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Unacademy Valuation Drops: Acquisition Talks with Allen Career Institute Ongoing

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Unacademy, once valued at $3.4 billion, is reportedly in talks for an acquisition by Allen Career Institute, which could value the edtech firm at $800 million. This potential deal, as reported by the Economic Times, highlights a dramatic shift in the fortunes of the Indian edtech sector. Sources close to the discussions reveal that the acquisition talks have been ongoing for months and are nearing final approval from Allen’s promoters, the Maheshwari family. If successful, this merger would signify a pivotal consolidation in an industry grappling with challenges like a post-pandemic slowdown and the financial troubles of major players like Byju’s. Key Highlights of the Deal Valuation Dynamics: The proposed $800 million valuation includes Unacademy’s $160 million cash reserves, which remain a critical point in determining the enterprise value. Leadership Changes: Unacademy’s co-founders—Gaurav Munjal, Roman Saini, and Sumit Jain—are expected to exit the company post-acquisition. Hemesh Singh, a former co-founder, has already transitioned into an advisory role. Share Swap and Payouts: The share swap ratio and cash payouts for Unacademy’s founders and early investors are yet to be finalized. Motives Behind the Merger Allen Career Institute, a profitable offline coaching giant, sees this acquisition as an opportunity to bolster its digital presence, potentially paving the way for a public listing of the merged entity. On the other hand, Unacademy’s investors are keen on aligning with a stable and profitable venture like Allen. Industry Context The edtech sector has been under stress, with reduced demand for online-only models in the post-COVID era. While Unacademy has controlled its losses, its revenue growth has remained stagnant. Similarly, Allen has faced challenges due to the evolving dynamics of the Kota coaching ecosystem. Bodhi Tree, a significant investor in Allen, is reportedly playing a key role in these discussions. The investment firm, backed by James Murdoch and Uday Shankar, injected $600 million into Allen in 2022 and appears to be driving this strategic merger. This acquisition, if finalized, could reshape the edtech landscape, signaling a shift towards hybrid models that combine offline and online strengths. Source: Times of India Photo Credit: Times of India

Frontier Communications Shareholders Approve Merger with Verizon in $38.50/Share All-Cash Deal

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Frontier Communications (NASDAQ: FYBR) announced that its shareholders have approved the acquisition by Verizon Communications Inc. (NYSE, NASDAQ: VZ) in a recent vote, with approximately 63% in favor. This merger agreement, first revealed on September 5, 2024, values Frontier at $38.50 per share in cash—a 37% premium above its pre-announcement share price. Pending regulatory approvals, the transaction is expected to close by Q1 2026. Frontier CEO Nick Jeffery expressed confidence in the combined entity’s potential to expand premium fiber services nationwide, benefiting millions more consumers through the expanded network. Frontier, the U.S.’s largest pure-play fiber provider, continues its commitment to “Building Gigabit America®,” delivering high-speed broadband connectivity to drive productivity for homes and businesses. Frontier shareholders’ positive vote and Verizon’s strategic acquisition align both companies’ goals in providing reliable, high-speed internet access to underserved areas. The forward-looking statements included in Frontier’s communication highlight factors that could impact the merger’s completion, including regulatory and shareholder approval, potential competing acquisition offers, and the transaction’s effect on business operations. As of now, the combined expertise of both companies is expected to accelerate fiber network reach and meet growing demands for high-speed connectivity across the U.S. Source: Business Wire Photo Credit: Business Wire

Veefin Acquires GenAI Startup Walnut in Major Expansion Move

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In a strategic international expansion, digital supply chain finance platform Veefin has acquired Singapore-based GenAI startup Walnut in an all-cash deal—its fourth acquisition this year and first overseas. Known for its innovative data management solutions for banks and financial institutions, Walnut will continue operating independently post-acquisition. Veefin’s purchase of a 50% stake solidifies its footprint in GenAI, integrating Walnut’s Vegaspread technology, which rapidly converts complex financial data into actionable insights. This acquisition not only enhances Veefin’s GenAI offerings but also aligns with its mission to advance credit decisioning and working capital management for its extensive client base of over 500 global banks and institutions. Walnut’s Co-Founder & CEO, Bala Iyer, expressed excitement, noting that Walnut’s products are “a perfect fit for Veefin’s SaaS ecosystem,” as they work to expand globally and within India. Chairman Raja Debnath emphasized the importance of GenAI for Veefin’s ecosystem, pointing to the burgeoning demand for AI solutions. This acquisition follows Veefin’s recent domestic purchases, including GST compliance firm Regime Tax Solutions, tech solutions provider Nityo Infotech’s India arm, and the loan platform EpikIndifi. Veefin is well-positioned in the rapidly growing GenAI market, projected to reach $17 billion in India by 2030. Source: startupstorymedia Photo Credit: startupstorymedia  

