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Investment Roundup: USA Technologies, SimpleTire, BrightView Holdings, Safeguard Scientifics

Tom Paine

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Shares of Malvern-based USA Technologies Inc. (USAT) broke into a new 52-week high last Tuesday, hitting a peak of $14.00, following the company's announcement of the pricing of a public offering. It generated gross proceeds of $75.7 million.

USAT now has a market cap of $723 million. USA Technologies fiscal third-quarter revenue was $35.8 million, up 35% year over year, though much of that growth could be attributed to its acquisition of Canteloupe Systems. Full year fiscal 2018 revenue is expected to be between $138 million to $142.

USAT spent a period of several years without much momentum, with the market not ready for its technology. I remember a time when it was practically begging for more capital. It provides a digital payment option to vending machines and other remote devices. If the size of this market is large enough, then it will be a good candidate to be snapped up by a bigger player.

I've used USAT technology in a couple of places, and it seems to work well.

SimpleTire, the Bensalem-based online tire site, received what was termed a "significant investment" from Cleveland-based Dealertire LLC . SimpleTire is a six-year-old startup that links existing tire dealers into a nationwide e-commerce platform.

Brothers Andy and Josh Chalofsky developed the concept for SimpleTire while working in their family's traditional tire store, along with their business partner Kenny Pratt. The three founders will continue to lead the company. SimpleTire is expected to exceed $500 million in annual sales for 2018.

KKR-backed BrightView Holdings, based in Plymouth Meeting, the largest provider of commercial landscaping services in the US, filed today for an IPO for up to $100 million , although it could eventually reach $500 million according to some analysts.

3M Ventures, the venture capital arm of 3M Co., was among big-name companies to participate in a $20 million round of funding for Madison, Wisconsin-based health tech company Propeller Health.

Safeguard Scientifics was also a return investor. Propeller Health makes software designed to help patients better manage asthma, COPD and other respiratory diseases.