Category: Headlines

Headquartered in Melbourne and owned by private equity firm BGH Capital, CyberCX was formed in 2019 through the initial acquisition and amalgamation of twelve separate boutiques, since growing to a headcount of around 1,400 across the region. While terms of the deal were not disclosed, business media outlets have pegged it as being worth in excess of $1 billion, described as Accenture’s largest ever in the cyber space and certainly the biggest in Australia’s consulting industry in recent memory. “We are immensely proud of the business we have built,” stated John Paitaridis, who was tapped to lead the merged business from its outset. “Joining Accenture’s global cybersecurity organisation enables our exceptional people to combine forces with global capabilities and provide world-leading cybersecurity services to an even greater number of clients across Asia Pacific.” Paitaridis was last year named as CEO Magazine’s ‘CEO of the Year’ for IT and Telecommunications, with the firm becoming the country’s most prominent voice in the murky world of cyber warfare by adopting a notably public profile through tie-ups with popular TV show Hunted and sponsorship of the Australian Open and Collingwood Football Club. Cyber threats have also gained greater space in the public consciousness since the firm’s inception, due to the increased frequency, sophistication, and severity of attacks and recent hits on high-profile organisations such as Optus, Medibank and Qantas. In addition to its advisory, managed services, and other end-to-end offerings, CyberCX runs a major incident response line. “Client demand for cybersecurity services is accelerating as data and digital environments become increasingly connected and heightened threats are exposed across operational value chains, supply chains, and the enterprise,” stated Accenture A/NZ CEO Peter Burns. “The need for responsible governance is also rising as AI and Quantum technologies advance.” Burns continued; “CyberCX’s breadth of capabilities, trusted relationships with government and critical infrastructure organisations, and exceptional talent in the region (CyberCX boasts security operations centres across both Australia and New Zealand), combined with Accenture’s local and global scale and innovation, will help us meet this ever-increasing client need.” Accenture has been significantly building up its global cybersecurity capabilities over the past five or so years via a string of acquisitions (totalling twenty over the past decade), including Context Information Security (UK) and Innotec(Spain) in Europe, Symantec’s cybersecurity business in the US, and South American firms Morphus, Real Protect and MNEMO in Mexico and Brazil. Not only is CyberCX Accenture’s first significant cyber purchase in Asia Pacific however, it’s the consulting giant’s biggest ever in the space, and comes as a number of its tech advisory rivals have also been making moves in Australia; for example Fujitsu’s recent $300 million investment and the formation of Wipro’s local cyber practice under the Wipro Shelde brand. Thales also picked off another of Australia’s leading cyber outfits in Tesserent in 2023 (which is now run by ex-Accenture security director Jacquie Kernot), yet the $176 million price-tag is significantly dwarfed by Accenture’s reported $1 billion-plus outlay for CyberCX. Indeed, it’s difficult to recall any consulting sector acquisitions of this size in Australia. Recent years have seen NCS fork out $325 million for The Dialog Group and Telstra pay $267 million for Versent, selling off an inflated 75 percent stake to Infosys just one day prior to the CyberCX announcement. Dating back a decade to CSC buying UXC for $428 million to later form part of DXC Technology, the biggest recent deal appears to be Accenture’s own purchase of Partners in Performance last year, for a reported $375 million. Source: https://www.consultancy.com.au/news/11507/accenture-buys-australias-cybercx-for-a-reported-1-billion-plus