Sudarshan Chemical to Acquire Heubach Group’s Pigment Business for Rs 1,180 Crore

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Pune-based Sudarshan Chemical Industries Ltd. (SCIL) has entered into a definitive agreement to acquire the global pigment business of Germany’s Heubach Group for Rs 1,180 crore (€127.5 million). This strategic acquisition is expected to significantly enhance SCIL’s product portfolio while expanding its global footprint, particularly in Europe and the Americas. The news of the acquisition boosted SCIL’s shares by 19.1%, pushing the stock price to Rs 1,208 and raising the company’s market valuation to Rs 8,359 crore. The deal, which involves both asset and share acquisition, will combine SCIL’s existing operations with Heubach’s strong technological expertise and established market presence, creating a powerhouse in the global pigment industry. Once the acquisition is completed, the merged entity will boast a broad pigment portfolio, 19 global sites, and a diversified asset footprint. In 2022, Heubach became the world’s second-largest pigment manufacturer following its integration with Clariant. However, the group has faced financial challenges over the past two years due to rising costs, inventory issues, and high interest rates. SCIL’s acquisition of Heubach comes with a clear turnaround plan to address these issues, according to an official statement from the company. Rajesh Rathi, Managing Director of SCIL, will lead the combined entity post-acquisition. The deal will require regulatory approvals from bodies such as the Competition Commission of India and other relevant authorities across different jurisdictions. The acquisition is expected to close within 3-4 months, pending these approvals and shareholder consent. SCIL has experienced a robust financial year, with its shares more than doubling in value. During FY24, the company reported a net profit of Rs 335 crore on revenues of Rs 2,141 crore. In the three months ending June 2024, SCIL recorded a net profit of Rs 41 crore on revenues of Rs 580 crore. Heubach Group’s consolidated turnover in 2023 was €879 million, down from €1,069 million in the previous year. With this acquisition, SCIL is poised to strengthen its global presence and leverage Heubach’s expertise to drive further growth and innovation in the pigment sector. Source: Business Standard

Crescent Finalises $2.1 Billion Acquisition of SilverBow Resources

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US oil company Crescent Energy has completed its $2.1 billion acquisition of SilverBow Resources, becoming the second-largest operator in the Eagle Ford. After integration, the combined entity’s production capacity is expected to be around 250,000 barrels of oil equivalent per day (boepd). The cash and stock deal, announced in May this year, concluded ahead of schedule. This acquisition enhances Crescent’s status as a leading mid-cap exploration and production company with a diverse, high-quality asset portfolio. The merger is expected to yield substantial free cash flow and has been structured with a disciplined capital allocation framework. Crescent noted that this move will facilitate further growth through accretive, returns-driven mergers and acquisitions. Following the integration, the combined entity’s production capacity is estimated to reach around 250,000 boepd. SilverBow shareholders have received approximately $358 million in total cash consideration, with Crescent issuing around 52 million shares of Class A common stock to cover the non-cash portion of the transaction. Post-acquisition, former SilverBow shareholders now hold about 23% of the combined company on a fully diluted basis. Crescent CEO David Rockecharlie said, “Today is an exciting day for Crescent. We are well positioned to create value, and I am grateful for the trust from our original Crescent and new SilverBow shareholders, each of whom voted with an overwhelming majority to approve our merger and to take equity consideration and participate in the go-forward company.” “Through disciplined investing and operations, we have delivered profitable growth, tripling the size of our business over the last four years. We have created a premier growth through acquisition platform by executing on our cash flow and returns-oriented strategy. Today, we are focused on rapidly integrating our new assets and personnel and continuing to deliver on the significant synergies we’ve identified to strengthen returns.” Crescent has announced plans to provide pro forma guidance for the second half of 2024 to reflect the acquisition’s impact. Additionally, the company is set to issue its financial and operating results for the second quarter of 2024 after the market closes on August 5, 2024. Source: Offshore Technology

