☕️ Grit culture

Good morning.

Once a modest Townsville startup at the start of the century, SafetyCulture has surged to a $2.7b valuation (at last count) thanks to a combination of strategic pivots and relentless drive.

CEO Luke Anear recounts the firm’s gritty journey to Capital Brief’s Brownwen Clune, including a scary backend infrastructure revamp that almost killed the company.

But Anear is looking ahead, targeting a 57-fold increase in daily platform users by 2032 and planning an expansion beyond software into insurance and workplace equipment.

🏆 LOI Subscriber #TBD

Market movers

Magellan shares surged nearly 8% after on Thursday after an encouraging uptick in performance, with a better-than-expected adjusted net profit of $177.9m and promising institutional flows.

The company’s $138.5m strategic investment in a 29.5% stake on Morry Waked’s Vinva Investment Management was also a highlight. But analysts remain wary of continued margin pressure and rising costs amid a 25% drop in funds under management over the past year.

The quick sync

• Amazon Prime Video and Optus Sport are among the streaming services expected to face similar, if not tougher gambling ad restrictions than TV broadcasters. (Capital Brief)

• Microsoft’s OpenAI bid couldn’t have happened 10 years ago, the senior engineer helping lead it’s AI star tool Copilot, Charles Lamanna, says. (Capital Brief)

• Telstra bets big on its infrastructure arm after positive profit investor response to FY24 earnings. (AFR)(Capital Brief)

• Barrenjoey, the firm that had been plagued by years of high start-up costs, is now in the black and paying dividends (AFR)

• There were conflicting messages in this week's earnings and employment data — not the best news for those betting on a rate cut this year. (Capital Brief)

Trading floor

M&A

• Pilbara Minerals is buying Latin Resources to increase its lithium resources by 20%. (Capital Brief)

• Alex Waislitz and Antony Catalano increased their stake in Southern Cross Media despite a 38% share drop and are considering a takeover with ARN Media. (AFR)

• Vocus and TPG are in advanced talks for the sale of TPG's non-mobile fibre assets, with price being a major point of negotiation. (The Australian)

• The ACCC approved the merger of Experian Australia Credit Services and illion, saying it won't reduce competition. (Capital Brief)

• Alinta Energy missed the FIRB approval deadline to buy Tetris Energy, prompting deal restructuring by Tetris' shareholders and attracting interest from rival suitors. (AFR)

• Monadelphous Group has won three new construction contracts, including two in the iron ore sector and one in the renewable energy sector. (Capital Brief)

• Commonwealth Bank is selling its ultra-high-net-worth advice business, Commonwealth Private Advice, as part of its effort to streamline its wealth operations. (AFR)

• KKR, Permira, and Pacific Equity Partners are gearing up to bid for Fonterra Oceania, facing competition from strategic investors. (The Australian)

• Genesis Energy will buy a new solar development from Helios Energy and take all the energy produced. (Capital Brief)

• Magellan Financial Group has acquired a 29.5% stake in Vinva for $138.5m, forming a strategic partnership amid a decline in its funds under management. (BNA)

• Blackstone eyed a $2bn bid for Iress, but the current stock price may make the offer less attractive. (The Australian)

Capital Markets

• Treasury Wine Estates' profit fell due to impairments on lower-end brands, but premium sales, particularly in China, increased earnings by 12.8%. (Capital Brief)

• Seven Group Holdings stock fell despite a rating upgrade by Macquarie due to strong growth outlook for Westrac and Boral. (Capital Brief)

• AGL Energy stock rose after Morgan Stanley upgraded its rating on the company due to better-than-expected earnings guidance. (Capital Brief)

VC

• Bike Matrix raises NZ$2m to expand its B2B bicycle parts compatibility platform. (Startup Daily)

• Radical Ventures is raising a $1.2bn AI-focused fund, with Global Alternative Funds securing an allocation and raising capital from wealthy Australians to invest. (AFR)

• MenuAid rebrands to Appetise after raising NZ$4m, moving to a free model and monetizing data for the food and beverage industry. (Startup Daily)

• DeCarice secures pre-seed funding from Investible to advance its hydrogen-diesel dual-fuel technology for heavy-duty vehicles. (Startup Daily)

People moves

• Amanda Laing is rumored to be Nine Entertainment's next CEO, with Mike Sneesby's position in doubt after criticism and leadership changes. (The Australian)

The watercooler