Alphabet strikes $32bn Wiz deal

BY Richard Summerfield

On Tuesday, Google LLC announced it had signed a definitive agreement to acquire Wiz, Inc., a leading cloud security platform for $32bn, in an all-cash transaction. The deal will be the company’s biggest-ever acquisition.

Alphabet, Google’s parent company, has been eyeing Wiz for a while. In 2024, it was in discussions to acquire Wiz for $23bn. However, Wiz decided to withdraw from the deal due to worries about federal regulatory resistance and its intentions to pursue an initial public offering. The companies are seemingly less concerned about potential regulatory hurdles under the Trump administration and its more merger-friendly outlook. The administration’s attitude toward Big Tech may, however, be a cause for concern. Andrew Ferguson, the new Federal Trade Commission chairman, has been outspoken about his resolve to keep Big Tech under control.

In light of these concerns, according to the Financial Times, Alphabet, has agreed to a reverse termination fee of $3.2bn, which is rumoured to be among the highest ever agreed. If the deal wins regulatory approval and meets several conditions spelled out in the agreement, Google and Wiz expect the deal to close in 2026. Upon completion, Wiz will join Google Cloud.

Wiz was founded in 2020 and has rapidly become one of the fastest-growing software companies in the world. Its leadership team has a history of success in cloud start-ups: Wiz co-founder and chief executive Assaf Rappaport and several members of his executive team were also behind Adallom – the cloud security startup that Microsoft bought for $320m in 2015 and later rebranded as Microsoft Defender for Cloud Apps.

“From its earliest days, Google’s strong security focus has made us a leader in keeping people safe online,” said Sundar Pichai, chief executive of Google. “Today, businesses and governments that run in the cloud are looking for even stronger security solutions, and greater choice in cloud computing providers. Together, Google Cloud and Wiz will turbocharge improved cloud security and the ability to use multiple clouds.”

“Google Cloud and Wiz share a joint vision to make cybersecurity more accessible and simpler to use for organizations of any size and industry,” said Thomas Kurian, chief executive of Google Cloud. “Enabling more companies to prevent cyber attacks, including in very complex business software environments, will help organizations minimize the cost, disruption and hassle caused by cybersecurity incidents.”

“Wiz and Google Cloud are fully committed to continue supporting and protecting customers across all major clouds, helping keep them safe and secure wherever they operate,” said Mr Rappaport. “This is an exciting moment for our company, but an even more important one for customers and partners, as this acquisition will bolster our mission to improve security and prevent breaches by providing additional resources and deep AI expertise.”

The deal eclipses the current largest acquisition in Google’s 26-year history – the $12.5bn purchase of Motorola Mobility in 2012. The deal for Wiz would also go down as the biggest-ever cyber security acquisition and rank among the 20 most expensive takeovers of a software company in history, according to Mergermarket.

News: Alphabet to buy Wiz for $32 billion in its biggest deal to boost cloud security

Better positioned: Spirit Airlines emerges from Chapter 11

BY Fraser Tennant

With significantly less debt and greater financial flexibility, US carrier Spirit Airlines has emerged from Chapter 11 bankruptcy having completed its financial restructuring – a stronger company better positioned for long-term success.

As part of the restructuring, Spirit received a $350m equity investment from existing investors to support the company’s future initiatives, including investments to provide its customers with enhanced travel experiences and greater value.

The Florida-based airline filed for bankruptcy protection in November 2024, after years of losses, failed merger attempts and heavy debt levels. Reporting a net loss of $1.2bn in 2024, Spirit Airlines was the first major US carrier to file for Chapter 11 since 2011. 

“We are pleased to complete our streamlined restructuring and emerge in a stronger financial position to continue our transformation and investments,” said Ted Christie, president and chief executive of Spirit Airlines. “Throughout this process, we have continued to make meaningful progress enhancing our product offerings, while also focusing on returning to profitability and positioning our airline for long-term success.”

As part of its turnaround strategy, the company has said it would shift its focus away from price-conscious customers to more affluent travellers, in a move it estimates would generate 13 percent more revenue per passenger. In a further bid to attract customers, the airline plans to redesign its loyalty programme and enter into alliances with other carriers.