Deel Buys Device Management Startup Hofy in a ‘Win-Win’ Acquisition

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The HR tech sector is currently booming, with investment rounds and mergers and acquisitions (M&A) continuing at a brisk pace. The latest news comes from Deel, which has made its third acquisition this year. Read on to find out more about Deel’s purchase of Hofy and what it means for both companies’ existing HR customers. The HR tech market remains robust and resilient despite challenging macroeconomic conditions. Investments into the sector continued unabated, as do HR tech mergers and acquisitions (M&As). The latest M&A news comes from global HR company Deel – it has acquired Hofy, a London-based device management startup. Hofy enables its 700 customers across the world (including Canva, Veeva, and Fujitsu) to equip their teams with work devices in just one click. Hofy also manages the entire lifecycle of the company device. The Hofy acquisition is Deel’s third acquisition in 2024 – back in the spring, Deel bought German performance management company Zavvy and Africa-based payroll giant PaySpace. The latest news with Hofy is a full circle moment for its Co-Founder and CPO Michael Ginzo – he was an early employee at Deel and left in 2020 to start Hofy. A Bright Future for Deel and Hofy? Founded in 2019, Deel has seen impressive growth over the past five years – it now employs 4,000 people in 100 countries, has raised $630 million, has reached a $12 billion valuation, and has $500 million in annual recurring revenue. Deel helps 35,000 companies look after their teams – standout customers include Nike, BCG, Shopify, and Calvin Klein. UNLEASH was keen to find out why purchasing Hofy was the right next move for Deel and its customers. Speaking exclusively to UNLEASH, Deel’s Co-Founder and CEO Alex Bouaziz shares: “By bringing Hofy’s best-in-class services and device lifecycle management in-house, we hope to simplify global business complexities for our customers with a unified platform that handles everything from device delivery and management to software provisioning and app access. Now we’ll be able to handle this in 120+ countries – it’s going to radically simplify device management and IT support for global teams.” For Bouaziz, Deel’s purchase of Hofy is “another way we’re building a simpler, more consolidated infrastructure for global companies and their teams.” Hofy’s Ginzo also spoke to UNLEASH – he adds: “Hofy and Deel share a vision of simplifying hybrid work – including facilitating remote workforces with a hassle-free onboarding experience. I saw a massive opportunity in the global hiring movement when I was working at Deel on the product team. Hofy has helped meet this demand by delivering and managing devices in 120+ countries around the world. We’ve seen huge growth, and now it’s time to take that to the next level. With Hofy joining Deel, customers will be able to enjoy all the benefits of our device management platform, alongside Deel’s compliance, payroll, HRIS, immigration, and people management products. It’s a win-win, and we couldn’t be happier to combine forces.”  

FTC Requests More Information on $6.4B IBM Planned Acquisition of HashiCorp

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The Federal Trade Commission (FTC) has made a “second request” for additional information around IBM’s (IBM) plan to acquire cloud software company HashiCorp (HCP) for $6.4 billion. HashiCorp said Monday that it received the request last week, and the companies plan to “promptly respond to the Second Request and to continue working cooperatively with the FTC.” IBM and HashiCorp still expect the acquisition to be completed by the end of 2024, according to a filing with the Securities and Exchange Commission (SEC). FTC Assessing Competitive Impacts of Deal The FTC defines a “second request” as part of the deal monitoring process that “typically asks for business documents and data that will inform the agency about the company’s products or services, market conditions where the company does business, and the likely competitive effects of the merger.” HashiCorp did not disclose what information or documents the agency requested, but the review suggests the FTC could have concerns about whether the acquisition would be harmful to competition in the cloud computing space. The deal was originally announced in April, with the sides also stating at the time that it was expected to close by the end of 2024. IBM said in announcing the deal that it was the next step in the company’s “deep focus and investment in hybrid cloud and AI.” Latest in String of FTC Investigative Moves Under the Biden administration, the FTC has stepped up its enforcement efforts, taking a more stringent approach to antitrust policy under Chair Lina Khan. Energy giants Marathon Oil (MRO) and ConocoPhillips (COP) said Friday that they had recently received a second request from the FTC over a deal announced in May that would see ConocoPhillips pay $22.5 billion to acquire Marathon. IBM shares were up less than 1% at $184.35 as of about 11:45 a.m. ET Monday. HashiCorp stock was down less than 1% at $33.44.

