Gregory Roussel, Fenwick & West partner. (Jason Doiy / The Recorder)
SAN FRANCISCO — Fenwick & West represented Redwood City-based Rocket Fuel Inc. in its $230 million purchase of data management and marketing company X Plus One Solutions Inc., the firm announced Wednesday.
Mountain View-based partner R. Gregory Roussel led the Fenwick team, which included partners Scott Spector and Mark Ostrau and San Francisco-based partner Stephen Gillespie. Roussel did not return a call for comment.
Fenwick provided counseling on Rocket Fuel’s $116 million initial public offering in September 2013, though it advised the underwriters in the deal. Wilson Sonsini Goodrich & Rosati represented the company. Fenwick again represented the underwriters in Rocket Fuel’s $305 million follow-on offering in January, with Wilson Sonsini again representing the company. Palo Alto-based Wilson Sonsini partners Steven Bochner and Rachel Proffitt worked on both deals.
Rocket Fuel general counsel JoAnn Covington said the company still retains Wilson Sonsini as its corporate counsel.
“We have multiple teams for these kinds of reasons,” Covington said, explaining that firms can often be conflicted out on certain transactions. “We’re very happy with Wilson Sonsini.”
Rocket Fuel provides digital advertising and marketing solutions to multiple industries used across several devices and channels. In a news release, the company said the addition of New York-based X Plus One and its cloud-based software will increase returns on investments for its customers.
“Through this merger of talent, we will be able to offer our customers a comprehensive platform to more easily leverage their growing digital data assets,” said George John, Rocket Fuel’s chairman and CEO. “Our combined technologies will deliver exceptional results across the spectrum of online and offline channels.”
Gunderson Dettmer Stough Villeneuve Franklin & Hachigian represented X Plus One with a New York-based team that included partners Steven Baglio and Daniel Goldberg.
Rocket Fuel released its second quarter financial results Tuesday, reporting higher revenue and smaller losses than expected. It reported an adjusted net loss of $3.8 million, or 11 cents per share, beating analysts’ expectations of a loss of 22 cents per share. Despite the stronger numbers, Rocket Fuel’s stock fell dramatically after hours, closing at $24.72 on Tuesday and opening at $18.47 on Wednesday morning. The stock sits even lower today, closing at $17.05 per share. Since Tuesday’s high of $26.84 per share, Rocket Fuel’s stock fell roughly 36 percent. In the same financial report, Rocket Fuel announced its plans to purchase X Plus One.
For the Fenwick team, Mountain View-based associates Malcolm Katz, Vishal Dave, Kelli Newman, Ana Razmazma, Michael Riskin, Larissa Neumann and Ora Grinberg also worked on the deal, along with Seattle-based associates Ashley Walter and Adriana Sherwood.
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