Lyft Hires M&A Banker Qatalyst Partners
June 27 2016 - 6:32PM
Dow Jones News
By Douglas MacMillan
Ride-hailing startup Lyft Inc. has hired Qatalyst Partners LP,
the boutique investment bank best known for helping tech companies
find a buyer, according to people familiar with the matter.
Frank Quattrone, the founder and executive chairman of Qatalyst,
has contacted companies including large auto makers about acquiring
a stake in Lyft, the people said. It isn't clear whether Lyft is
aiming to sell itself or raise new funding, or if it is open to
both.
Lyft, the largest U.S. rival to Uber Technologies Inc., has
tried to keep up with its larger competitor as both companies burn
through capital to expand their ride-hailing services. The two San
Francisco companies pour millions of dollars into subsidizing
low-price rides and giving cash bonuses to new drivers, and both
Uber and Lyft have said such spending has put them on a path to
profitability.
Lyft has raised about $2 billion in funding, or less than
one-sixth the total funds raised by Uber. Lyft was last valued at
$5.5 billion by investors including auto maker General Motors
Co.
Hiring Qatalyst, one of the most active Silicon Valley deal
makers, may signal Lyft is open to a sale. Qatalyst ranks fourth
this year among banks advising on U.S. acquisitions, working on
deals totaling $33.7 billion, according to Dealogic. Those deals
include a coveted role advising LinkedIn Corp. on its $26 billion
sale to Microsoft Corp., announced two weeks ago.
--Maureen Farrell and Gautham Nagesh contributed to this
article.
Write to Douglas MacMillan at douglas.macmillan@wsj.com
(END) Dow Jones Newswires
June 27, 2016 18:17 ET (22:17 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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