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Venture Capital-Backed Exits to Corporate Investors – July 2013

by Jonathan Parker

  • 18 Jul 2013
  • PE

With trade sale exits comprising a large proportion of venture capital-backed exits, certain companies have built a record of acquiring firms that had previously received venture capital funding. Since 2008, Google has been the most prolific acquirer of venture capital-backed firms, with 33 deals completed. IBM has acquired nearly as many venture capital-backed companies, with 30 since 2008, closely followed by Cisco Systems with 27 and Oracle Corporation in fourth place with 24 acquisitions. Microsoft has acquired 19 venture capital-backed firms since 2008, while Facebook and Salesforce have each acquired 18. Completing the top ten are Yahoo, with 17 acquisitions, followed by Groupon and Twitter, each with 16.

In terms of aggregate deal value, Salesforce’s 18 acquisitions of venture capital-backed companies since 2008 have cost more in total than any other company’s acquisitions, at $4.2bn. This was largely due to the $2.5bn acquisition of ExactTarget, a firm which had received funding from the likes of Battery Ventures and Scale Venture Partners. Cisco Systems follows closely, with $4.1bn worth of acquisitions reported, the largest being the November 2012 purchase of Meraki, valued at $1.2bn. Despite Google having acquired the highest number of venture capital-backed companies since 2008, the company sits in third place in terms of aggregate deal value, with $3.8bn worth of acquisitions reported. The most recent of these was announced in June, with the $1.1bn acquisition of Waze, an Israel-based mobile application developer backed by BlueRun Ventures, Magma Venture Partners, Vertex Venture Capital and others.

Interestingly, in 2013 so far, Yahoo has announced the most acquisitions of venture capital-backed companies, with 9 deals valued at a total of $1.2bn. Cisco Systems has announced 6 purchases, valued at $1.1bn altogether. Salesforce, Twitter and Google have each announced the purchase of 4 venture capital-backed companies in 2013 to date.

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