Champagne should be popping at Accel’s office.
Today the Palo Alto-based technology investment firm saw two portfolio companies exit big — Playfish for ~$400 million and AdMob for $750 million.
Accel led AdMob’s series B round with Sequoia Capital in March 2007 and joined another round in October 2008.
Total investment? $47.2 million.
In July 2008, Accel invested $1 million in Playfish. Three months later Accel and Index Ventures invested another $17 million.
Total investment? $18 million.
In an interview with Bloomberg TV, Accel’s Theresia Gouw Ranzetta says the firm got an 5x to 8x return “or better” on both investments.
Accel also had three other hits this year.
- Accel and Benchmark raised $25 million for SpringSource Global Inc., an enterprise Java software company. It was later sold to VMWare for $362 million in cash and $58 million in stock.
- In 2004, Accel along with General Catalyst Partners bought BBN Technologies, a fabled research and development company, from Verizon. BBN Technologies sold to Raytheon for $350 million in September.
- Accel also invested in WiChorus, a WiMax and 4G mobile networks solutions provider. It was sold to Tellabs Inc. for $165 million in October.
Altogether almost $2 billion in acquisitions in what is said to be the toughest economic times in history.
Here’s Theresia Gouw Ranzetta on today’s good news:
Photo: Nad Renrel