Following emergence from Chapter 11, Spirit will continue to be led by Mr Christie and its existing executive team. In addition, the company also emerges with a reconstituted board of directors.

A leading low-fare carrier committed to delivering an enhanced travel experience with flexible, affordable options, Spirit serves destinations throughout the US, Latin America and the Caribbean. It is one of the youngest and most fuel-efficient fleets in the US.

“Despite the challenges we have faced as an organisation, we are emerging as a stronger and more focused airline,” concluded Mr Christie. “On behalf of the executive team, I would also like to thank our outgoing board members for their contributions and invaluable service to our airline."

News: Spirit Airlines targets more affluent travelers after emerging from bankruptcy

Battery maker Northvolt files for Chapter 11

BY Fraser Tennant

Despite exhaustive efforts to secure a viable financial and operational future, Swedish battery maker Northvolt has filed for Chapter 11 bankruptcy in Sweden.

The company, like many in the battery sector, has experienced a series of challenges in recent months that eroded its financial position, including rising capital costs, geopolitical instability, subsequent supply chain disruptions and shifts in market demand.

Northvolt has also faced significant internal challenges in its ramp-up of production, both in ways that were expected by engagement in what is a highly complex industry, and others which were unforeseen.

The company sought Chapter 11 bankruptcy protection in the US in November 2024, but despite liquidity support from its lenders and key counterparties, it was unable to secure the necessary financial conditions to continue in its current form.

As a result, the board of directors at Northvolt determined that Chapter 11 bankruptcy in Sweden was the only available solution while the company pursues all realistic options to obtain financing to continue operating during the Swedish bankruptcy process.

“This is a difficult time for everyone at Northvolt,” said Tom Johnstone, interim chairman of the board at Northvolt. “We set out to build something groundbreaking – to drive real change in the battery, electric vehicle and wider European industry and accelerate the transition to a green and sustainable future.”

This future includes the improvement and upwards trajectory of Northvolt's production in Skellefteå, where cell output from serial production lines has doubled and the company has secured a 50 percent improvement in production yield since September 2024.   

“Northvolt has come a long way, and we are beginning to see the real outcomes of our work, including production line improvements that helped customers bring more electric vehicles to the market more quickly,” continued Mr Johnstone. “It remains key for Europe to have a homegrown battery industry, but it is a marathon to build such an industry. It needs patience and long-term commitment from all stakeholders.”

The company is hopeful that the outreach it has undertaken with potential investors during the Chapter 11 process will accelerate identifying the necessary financing to allow continued trading under the Swedish bankruptcy process.

Mr Johnstone concluded: “We are hopeful that the foundation we built – the technology, the expertise and the commitment to sustainability – will continue to drive change in the industry.”

News: Swedish battery maker Northvolt files for bankruptcy

Whitecap and Veren agree $10.4bn merger deal

BY Richard Summerfield

Whitecap Resources is to merge with Veren in an all-stock deal worth around $10.43bn, including debt. The deal will create a leading Canadian light oil and condensate producer.

The combined company will have an enterprise value of $10.4bn and 370,000 barrels of oil per day (boe/d) of production, 63 percent of which is liquids, with significant overlap across both unconventional and conventional assets. The transaction is expected to close before 30 May 2025.

The company that will result from the merger will be the largest Canadian light oil-focused producer and the seventh largest producer in the Western Canadian Sedimentary Basin, with significant natural gas growth potential. Furthermore, the combined company will become the largest producer in the high margin Kaybob Duvernay and Alberta Montney with about 220,000 boe/d of unconventional production. It will also be the largest landholder in the Alberta Montney and the second largest landholder across unconventional Montney and Duvernay fairways with 1.5 million acres in Alberta.

