200,000,000
Wireless MatrixCalAmp12/20/12$53,000,000
Prolexic TechnologiesAkamai Technologies12/2/13$390,000,000
RedPrairieJDA Software11/2/12$1,900,000,000
EloquaOracle Corporation12/20/12$871,000,000
Lender Processing ServicesFidelity National Financial5/28/13$2,900,000,000
Advanced Liquid LogicIllumina7/23/13$96,000,000
Official PaymentsACI Worldwide9/23/13$109,000,000
VitrueOracle Corporation5/23/12$300,000,000
TITAN GSVelocity Technology Solutions4/4/14$80,000,000
New Wave SurgicalCovidien4/11/14$100,000,000
Contact At Once!LivePerson11/5/14$65,000,000
AppiaDigital Turbine11/13/14$100,000,000
DuracellBerkshire Hathaway11/13/14$4,700,000,000
EmdeonChange Healthcare11/19/14$185,000,000
Automated InsightsVista Equity Partners2/12/15$80,000,000
Applied Predictive TechnologiesMasterCard4/27/15$600,000,000
Recall HoldingsIron Mountain4/28/15$2,600,000,000
CarpathiaQTS Realty Trust5/6/15$326,000,000
Interline BrandsThe Home Depot7/22/15$1,600,000,000
BelkSycamore Partners8/24/15$3,000,000,000
PGi (Premiere Global Services)Siris Capital Group9/10/15$1,000,000,000
ADERANTRoper Technologies10/7/15$675,000,000
MedAssetsPamplona Capital Management11/2/15$2,700,000,000
ServigisticsParametric Technology (PTC)8/8/12$220,000,000
AddThisOracle Corporation1/5/16$200,000,000
NexidiaNICE Systems1/11/16$135,000,000
GATR TechnologiesCubic Corporation2/3/16$232,500,000
TradeKingAlly Financial4/5/16$275,000,000
CventVista Equity Partners4/18/16$1,650,000,000
LexmarkApex Technology Co4/19/16$3,600,000,000
OpowerOracle Corporation5/2/16$532,000,000
Axiall CorpWestlake Chemical Corporation6/10/16$3,800,000,000
Tower CloudCommunications Sales & Leasing6/20/16$230,000,000
XOS DigitalCatapult Sports7/13/16$60,000,000
DeltekRoper Technologies12/6/16$2,800,000,000
DeltekThoma Bravo8/27/12$1,100,000,000
Transcend ServicesNuance Communications3/7/12$300,000,000

The barchart shows a definite trend for Southeastern software firms.