Attached is the tear-sheet and Venture Source information for an acquisition out of South Florida in 2000. Qtera was bought for $3 billion a mere 14 months after the initial round of venture capital. If you assume that the venture capital investors in Round 1 & 2 bought standard preferred shares (you can figure the price based on the investment and the post-money valuation), how much money did the founders take home?
Valulation Questions Welcome Jonathan Loane, Johnson & Johnson Development Current Tracking Code: NONE CONTACT INFORMATION: COMPANY OVERVIEW: FINANCING STATUS: INVESTORS: * = Lead Investor FINANCINGS TO DATE: EXECUTIVES AND BOARDMEMBERS: Qtera www.qtera.com Last Update: October 2009 6413 Congress Avenue Phone: (561)999-9555 Suite 250 Fax: (561)999-0490 Boca Raton FL 33487 United States Business Brief: Developers of fiberoptic systems for telecommunication service providers Founded: 9/1997 Status: Acquired/Merged Employees: 75 Stage: Product Development Previous Name: NextNet Technologies Industry Codes / Industry SubCodes: Fiberoptic Equipment & Photonics Description: As of 2/00 The company was acquired by Nortel Networks (NYSE: NT) on January 28, 2000 for approximately $3.004B in Nortel Networks stock. Investment Firm Participating Round #(s) Battery Ventures 1*, 2 CommVest, LLC 2 Individual Investors 1 Mayfield Fund 2* Nortel Network 4 Oak Investment Partners 2 VantagePoint Venture Partners 2 Round Round Type Date Amount Raised (MM) Post Valuation (MM) Company Stage Round Detail 1 1st 15-Oct-98 $ 6.00 $ 11.00 Product Development 2 2nd 31-Mar-99 $ 25.10 $ 68.21 Product Development 3 Debt 31-Mar-99 $ 6.90 N/A Product Development 4 ACQ 28-Jan-00 N/A $ 3004.00 Product Development Current Executives and Boardmembers https://www.venturesource.com/query/coDet.cfm?eid=12476 5/23/2010 BUSINESS INFORMATION: OUTSIDE PROFESSIONALS: *** END OF REPORT -- Qtera *** © Copyright 2010 Dow Jones & Company. All Rights Reserved. Name Title Background Contact Xiang-Dong Cao Chief Scientist Engineer, Siemens (561)999-9555 Todd Brooks Board Member, Institutional Investor General Partner, Mayfield Fund (561)999-9555 Todd Dagres Board Member, Institutional Investor General Partner, Battery Ventures Morgan Jones Board Member, Institutional Investor General Partner, Battery Ventures (781)577-1000
[email protected] Former Executives and Boardmembers Name Title Background Contact Fahri Diner Former President & CEO Engineer, Siemens
[email protected] Overview: Developers of fiberoptic systems for telecommunication service providers. Auditor KPMG General Business Banking Silicon Valley East General Counsel Morris Manning & Martin https://www.venturesource.com/query/coDet.cfm?eid=12476 5/23/2010 For help on VentureSource, email Client Services at
[email protected]. Or call 1-877-633-8663 or +1 (415) 439-6687 (US) or +44 (0) 207 842 9855 (Europe-Israel). © Copyright 2010 Dow Jones & Company. All Rights Reserved. Unauthorized Reproduction or Distribution Prohibited. Privacy Statement https://www.venturesource.com/query/coDet.cfm?eid=12476 5/23/2010 M&A Tearsheet Deal Synopsis and Purpose Nortel Networks Corp to acquire Qtera Corp for 3,250.0 million 12/15/1999 US - Nortel Netw orks Corp acquired Qtera Corp, a manufacturer of f iber optic telecommunications equipment, for $3.25 bil. The consideration consisted of $2. 75 bil in common stock and up to $500 mil in common stock in profit-related payments. Deal Purpose No Data Available Target Target Name Qtera Corp Nationality United States Primary SIC Code 3661 TF Macro Industry Telecommunications TF Mid Industry Telecommunications Equipment Public Status Priv. Ticker - Listings - PortFolio Company Name - SWF Involvment N Financial Sponsor Involvement N Business Description Manufacture and w holesale telecommunications equipment and products, including f iber optic netw orking equipment Advisors Financial Advisors Role Rank Value (USD mil) Dain Rauscher Wessels Advisory 3,250.0 Legal Advisors Role Rank Value (USD mil) - - - Transaction Statistics Deal Value (USD mil) 3,250.0 Deal Value (EUR mil) 3,238.7 Rank Value (USD mil) 3,250.0 Rank Value (EUR mil) 3,238.7 Ratio of Rank Value to Sales - Ratio of Rank Value to EBITDA - Ratio of Rank Value to EBIT - Ratio of Deal Value (excl Assumed Liabilities) to Net Income - Initial Offer Price (USD) - Share Price Paid by Acquiror (USD) - Share Price Paid by Acquiror (EUR) - Premium, Pre Bid 1 Day (%) - 1 Week (%) - 4 Weeks (%) - Acquiror Acquiror Name Nortel Netw orks Corp Nationality Canada Primary SIC Code 3661 TF Macro Industry Telecommunications TF Mid Industry Telecommunications Equipment Public Status Public Ticker NT Listings TSXVenture PortFolio Company Name - SWF Involvment N Financial Sponsor Involvement N Business Description Nortel Netw orks Corp, located in Toronto, Ontario, Canada, manufactures and w holesales netw orking products, primarily focused on building the infrastructure, service enabling solutions and applications for the new , high- performance Internet. The products, services and solutions are marketed under trademarks NORTEL, NORTEL NETWORKS, NT, the GLOBEMARK and SUCCESSION. The company w as founded in 1895. Advisors Financial Advisors Role