SASI Insights from the 2014 Flash Memory Summit

Flash Memory Highlights:

Flash memory combined venture funding for 2011 to 2013 tops $1B with $300M invested in just the first 6 months of 2014. M&A has also been very active with 9 deals in 2013 totaling over $2B in consideration. M&A remains hot with 4 deals through the first 6 months 2014 totaling $1.7B in consideration.

SASI Insights:

•   There is plenty of venture fuel left in the tank
•   Expect more funding at both ends of the IT spectrum
•   Later stage rounds will dominate with fewer A rounds
•   M&A likely to remain hot for the next 12 to 18 months
•   Expect some fantastic exits and some fantastic failures
•   Yep, there is a bubble here but do not expect a loud pop

Dan Blank Joins SASI as Managing Director

SAN DIEGO, Calif., June 4, 2014 — Strategic Advisory Services International, LLC (SASI), a boutique M&A advisory firm to technology companies, today announced that Dan Blank has joined the SASI team in the role of Managing Director.  Dan has spent the better part of the last twenty years leading and advising emerging-growth technology companies.   As an investment banker with Adams, Harkness and Hill, Dan helped dozens of companies to realize in excess of $1 billion in market value and he played an important role in the growth of the firm’s investment banking practice. The group leader in the software and internet practice, Dan steered client companies through buy-side and sell-side M&A transactions, initial public offerings and follow-on offerings, and private placements. Dan was then recruited to lead the business development efforts for Mpower Communications, a publicly traded telecommunications provider. Dan expanded his scope at Mpower to the sales organization, where he played a leading role in restructuring the 500 person sales organization, and redesigned training, compensation and performance analysis, thereby increasing revenue and margin while reducing customer acquisition costs. Dan was then asked to spearhead the corporate development efforts and was responsible for divesting three material business units in three unique transactions.  Dan was later recruited to Infinia Corp., a Paul Allen-financed solar equipment manufacturer, where he was tasked with integrating sales, finance, engineering and manufacturing to support the fulfillment of $2B in contracts for energy developers around the world. Most recently, Dan led development and strategy for Social Venture Partners. He is passionate about providing enhanced educational opportunities to the under-served and he is an advocate for fostering new ideas and initiatives to help not-for-profits increase their impact in the community.  Dan will help expand SASI’s presence in Southern California and will build key strategic relationships across venture firms, early stage start-ups and leading public technology companies.

“Dan is a veteran who brings a unique combination of experiences as an investment banker and in his corporate development and strategy roles. He understands first-hand the challenges our clients face and shares our philosophy of building long-term relationships with entrepreneurs and their investors.  Dan brings a high level of integrity and passion to everything he does and I am excited to have him as part of the SASI team.” said John Rotchford, Managing Director of SASI. 

About SASI

SASI is a boutique M&A advisory firm focused on serving investors and entrepreneurs in the IT industry.  We represent private companies that are exploring strategic M&A options.  SASI was founded on the belief that stakeholders in private companies have a need for a new class of M&A advisor. They require a banker with high integrity who brings not only transaction and financial expertise but also has intimate knowledge of the industry, the strategic buyers and the customer, technology, and competitive trends shaping the industry.  Our market focus is the IT industry with core areas of expertise across Data Protection and Storage, Cloud Computing/infrastructure, Networking and Security.  SASI has deep domain knowledge of these segments and has represented companies across core technologies areas including semiconductors, systems, software, and related IT services.  For additional information, please contact John Rotchford at john@sasillc.com or Dan Blank at dan@sasillc.com.

Notable SASI Engagements:

 – Cofio, creator of AIMstore software which unifies Data Protection, Workflow, and Compliance, was acquired by Hitachi Data Systems. SASI drove the deal process from initial introductions to HDS

    through critical deal points in the purchase agreement and post-closing matters

–  Nevex, provider of award-winning server-side caching software that guarantees storage performance for the applications that truly need it was acquired by Intel Corporation.  SASI was engaged to

    explore strategic options for Nevex including the sale of the company.  SASI led all discussions with interested strategic partners and ultimately drove the process toward a successful M&A exit.

–  gen-E is an IT process automation (ITPA) software company.  SASI advised gen-E on a range of strategic options which ultimately led to the private equity investment by Solis Capital Partners.

    SASI identified, screened and approached leading private equity firms and drove the negotiation and due diligence process

John Mascarenas Joins SASI as a Senior Advisor

Strategic Advisory Services International, LLC (SASI), a boutique M&A advisory firm to technology companies, today announced that John Mascarenas has joined the SASI team in the role of Senior Advisor.  John’s career spans more than 33 years in the high tech industry primarily in equity investments and M&A with a focus on Data Management, Compute Storage, Mobile, Flash, and Networking segments in Enterprise and Consumer.  Previously he was a Senior Director/Consultant for strategic equity investments and M&A at SanDisk Ventures and Senior Investment Director at Intel Capital.  John was with Intel Corp since 1980 and with Intel Capital since 1998 where he was directly involved in over 70+ private equity and M&A transactions with a total value of $1B+. Prior to Intel Capital, he held senior level positions at several Intel business units where his roles included strategic business alliances, sales, marketing, product service and engineering. He was also involved in several new technology startup ventures for Intel and has also started & sold two private companies.  John holds industrial design patents in digital imaging.  John will help guide SASI through its next growth phase and also help build key strategic relationships across venture firms, early stage start-ups and leading public technology companies. 
“Over the last ten years, I have had the opportunity to work with John on a number of engagements and have always been impressed with his business acumen, technical depth, and negotiating skills.  He brings a high level of integrity and passion to everything he does and I am excited to have him as part of the SASI team.”  said John Rotchford, Managing Director of SASI. 
About SASI
SASI is a boutique M&A advisory firm focused on serving investors and entrepreneurs in the IT industry.  We represent private companies that are exploring strategic M&A options.  SASI was founded on the belief that stakeholders in private companies have a need for a new class of M&A advisor. They require a banker with high integrity who brings not only transaction and financial expertise but also has intimate knowledge of the industry, the strategic buyers and the customer, technology, and competitive trends shaping the industry.  Our market focus is the IT industry with core areas of expertise across Data Protection and Storage, Cloud Computing/infrastructure, Networking and Security.  SASI has deep domain knowledge of these segments and has represented companies across core technologies areas including semiconductors, systems, software, and related IT services.  For more information please visit www.sasillc.com

Notable SASI Engagements:

 – Cofio, creator of AIMstore software which unifies Data Protection, Workflow, and Compliance, was acquired by Hitachi Data Systems. SASI drove the deal process from initial introductions to HDS through critical deal points in the purchase agreement and post-closing matters

– Nevex, provider of award-winning server-side caching software that guarantees storage performance for the applications that truly need it was acquired by Intel Corporation.  SASI was engaged to explore strategic options for Nevex including the sale of the company.  SASI led all discussions with interested strategic partners and ultimately drove the process toward a successful M&A exit.

– gen-E is an IT process automation (ITPA) software company.  SASI advised gen-E on a range of strategic options which ultimately led to the private equity investment by Solis Capital Partners. SASI identified, screened and approached leading private equity firms and drove the negotiation and due diligence process