jump to navigation

Magen Biosciences, a Waltham, MA-based company focused on novel dermatology treatments, is acquired by the contract research firm PPD for $14.5 million December 18, 2010

Posted by HubTechInsider in Acquisitions, Biotech, Health Care IT, Pharmaceuticals, Startups.
Tags: , , , , , , , , , , , , , ,
add a comment
Image representing Magen BioSciences as depict...

Image via CrunchBase

Magen Biosciences, a Waltham, MA-based company focused on novel dermatology treatments, will be acquired by the contract research firm PPD for $14.5 million. The firm was founded in 2006 by a well known group of biotech entrepreneuers and investors, including Rich Aldrich, founder of RA Capital, David Fisher, chief of dermatology at Massachusetts General Hospital, and Christoph Westphal, co-founder of Sirtris Pharmaceuticals. Having raised $17 million in seed and Series A financing from a syndicate of backers including ARCH Venture Partners, TVM Capital, and IDG Ventures (now Flybridge Capital Partners), the purchase price is unlikely to result in an exit for Magen’s backers.

Back in 2008, Magen inlicensed for an undisclosed sum a number of derm compounds from Eli Lilly that showed positive anti-inflammatory and anti-proliferative results in preclinical studies. It’s a good thing they did: those compounds were the primary reason for PPD’s interest in the biotech. The buy-out gives PPD an entrée into the specialist field of dermatology. In a press release announcing the news, PPD CEO Fred Eshelman noted that dermatologic treatments generally have a “more straightforward path to regulatory approval.” That’s certainly part of the logic behind moves of another specialist drug maker, Valeant, which is trying to brand itself as a derm power-house thanks to the recent acquisitions of Coria Laboratories, Dow, and DermaTech.

How many stock options should executives at a startup company be granted? November 28, 2010

Posted by HubTechInsider in Acquisitions, Boston Executive Moves, Investing, IPOs, Staffing & Recruiting, Startups, Venture Capital.
Tags: , , , , , , , , , , , , , , , ,
add a comment
A typical North American office

Image via Wikipedia

How many stock options should executives at a startup company be granted?

The Going Rates for Senior Executives’ Stock Options in the Boston area, 2011:

A President or CEO of a startup may typically receive anywhere from 6% to 10% of the company’s stock. The actual percentage of stock granted to the CEO will depend upon such factors as the company’s life stage and financial stability and revenue outlook when the new CEO signs on for employment. The earlier in the company’s formationary period the new CEO signs on, the higher the percentage of stock granted to him may be.

A Senior Vice President of a startup may typically receive anywhere from 1% to 3% of the startup’s stock. In general, and this is across many industries that startups participate in in the Boston area, those with a marketing and sales pedigree are rewarded toward the higher range and those with a financial orientation toward the lower range. This is often due to the fact that very top-notch marketing and sales executives are sinmply harder to find because of intense competition in the Boston area, and when they succeed, they add signigficantly to the bottom line of a startup company’s revenue outlook. In contrast, consider that senior Financial executives are essential to reassure skitish venture, angel and other early stage startup capital funding institutional and individual investors, but they can’t usually stake a claim to having increased sales.

A Vice President or a Key Manager of a startup company in the Boston area may expect to receive (or in the Boston area, may expect to have had to have negociated strongly for) .5% to 2% of a startup company’s stock. A Vice President of sales or a manager of technolgy would be liklier to command toward the higher end of this range of stock percentages, while a Vice President of finance or manufacturing would probably be at the lower end. As I outlined above with Senior Vice Presidents, those with marketing and sales expertise have the greatest amount of leverage. Executives and managers below these senior levels usually receive something less than .5% of the startup’s stock in the Boston area.

I should point out with some stridency that the above stock percentages that I have outlined can be misleading, and I advise starup senior management teams, hr directors, boards of directors, investors, and job seekers to take the above guidelines with care. In the Boston area, a great deal of savvy negociations by knowledgable parties, all armed with a great deal of stock option terminology and business experience, would have to be conducted to arrive at stock option structures like the ones above.

The actual percentage of a startup company that an employee receives in options is much less important than its potential value. Having 10% of a company that’s unlikely to exceed $1 million in value is much less desirable than having 1% of a company that has a good chance of being worth $100 million.

Want to know more?

You’re reading Boston’s Hub Tech Insider, a blog stuffed with years of articles about Boston technology startups and venture capital-backed companies,software development, Agile project management, managing software teams, designing web-based business applications, running successful software development projects, ecommerce and telecommunications.