Rank Value (USD mil) Credit Suisse First Boston Advisory 3,250.0 Legal Advisors Role Rank Value (USD mil) Gibson Dunn & Crutcher Counsel to Acquiror 3,250.0 Deal Details Deal Number : 952396020 Related Deal Number - Status Completed Date Announced 12/15/1999 Rank Date 12/15/1999 Date Effective 01/29/2000 Deal Attitude Friendly Consideration Structure Cash and Stock Combination % Held - % Sought 100.0 % Acquired 100.0 Cross Border Yes Acquisition Techniques Not Applicable Additional Information Target Details Target Stock Price on day of announcement - Target Stock Price one day after announcement - Equity Value at Announcement Date - Equity Value at Effective Date - Enterprise Value at Announcement Date - Enterprise Value at Effective Date - Acquiror Details Acquiror Stock Price on day of announcement - Acquiror Stock Price one day after announcement - Forecasted Deal Multiples NTM FY1 FY2 Forecasted Net Sales ($Mil) - - - Forecasted EBITDA ($Mil) - - - Forecasted EBIT ($Mil) - - - Forecasted Pre-Tax Income ($Mil) - - - Forecasted Net Income ($Mil) - - - Forecasted EPS ($Mil) - - - Forecasted Ratios NTM FY1 FY2 Ratio of Transaction Value Excluding Assumed Liabilities to Forecasted Sales - - - Ratio of Transaction Value to Target Forecasted EBITDA Next Tw elve Months - - - Ratio of Transaction Value to Forecasted EBIT - - - Ratio of Transaction Value to Forecasted Net Income - - - Source : Thomson Reuters Note : Data is continuously updated and is therefore subject to change. 2010 Thomson Reuters. All Rights Reserved. M&A Tearsheet Deal Synopsis and Purpose Nortel Networks Corp to acquire Qtera Corp for 3,250.0 million 12/15/1999 US - Nortel Netw orks Corp acquired Qtera Corp, a manufacturer of f iber optic telecommunications equipment, for $3.25 bil. The consideration consisted of $2. 75 bil in common stock and up to $500 mil in common stock in profit-related payments. Deal Purpose No Data Available Target Target Name Qtera Corp Nationality United States Primary SIC Code 3661 TF Macro Industry Telecommunications TF Mid Industry Telecommunications Equipment Public Status Priv. Ticker - Listings - PortFolio Company Name - SWF Involvment N Financial Sponsor Involvement N Business Description Manufacture and w holesale telecommunications equipment and products, including f iber optic netw orking equipment Advisors Financial Advisors Role Rank Value (USD mil) Dain Rauscher Wessels Advisory 3,250.0 Legal Advisors Role Rank Value (USD mil) - - - Transaction Statistics Deal Value (USD mil) 3,250.0 Deal Value (EUR mil) 3,238.7 Rank Value (USD mil) 3,250.0 Rank Value (EUR mil) 3,238.7 Ratio of Rank Value to Sales - Ratio of Rank Value to EBITDA - Ratio of Rank Value to EBIT - Ratio of Deal Value (excl Assumed Liabilities) to Net Income - Initial Offer Price (USD) - Share Price Paid by Acquiror (USD) - Share Price Paid by Acquiror (EUR) - Premium, Pre Bid 1 Day (%) - 1 Week (%) - 4 Weeks (%) - Acquiror Acquiror Name Nortel Netw orks Corp Nationality Canada Primary SIC Code 3661 TF Macro Industry Telecommunications TF Mid Industry Telecommunications Equipment Public Status Public Ticker NT Listings TSXVenture PortFolio Company Name - SWF Involvment N Financial Sponsor Involvement N Business Description Nortel Netw orks Corp, located in Toronto, Ontario, Canada, manufactures and w holesales netw orking products, primarily focused on building the infrastructure, service enabling solutions and applications for the new , high- performance Internet. The products, services and solutions are marketed under trademarks NORTEL, NORTEL NETWORKS, NT, the GLOBEMARK and SUCCESSION. The company w as founded in 1895. Advisors Financial Advisors Role Rank Value (USD mil) Credit Suisse First Boston Advisory 3,250.0 Legal Advisors Role Rank Value (USD mil) Gibson Dunn & Crutcher Counsel to Acquiror 3,250.0 Deal Details Deal Number : 952396020 Related Deal Number - Status Completed Date Announced 12/15/1999 Rank Date 12/15/1999 Date Effective 01/29/2000 Deal Attitude Friendly Consideration Structure Cash and Stock Combination % Held - % Sought 100.0 % Acquired 100.0 Cross Border Yes Acquisition Techniques Not Applicable Additional Information Target Details Target Stock Price on day of announcement - Target Stock Price one day after announcement - Equity Value at Announcement Date - Equity Value at Effective Date - Enterprise Value at Announcement Date - Enterprise Value at Effective Date - Acquiror Details Acquiror Stock Price on day of announcement - Acquiror Stock Price one day after announcement - Forecasted Deal Multiples NTM FY1 FY2 Forecasted Net Sales ($Mil) - - - Forecasted EBITDA ($Mil) - - - Forecasted EBIT ($Mil) - - - Forecasted Pre-Tax Income ($Mil) - - - Forecasted Net Income ($Mil) - - - Forecasted EPS ($Mil) - - - Forecasted Ratios NTM FY1 FY2 Ratio of Transaction Value Excluding Assumed Liabilities to Forecasted Sales - - - Ratio of Transaction Value to Target Forecasted EBITDA Next Tw elve Months - - - Ratio of Transaction Value to Forecasted EBIT - - - Ratio of Transaction Value to Forecasted Net Income - - - Source : Thomson Reuters Note : Data is continuously updated and is therefore subject to change. 2010 Thomson Reuters. All Rights Reserved.