Axios Pro Rata: Solar floodgates

Plus, buying a bio bottom. | Monday, June 06, 2022

Open in app View in browser     Axios Pro Rata By Dan Primack · Jun 06, 2022     Top of the Morning Illustration: Aïda Amer/Axios   The White House this morning announced that it won't impose new tariffs on solar panel imports for the next two years, while also offering new federal support for domestic manufacturing. Why it matters: This removes a ton of uncertainty for renewable energy deal makers. Catch up quick: The Commerce Department is investigating if Chinese panel-makers dodged U.S. anti-dumping duties by first shipping product to waystation countries like Thailand and Vietnam, leading to speculation that it may impose retroactive penalties on imports from those countries. The probe's possible fallout has caused U.S. solar project developers to warn of delays, on top of existing supply chain disruptions, and thrown potential deals into valuation limbo. Per Axios Pro's Alan Neuhauser: "The Commerce investigation brought investment in new projects to a near-standstill, industry insiders say, as companies began stockpiling billions of dollars to prepare for potential retroactive tariffs as high as 240%." Today's announcement refers to the two-year tariff moratorium as a "bridge" to increasing solar product supply. It also says that the White House will use the Defense Production Act to spur new domestic production, and also change federal procurement by directing "the development of master supply agreements, including 'super preference' status" for domestic product. Senior administration officials lauded private sector investment in solar, during a briefing call, saying it's on pace to triple capacity during Biden's first term in office. They added that the DPA moves are "about catalytic financial tools, including loans and grants." The winners here are Chinese panel makers, U.S. project developers/utilities and investors in both. Plus White House national climate advisor Gina McCarthy, who seems to have bested Commerce Secretary Gina Raimondo in some West Wing politicking. Things are a bit less rosy for domestic panel manufacturers, for whom the new tariffs would have been a boon. But that should be tempered by White House plans to stimulate demand. Plus, the longer term possibility that the Commerce Department and new tariffs are standing at the other side of that two-year "bridge." The bottom line: The White House is prioritizing its zero-carbon goals over fair trade enforcement.     The BFD Illustration: Sarah Grillo/Axios   Bristol Myers Squibb (NYSE: BMY) agreed to buy San Diego-based precision oncology company Turning Point Therapeutics (Nasdaq: TPTX) for $4.1 billion in cash. Why it's the BFD: This reflects the biotech industry's stock slump, as incumbents look to restock their portfolios with newer drugs. Turning Point shareholders will get a 122% premium to Thursday's closing price, but a discount to the stock's September 2021 peak. The bottom line: "Turning Point is developing repotrectinib, which it says has potential as a first-line treatment for non-small cell lung cancer. ... The treatment is set to join a crowded field of lung cancer treatments that includes Merck & Co.'s highly successful Keytruda, AstraZeneca Plc's Imfinzi and Bristol's own Opdivo." — John Lauerman, Bloomberg     Venture Capital Deals 🚑 Resilience, a San Diego-based biomanufacturing company, raised $625m in Series D funding from what it says was a mix of new and existing investors. Past backers include 8VC, Lux Capital, Arch Venture Partners, GV, Applied Ventures, Catalio Capital Management and Raptor Group. www.resilience.com • Perimeter 81, an Israeli software-defined perimeter startup, raised $100m at a $1b valuation. B Capital led, and was joined by ION Crossover Ventures and insider Insight Partners. http://axios.link/MzCw • AppOmni, an SF-based SaaS security startup, raised $70m in Series C funding. Thoma Bravo led, and was joined by insiders Scale Venture Partners, Salesforce Ventures, ClearSky and Costanoa Ventures http://axios.link/JZdx 🚑 Insilico, a Hong Kong-based drug discovery firm, raised $60m in Series D funding from such backers as Warburg Pincus, B Capital, Qiming Venture Partners, Bold Capital Partners and Pavilion Capital. http://axios.link/MhnM • Religion of Sports, a sports media production company co-founded by Tom Brady, raised $50m in Series B funding. Shamrock Capital led, and was joined by Elysian Park Ventures and Cerro Capital. http://axios.link/uQzt • Magical, a developer of text expander software, raised $35m in Series A funding. Coatue led, and was joined by Greylock, Bain, Lightspeed Capital, SV Angels and Blank Ventures. http://axios.link/B9Mf • Laminar, a Wilmington, Del.-based cloud data security startup, raised $30m from Tiger Global Management and Salesforce Ventures. http://axios.link/UTQC 🚑 EnsoData, a Madison, Wis.-based startup focused on disease detection during sleep, raised $20m in a Series A extension. Inspire led, and was joined by Zetta Venture Partners, Venture Investors, Supermoon Capital, Colle Capital, HealthX Ventures and M25 Ventures. www.ensodata.com • Sanlo, a San Francisco-based game monetization startup, raised $10m in Series A funding. Konvoy led and was joined by Initial Capital, Portage Ventures, XYZ Venture Capital, London Venture Partners and Index Ventures. www.sanlo.io • Modak, a Menlo Park, Calif.-based web3 platform for teen creators, raised $5.3m. GGV Capital led, and was joined by Monashees, MAYA Capital, Nazca Ventures and ONEVC. www.modak.live • Seafood Reboot, a Paris-based developer of plant-made seafood, raised €3.2m led by Demeter Partners. http://axios.link/IJ2m • Indica, a Nigerian business credit startup, raised $3m in seed funding led by Target Global. http://axios.link/wGZJ     A message from Axios Your daily research, done in 5 minutes     Discover how Axios Pro empowers thousands of professionals every day with deeper reporting, granular analysis, exclusive scoops and more. We'll get you smarter, faster on the deals transforming your industry. Get your free preview today.     Private Equity Deals • Arctos Sports Partners agreed to acquire a minority stake in Harris Blitzer Sports & Entertainment, the parent company of the Philadelphia 76ers and New Jersey Devils. http://axios.link/2zfJ • Asterion Industrial Partners offered to buy Italian telco Irideos for upwards of €400m, per Bloomberg. http://axios.link/sJHA • Bain Capital completed its buyout of VXI Global Solutions, an LA-based business process outsourcer, from Carlyle. www.vxi.com ⚡ CPP Investments committed another €800m to Renewable Power Capital, a London-based renewable energy investment platform, to support RPC's investment in four onshore wind sites in Sweden. www.renewablepowercapital.com • Greater Sum Ventures bought a majority stake in Vehlo, a Knoxville, Tenn.-based provider of auto repair industry software. Other company backers are Lightyear Capital, PSG, HarbourVest Partners and Parkwood. www.vehlo.com • H.I.G. Capital acquired EYSA Group, a Madrid-based on-street smart parking company. www.eysaservicios.com 🚑 Bain Capital acquired a majority stake in LeanTaaS, a Santa Clara, Calif.-based provider of hospital operations and capacity management software, from Insight Partners and Goldman Sachs. www.leantaas.com • Sterling Group agreed to buy Ergotron, a St. Paul, Minn.-based maker of ergonomic desks, from Melrose Industries (LSE: MRON) for $650m. http://axios.link/9UhK ⚾ ZT Corporate, a Houston-based PE firm, acquired Baseball Nation, a youth baseball organization in North Texas. www.baseballnationtx.com     Public Offerings • There might actually be an IPO this week, albeit a small one: Phoenix Motors, a Canadian EV maker spinning out of SPI Group (Nasdaq: SPI), plans to raise $20m and list on the Nasdaq (PEV). http://axios.link/bPsh 🚑 Intuity Medical, a Fremont, Calif.-based maker of blood glucose monitors, withdrew registration for a $75m IPO that was filed last September. It has raised over $300m from firms like Luther King Capital Management (21.4% pre-IPO stake), KCK Group (19.5%), PTV (18.2%), USVP (9.5%), Neuberger Berman (8.3%) and Versant Ventures (7.7%). http://axios.link/a8yU     Liquidity Events 🚑 Becton, Dickinson & Co. (NYSE: BDX) agreed to buy Parata Systems, a Durham, N.C.-based provider of pharmacy automation solutions, for $1.53b in cash from Frazier Healthcare Partners. www.parata.com • Cerberus Capital Management is seeking a buyer for Closure Systems International, a packaging firm that could fetch more than $1b, per Bloomberg. http://axios.link/0LwN • Victor Capital Partners agreed to sell PrimaLoft, a Latham, N.Y.-based insulation maker, to Compass Diversified (NYSE: CODI). www.primaloft.com     More M&A ✈️ JetBlue (Nasdaq: JBLU) sweetened its breakup fee to $350m from $200m for its proposed takeover of Spirit Airlines (NYSE: SAVE). Frontier Airlines (Nasdaq: ULCC), which is Spirit's preferred partner, has a $250m breakup fee in its offer. http://axios.link/DDAR • Elon Musk this morning sent Twitter (NYSE: TWTR) a letter "reiterating his request for certain data and information necessary to facilitate his evaluation of spam and fake accounts." Musk also said he reserves his rights to find a refusal of his request to be a material breach of obligations tied to his acquisition agreement. http://axios.link/RmA7     Fundraising • Qiming Venture Partners USA raised $260m for its third fund. It also added Isaac Ciechanover (ex-Polaris Partners) as a new partner. http://axios.link/yG2j     Final Numbers Source: Refinitiv Deals Intelligence. Data through June 2, 2022.     A message from Axios Your daily research, done in 5 minutes     Discover how Axios Pro empowers thousands of professionals every day with deeper reporting, granular analysis, exclusive scoops and more. 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