☕️ Timely Takeover

Good morning.

Appen may not only be cutting-costs but also cutting-losses.

One-time ASX darling Appen has received a takeover bid from New Jersey-based Innodata, proposing a merger of the two companies in an all-stock deal. The deal could present a lifeline to the software firm which has been trying to reinvent itself in response to a no-longer-existential AI threat for almost a year. Appen’s share price has been flailing since it lost a $126 million contract with Google, suddenly replaced its CEO and then announced a $60 million cost-cutting plan, all since the outset of 2024.

Appen’s board is currently considering the offer, which proposes $0.70 worth of Innodata shares per Appen share.

🏆 LOI Subscriber #TBD

Market movers

Shares in Ramelius Resources rose over 4.5% during trading yesterday to close at $1.57, after the gold miner said it expects to take gold proceeds of $1.7 billion over the next 10 years from its Western Australia-based Mount Magnet site. RMS forecasts up to $100 million to be added to its third quarter earnings, bringing its cash and gold holding to more than $400 million by the end of FY24. Last Thursday Ramelius paused trading before announcing on Friday that it is in ongoing "exclusive discussions" with TSX-listed Canadian miner Karora over a "potential corporate transaction."

The quick sync

• PwC will announce hundreds of redundancies today, after partners were made aware of the cost-cutting drive during a webcast at 5pm on Tuesday evening. (Australian Financial Review)

• US headline inflation increased unexpectedly to 3.2% during February, remaining well ahead of the Federal Reserve's 2% inflation target.  (US Bureau of Labor Statistics)(Bloomberg)

• Competition and big tech regulation in Australia is set to take centre stage as Apple, Google and Epic Games begin a 16 week legal battle before the Australian Federal Court this week. (Capital Brief)

• Microsoft has reaffirmed its support of Australia’s media code as Meta continues to dig in its heels. (Capital Brief)

• Rupert Murdoch’s News Corp. and the owner of the UK’s Daily Mail are considering a joint takeover bid for the Telegraph and the Spectator. (Bloomberg)

• Fast fashion behemoth Shein is on track to top $1b in sales, adding pressure on local retailers. (AFR)

M&A

• Fortlake Asset Management has reached an agreement to partner with Colonial First State. (AFR)

• WAM Leaders to acquire smaller rival QV Equities, expanding its asset base. (Capital Brief)

• Alceon Private Equity to acquire 50% of planting equipment manufacturer, Boss Engineering. (AFR)

  Marquette snaps up Brisbane CBD tower for $120m. (AFR)

• Advisors overseeing the sale of Amart Furniture have engaged in talks with private equity firms about the purchase. (The Australian)

• Mantel Group is gearing up to invest over $100m in bolt-on acquisitions over the next 18 months. (AFR)

• CFO and COO of Kogan.com has sold $16m worth of stock in the online retailer. (Startup Daily)

• PSC Insurance has enlisted the services of Goldman Sachs to oversee initial takeover discussions. (AFR)

• Administrators from McGrathNicol Restructuring are exploring a potential sale of Redback Technologies. (BNA)

• EQT Partners has expressed interest in PageUp, where US tech investor Battery Ventures seeks to offload its 80% stake. (AFR)

• Metcash has hinted at its interest in Tradelink. (The Australian)

• QANTM Intellectual Property disclosed a new potential buyer, with Adamantem Capital proposing a $254m takeover bid for the intellectual property firm. (BNA)

• Canva's co-founder and COO says the design software giant is close to securing new investors willing to purchase up to $3.6b of its stock. (AFR)

• Investment bankers are competing to assist Ramsay Health Care improve shareholder returns amid speculation it plans to sell its $3b European operation. (The Australian)

Capital Markets

• Bell Potter analysts are supporting the backdoor listing of CH2 into the Australian-listed healthcare group Paragon Care. (The Australian)

VC

• Bae Juice has secured $1m in a new funding round, backed by billionaire technology and gaming entrepreneur Laurence Escalante. (BNA)

People moves

• None

The watercooler