Deal 1: Intel
On 7th February 2023, Intel announced the pricing for seven series of its senior unsecured notes, totaling an overall principal value of $11 billion (£8.97 billion). Intel plans to utilise the net proceeds from the note offering for various corporate needs. This includes potential refinancing of existing debt, allocation for working capital, and financing capital expenditures, among other purposes.
Intel ranks among the world’s top semiconductor chip makers in terms of revenue and played a pivotal role in developing the x86 series of instruction sets commonly used in personal computers. Intel seems intent on heavily investing in AI as Intel CEO Pat Gelsinger told investors that the company plans to “build AI into every product that we build” during Intel’s Q2 2023 earnings call.
Deal 2: Yandex
Vladimir Putin greenlit a proposal for the sale of Yandex’s Russian assets to VTB Bank and three prominent oligarchs: Vladimir Potanin, owner of the Interros conglomerate; Alexey Mordashov, the principal shareholder of steel firm Severstal; and Vagit Alekperov, the founder of Lukoil. The bid submitted totalled $7 billion (£5.6 billion). However, the Kremlin seems to have underestimated the concerns of Yandex’s international shareholders, potentially requiring the company to seek another plan’s approval from the president, leaving this deal in a state of limbo.
Yandex stands as Russia’s leading technology firm, providing a diverse range of products and services. While they’re best known for operating Russia’s largest search engine, their involvement extends to various other tech and internet-related ventures.
Deal 3: Metropolis
On October 5, 2023, US based Metropolis secured $1.7 billion (£1.38 billion) in Series C venture financing, through a combination of both debt and equity. An equity sum of $1.05 billion was amassed in a transaction spearheaded by 3L Capital and EldridgeBDT, with contributions from MSD Partners, Slow Ventures, Assembly Ventures, Vista Credit Partners, and Temasek Holdings. Accompanying this was $650 million in debt financing. These resources are earmarked for the acquisition of SP Plus.
Metropolis is an AI and computer vision startup built to revolutionise parking and drive the next era of mobility forward. The company’s system enables checkout-free payment for drivers and enhances transportation business, increasing profits while reducing costs. This benefits property partners with maximised earnings and offers modern parking and diverse transport options to property owners.
Deal 4: Sumo Logic
Sumo Logic announced that Francisco Partners had completed their acquisition of the company on 12th May 2023 for a sum of $1.7 billion (£1.36 billion). Based on the definitive agreement revealed on February 9, 2023, Francisco Partners has purchased all available shares of Sumo Logic at $12.05 each in cash, placing the company’s total equity value at around $1.7 billion. Following this transaction, Sumo Logic’s shares have stopped trading and have been delisted from the NASDAQ stock exchange.
Sumo Logic’s SaaS analytics platform ensures reliable, secure cloud-native applications. Their Continuous Intelligence Platform™ aids in protecting against security threats and understanding cloud infrastructures.
Deal 5: SurveyMonkey
On 13th March 2023, Momentive Global, the parent company of SurveyMonkey, announced its acquisition by a group headed by the private equity firm Symphony Technology Group, which was completed on 31st May. The all-cash transaction places the company’s valuation at approximately $1.5 billion (£1.2 billion). Following the news, the stock price of the San Mateo, California-based company surged 18.5% to $9.15 in extended trading.
SurveyMonkey is a popular cloud-supported survey platform allowing users to design, distribute, and evaluate surveys. Users can share these surveys through email, embed them on websites, or post on social media to increase response rates.
“As 2023 draws to a close, the continued investments and partnerships in the AI sector have been nothing short of revolutionary. One clear takeaway from these monumental deals is the undeniable value and trust companies place on AI-driven solutions. However, with such advancements come the need for specialised talent to lead and execute these initiatives. The demand for AI specialists, cloud strategists, and SaaS experts is predicted to soar in the coming years, with an emphasis on interdisciplinary skills and a holistic approach to technology. Companies will vie for top-tier talent who can integrate AI into business models seamlessly, ensuring both profitability and innovation. Those who position themselves at the intersection of technology, business acumen, and forward-thinking leadership will be the most coveted assets in the ever-evolving AI landscape.”
– Tyler Huskins, Advanced Technology Executive Search Specialist