About the author.

I’m Paul Seibert, Editor of Boston’s Hub Tech Insider, a Boston focused technology blog. I have been working in the software engineering and ecommerce industries for over fifteen years. My interests include electronics, robotics and programmable microcontrollers, and I am an avid outdoorsman and guitar player. You can connect with me on LinkedIn, follow me on Twitter, even friend me on Facebook if you’re cool.

I own and am trying to sell a dual-zoned, residential & commercial Office Building in Natick, MA. I have a background in entrepreneurship, ecommerce, telecommunications and software development, I’m the Director, Technical Projects at eSpendWise, I’m a serial entrepreneur and the co-founder of Tshirtnow.net.



Oracle acquires Cambridge based eCommerce software provider Art Technology Group, Inc (ATG) for $1.0 Billion in cash November 22, 2010

Posted by HubTechInsider in Acquisitions, Ecommerce.
Tags: , , , ,
add a comment

Oracle acquires Cambridge based eCommerce software provider Art Technology Group, Inc (ATG) for $1.0 Billion in cash.

Cambridge, MA based ATG provides high end eCommerce software that is used by more than 1,000 customers globally. By combining forces, Oracle and ATG expect to help businesses grow revenue, strengthen customer loyalty, improve brand value, achieve better operating results, and increase business agility across online and traditional commerce environments.

“Driven by the convergence of online and traditional commerce and the need to increase revenue and improve customer loyalty, organizations across many industries are looking for a unified commerce and CRM platform to provide a seamless experience across all commerce channels,” said Thomas Kurian, Executive Vice President Oracle Development. “Bringing together the complementary technologies and products from Oracle and ATG will enable the delivery of next-generation, unified cross-channel commerce and CRM.”

“The addition of ATG, which brings market-leading products used by some of the largest and most well-known retailers and brands, furthers Oracle’s strategy of delivering industry-specific enterprise applications,” said Bob Weiler, Executive Vice President, Oracle Global Business Units. “This acquisition builds upon our dedication to offer the most complete and integrated suite of best-of-breed software applications and technologies required to power the most demanding companies in the world in every industry.”

ATG’s revenue for the third quarter of 2010 grew to $50.3 million, a 16% increase over third quarter 2009 revenue of $43.4 million. Oracle will pay $6.00 per share in cash for the company. The transaction is subject to stockholder and regulatory approval and other customary closing conditions and is expected to close by early 2011.

Waltham’s Red Bend Software acquires Santa Clara’s VirtualLogix, for undisclosed terms October 4, 2010

Posted by HubTechInsider in Acquisitions, Startups.
Tags: , , , , , , , , , , ,
add a comment

Waltham’s Red Bend Software, a provider of mobile software management tools, acquires Santa Clara’s VirtualLogix, a provider of real-time virtualization technology for mobile handsets, for undisclosed terms.

Dover, New Hampshire based Measured Progress acquires Newton’s Nimble Assessment Systems for undisclosed terms October 4, 2010

Posted by HubTechInsider in Acquisitions, Startups.
Tags: , , ,
add a comment

Dover, New Hampshire based Measured Progress , a provider of student learning and improvement instruction inithe standards-based classroom, acquires Newton’s Nimble Assessment Systems , a provider of computer based testing, for undisclosed terms.

Boxborough’s Lightower Fiber Networks acquires Westford’s Veroxity Technology Partners, for undisclosed terms October 4, 2010

Posted by HubTechInsider in Acquisitions, Startups.
Tags: , , , , , , , , , , ,
add a comment
Image representing Lightower Fiber Networks as...

Image via CrunchBase

Boxborough’s Lightower Fiber Networks, a provider of fiber network and broadband services, acquires Westford, Massachusetts -based Veroxity Technology Partners, a provider of fiber based data and internet connectivity solutions, for undisclosed terms.

Boxborough’s Lightower Fiber Networks, a fiber network provider, acquires NYC’s Lexent Metro Connect October 3, 2010

Posted by HubTechInsider in Acquisitions, Fiber Optics, Startups.
Tags: , , , , , , , , ,
add a comment
Image representing Lightower Fiber Networks as...

Image via CrunchBase

Boxborough’s Lightower Fiber Networks, a fiber network provider, acquires NYC’s Lexent Metro Connect, a provider of dark fiber networks, for undisclosed terms. Lightower Fiber Networks is headquartered in the same old former DEC building that houses eSpendwise, the employer of the Hub Tech Insider.

