It was a busy day of deals and other announcements, so we’ll summarize them below. 👇
First up is Nasdaq, which made its largest-ever deal by purchasing software firm Adenza from Thoma Bravo for $10.5 billion. Banks and brokerages primarily use the risk management and regulatory software, which will help Nasdaq diversify its business beyond its exchange operations. 🏦
However, shares fell over 10% as shareholders expressed concern over the premium paid for the fintech giant, valuing Adenza at almost 18 times its 2023 revenue projections. Additionally, S&P Global Ratings lowered the company’s long-term issuer credit ratings from BBB+ to BBB on the news.
Next up, Swiss drugmaker Novartis is acquiring U.S. biotech firm Chinook Therapeutics for up to $3.5 billion. Shareholders will receive $3.2 billion ($40/share) under the deal, plus a contingent value right of up to $300 million contingent on specific regulatory achievements. This represents a roughly 67% premium to Chinook’s closing price last Friday. 💊
The acquisition will boost the Swiss drugmaker’s late-stage drug development line-up, upping the ante in a race to develop a rare kidney disease treatment. Executives expect the transaction to close in the second half of 2023, with Chinook’s pivotal readout (trial results) coming sometime in the fourth quarter.
Generic drug maker Mallinckrodt will reportedly renege on its $1.7 billion opioid deal reached as part of its bankruptcy last year. The company’s board might choose not to make its scheduled $200 million payment later this week, instead looking for other possibilities. One might be filing for a second bankruptcy, which could put the entire settlement at risk. 🙅♂️
Anti-trust regulators continue to weigh on Microsoft’s acquisition of Activision Blizzard, as the U.S. Federal Trade Commission (FTC) plans to block the proposed deal. Although it already sued to block the acquisition, the injunction filing would seek to stop the purchase from going through before its July 18 deadline. 🚫
German industrial engineering and steel production conglomerate, ThyssenKrupp, launched the long-awaited listing of its hydrogen division Nucera. The 66:34 joint venture with Italy’s De Nora aims to raise up to 600 million euros by selling new shares. Weak market conditions thwarted previous efforts to go public, but the recent rally may give it enough support to raise funds for expansion. ☢️
And lastly, Lumen Technologies shares popped on news that the company is working with Google and Microsoft on a new product. Its ExaSwitch network interconnection ecosystem empowers organizations with high bandwidth needs to route their traffic dynamically and quickly between networks and without third-party intervention. 👍