Ksplice Bought By Oracle, Q2 Boston Deals Break $1B, General Catalyst Funds Airbnb, & More Boston-Area Deals News
[Corrected 7/27/11, 10:20 am. See below.]Deals news was red-hot in the last week, with reports of $1B+ investment totals from the year’s second quarter and a massive June Massachusetts funding pot. We also caught a fresh stream of headlines on financings and acquisitions.
—Lexington, MA-based drug developer Amag Pharmaceuticals (NASDAQ: AMAG said it would merge with Allos Therapeutics (NASDAQ: ALTH) in a $686 million, all-stock transaction. Read about how Wall Street reacted to the deal here.
—Venture capital investments in Boston-area companies last quarter broke the $1 billion mark ($1.06 billion), according to the MoneyTree Report prepared by the National Venture Capital Association, PricewaterhouseCoopers, and Thomson Reuters. That’s nearly double the dollar amount of the previous quarter, and the highest investment per quarter since Q1 2001, when area startups socked away $1.37 billion, my colleague Greg wrote.
—Cambridge, MA-based startup Ksplice, which enables computer users to apply software updates without rebooting, was scooped up by database giant Oracle (NASDAQ: ORCL) for an undisclosed sum. [An earlier version of this paragraph mistakenly stated Ksplice enables users to apply software updates with rebooting. We regret the error.] Oracle said it will use the Ksplice technology to enhance the security and reliability of its Linux product line. Here is Ksplice co-founder Waseem Daher’s inside account of how his fledgling company got to the MIT $100K competition finals a few years back. And in this article, Back to Work and Flipping Cheeseburgers—A 100K Winner’s Tale—he tells what it was like to win it.
—Investors poured a whopping $564.7 million into Massachusetts high-tech startups throughout the month of June, CB Insights FundingFlash informed us. The roughly 85 percent increase in funding from May can be attributed, in part, to deals like the $165 million Series A round for Boston-based CSN Stores.
—Soon-to-be Boston-headquartered software startup CloudBees nabbed a $10.5 million Series B financing led by Lightspeed Venture Partners. CloudBees will put the money, which also comes from return backer Matrix Partners, towards selling, marketing, and developing its software that enables businesses to create and run Java-based applications in the Internet cloud.
—Framingham, MA-based GlassHouse Technologies, an IT consulting firm that’s filed plans for an initial public offering, took in another $6 million in funding. Citrix Systems (NASDAQ: [[ticker:CTXS]) and Greenspring Associates invested $5 million and $1 million, respectively.
—Cambridge-based venture firm General Catalyst Partners was part of the group that pumped a massive $112 million into Airbnb, a San Francisc0-based startup powering an online platform for renting out your home to travelers looking for options beyond hotels. Other Airbnb investors include Andreessen Horowitz, DST Global, Greylock Partners, Sequoia Capital, Ron Conway’s SV Angel, actor Ashton Kutcher, and Youniversity Ventures.
—Chargify, the recurring billing technology offshoot of Needham, MA-based software developer the Grasshopper Group, took in an undisclosed amount of funding from Mark Cuban, owner of 2011 NBA champions the Dallas Mavericks.
With Ashton Kutcher, Mark Cuban, and Larry Ellison all making Massachusetts news, it was a pretty busy week.