FPG Insurance Co Inc (FPG) and The Mercantile Insurance Co Inc, two of the largest non-life insurance providers in the Philippines, have announced their plans to merge, forming FPG Mercantile. With a combined GWP of PHP 10 billion, FPG Mercantile is set to become a new non-life insurance powerhouse in the country. With the combined strengths of both companies, it will offer improved insurance solutions, increased financial stability, and excellent customer service to millions of Filipinos. FPG Mercantile’s combined GWP places it among the top four insurance companies in the non-life sector, aiming to innovate, expand its digital offerings, and effectively navigate the changing regulatory environment in the Philippines. “This merger marks a historic milestone for the industry and nation,” said David Zuellig, FPG Regional Chairman. “By bringing together two trusted names, we are creating a powerhouse that will not only lead the market but also set new benchmarks for protecting Filipino families and businesses in an increasingly complex world.” Gigi Pio de Roda, President & CEO of FPG, who will lead FPG Mercantile, added: “This partnership is a transformative step for the Philippine insurance industry. By uniting our resources and talents, we will create a more resilient organisation capable of providing comprehensive protection to our clients amid growing economic uncertainties and climate risks.” The merged company is committed to a smooth transition for all employees and will maintain operations across all current locations. For customers, there will be no immediate changes to existing policies or services. The merger is expected to close by October 2025, subject to regulatory approvals from the Insurance Commission and other relevant authorities. Romulo I. Delos Reyes, Jr., Chairman of Mercantile, stated: “Joining forces with FPG allows us to accelerate our growth and deliver even greater value to policyholders across the archipelago. This merger is about synergy, innovation, and a deeper dedication to safeguarding the futures of our customers.” “This merger represents possibly the largest non-life insurance deal in the Philippines, a landmark transaction that will redefine the industry,” said Gerard Pennefather from Huntington, strategic advisors to FPG. Source: https://www.reinsurancene.ws/philippine-insurers-fpg-and-mercantile-announce-merger

SINGAPORE’S largest mall, VivoCity, with over a million square feet of lettable area, is much loved by shoppers. However, the mall’s owner – Mapletree Pan Asia Commercial Trust : N2IU -1.67% (MPACT) – receives little affection from investors. In terms of trading price relative to book value, MPACT is performing the worst among the seven real estate investment trusts (Reits) that are members of the benchmark Straits Times Index (STI). As at May 6, MPACT, which owns properties used primarily for office and/or retail purposes, traded at a 32 per cent discount to its end-March 2025 net asset value (NAV) per unit of S$1.78. Source: https://www.businesstimes.com.sg/opinion-features/mapletree-pan-asia-commercial-trust-should-explore-merger-or-sale-festival-walk-become-more 

Kronos Bio Inc., a biotechnology company that has been developing small molecule therapeutics to address cancers and other diseases driven by deregulated transcription, has entered into a definitive merger agreement with Concentra Biosciences, LLC, whereby Concentra will acquire Kronos Bio for $0.57 in cash per share of Kronos Bio common stock, plus one non-tradeable contingent value right (CVR), which represents the right to receive: Following a review process conducted with the assistance of its legal and financial advisors, the Kronos Bio Board of Directors has determined that the acquisition by Concentra is in the best interests of all Kronos Bio shareholders and has approved the Merger Agreement and related transactions. Pursuant and subject to the terms of the Merger Agreement, a wholly owned subsidiary of Concentra will commence a tender offer by May 15, 2025, to acquire all outstanding shares of Kronos Bio Common Stock. Closing of the Offer is subject to certain conditions. The merger transaction is expected to close mid-2025. Source: https://www.contractpharma.com/breaking-news/concentra-biosciences-agrees-to-acquire-kronos-bio/ 

In a deal between two channel powerhouses, SoftwareOne said Tuesday it expects to complete its acquisition of Norwegian IT consultancy Crayon on July 2, pending shareholder and regulatory approvals. Per the SoftwareOne announcement, “Each shareholder having accepted the offer will receive NOK 69 in cash [about $6.82 USD] and 0.8233 (rounded down) newly issued shares in SoftwareOne per Crayon share.” The combined entity is expected to have approximately 13,000 employees and a presence in over 70 countries. The merged firm will be led by co-CEOs Raphael Erb, a SoftwareOne veteran of 26 years, and Melissa Mullholland, current Crayon CEO and previously a cloud executive at Microsoft. The merger follows a string of strategic partnerships and acquisitions in the IT services space, as cloud management becomes more complex and competitive. According to Gartner, global spending on public cloud services is projected to exceed $720 billion by the end of this year, making integrated advisory services increasingly vital. SoftwareOne said it plans to continue operating both brands during a transition period while streamlining overlapping business functions. Preview