Cognizant to Pay $1.3 Billion in Belcan Acquisition

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The engineering resources and development company will slot in as a Cognizant operating unit. IT consultancy and reseller Cognizant signaled its high priority for engineering services by announcing its intent to acquire Belcan. New Jersey-based Cognizant is buying Belcan from private equity investor AE Industrial Partners for about $1.3 billion in stock and cash. The deal, which reportedly would add $800 million in annualized revenue, would close in the third quarter of 2024. Belcan will keep its name and function as a Cognizant operating unit. Both companies say the engineering resource and development (ER&D) market is hot right now. Cognizant, in its announcement, estimated the ER&D services market at $190 billion currently, with a compounded annual growth rate (CAGR) of 10%. Cognizant, in a news release, said adding Belcan will improve its existing Internet of Things (IoT) and digital engineering practices. But perhaps more importantly, Cognizant is expanding its vertical expertise into aerospace and defense and adding Belcan’s “blue-chip client base.” Cognizant, on the other hand, can offer IT solutions around AI, cloud, and data to Belcan’s customers, Cognizant CEO Ravi Kumar said. Google Cloud recently recognized Cognizant for its work in data analytics, and Microsoft recognized it for intelligent automation. “We see the opportunity to immediately accelerate revenue growth and create compelling shareholder value through our combined engineering capabilities,” Kumar said. “Belcan’s clients would gain access to Cognizant’s full suite of technology services, while Cognizant’s clients across the manufacturing, automotive, energy, and high-tech sectors we believe will benefit from Belcan’s engineering skills.” The combined company would employ more than 6,500 engineers and technical consultants, Cognizant said. Cognizant, in late 2023, bought ServiceNow partner Thirdera. Belcan Acquisition History Cincinnati, Ohio-based Belcan launched in 1958 and won key contracts over the years with Procter & Gamble and General Electric. Aerospace and industrial vertical-focused AE bought Belcan in 2015 for an undisclosed sum. The PE firm went on to tuck in 17 acquisitions into Belcan, including software engineering company Avista and workforce management solutions provider RTM Consulting. Belcan CEO Lance Kwasniewski will continue to lead Belcan as a Cognizant operating unit. “We are excited about this unique combination and the value creation it will bring to our customers, along with the opportunities it will provide for our employees. Cognizant will better position our team to capitalize on compelling tailwinds, including increasing outsourced ER&D spend, the transformative impact of digital engineering adoption rates, robust commercial aerospace demand, and favorable long-term defense and space spending,” Kwasniewski said. “Belcan’s experienced team has built a growth-oriented business delivering highly complex, mission-critical, scalable services to our long-standing customer base. I look forward to continuing to lead our team as we unite and leverage Belcan’s and Cognizant’s comprehensive services and cross-industry clientele to execute on our collective strategy, ultimately earning the role of our clients’ most trusted partner in intelligent engineering.” Cognizant drove $19.4 billion in fiscal year 2023 revenue.

United States Steel and Nippon Steel Receive International Regulatory Approvals for Acquisition

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Pittsburgh-based United States Steel Corp. and Japan-based Nippon Steel Corp. (NSC) have announced that the proposed acquisition of U.S. Steel by NSC has received all necessary regulatory approvals outside the United States. The approvals include those from the Directorate-General for Competition of the European Commission, the Mexican Federal Economic Competition Commission, the Serbian Competition Commission, the Ministry of Economy of Slovakia, and the Turkish Competition Authority. Additionally, the United Kingdom Competition and Markets Authority confirmed that it had no further questions regarding the proposed transaction following the submission of a voluntary briefing paper by U.S. Steel and NSC. David B. Burritt, president and CEO of U.S. Steel, stated, “We are pleased with the regulatory approvals received, as they are a clear indication that the transaction with Nippon Steel is pro-competitive and supports the strategic merits of foreign investment.” He added that the deal is beneficial for American steel, jobs, and the country’s alliance with Japan against China. Takahiro Mori, vice chair of the board of NSC, remarked, “We appreciate this significant milestone of receiving regulatory approvals necessary to consummate the transaction from all non-U.S. authorities. Our goal for this transaction has been clear and consistent – to protect and grow U.S. Steel.” In the United States, several politicians, including likely nominees in the 2024 presidential election, have expressed opposition to the deal, citing job protection and national security concerns. In April, 71 percent of the outstanding shares of U.S. Steel common stock voted in favor of the proposed transaction, representing 99 percent of the shareholders who cast a vote. Despite the opposition in the U.S., both companies expect the transaction to be completed in the second half of this year, subject to the fulfillment of the remaining customary closing conditions, including the receipt of required U.S. regulatory approvals.

Sodalis Group Acquires Majority Stake in Germany’s Artdeco Group

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While the financial terms of the deal have not been disclosed, it’s understood that Sodalis Group will obtain more than an 80 percent stake in the firm. The transaction is anticipated to be finalized by early June, pending necessary clearance from antitrust authorities. Founded in 1985 by Helmut Baurecht, Artdeco Group comprises three brands: Artdeco, Make up Factory, and Anny. Artdeco, the flagship makeup label, is a prominent name in the German selective makeup market, known for its affordable pricing and extensive product range. The brand enjoys widespread presence, with over 90 percent of German perfumeries and department stores carrying its products. In 2023, the brand contributed to 84 percent of the group’s total sales, which amounted to 72 million euros, marking a 16 percent year-over-year increase. This acquisition represents a strategic move by Sodalis Group to strengthen its presence in the health, beauty, and personal care sector and expand its portfolio with established brands in the German market.