Waltham’s OpenPages, a developer of risk management systems, is acquired by IBM October 3, 2010

Posted by HubTechInsider in Acquisitions, Startups.
Tags: , , , , , , , ,
add a comment
Image representing OpenPages as depicted in Cr...

Image via CrunchBase

Waltham’s OpenPages, a developer of risk and compliance management systems, is acquired by Armonk, New York -based IBM for undisclosed terms.

In a statement, Rob Ashe, IBM’s general manager of business analytics, said: “Integrating risk management systems across once-divided units and functions is essential to seeing the bigger picture. The combination of IBM and OpenPages will provide a holistic and consistent approach to risk management helping companies combine that insight with performance management to drive better decision making.”

OpenPages is the latest IBM acquisition in Massachusetts. Last month, IBM said it was purchasing Unica Corp. of Waltham for $480 million. Over the years, IBM has scooped up more than a dozen Massachusetts businesses in such fields as data storage and security.

Tektronix Communications acquires Chelmsford’s Arbor Networks August 23, 2010

Posted by HubTechInsider in Acquisitions, Startups.
Tags: , , , , , ,
add a comment

Plano, Texas -based Tektronix Communications, a provider of communications test and network intelligence solutions,  acquires Chelmsford’s Arbor Networks, a provider of network security and management solutions, for undisclosed terms.

Chelmsford’s Schafer Corporation acquires St. Louis based Asynchrony Solutions, for undisclosed terms August 22, 2010

Posted by HubTechInsider in Acquisitions, Startups.
Tags: , , ,
add a comment

Chelmsford’s Schafer Corporation, a provider of scientific analysis and engineering services, acquires St. Louis based Asynchrony Solutions, a provider of software technology, for undisclosed terms.

Canton, MA -based TriNET Systems, Inc., is acquired by Exeter, RI’s Carousel Industries August 22, 2010

Posted by HubTechInsider in Acquisitions, Startups.
Tags: , , , , ,
add a comment
Image representing TriNET Systems as depicted ...

Image via CrunchBase

Canton, Massachusetts -based TriNET Systems, Inc., a provider of converged communications, IP telephony applications, unified communications, security and managed services, is acquired by Exeter, Rhode Island’s Carousel Industries, a provider of technology solutions, for undisclosed terms.

Billerica’s Echolab is acquired by Blackmagic Design, of Milpitas, CA August 22, 2010

Posted by HubTechInsider in Acquisitions, Startups.
Tags: , , , , , , , ,
add a comment
A video editor operating an AVID video softwar...

Image via Wikipedia

Billerica’s Echolab, a designer and manufacturer of video production switches,  is acquired by Blackmagic Design, a manufacturer of creative video technology, of Milpitas, CA. Terms were not disclosed.

Media Giant Time Warner Inc. acquires Westwood’s Online Gaming Powerhouse Turbine Entertainment April 21, 2010

Posted by HubTechInsider in Acquisitions, Gaming, Video Gaming Video Games.
Tags: , , , , ,
add a comment

Turbine Inc., one of the Boston area’s biggest video game companies, has been acquired by Warner Bros. Interactive Entertainment Inc. of Burbank, Calif., a business unit of Time Warner Inc.


The deal underscores Greater Boston’s increasing prominence as a center for video game development. Financial details of the deal were not released, but a source close to the negotiations said that Warner Bros. will pay as much as $160 million, including sums to be paid to Turbine shareholders in future years if the company meets certain financial targets.


Turbine, a privately-held, venture-backed company in Westwood, is one of the leading makers of Internet-based, multi-player adventure games. The company produces Lord of the Rings Online, Dungeons & Dragons Online, and Asheron’s Call. Thousands of players subscribe to Lord of the Rings and Asheron’s Call, paying monthly fees of around $15 for the right to play and socialize with one another online. More than one million players play Dungeons & Dragons Online.


Acquiring Turbine will give Warner Bros. total control over all future video games based on author J.R.R. Tolkien’s beloved Lord of the Rings novels. Turbine holds an exclusive license to make an Internet-based game based on the books, while last year, Warner Bros. won a license to make non-Internet-based Tolkien video games.


