Software

Capital Calls: JEDI’s demise, Toyota’s weird world

6 Jul 2021

Concise views on global finance: The cancelation of a $10 bln U.S. government cloud contract shows negotiating big projects is sometimes a matter of guesswork. Meanwhile, the auto firm that pioneered just-in-time manufacturing is cashing in on a chip stockpile and red-hot market.

How much is Wise worth?

5 Jul 2021

The money-changing app is listing in London without setting a price. Its worth depends largely on how much more foreign-exchange business CEO Kristo Käärmann can win from banks. A Breakingviews calculator shows Wise is due a roughly 20% upgrade from last year’s $5 bln price tag.

Wise’s FX land grab merits $6 bln valuation

5 Jul 2021

The money-changing app is listing in London without setting a price. Its worth depends largely on how much more foreign-exchange business CEO Kristo Käärmann can win from banks. A Breakingviews calculator shows Wise is due a roughly 20% upgrade from last year’s $5 bln price tag.

Capital Calls: It sure feels good to be a banker

1 Jul 2021

Concise views on global finance: Global deals in the first half of the year broke all records.

Capital Calls: Genetic gold rush

28 Jun 2021

Concise views on global finance: A company has shown biotechnology called CRISPR can precisely edit defective genes in humans, fueling investment and squabbles.

Review: Reining in the crypto-fanatics

25 Jun 2021

Ex-Swift executives Gottfried Leibbrandt and Natasha de Terán traverse the payments world in “The Pay Off”. Anecdotes and explanations lend pace and purpose. But despite warnings about central bank digital currencies and other novelties, they ask more questions than they answer.

Profitability makes Wise a true fintech unicorn

23 Jun 2021

Like financial-technology rivals, the UK money-changing group has a snazzy app and disruptive business model. What sets it apart is healthy earnings. Big banks can’t match its service without parting with fees worth $250 bln a year. Smaller ones may end up using Wise’s service.

Capital Calls: JPMorgan, French SPAC, Jessica Alba

17 Jun 2021

Concise views on global finance: Jamie Dimon bulks up his nascent UK digital banking offer by buying Nutmeg; France boosts its lowly SPAC league-table position with two blank-cheque vehicles; the Hollywood star’s consumer packaged goods company Honest encounters growing pains.

Data IPO is bet vs. Amazon, Google and Microsoft

16 Jun 2021

Confluent, which helps companies knit together streams of data, is seeking an $8 bln valuation. Revenue quadrupled from 2018 to 2020. But that's not enough to justify a toppy valuation multiple when cloud competitors include three of the four biggest tech groups on the planet.

Capital Calls: Platinum Equity, FTC chair, Tui

16 Jun 2021

Concise views on global finance: The buyout firm acquires textbook company McGraw Hill and the maker of Singer sewing machines; Joe Biden’s pick for the Federal Trade Commission brings swagger; and another capital hike will still leave the German holiday group heavily indebted.

Tech IPO gives bad SPAC deals run for their money

15 Jun 2021

Macquarie-sponsored Nuix’s CEO and CFO resigned after poor earnings and forecast revisions within six months of taking the Australian software maker public. Blank-cheque deals like Lordstown are known for hype and under-delivery, and now this ordinary listing has managed it too.

Software deal contains two-sided logic errors

7 Jun 2021

Sydney-listed Altium spurned a $3.9 bln takeover bid from larger U.S. peer Autodesk. It’s an odd response given recent struggles and the chunky 42% premium on offer. The maths doesn’t compute for the suitor either. In wild M&A markets, such behaviour is a feature rather than a bug.

Babylon’s $4 bln SPAC is big bet on U.S. pivot

3 Jun 2021

The healthcare app sealed a merger with blank-cheque company Alkuri Global Acquisition. Its roots are in the UK, where its artificial intelligence received a mixed welcome. Babylon’s future rests on managing similar blowback and rivals’ competition in the U.S.

Capital Calls: Russia and US, Clothing IPOs, Food

3 Jun 2021

Concise views on global finance: The Kremlin tells its national state fund to get out of greenback-denominated assets; Rent the Runway thinks about going public; the FAO’s global food index hits its highest level in nearly a decade.

Unloved Cloudera tries $5.3 bln revamp in private

1 Jun 2021

The cloud software company went public in 2017 when its hype was already fading, and competition from Amazon has only intensified. A low return on the current business for the private equity buyers suggests the upside is chasing bigger markets rather than cutting costs.

Capital Calls: Klarna, Dan Loeb, Fashion IPO

28 May 2021

Concise views on global finance: The Swedish “buy now, pay later” group’s possible $50 bln price tag may leapfrog rivals Afterpay and Affirm; the corporate agitator deserves a taste of his own medicine; About You’s mooted 3 bln euro valuation implies a discount to rivals.

Huawei gets pushed toward collision with Alibaba

26 May 2021

Founder Ren Zhengfei wants his embattled hardware company to shift focus to cloud computing and software. That will pit him against the $570 bln e-commerce giant, which is also moving into IT services. Huawei's scale and resources make it a formidable threat.

UK shunts Trainline into financial slow track

20 May 2021

The 1.5 billion pound rail ticket website’s shares fell 30% on concerns that a state-backed app will topple its dominance. They are likely to fall further as greater competition squeezes profitability. KKR’s decision to IPO the business two years ago looks all the more timely.

Capital Calls: JPMorgan, FirstGroup, Break fees

18 May 2021

Concise insights on global finance: Jamie Dimon is shuffling his deputies; the UK bus-to-rail group’s sale of its U.S. businesses to EQT has hit an investor revolt; deals involving AT&T and Canadian National Railway highlight the fees due for walking away.

Capital Calls: Disney misses the mark

13 May 2021

Concise views on global finance: Walt Disney reported nearly 104 million subscribers for its streaming flagship service.