EuroPE Pulse: Weekly #14, 05/23

Gear up for yet another intriguing edition of EuroPE Pulse. This week, we spotlight major private equity transactions and strategic shifts that are defining the tech-driven private equity landscape across Europe and beyond. Our focus is sharp on both Large Cap maneuvers and influential Middle Market as well as Tech M&A activities which are ushering in new market dynamics.

Large Cap Private Equity Highlights:

• Reevaluation at High Stakes: Sony, alongside Apollo, reassesses the colossal $26bn bid for Paramount, signaling potential strategic recalibrations in media investments.
• KKR's Ambitious Dual Play: Not only is KKR set to privatize UK's IQGeo for $396 million, but it’s also advancing strong with a strategic $22.1 billion bid for Telecom Italia’s infrastructure, awaiting EU nods. These movements epitomize KKR's aggressive expansion and strategic positioning in European tech and telecom sectors.
• Blackstone's Software Sway: By acquiring a majority stake in Priority Software, Blackstone demonstrates its targeted investment in mission-critical business software, a step further in consolidating its tech portfolio.
• Permira's Bold Tech Financing: In a massive $6.9bn deal to take Squarespace private, backed by a hefty $2.65bn credit package from major financiers like Ares and Blackstone, Permira underlines the growing leverage private credit markets hold in large tech acquisitions.
• EQT's Green Investment: A $1.5 billion offer to acquire Sweden’s OX2 manifests EQT's robust commitment to green energy, aligning with broader European sustainability ambitions.

Middle Market Moves to Watch:

• Expanding Digital Networks: Oakley Capital’s acquisition of Germany's broadband platform vitroconnect via its Capital Origin II fund illustrates escalating interests in digital infrastructure amidst increasing demand for connectivity.
• Advancing Industry 4.0: MiddleGround Capital, targeting mobility, infrastructure, and advanced manufacturing, highlights the sector-specific deepenings within Middle Market PE, affirming the broadening interest in industry 4.0 innovations.
• Enhancement via Investments: Investment activities such as 3i Group’s €116m infusion into IT provider Constellation, and Qatar Investment Authority’s anchor investment in Ardian Semiconductor hub, emphasize strategic buildup in IT managed services and semiconductor industry, respectively.
• Qatar Investment Authority Backs Tech: Anchor investment in Ardian Semiconductor points to strategic bets on foundational tech categories like semiconductors.

Tech M&A and Investment Flares:

• Intel's Expansion Blueprint: Intel's discussion with Apollo Global Management for an $11 billion funding points towards a major chip manufacturing setup in Ireland, enhancing Europe’s position in global semiconductor production.
• Strategic Media Moves: As Sony rethinks its Paramount deal, this recalibration could signal a broader reassessment within media investment strategies, revealing potential volatility in legacy media valuations.
• Mobility and Automotive Realignments: Volkswagen explores significant stock sales in Traton SE post-share price surge, emphasizing the shifting gears in the automotive finance landscape.
• Innovative Tech Fundraisings: Uber's acquisition of Delivery Hero’s Taiwanese business for $950 million underlines strategic expansions in tech-adjacent service sectors, showcasing aggressive growth strategies in global markets.

Growth Tech & VC Spotlight:

• PolyAI and Conversational AI: Having raised €46 million, PolyAI aims to refine customer service automation — a signal of AI’s deepening integration in service industries.
• Ventures in AI Customer Service: Parloa’s $66 million raise to scale its AI customer service solutions reflects the venture capital community's bullish outlook on AI-driven service enhancements.

Exploring dynamic markets or enhancing your exit strategy? Contact us for bespoke advisory support or to discuss investment strategies adapted to the evolving European landscape.

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LARGE CAP PRIVATE EQUITY

Apollo and Sony to reconsider $26bn Paramount deal

May 17 | Private Equity Insights

Companies: Sony Corporation of America, Sony Group Corp, Sony Pictures Entertainment Inc

KKR to take UK's IQGeo private in $396 mln deal

May 14 | MarketScreener.com

KKR to offer ‘commitments’ to secure approval for €22bn Telecom Italia deal

May 17 | Private Equity Wire

Companies: Telecom Italia SpA

Blackstone to Acquire Majority Stake in Priority Software

May 16 | Blackstone

Companies: BlackStone Inc, TA Associates, Inc.