“We are excited to bring together two exceptionally strong asset bases to create one world-class energy producer with one of the deepest inventory growth sets of both liquids-rich Montney and Duvernay opportunities, along with conventional light oil opportunities in some of the most profitable plays in the Western Canadian basin,” said Grant Fagerheim, president and chief executive of Whitecap. “Our combined company will include exceptional technical and support personnel from the two companies in both the office and field and an experienced Board of Directors that prioritizes sustainable and profitable growth to generate strong returns for our combined shareholders. We look forward to bringing Whitecap and Veren together and providing increased value to both sets of shareholders well into the future."

“This strategic combination unlocks significant value for all shareholders and together positions us as a stronger, more resilient company,” said Craig Bryksa, president and chief executive of Veren. “With enhanced scale, deep inventory, and increased free funds flow generation, we're building a business with a differentiated competitive advantage. Our combined balance sheet reinforces our financial strength and enhanced credit profile, ensuring the long-term success in an evolving market. Together we're unlocking synergies, creating new opportunities, and setting the stage for sustainable growth."

The combined firm, which will retain the Whitecap name, will be led by Whitecap’s current management team, with four Veren directors, including Mr Bryksa, joining the Whitecap board.

Veren was born a year ago following a name change from Crescent Point Energy. The firm’s average daily production was 188,721 boe/d during the final three months of 2024, up from 162,269 a year earlier. The company has expanded its presence in northwestern Alberta through acquisitions in recent years, including $900m for Shell Canada’s Kaybob Duvernay assets in 2021, $1.7bn for Spartan Delta Corp.’s Montney assets in 2023 and $2.55bn for Hammerhead Energy Corp.’s Montney assets.

News: Canada's Whitecap, Veren in $10.4 billion merger to boost shale presence

Welltower to acquire Amica for $3.2bn

BY Richard Summerfield

Real estate income trust Welltower Inc has agreed to acquire Amica Senior Lifestyles and certain of its assets and affiliates from Ontario Teachers’ Pension Plan in a deal worth C$4.6bn ($3.2bn).

Under the terms of the deal, which is expected to close in Q4 2025, Welltower will also assume $560m of debt insured by the Canada Mortgage and Housing Corp.

The transaction will see Welltower fold Amica’s 31 income-producing properties, seven communities under construction and nine entitled development parcels located in Ontario and British Columbia into its portfolio. According to Welltower, the income-producing properties are valued at $3.2bn, while the seven sites under construction are said to be worth $1.25bn and the nine development parcels $150m. The properties under construction are scheduled to be acquired between 2025 and 2027. Welltower says the sites are in “highly affluent and supply-constrained neighbourhoods”.

Ontario Teachers’ first invested in Amica in 2010 and took the company private in a deal with management in 2015. As part of the transaction, Welltower will also acquire a minority interest in Amica’s management company with the Amica management team owning the majority interest.

“We are delighted to announce the acquisition of the Amica portfolio, the highest quality senior housing portfolio in North America,” said Shankh Mitra, chief executive of Welltower. “These communities will join the top echelons of the Welltower portfolio, reflected by their location within the most desirable neighborhoods in all of Canada and ultra-luxe amenities and finishes. Against a backdrop of rapidly growing demand and limited new supply, we expect the portfolio to drive outsized revenue and cash flow growth in the coming years.”

“We are thrilled to announce our long-term partnership with Welltower, which shares our passion for providing the highest quality care and services to the seniors population,” said Jens Cermak, chief executive of Amica. “We also believe that we will be key beneficiaries of Welltower’s industry-leading data science capabilities which will help scale our platform. Our premium communities appeal to an affluent and sophisticated population across Canada where seniors are empowered to live with freedom, optimism and peace of mind. Our portfolio has witnessed exceptional growth in recent years, and we strongly believe that this momentum can be sustained well into the future.”

“We have been delighted to partner with and support Amica on their journey to empower seniors as they age,” said Terry Woodward, senior managing director, private capital, at Ontario Teachers. “For more than a decade, we have supported the Company’s management team as they have grown the platform. We are excited to watch the Company reach new heights in the future and wish Amica, the management team, and Welltower continued success in their next stage of growth.”

News: Welltower to acquire Amica Senior Lifestyles portfolio for $3.2 billion