Swiss cement firm Holcim is to buy French rival Lafarge to create the world’s biggest cement maker with combined sales of 32bn euros (£26.5bn; $44bn). Under the terms of the deal, Lafarge shareholders will receive one Holcim share for each Lafarge share they own. The two firms said they would sell some assets to ease competition concerns. The companies added they forecast total annual savings from joining forces of 1.4bn euros. The two firms had announced on Friday that they were in advanced talks over a deal. “The new group will offer higher growth and low risk, thus creating more value,” said Lafarge chief executive, Bruno Lafont, who will become chief of LafargeHolcim. The combined firm will be based in Switzerland. The deal may help the firms cope with higher energy prices and weaker demand that have hurt the sector since the financial crisis. The new company will be worth about £33bn based on Friday’s closing share prices. Although the firms have overlapping operations in Europe, Lafarge is strong in Africa and the Middle East, whereas Holcim is almost absent in these regions. Meanwhile, Holcim is strong in Latin America, where Lafarge is not established

Drugmaker Shire clinched its six-month pursuit of Baxalta International on Monday with an agreed $US32 billion ($45.8 billion) cash-and-stock offer, catapulting it to a leading position in treating rare diseases. The London-listed group, which first approached the US company with an all-stock offer in July, won over the maker of treatments for rare blood conditions, cancers and immune system disorders after adding a cash sweetener. Shire shares were off more than 8 per cent, however, as investors worry about a potential competitive threat from Roche to Baxalta’s critically important haemophilia franchise, and on nerves over the price offered and a cost savings forecast that Jefferies analysts called “somewhat disappointing.” The deal marks a strong start to mergers and acquisitions in healthcare in 2016 after the sector had its biggest deal-making streak in history last year, with global transactions totalling $US673 billion, according to Thomson Reuters data. It also highlights the appeal of medicines for rare diseases targeting small groups of patients for which drugmakers can charge hundreds of thousands of dollars a year. “Together we will have the number one platform in rare diseases with a strong foundation for future growth,” Shire Chief Executive Officer Flemming Ornskov told reporters, after unveiling his company’s most ambitious acquisition yet. Shareholders will receive $US18 in cash and 0.1482 Shire American depositary share per Baxalta share, implying a total value of $US45.57 per share based on Jan. 8 prices. That is 37.5 per cent above Baxalta’s price on Aug. 3, before Shire went public with its interest. Illinois-based Baxalta, which was spun off last year from Baxter International Inc, rejected Shire’s previous $US30 billion all-stock offer in August, arguing it significantly undervalued the company. But Ornskov relentlessly pursued Baxalta, seeking to pressure it into agreeing to a deal by meeting with Baxalta’s major shareholders over a period of months. That enabled it to sidestep a hostile deal in which it would have faced takeover defences including a “poison pill” that stopped unwanted suitors from buying more than 10 per cent of the company and a hard-to-replace board. Reuters had reported last week that Shire and Baxalta could announce a deal as early as Monday, after Ornskov added cash and raised the offer price. Shares of Baxalta were down 2.6 per cent at $US38.96 on the New York Stock Exchange on Monday afternoon, giving back earlier gains. Shire had initially offered only stock due to concerns a cash element might jeopardise the tax-free status of Baxalta’s spin-off from Baxter. However, Ornskov said he was confident that adding $US18 in cash would maintain this tax-free status. “We came out without any doubt that this was not jeopardising the tax-free nature of the spin,” Ornskov said. Together, the two companies said they expected to deliver double-digit sales growth with more than $US20 billion in annual revenue by 2020. With annual operating cost synergies of more than $US500 million, additional revenue synergies and tax benefits from Shire’s Irish domicile, Shire said it expected the transaction to boost non-GAAP diluted earnings from 2017. Baxalta brings Shire a strong position in haemophilia treatments, although that could face a serious challenge by late 2017 or 2018 from Roche’s experimental antibody ACE910 that received breakthrough designation – given to potentially important advances over current treatments – from US health regulators. The Roche drug has a long half-life that could allow for less frequent dosing. “A lot of people don’t like the deal” largely due to its dependence on Baxalta’s haemophilia franchise, said John Boris, analyst with Suntrust Robinson Humphrey. “They believe Shire is buying an asset that is going to be under pressure, so it may not reach the $US20 billion revenue by 2020 target,” Boris said. UBS analysts cautioned that Baxalta could actually dilute Shire earnings from 2019 to 2023 before being accretive again from 2024. Thanks to its base in Dublin, the combined company is expected to have an effective tax rate of 16 to 17 per cent by 2017, down from around 23 per cent for Baxalta, making the deal the latest transaction to result in lower tax rates. Ornskov has stepped up his acquisition efforts in the rare diseases space after a planned takeover by US drugmaker AbbVie Inc fell through last year. He bought NPS Pharmaceuticals for $US5.2 billion in February and Dyax for $US5.9 billion in November. Shire signed an $US18 billion facility to help finance its latest purchase. Shire was advised by Evercore, Morgan Stanley, Barclays and Deutsche Bank. Baxalta was advised by Goldman Sachs and Citi. According to Freeman/Thomson Reuters estimates, Shire’s advisers could be in line for fees of $US50 million-$US60 million and Baxalta’s may earn $US70 million-$US80 million.

Philips has agreed to acquire SpectraWAVE, a Massachusetts-based medical device company focused on technologies to help diagnose and guide treatment for patients with coronary artery disease. SpectraWAVE’s technology specialises in advancing intravascular imaging and physiological assessment with AI. This acquisition positions Philips at the intersection of diagnostic imaging, cardiovascular health, and AI-driven healthcare. This acquisition will strengthen Philips’ presence in the intravascular imaging, physiological assessment, and intravascular ultrasound catheters (IVUS) device market. Leading data and analytics company GlobalData predicts that the global IVUS market will see steady market value growth in the near future, with a compound annual growth rate of 4% over the 2024-2034 period. Currently Philips leads in market share of the global (North America, Europe, Asia-Pacific, south Central America, and the Middle East and Africa) IVUS market, with 88%. Currently, North America is the largest market for IVUS medical devices, with a market value of $490m. During the 2024-2034 period, GlobalData forecasts the North American IVUS market to grow in value by 6%. Growth in demand for IVUS medical devices stems from the increasing incidence of cardiovascular diseases (CVDs), which are the leading cause of death globally. Factors that exacerbate the prevalence of CVDs, driving the global IVUS market, include ageing populations and a high rate of smoking in some countries. A worldwide increase in healthcare spending, as well as the effects of globalisation, will also drive this market. However, the high cost of imaging techniques and a lack of heart speciality hospitals in some regions will act as barriers to the adoption of IVUS based procedures. Philips’ acquisition of SpectraWAVE will include the HyperVue Imaging System with AI-supported imaging inside the coronary arteries and X1-FFR, an AI-enabled angio-based fractional flow reserve (FFR) technology. X1-FFR provides a direct feed from angiography systems, which can be used by clinicians in finding the correct location for stent placements and other intervention. Philips’ acquisition of SpectraWAVE will expand the company’s current intravascular imaging and physiological assessment device portfolio, which includes OmniWire iFR technology and the Eagle Eye Platinum IVUS. The announcement of Philips’ acquisition of SpectraWAVE follows the 2023 501k clearance for SpectraWAVE’s Hypervue Intravascular Imagine System, $50m of Series B funding for SpectraWAVE in September 2024, and SpectraWAVE gaining Food and Drug Administration clearance for X1-FFR in October 2025. The coupling of SpectraWAVE’s new technologies with Philips’ existing catalogue of products and market influence will potentially increase the adoption rates of IVUS-based procedures. The burgeoning application of AI in medical technology will provide new innovations for IVUS technology, as well as for the cardiovascular and diagnostic imaging sectors in general. Source: https://www.medicaldevice-network.com/analyst-comment/philips-spectrawave-acquisition-expanding-intravascular-imaging-portfolio/?cf-view