Internet search giant Google is reportedly considering teaming up with private equity firms to help it structure deals as it eyes larger and larger acquisitions.
Google M&A chief Don Harrison told Bloomberg the company is closing a new deal roughly once every two weeks, and could turn to buyout expertise to provide financing or advise on restructuring or carve-ups.
He said Google was interested in investing simply to gain an asset as well as considering potential returns, and was prepared to pay premiums for businesses with “aggressive” user growth.
Harrison said the firm used a “toothbrush” test to consider whether assets were worth purchasing, which involves asking whether the service will be used once or twice a day and whether it solved a problem.
Facebook was said to be prepared to pay between $800m and $1bn for the venture capital-backed company.
Waze had raised over $92m from investors including Kleiner Perkins Caufield & Byers, Horizon Ventures, Blue Run Ventures, Magma Venture Partners and Vertex Venture Capital.
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