Warner Bros. Interactive has bought a number of game development houses in recent years, in a bid to become a major power in video gaming. In 2007, the company purchased TT Games, a British firm that develops family-friendly products like Lego Star Wars and Lego Batman. In 2009, Warner Bros. bought the assets of bankrupt Chicago game company Midway, maker of the popular Mortal Kombat games. And earlier this year, it acquired a majority stake in Rocksteady Studios, another British developer, which created the hit game Batman: Arkham Asylum.


Nokia acquires Cambridge’s Metacarta for an undisclosed sum April 18, 2010

Posted by HubTechInsider in Acquisitions, Startups.
Tags: , ,
add a comment

Nokia acquires Cambridge’s Metacarta for an undisclosed sum. MetaCarta, a 30-person company based in Cambridge, Mass., specializes in geographic intelligence and location-aware services — both of which should play well with Nokia’s recent emphasis on location technologies for its mobile devices.


Details on how Nokia plans to integrate MetaCarta’s technology were scant Friday. In a statement, Nokia said that it will “be used in the area of local search in location and other services.”


MetaCarta’s two principal software offerings are Geosearch, which organizes and presents information about a particular location, and Geotag, which extracts geographic information from Web content for use in other applications, such as maps.


Location-aware services have become a renewed focus for Nokia as it looks to expand those capabilities for its mobile phones. Back in January, Nokia updated Ovi Maps, and said in early February that the new version had been downloaded more than 1.4 million times in the span of two weeks. Among Ovi Maps’ newer features were turn-by-turn GPS navigation.


Oracle acquires Waltham’s Phase Forward for $685 Million April 18, 2010

Posted by HubTechInsider in Acquisitions, Startups.
Tags: , , ,
add a comment

The Oracle Corporation has agreed to buy Phase Forward, which makes software used to manage clinical drug trials, for $685 million, the companies said Friday. Oracle, the leading maker of database software, plans to add Phase Forward to its Health Sciences unit. Oracle is paying $17 a share in cash for Phase Forward’s stock, 30 percent more than the $13.08 closing price Thursday. Stock in Phase Forward, which is based in Waltham, Mass., rose $3.72, or 28.4 percent, to $16.80 a share. Stock in Oracle, based in Redwood City, Calif., fell 25 cents to $25.95 a share.


The Phase Forward purchase may help Oracle tap into a growing market for programs that helps make the U.S. health-care system more efficient, said Cross Research analyst Richard Williams. Oracle Chief Executive Officer Larry Ellison, 65, has spent about $42 billion buying 62 companies since January 2005.


Phase Forward delivers its software as a service over the Internet, helping researchers, physicians and regulators access and share data for clinical trials. The company’s programs have been used in more than 10,000 clinical trials by more than 300 companies and organizations, including AstraZeneca Plc, the U.S. Food and Drug Administration, and GlaxoSmithKline Plc.


Phase Forward, founded in 1997, will become part of Oracle’s Health Sciences Global business unit. Oracle, based in Redwood City, California, expects to close the deal in mid-2010.


Tewksbury’s Avid acquires Kaiserslautern, Germany -based Blue Order April 12, 2010

Posted by HubTechInsider in Acquisitions, Startups, Venture Capital.
Tags: , , ,
add a comment

Tewksbury’s Avid, a developer of digital audio and video postproduction technology, acquires Kaiserslautern, Germany -based Blue Order, a maker of a product that transform’s Avid’s production asset management technology into a full media asset management product. Terms were not disclosed.

Boston’s EnerNOC acquires Boulder, CO -based SmallFoot April 12, 2010

Posted by HubTechInsider in Acquisitions, Startups, Venture Capital.
Tags: , , ,
add a comment

Boston’s EnerNOC, a provider of energy management applications, acquires Boulder, CO -based SmallFoot, a developer of wireless demand control products for the small commercial market. Terms were not disclosed.

Waltham’s Metalogix Software acquires Ann Arbor, MI -based StoragePoint April 12, 2010

Posted by HubTechInsider in Acquisitions, Startups, Venture Capital.
Tags: , , ,
add a comment

Waltham’s Metalogix Software, a provider of products for Microsoft Sharepoint migration, management, and archiving as well as Exchange migration and archiving, acquires Ann Arbor, MI -based StoragePoint, a developer of software that helps organizations to shrink their ShrePoint 2007/2010 content databases by 90% – 95%.


Add to FacebookAdd to DiggAdd to Del.icio.usAdd to StumbleuponAdd to RedditAdd to BlinklistAdd to TwitterAdd to TechnoratiAdd to Yahoo BuzzAdd to Newsvine


Add to Google Buzz

%d bloggers like this: