Second time around: Spirit Airlines files for Chapter 11

BY Fraser Tennant

For the second time in a year, no-frills pioneer Spirit Airlines has filed for Chapter 11 bankruptcy protection in order to facilitate a comprehensive restructuring and position the business for long-term success.

The airline intends to use the Chapter 11 process to implement the broad changes necessary to transition the company for a sustainable future and position it to deliver the best value.  

The Chapter 11 process will provide Spirit with the tools, time and flexibility to continue ongoing discussions with all of its lessors, financial creditors and other parties to implement a financial and operational transformation of the company.

Through the restructuring process, Spirit intends to: (i) focus its flying on key markets to provide more destinations, frequencies and enhanced connectivity in its focus cities; (ii) optimise its fleet to match capacity with profitable demand in line with the redesigned network; and (iii) reinforce efforts to build on its industry-leading cost model by pursuing further efficiencies across the business.

“Since emerging from our previous restructuring, it has become clear that there is much more work to be done and many more tools are available to best position Spirit for the future,” said Dave Davis, president and chief executive of Spirit Airlines. “After thoroughly evaluating our options and considering recent events and the market pressures facing our industry, our board of directors decided that a court-supervised process is the best path forward.”

Spirit expects to be delisted from the NYSE American stock exchange as a result of the Chapter 11 filing and for its common stock to continue to trade in the over the counter marketplace through the bankruptcy process.

“As we move forward, customers can continue to rely on Spirit to provide high-value travel options and connect them with the people and places that matter most,” continued Mr Davis. “On behalf of our board and leadership, I want to thank our team members for their continued dedication, resilience and commitment to delivering a safe, reliable operation and excellent service.”

Florida-based Spirit Airlines serves destinations throughout the US, Latin America and the Caribbean with its all-Airbus Fit Fleet, one of the youngest and most fuel-efficient fleets in the US.

Mr Davis concluded: “We have evaluated every corner of our business and are proceeding with a comprehensive approach in order to best serve our customers, team members and other stakeholders.”

News: Spirit Airlines files for second bankruptcy in a year as financial challenges persist

AT&T buys spectrum licences from EchoStar for $23bn

BY Fraser Tennant

In a deal designed to boost its 5G networks, US multinational telecommunications holding company AT&T is to acquire certain wireless spectrum licences from mobile satellite communication services provider EchoStar for $23bn.

The licence sale to AT&T will enable rapid deployment of the purchased spectrum to US consumers across the country – with AT&T having the option to lease the spectrum, pending the closing of the spectrum sale – an arrangement that benefits both AT&T and Boost Mobile subscribers.

“This acquisition bolsters and expands our spectrum portfolio while enhancing customers’ 5G wireless and home internet experience in even more markets,” said John Stankey, chairman and chief executive of AT&T. “We are adding fuel to our winning strategy of investing in valuable wireless and broadband assets to become America’s best connectivity provider.”

Facing scrutiny from government regulators, in June 2025, President Trump requested that EchoStar and Brendan Carr, chair of the Federal Communications Commission (FCC), reach an amicable deal over the fate of the company’s wireless spectrum licences.

To that end, the spectrum sale to AT&T and hybrid mobile network operator (MNO) agreement – providing wireless service under the Boost Mobile brand – are critical steps toward resolving the FCC’s spectrum utilisation concerns.

Through Boost Mobile’s hybrid MNO infrastructure, subscribers will continue to receive service from Boost Mobile’s cloud-native 5G core connected to AT&T’s leading nationwide network. While primary connectivity will be provided by AT&T’s towers, Boost Mobile subscribers will continue to have access to the T-Mobile network.

“This transaction puts our business on a solid financial path, further facilitating EchoStar’s long-term success, and enhancing our ability to innovate and compete as a hybrid network operator,” said Hamid Akhavan, chief executive and president of EchoStar. “The proceeds of this transaction will be used for, among other things, retiring certain debt obligations and funding EchoStar’s continued operations and growth initiatives.”

