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Canadian individual equity firm PartnerOne pay $ 28.2 million for HeadSpin , a mobile app examination startup whose beginner was sentenced for humbug before this twelvemonth , fit in to documents viewed by TechCrunch . The ardor salewas reportedby TechCrunch last week .
HeadSpin ’s 2023 revenue was $ 21 million and its Q1 2024 receipts stood at $ 5 million , the written document revealed . That intend PartnerOne treasure HeadSpin at about 1.4 times revenue . The median M&A dealing multiple for deals foretell or closed in Q1 2024was 1.6 times , harmonize to PitchBook data analytic thinking .
PartnerOne reject to comment on leverage price and HeadSpin ’s revenue .
In 2020 , HeadSpin ’s board , which included Palo Alto Networks CEO Nikesh Arora , learn that the beginner Manish Lachwani had overdraw the company ’s revenue by virtually four times and push him to resign , accordingto theme . Arora resigned from the board in January .
Lachwani pleaded guilty totwo counts of wire fraud and one count of certificate fraudin April , and was sentenced to 18 month in prison house and order to pay restitution .
Prior to the allegations of shammer , the caller had stir $ 117 million from investors include Google Ventures , ICONIQ Capital , Dell Technologies Ventures , Battery Ventures , Felicis and Tiger Global .
The troupe continued to maneuver under raw leadership but the company ’s valuation was later jactitate by about two - third to $ 302 million , downfrom $ 1.1 billion set during its Series Cround in February 2020 , TheNew York Times reported .
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In recent 2022 , HeadSpin attempted to raise a unexampled round of fairness or debt from outside investors , but was unable to attract new backers , harmonise to the document . The ship’s company ended up provoke an $ 11.4 million convertible note from existing investor . HeadSpin ’s further attempts to stop up extra financing break down , pull the troupe to affiance investment bank Shea & Company for service with selling the business .
PartnerOne told TechCrunch in a statement last week that HeadSpin ’s new CEO , COO and CTO all provide the companionship post - acquisition . “ They all received very generous packages as part of the transaction , ” PartnerOne CFO Jonathan Dionne ’s command said .
Most former employee , however , receive nothing for their stock options , invest or unvested , TechCrunch reported earlier .
