Axios Pro Rata: Giving thanks

Plus, a big train transaction. | Wednesday, November 23, 2022

Open in app View in browser   Presented By Kroger and Albertsons Companies   Axios Pro Rata By Dan Primack · Nov 23, 2022     Top of the Morning Illustration: Sarah Grillo/Axios   Why are you still here, working on a getaway day? Just some quick notes of thanks, as you head to your planes, trains and automobiles: Thank you, market correction: "Nothing matters" grew tiresome years ago, as did tropes about how "this time is different because these are real businesses." There is (cold) comfort in being reminded that economic cycles will always spin, separating strong investors and founders from bandwagon riders, even if it takes longer than expected. Speaking of founders, thank all of you too. Those whose companies are thriving, and those whose are struggling. I'm not a founder cultist, but innovation ends if you stop dreaming and taking risks. Thank you, Elon Musk: Sure, you've been a chaos monkey whose hubris might destroy one of my favorite apps. But you also caused one of the most fascinating merger disputes in recent history, ultimately reminding everyone that even the world's richest man is ultimately bound by the contracts he signs. (Many outside of media believe that we root for outcomes. But what we really root for are stories... and Elon/Twitter has been bountiful.) Thank you, private lenders: For years you were bit players, until becoming lead characters in 2022 without whom the leveraged buyout market would have screeched to a halt. Thank you, rival wretches: Every day I'm in awe of the work you do, and it makes me strive to be better. Thank you, dear readers: You're why I haven't had a normal weekday breakfast in decades, and why it doesn't bother me a bit. I hope you have a wonderful holiday. Talk to you again next week...     The BFD Illustration: Aïda Amer/Axios   Norfolk Southern (NYSE: NSC) agreed to buy Cincinnati Southern Railway from the City of Cincinnati for $1.62 billion in cash. Why it's the BFD: This comes against the backdrop of a possible freight rail-workers strike, which could cripple the U.S. economy. Details: CSR runs around 360 miles from Cincinnati to Chattanooga, Tenn., atop around 9,500 acres of land and operated under a lease agreement with a Norfolk Southern subsidiary that's set to expire in 2026. Deal closure is subject to approval by Cincinnati voters and the U.S. Surface Transportation Board. CSR trustees have said proceeds would be put into an investment trust, whose returns would fund existing infrastructure like roads, bridges and parks. History: "The route was funded with a $10 million bond issue approved by Cincinnati voters in June 1869, just as the steamboat era that put Cincinnati on the map was winding down. It became a dependable cash cow for the City after its operations were leased out in 1881 to the company that would eventually become Norfolk Southern." — Brian Planalp & Chris Riva, WXIX     Venture Capital Deals ⚡ Swell, a Santa Monica, Calif.-based virtual power plant startup, raised $120m in Series B funding co-led by SoftBank and Greenbacker Development Opportunities, as first reported by Axios Pro. https://axios.link/3VmzZey • Prosper, an SF-based lending platform, raised $75m led by Neuberger Berman. https://axios.link/3gsIXrD • Celebal Technologies, an Indian software consultancy, raised $32m from Norwest Venture Partners. www.celebaltech.com • Ramani, a Tanzanian fintech focused on Africa's consumer packaged goods supply chain, raised $32m in Series A equity and debt funding led by Flexcap Ventures. https://axios.link/3V3eXSb 🚑 PayZen, an SF-based provider of health care financing tools, raised $20m in equity funding led by 7wire Ventures (plus another $200m in debt from Viola Credit). www.payzen.com • Nymbl Science, a Denver-based provider of digital balance training for older adults, raised $12m in Series B funding. Cobalt Ventures and Outcomes Collective Growth Capital co-led, and were joined by 450 Ventures. https://axios.link/3GA4k4Z 🚑 Validic, a Durham, S.C.-based remote care startup, raised $12m. Kaiser Permanente Ventures led, and was joined by Arkin Digital Health, Green Park and Golf Ventures, Ziegler, Gore Range Capital, Greycroft Partners and SJF Ventures. www.validic.com 🚑 Segmed, a Palo Alto, Calif.-based medical imaging startup, raised $5.2m in seed funding. Nina Capital led, and was joined by iGan Partners, M3 Inc, Mighty Capital, Expeditions Fund and Alchemist Accelerator. https://axios.link/3GxNlAn • RedBrick AI, a developer of medical imagery annotations solutions, raised $4.6m co-led by Sequoia India and Southeast Asia. https://axios.link/3tYRCVK • Saile, a Kansas City-based developer of sales bots, raised $1.35m in seed funding. Valor Ventures led, and was joined by KCRise Fund. https://axios.link/3EvPMAI     A message from Kroger and Albertsons Companies Uniting two purpose-driven organizations     Through its transaction with Albertsons Cos., Kroger will: Serve more communities with fresher affordable food, faster. Invest $500 million to lower prices and $1.3 billion to improve the customer experience. Invest $1 billion to continue raising associate wages and benefits. Learn more.     