The transaction is expected to close in mid-2026, subject to certain closing conditions, including regulatory approvals.

Mr Akhavan concluded: “We continue to evaluate strategic opportunities for our remaining spectrum portfolio in partnership with the US government and wireless industry participants."

News: EchoStar to sell wireless spectrum licenses to AT&T in $23 billion deal

Thoma Bravo agrees $2bn Verint deal

BY Richard Summerfield

Software investment firm Thoma Bravo has agreed to acquire Verint Systems, a leader in customer experience automation, in a deal worth $2bn.

Under the terms of the deal, Verint common shareholders will receive $20.50 per share in cash - an 18 percent premium to Verint’s 10-day volume weighted average share price up to 25 June 2025, the last day prior to media reports regarding a potential sale of the company.

The transaction, which has been unanimously approved by the Verint board, is expected to close before the end of Verint’s current fiscal year, subject to customary closing conditions, including approval by Verint shareholders and the receipt of required regulatory approvals.

Upon completion of the transaction, Verint common stock will no longer be listed on any public stock exchange. Thoma Bravo intends to merge Verint with its portfolio company Calabrio, a workforce engagement management platform, which the firm says will offer an expansive portfolio to advance the critical priorities of customer experience organisations across the size and complexity spectrum. The combination will create more opportunities for companies to quickly achieve business outcomes in their interactions with customers.

“Thoma Bravo’s investment is a testament to our CX Automation category leadership,” said Dan Bodner, chief executive and chairman of Verint. “Leading brands around the world are reporting strong AI business outcomes with the Verint CX Automation Platform. We are making good progress in delivering AI-powered solutions to an early stage CX Automation market, and we recently announced that our AI Annual Recurring Revenue (ARR) now represents 50% of our total ARR. We look forward to extending our category leadership together with Thoma Bravo.”

“Verint’s market leading CX Automation platform, enterprise customer base and talented employees position it well to shape the future of customer experience with AI as part of the Thoma Bravo portfolio,” said Mike Hoffmann, a partner at Thoma Bravo. “At the closing of the transaction, Verint will join forces with Thoma Bravo portfolio company Calabrio. The opportunity to automate CX workflows with an AI-powered platform is significant, and the combined company will have the industry’s broadest CX platform arming brands of all sizes with strong AI business outcomes.”

According to a statement announcing the deal, certain shareholders and members of the Verint board have entered into voting agreements pursuant to which they have agreed, among other things, to vote their shares of Verint stock in favour of the transaction, subject to certain conditions. These shareholders currently represent approximately 14.5 percent of the voting power of Verint’s stock.

Thoma Bravo, which had about $184bn in assets under management as of 31 March, is one of the largest software-focused investors in the world. The firm has acquired or invested in more than 530 software and technology companies. In August, the firm agreed a $12bn deal to acquire human resources software provider Dayforce.

News: Thoma Bravo to buy Verint in $2 billion deal as software acquisitions ramp up

Lowe’s announces $8.8bn Foundation Building Materials deal

BY Richard Summerfield

In a deal to expand its footing in the professional builders market, Lowe’s Co has agreed to acquire Foundation Building Materials, a distributor of drywall, insulation and other products, for approximately $8.8bn in cash. The transaction value reflects an adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of 13.4x.

According to a statement announcing the deal, Lowe’s has secured $9bn in fully committed bridge financing from Bank of America, N.A. and Goldman Sachs & Co. LLC. The company expects to finance the acquisition through a combination of short-term and long-term debt and intends to maintain its current credit ratings. The transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions, including regulatory approval.

“With this acquisition, we are advancing our multi-year transformation of the Pro offering,” said Marvin R. Ellison, chairman, president and chief executive of Lowe’s. “It allows us to serve the large Pro planned spend within a $250 billion total addressable market and aligns perfectly with our Total Home strategy. FBM’s scalable, multi-trade distribution platform and strong leadership combined with our recent acquisition of ADG will significantly enhance our Pro offering. We’re excited to welcome the FBM team and strengthen our solutions for our growing Pro customers.”

“Joining Lowe’s is an exciting next step,” said Ruben Mendoza, president and chief executive of Foundation Building Materials. “Since 2011, we’ve built a leading position in drywall, ceiling systems, and metal framing, with proven success integrating acquisitions. Together with Lowe’s complementary products and incredible brand, we’ll offer a more comprehensive solution for Pro customers and accelerate growth.”

Foundation Building Materials is a leading North American distributor of interior building products, including drywall, metal framing, ceiling systems, commercial doors and hardware, insulation and complementary products serving large residential and commercial professionals in both new construction and repair and remodel applications. Since 2011, it has grown organically and inorganically to become an industry leader, with a network of over 370 locations in the US and Canada serving 40,000 Pro customers. In 2024, on a pro forma basis, the company generated approximately $6.5bn in revenue and $635m in adjusted EBITDA. It generated approximately 25 percent and 30 percent compound annual growth rate for revenue and adjusted EBITDA, respectively, from 2019 to 2024.

Lowe’s has completed a number of deals aimed at strengthening its offering for professional contractors and builders in recent years. In April, the company acquired Artisan Design for $1.33bn.

In addition to the deal for Foundation Building Materials, Lowe’s also reported its fiscal second-quarter financial results on Wednesday. The company posted an adjusted profit of $4.33 per share. Revenue totalled $23.96bn in the period, which met Wall Street’s expectations. The company has also raised its full-year sales outlook to a range of $84.5bn to $85.5bn.

News: Lowe's to buy Foundation Building Materials for $8.8 billion to boost contractor business

UK defence sector funding hits “all-time high”, reveals new report

BY Fraser Tennant

Investments in the UK defence and national security sectors surged in 2024, with both government funding and private capital investments increasing, according to a new report by Heligan Group

In its ‘Investing in Defence 2025’ report, Heligan Group reveals that investment funding – primarily driven by venture capital for European defence, security and resilience start-ups – reached an all-time high of $5.2bn last year, nearly a fivefold increase over six years.

This boom, states the report, has been driven by geopolitical tensions and conflict, primarily the Russian war against Ukraine, which has driven greater demand for defence technology – increasing by 64 percent between 2014 and 2024.

The UK is also pursuing innovation programmes via the National Security Strategic Investment Fund and accelerators such as the Defence and Security Accelerator, with innovation centrally coordinated by the newly established UK Defence Innovation organisation.

“Public-private partnerships fundamentally reduce investment risk for private investors and provide long-term growth prospects,” said Matt Croker, a partner at Heligan Group. “PPPs also foster innovation and build the critical links and understanding between those with the need and those with the solutions.

“A new UK-European Union (EU) post-Brexit agreement also paves the way for UK-based firms’ access to the EU’s new Security Action for Europe – a €150b fund providing loans for defence projects,” he continued. “Subsequently, I believe that the long-term stability and resilience of investments in defence are improved due to a sector strongly influenced by geopolitical necessity and one that is financially backed with governmental support.”

The report also notes that alongside private equity and corporate investors. mainstream investors are playing a significant role, with a greater focus on dual-use technologies such as artificial intelligence, cyber security, autonomous systems and quantum, despite historically having shied away from such investments.

Heligan Group also recognises a tangible realignment of ethical and environmental, social and governance lines, with many seeing a momentum shift, with attitudes to defence and security investing now framed as essential for societal security and stability in the context of war in Eastern Europe.

Mr Crocker concluded: “With heightened threat levels, investors would appear to be loosening restrictions and recognising defence as a critical and necessary aspect of the overall investment landscape, as well as a potentially untapped and lucrative addition to their investment portfolios.”

Report: Investing in Defence 2025