Siemens-Antriebssparte geht für 3,5 Milliarden Euro an Private Equity

May 16 | Finance Magazin

Companies: KPS Capital Partners LP

Permira taps private credit market to help finance $6.9bn Squarespace take-private deal

May 14 | Private Equity Wire

Companies: Permira, Squarespace Inc

Focus Group founders dial up £800m sale to private equity firm Hg

May 17 | Private Equity Insights

EQT Offers to Buy Wind Developer OX2 in $1.5 Billion Deal

May 13 | Pipeline Oil and Gas Magazine

Companies: EQT AB, EQT Partners AB

Carlyle co-chair expects buyouts to rebound from ‘denominator effect’ in 2025

May 11 | Mergermarket

Triton verkauft 10 Prozent der Renk-Anteile

May 17 | Finance Magazin

Companies: JPMorgan Chase & Co, RENK Group AG

View more

MIDDLE MARKET PRIVATE EQUITY

GP Profile: MiddleGround Capital seeks industrial B2B targets, highlights Toyota-inspired operational ethos

May 15 | Mergermarket

Oakley Capital invests in German broadband open access platform vitroconnect

May 14 | Private Equity Wire

3i invests c.€116m in IT managed services provider Constellation

May 14 | 3i Group

Companies: 3i Group PLC

Qatar Investment Authority Plans Ardian Semiconductor Investment

May 13 | BNN Bloomberg

Companies: Ardian, Qatar Investment Authority, Samsung Electronics Co Ltd

Investcorp: $570 Million Tech Fund V Closed

May 17 | PULSE 2.0

Companies: Investcorp Holdings BSC

Main Capital Partners announces the sale of Netherlands-based Optimizers to French business software provider, Orisha, after a successful investment period.

May 15 | Main Capital

Companies: Main Capital Partners BV, TA Associates, Inc.

Bahrain’s Investcorp closes ITP Fund at $570mln

May 10 | Zawya.com

Companies: Investcorp Holdings BSC

FSN Capital sammelt 420 Millionen Euro für ESG-Fonds ein

May 14 | Finance Magazin

Companies: FSN Capital Partners AS

Access Group to Acquire AP Automation Provider Lightyear

May 14 | PYMNTS.com

Companies: Access UK Ltd

GP minority stakes investments set to take off in Europe’s mid-market

May 17 | AltAssets

Companies: Lincoln International LLC

TECH M&A & INVESTMENT

Dentons advises KPS Capital Partners on its acquisition of Innomotics from Siemens for €3.5 billion

May 17 | Dentons

Companies: Dentons, KPS Capital Partners LP, Siemens AG

Openreach shines as fibre investment hits inflection point in BT financial year

May 17 | TheServerSide.com

Intel looking to fund $11 billion chip plant in Ireland

May 14 | RCR Wireless News

European biotech companies with oncology projects attract Big Pharma – Snapshot

May 14 | Mergermarket

Amazon, Microsoft, Pfizer To Invest Billions In French Projects

May 13 | FinanzNachrichten

Uber acquires Taiwanese Delivery Hero business for $950 million

May 14 | AK&M

Companies: Delivery Hero SE, Uber Technologies Inc

Doing Business in the Kingdom of Saudi Arabia

May 14 | TMF Group

Companies: TMF Group BV

GROWTH TECH & VC SPOTLIGHT

Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

May 17 | TechCrunch

Companies: Amazon.Com Inc, Anthropic PBC, Microsoft Corp, OpenAI LLC

PolyAI raises €46 million to further optmise its conversational AI for unbeatable customer service automation

May 17 | EU-Startups

Companies: Khosla Ventures LLC, PolyAI Ltd

Parloa Raises $66 Million to Scale and Expand AI-Powered Customer Service Platform

May 17 | Senovo

Companies: EQT AB, Senovo Capital Management GmbH

Aleph Alpha enlists Cerebras waferscale supers to train AI for German military

May 16 | MedWorm

Companies: Aleph Alpha GmbH, Cerebras Systems Inc

Malted AI raises £6M for cost-effective small language models

May 15 | Tech.eu

Berlin-based trawa raises €10M to use AI to make buying renewable energy easier for SMEs

May 15 | TechCrunch

Companies: Balderton Capital (UK) LLP

Grasp raises $1.9M to revolutionise finance with GenAI assistant

May 15 | Fintech Global

Google-backed Anthropic releases Claude chatbot across Europe

May 14 | The Hindu

Companies: Alphabet Inc, Amazon.Com Inc, Anthropic PBC, Google LLC

Amazon-backed Anthropic launches its Claude AI chatbot across Europe

May 14 | CNBC

Companies: Amazon.Com Inc, Anthropic PBC

Fintech’s VC Bros Are Betting on a New Frontier

May 13 | Y Combinator

Companies: Andreessen Horowitz, Khosla Ventures LLC, Sequoia Capital Operations LLC

View more

INSIDER SCOOP & MARKET BUZZ 

Blackstone, KKR and Sony eyeing deal for online comic store co Infocom

May 10 | Private Equity Wire

Companies: BlackStone Inc, Sony Group Corp

Citrix Parent Weighs Sale of ShareFile Platform Arm

May 16 | BNN Bloomberg

Companies: Elliott Investment Management LP, Vista Equity Partners LLC

Stability AI discusses sale amid cash crunch, The Information reports

May 16 | Reuters

Companies: Stability AI Ltd

PPF wants ProSieben to sell non-core assets, focus on content

May 14 | Reuters

Companies: ProSieben Television GmbH, ProSiebenSat.1 Media AG

Volkswagen Said to Eye Traton Stock Sale After Share Price Surge

May 13 | BNN Bloomberg

Companies: Traton SE, Volkswagen AG