Private Equity Deals • AppHub, a Boston-based e-commerce software provider backed by Silversmith Capital Partners, acquired Reviews.io, a British customer reviews platform, for $72m, as first reported by Axios Pro. https://axios.link/3GzVRil • Hellman & Friedman and Permira completed their $10.2b take-private acquisition of Zendesk, an SF-based customer engagement software provider. www.zendesk.com     SPAC Stuff • Able View, a Hong Kong-based cross-border brand management firm, agreed to go public via Hainan Manaslu Acquisition Corp. (Nasdaq: HMAC). https://axios.link/3gt4Ffb • Digital World Acquisition Corp. (Nasdaq: DWAC) shareholders approved an extension to the SPAC's merger closing with Trump Media & Technology Group, the parent company of Truth Social, until next September. • Glencore (LSE: GLEN) amended the terms whereby a SPAC called Metal Acquisition Corp. (NYSE: MTAL) will buy its Cobar copper mine in Australia. The revised deal is valued at US$1.1b. https://axios.link/3EXhWGr • HyperloopTT, an LA-based hyperloop transportation company, agreed to go public at an implied $600m pre-money equity value via Forest Road Acquisition Corp. II (NYSE: FRXB), a SPAC formed by former Disney execs Tom Staggs and Kevin Mayer. https://axios.link/3ExNKjz • Zapp, a British maker of electric motorcycles, agreed to go public at an implied $573m post-merger value via CIIG Capital Partners II (Nasdaq: CIIG). https://axios.link/3tRMzGY     Liquidity Events • Affirma Capital hired Moelis & Co. to find a buyer for its stake in Fine Hygienic Holding, a Jordanian maker of tissue and paper products, per Reuters. https://axios.link/3VnhhTO • Chipper Cash, an SF-based cross-border payments company focused on Africa, agreed to buy Zoona, a Zambian online payment and agent services business. Chipper Cash has raised $300m, most recently at a $2.2b valuation, while Zoona raised $25m from firms like AHL Venture Partners, Quona Capital and the IFC. https://axios.link/3tN0oWP ⚡ Global Infrastructure Partners agreed to sell Indian renewable energy producer Vector Green Energy for $345m to Singapore-listed Sembcorp Industries. https://axios.link/3i9xkpV • Quadrant Private Equity pulled the auction for Australian amusement center operator The Entertainment and Education Group, for which it had sought A$1b bids, per The Australian. www.teeg.com • Quantifeed, a Hong Kong-based automated investment platform whose VC backers include HSBC, acquired Alpima, a London-based asset management startup that raised $2m from Eight Roads and Fidelity International Strategic Ventures. https://axios.link/3ABtnAJ     More M&A • Fremantle, a unit of Bertelsmann, acquired a majority stake in Silvio Productions, the Israeli production outfit previously known as EGG Films. https://axios.link/3gyysmy ⚽ The Glazer family plans to seek outside investors for British soccer club Manchester United, which could set the stage for a sale, per Sky News. https://axios.link/3XqnsbB • Independent Franchise Partners will oppose the proposed recombination of Fox Corp. (Nasdaq: FOXA) and News Corp. (Nasdaq: NWSA). https://axios.link/3VjdHKz • Italy's government said it will continue to seek a buyer for a majority stake in ITA Airlines (fka Alitalia), after shipping firm MSC ended its pursuit. https://axios.link/3ETufDy     Fundraising • Ford Street Ventures of SF is raising $20m for its second fund, per an SEC filing. • Foresight Ventures, a crypto-focused firm, launched a $10m incubator program. www.foresightventures.com • Fort Ross Ventures is raising $150m for a seed fund and $200m for a late-stage fund, per SEC filings. www.fortross.vc • H.I.G. Capital is raising $5b for its fourth U.S. midmarket fund, per public pension docs. https://axios.link/3i9JwHz • Stonepeak Partners will seek to raise between $15b and $20b for its next flagship North American infrastructure fund, per Reuters. https://axios.link/3AE1YOL     It's Personnel • Greg Galligan joined Vista Credit Partners as a senior managing director. He previously was with Ares Management. www.vistacreditpartners.com • Charlie Kelly joined Stifel as a managing director of venture banking. He previously was with Brex and CIBC. https://axios.link/3AG3U9z     Final Numbers Data: PitchBook; Chart: Axios Visuals Venture capitalists aren't letting the possible Bird bankruptcy slow their micromobility roll, but are focusing much more of their e-scooter and bike-share attention on Europe than on the U.S. or Asia, per Axios Pro's Alan Neuhauser.     A message from Kroger and Albertsons Companies Creating a competitive alternative to large, non-union retailers     Kroger is proud to operate union grocery stores. With Albertsons Cos., we will secure the long-term future of union jobs. Kroger has grown our unionized workforce by 100K+ since 2012. We expect to invest $1 billion in wages and comprehensive benefits for a best-in-class associate experience.   ✔️ Thanks (again) for reading Axios Pro Rata, and to copy editors Mickey Meece and Nick Aspinwall! Please ask your friends, colleagues, turkey trotters and gobble wobblers to sign up. Your personal deals analyst is here. Navigate through the busy world of VC, PE and M&A with Axios Pro. Talk to our sales team today.   Axios thanks our partners for supporting our newsletters. If you're interested in advertising, learn more here. Sponsorship has no influence on editorial content. Axios, 3100 Clarendon B‌lvd, Arlington VA 22201   You received this email because you signed up for newsletters from Axios. Change your preferences or unsubscribe here.   Was this email forwarded to you? Sign up now to get Axios in your inbox.   Follow Axios on social media: