🐄 Kynetec - Separating the Wheat from the Chaff - Asymmetrix Newsletter #56
Another acquisition for Kynetec as it looks ever more like a PRA. And the Data & Analytics sector is in full swing - we report on 26 separate corporate events
As Kynetec makes its 10th acquisition since spinning out of GfK we report on the business and consider its likely next steps.
A very busy week in Data & Analytics sees news of 26 corporate events.
In news of ongoing M&A processes, Jefferies speculates that Jeppesen’s likely acquirer may be an aerospace player rather than Private Equity. And 23andMe CEOAnne Wojcicki, backed by New Mountain Capital, makes a $74.7m bid to take the business private.
An unexpected deal in logistics Data & Analytics as logistics fintech company Triumph Financial acquired Greenscreens.ai for $160m. Renewable Energy and PPA price benchmarking Data & Analytics provider Pexapark acquired USA-based offtake agreement platform RenewaFi. And Dow Jones acquired FiscalNote’s geopolitical businesses Oxford Analytica and Dragonfly for $40m.
Debt facilities of GBP30m for ClearScore and $20m for ZeroNorth.
Later stage funding rounds for seven businesses, including a $42m Series B round led by One Peak for commodities data business Sparta, $5m for blockchain risk management platform Lockchain.ai, $5m for flood risk business Floodbase, and $14m for patent analytics business Patlytics.
Plus a further seven early-stage funding rounds.
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Kynetec - a gradual evolution towards Price Reporting
Since GfK carved out their animal and crop health business in 2015, the business that became Kynetec has grown enormously. Acquisitions have been a key part of that strategy, firstly under Inflexion’s stewardship from 2015-2021, and since then under Paine Schwartz Partners.
In total, Kynetic had made nine acquisitions before last week, when they made their tenth.
What happened?
The acquisition of Freshlogic is typical of the majority of Kynetec’s deals in that it brings granular sector expertise in a specific geography: in this case, data-driven insights and market intelligence in Australia's horticultural and fresh food industries.
Freshlogic is not a large business - with only 11 employees listed on LinkedIn. Taken on its own, the deal does not at first appear to be meaningful. But it needs to be seen in the context of Kynetec’s overall strategy.
Why it matters
Since Paine Schwartz Partners invested in March 2021, Kynetec has made seven acquisitions, all of around roughly this size. The businesses they bought previously have increased their data and offerings in crop protection, agricultural machinery and animal health.
Individually, these deals don’t move the needle but, taken together, they add a meaningful amount to the business in terms of additional revenue, product and geographic reach.
And, helped by all these deals, Kynetec is beginning to look more like a Price Reporting Agency. Their EZTrak product already had in-season price data for the crop protection market. The acquisition of MQ Solutions gave Kynetec a toe-hold in Price Reporting for animal feeds, an area where Five Arrows-owned Expana (formerly Mintec) is strong.
And now Freshlogic gives Kynetec Price Reporting for not just fruit and vegetables, but also seafood.
What happens next?
It seems inevitable that Paine Schwartz will be thinking about exiting Kynetec about now, given the time that has elapsed since they invested in 2021.
The acquisition strategy outlined above suggests that a combination with Mintec could be a good idea. Would Five Arrows consider putting the businesses together? Or could this be a strategy for a larger PE firm - perhaps someone like Warburg Pincus, Thoma Bravo or EQT might consider buying both together?
Levine Leichtman-owned AGDATA (2022 investment) could be similarly combined.
And what of the Data & Analytics behemoths? Of these, the most likely acquirer of the larger D&A businesses would be CME Group, but does Kynetec have enough pricing data to turn their heads?
We will continue to follow Kynetec’s progress with interest.
M&A and Fundraising
Deal chatter
✈️ Jeppesen sale drawing interest from aerospace giants
Jeppesen is a Denver, Colorado, US-based provider of intelligent information solutions across the aviation ecosystem, owned by Boeing.
According to Jefferies (via AIN), GE Aerospace, Honeywell, RTX, and TransDigm Group have all emerged as potential bidders for Jeppesen
The initial rounds of bids for Jeppesen were due at the end of January, Jefferies said, estimating that the company could fetch $7bn.
According to Reuters, Boeing is working with an adviser on the potential sale of the unit.
Asymmetrix Sector: Aviation.
🧬 Anne Wojcicki makes $74.7m 23andMe take-private offer, backed by New Mountain Capital
23andMe is a NASDAQ-listed, Sunnyvale, California, USA-based human genetics company.
According to an SEC filing, 23andMe CEO Anne Wojcicki and New Mountain Capital have submitted a proposal to take the business private.
Wojcicki and New Mountain have offered to acquire all of 23andMe’s outstanding shares in cash for $2.53 per share, or an equity value of approximately $74.7m.
Asymmetrix Sector: Genetics.
⚖️ Dye & Durham received $940m bid
Dye & Durham is a TSE-listed, Toronto, Ontario, Canada-based provider of legal software.
According to Bloomberg, Plantro Ltd., a company controlled by former Chief Executive Officer Matt Proud, made the approach in a letter to the board.
The offer values Toronto-based Dye & Durham at about CAD1.34bn ($940m).
Asymmetrix Sector: Legal.
⚠️ Quantexa in talks to secure new funding
Quantexa is a London, UK-based provider of a decision intelligence platform, backed by HSBC, British Patient Capital, AlbionVC, Dawn Capital, Evolution Equity Partners, GIV and Warburg Pincus.
According to Sky News, Quantexa is in advanced talks with Ontario Teachers Pension Plan (OTPP) about becoming a significant shareholder in the company.
Precise details of the funding injection, including its size and the likely post-money valuation attributed to Quantexa were unclear.
Asymmetrix Sector: GRC.
Announced M&A
🚛 Triumph Financial acquired Greenscreens.ai
Triumph Financial, Inc., a NASDAQ-listed, Dallas, Texas, USA-based financial and technology company specializing in payments, factoring, banking and intelligence solutions for the transportation industry, announced the acquisition of Greenscreen.ai, a Fort Pierce, Florida, USA-based freight market pricing intelligence platform, backed by Tiger Global, Flyer One Ventures and more.
Triumph will acquire Greenscreens.ai for $140m in cash and $20m in TFIN stock
Triumph Financial was advised by JP Morgan.
Asymmetrix Sector: Logistics.
🍎 Kynetec acquired Freshlogic
Kynetec, a Newbury, Berkshire, UK-based provider of data, analytics, and insights in agriculture, animal health, and sustainability, backed by Paine Schwartz Partners, announced the acquisition of Freshlogic, a private. Richmond, Victoria, Australia-based provider of data-driven insights and market intelligence in Australia's horticultural and fresh food industries.
Financial terms were not disclosed.
Asymmetrix Sector: Agriculture.
📈 Behavox acquired Mosaic Smart Data
Behavox, a London, UK-based AI insights company, backed by Softbank, announced the acquisition of Mosaic Smart Data, a London, UK-based transaction data intelligence platform, backed by Octopus Ventures and CommerzVentures.
Financial terms were not disclosed.
Asymmetrix Sector: Financial.
Pexapark, a Zurich, Switzerland-based benchmark for PPA prices, market intelligence and advisory services for renewable energy, backed by Titanium Ventures, Innosuisse, SAP.iO, Swisscom Ventures, A&G Energy Transition Tech Fund, RP Global, Encavis, BayWa r.e. Energy Ventures, S&P Global and Fluence Energy, Inc., announced the acquisition of RenewaFi, a New York, New York, USA-based offtake agreement platform, backed by Floating Point, Day One Ventures, Mantis and Alumni Ventures.
Financial terms were not disclosed.
Asymmetrix Sector: Renewables.
📈 Dow Jones acquired Oxford Analytica and Dragonfly from FiscalNote
Dow Jones, a New York, New York, USA-based provider of news and business information, a subsidiary of News Corp, announced the acquisition of Oxford Analytica, an Oxford, Oxfordshire, UK-based geopolitical analysis and consulting firm, and Dragonfly, a London, UK-based geopolitical and security intelligence service, from FiscalNote, a Washington DC, USA-based provider of policy and regulatory intelligence.
The valuation is $40m.
FiscalNote was advised by Solomon Partners.
Asymmetrix Sector: Macroeconomics.
🔰 edyoucated acquired Peers Solutions
edyoucated, a Munster, North Rhine-Westphalia, Germany-based skill management platform, backed by Earlybird and First Momentum, announced the acquisition of Peers Solutions, a Berlin, Germany-based skill management and professional development platform.
Financial terms were not disclosed.
Asymmetrix Sector: Education, HCM.
Debt Funding
ClearScore is a London, UK-based consumer credit data provider, backed by QED Investors, Lead Edge Capital and Blenheim Chalcot.
Raised GBP30m in debt financing from HSBC Innovation Banking.
Asymmetrix Sector: Credit.
Copenhagen, Denmark-based maritime tech consolidator.
Raised $20m in debt financing from CIBC Innovation Banking.
Asymmetrix Sector: Maritime.
Later-Stage / Growth funding
Oakland, California, USA-based materials science innovation platform.
Raised an undisclosed amount in growth funding led by J.P. Morgan Private Capital’s Growth Equity Partners, with participation from Coatue and TCV.
Asymmetrix Sector: Chemicals.
🪖 Vrai
Dublin, Ireland-based provider of performance data from simulation-based training.
Raised GBP4.2m in Series A funding led by Beringea
Asymmetrix Sector: Defence.
Athens, Georgia, USA-based Blockchain Risk Management platform.
Raised $5m in Series A funding led by White Star Capital, with additional investment from Lerer Hippeau, Arrington Capital, and Sonic Boom Ventures.
Asymmetrix Sector: Crypto.
New York, New York, USA-based parametric platform for insuring uncovered flood risk.
Raised $5m in funding led by Ecosystem Integrity Fund (EIF) with participation from Pulse Fund
Asymmetrix Sector: Insurance.
San Francisco, California, USA-based patent workflow platform.
Raised $14m in Series A funding led by Next47, and including existing investors, including Gradient, 8VC, Alumni Ventures, Liquid 2 Ventures and Myriad Venture Partners.
Asymmetrix Sector: Intellectual Property.
🛢️ Sparta
Zurich, Switzerland-based provider of real-time intelligence for commodity traders.
Raised $42m in Series B funding led by One Peak, with continued backing from Singular and FirstMark.
Asymmetrix Sector: Oil & Gas.
Seattle, Washington, USA-based AI decision science startup.
Raised $19m in Series A funding led by Lightspeed and Accel.
Asymmetrix Sector: Company Data, Expert Networks
Early-Stage
🌳 Kvist
Oslo, Norway-based environmental certification provider.
Raised EUR1.3m in funding from new investor Kiilto Ventures, plus current investors such as DNB Ventures, Alliance Venture, Ferd, Arkwright X, and Squid.
Asymmetrix Sector: ESG.
🛑 Mopso
Milan, Lombardy, Italy-based AML software provider.
Raised EUR1m in seed funding from Apside, the 50/50 investment joint venture of Intesa Sanpaolo and Zest S.p.A., along with Fin+Tech, Centro Istruttorie.
Asymmetrix Sector: GRC.
⚕️ EvidenceHunt
Amsterdam, Netherlands-based medical research platform.
Raised EUR1.2m in funding led by Keen Venture Partners, Dff.ventures and Slimmer AI.
Asymmetrix Sector: Healthcare.
Stockholm, Sweden-based sponsorship analytics platform.
Raised EUR1m in Seed funding led by node.vc, with participation from Venrex.
Asymmetrix Sector: Marketing.
🌳 ctrl+s
Berlin, Germany-based climatetech.
Raised EUR1m led by HTGF.
Asymmetrix Sector: ESG.
Copenhagen, Denamrk-based AI-powered platform for the automotive sector.
Raised EUR1m in funding from Maki Ventures.
Asymmetrix Sector: Automotive.
🌳 Karomia
Ghent, East Flanders, Belgium-based ESG compliance platform.
Raised EUR2m in funding led by Entourage, imec.start Future Fund & imec.start Fund.
Asymmetrix Sector: ESG.
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📧 If we have missed your deal, or you would like to talk, please email us at a.boden@asymmetrix.info.