Author: Cattolica Investment Club

Deal overview Alphabet, through its subsidiary Google, is in negotiations to acquire cybersecurity start-up Wiz for approximately $23 billion, potentially marking the largest acquisition in Alphabet's history. This deal could face significant antitrust scrutiny, as regulators under U.S. President Joe Biden's administration have shown resistance to large tech acquisitions, especially involving Google. Alphabet's last major acquisition was Motorola Mobility for $12.5 billion over a decade ago. The acquisition of Wiz, valued at $12 billion, would significantly bolster Alphabet's cybersecurity capabilities following its $5.4 billion acquisition of Mandiant two years ago. Wiz, headquartered in New York and led by Israeli founder and former Microsoft executive Assaf Rappaport, has raised about $2 billion from investors, including Sequoia, Thrive, and Blackstone. Wiz assists companies like Salesforce, Mars, and BMW in securing cloud programs…

INTRODUCTION Private equity investments are characterized by illiquid assets. To realize their returns, Limited Partners (LPs) and General Partners (GPs) must employ an exit strategy. This article provides a detailed analysis of the primary exit routes adopted by private equity firms.  “To make more on their investments Venture capitalist 1 need to turn illiquid stakes in private companies into realized return” Gompers and Lerner 2001 A defining feature of PE finance is the investment horizon. Limited Partners (LPs) typically commit their capital to a PE fund for a period of 10 years, with potential extensions of 1 to 3 years. This predetermined time frame forces PE firms to focus on realizing investments within the set period. This ensures that LPs receive their invested capital and a return on their investment.…

Introduction Tesla, Inc., founded in 2003 and headquartered in Austin, Texas, has been a pioneering force in the electric vehicle (EV) industry. Known for its innovative and high-performance electric cars, Tesla’s main product lineup includes the Model S, Model 3, Model X, Model Y, Cybertruck, and Tesla Semi. In addition to vehicles, Tesla also offers energy generation and storage products such as solar panels, Powerwall, Powerpack, and Megapack. Tesla is listed on the NASDAQ under the ticker TSLA and has a market capitalization of approximately $554.1 billion as of 2024.In the first quarter of 2024, Tesla reported revenue of $21.3 billion (9% year-over-year decline) and a net income of $1.1 billion. The company’s gross profit was $3.7 billion, and it held $26.9 billion in cash. Over the trailing twelve months…

Introduction International Business Machines (NYSE: IBM) is set to acquire HashiCorp Inc. (NASDAQ: HCP), as the definitive agreement was made public on April 24th, 2024. IBM´s all-cash offer of $35 per share is valuing HashiCorp Inc, a key player in the multi-cloud software infrastructure industry, for $6,4 billion. The announcement underscores IBM's strategic focus and commitment to expanding its hybrid cloud services and AI capabilities. Industry description The software infrastructure industry consists of the foundational elements and technologies that enable the development, operation, and management of software applications and systems. This includes software frameworks, middleware, databases, networking components, and cloud infrastructure. The industry's key focus is on providing scalable, reliable, and efficient solutions to support the growing demand for digital services and applications across various. As organizations increasingly rely on…