☕️ CIA’s Aussie edge

Good morning.

In-Q-Tel, often branded as the CIA’s venture arm, is quietly transforming Australia’s deep tech landscape. In a rare interview, Nat Puffer, In-Q-Tel’s managing director for Australia, sheds light on the firm’s true role.

Puffer tells Capital Brief’s Daniel Van Boom that while the firm is funded by the CIA, it actually works with many intelligence agencies. Its approach, he said, is to make targeted, modest investments, focusing on defence-ready technologies.

It has made about 20 bets in Aussie startups since opening shop in Sydney in 2019, including biosecurity defender ExoFlare, whose platform treats food security like cybersecurity and is used by half of Australia’s chicken farmers.

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Market movers

Inghams Group's 68% profit boost wasn't enough to stop its shares from tanking 20% on Friday, with cautious FY25 guidance leaving analysts unimpressed.

A new supply deal with Woolworths, expected to dent volumes, didn’t help, with E&P Capital retail analyst Phillip Kimber flagging a downgrade to FY25 consensus earnings worth up to 10%.

The quick sync

• Westpac was once the most enthusiastic of the big four banks on VC. Now it is taking a more nuanced approach to the fintech sector. (Capital Brief)

• IFM Investors and Blackstone have received investment committee approvals for their final bids in the $20bn auction for data centre giant AirTrunk. (AFR)

• The CEO of Bunnings and other big retailer execs are set to be grilled by a new parliamentary inquiry. (AFR)

• The Albanese government is considering introducing fixed prices for operations and other private hospital services. (AFR)

• The Labor government will not introduce a European Union-style compensation for disrupted airline passengers despite public outcry. (AFR)

Trading floor

M&A

• Australian Retirement Trust will acquire a 33% stake in Powerco, increasing its ownership to 58%. (AFR)

• Pacific Equity Partners joins the race with Affinity Equity Partners to buy Waste Services Group. (The Australian)

• A diverse group of bidders, including turnaround specialists and a crypto investor, have submitted offers for embattled airline Rex, following its voluntary administration. (AFR)

• Kinetic's British operations are drawing significant interest in its $4bn sale, with first-round offers expected soon. (The Australian)

• Bain Capital, Carlyle Group, and Macquarie Asset Management are preparing bids for Permira’s $4 billion I-MED Radiology Network. (AFR)

• Orora's shareholders are focused on the possibility of Lone Star returning with a higher takeover bid, which could lead the board to engage and open a data room. (AFR)

• Commonwealth Superannuation Corporation might sell its $2bn CDC Data Centres stake, with Future Fund possibly looking to increase its share. (The Australian)

• Accent Group sold its kids' footwear brand, The Trybe, to Munro Footwear Group. (BNA)

• Sprott Capital Partners is being acquired by Strata Investment Holdings, securing a backdoor ASX listing in a deal valued at $31.2m. (AFR)

Capital Markets

• None

VC

• Woolworths has invested an additional $7m in Seedlab Australia, a food and drink startup incubator. (Startup Daily)

People moves

• Investible has named Charlie Ill as CEO after Rod Bristow's resignation. (BNA)

Together with FinTech Australia

Join us at Australia's largest, most influential fintech event on September 18 - 19

FinTech Australia's annual Intersekt conference (September 18-19) will be the place for pivotal discussions that shape the fintech and finance industry for the year ahead.

This year’s comprehensive agenda of topical panel discussions is complemented with valuable satellite events - roundtables, industry dinners, and pitch nights.

Expect to hear from fintech leaders from WeMoney, AirWallex, FrankieOne, Zip, Brighte and Monoova, presenting alongside executives from Mastercard, National Australia Bank, AMP Bank, Bendigo Bank and IAG. That’s in addition to speakers from groups and regulators that support the industry such as SquarePeg, Airtree, PwC, AP+ and AusPaynet.

Join us for an event that’s known for its networking potential and thought provoking discussions.

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