☕️ Roll-up Jumpstart

Good morning.

The man who started one of the country’s most successful startups of the last decade – insurance technology outfit Cover Genius which achieved unicorn status in 2021 – has fired up a USD400 million ($610 million) acquisition spree with the buyout of Europe's largest rental car agency Auto Europe.

Chris Bayley said the deal marks the launch of a multi-acquisition roll-up of online travel agencies (OTAs) led by his new investment vehicle Deck2 Capital in 50-50 partnership with a consortium of New York-based credit funds.

Bayley doesn’t quite view OTAs as OTAs, so to speak: “My view is that if a company is making most of its money out of insurance then it’s an insurance company,” he told Capital Brief. While some may look at an asset and think it’s an online travel agency, “I see it as an economic system to support the sale of insurance.”

🏆 LOI Subscriber #TBD

Market movers

Shares in KFC operator Collins Foods fell 3.5% Tuesday after the company posted record first-half revenue of $750.3 million but delivered an upgraded full-year profit outlook that analysts viewed as too conservative.  

KFC sales rose in both Australia and Europe, and net profit lifted 12.7% to $27.2 million, but the tempered guidance overshadowed the result.

The quick sync

• Australia needs faster regulation and new financing models to attract local and global capital for digital infrastructure to support its AI plan, writes Robin Khuda. (Capital Brief)

• Fundies want the ASX fined or forced to compensate after system glitch hit 80 companies. (Capital Brief)

• Turnbull says the Liberal Party is too depleted to split and a new centre-right party is now possible as One Nation pulls support from the Coalition. (Capital Brief)

• Data centre operators say Labor’s AI plan ignores key barriers holding back investment. (Capital Brief)

• Australia’s Anti-Dumping Commission is developing a trade data tool to spot diverted imports early as Chinese exports rise following US tariff hikes. (Capital Brief)

Trading floor

M&A

• Chris Bayley, co-founder of Cover Genius, has launched a $610m acquisition strategy with the purchase of Auto Europe. (Capital Brief)

• AUB buyout fails, but analysts expect strong M&A activity in insurance broking. (The Australian)

• Tulla Resources launches $129m sale of 6.5% stake in Pantoro Gold. (AFR)

• Aidacare $1b sale sees PEP exit; EQT and Warburg Pincus out. (The Australian)

• Prosecutors allege MPS CEO and investors conspired in $30b Mediobanca takeover. (AFR)

• Healthscope receiver to rule on Calvary’s 12-hospital bid amid multiple competitors. (The Australian)

• Di Pilla’s family quietly takes 20%+ stake in HMC Capital. (AFR)

• Bain Capital in exclusive due diligence for Perpetual Wealth sale, deal possible by Christmas. (The Australian)

• Anthropic acquires developer tool startup Bun to scale AI coding. (Reuters)

• Comcast bids to merge NBCUniversal and Warner Bros into a new streaming and studio giant. (Bloomberg)

Capital Markets

• NRFC is putting $100m into Intellihub to speed up smart meter deployment and improve energy management technology. (Capital Brief)

• Five V Capital invests in Agile Energy to boost solar and battery capacity to 200MW+. (AFR)

• Collins Foods’ revenue hit a record $750m as KFC sales grew and profit strengthened. (Capital Brief)

• Qantas upgrades first-class with luxury amenities and Neil Perry menus. (AFR)

• Macquarie Technology Group completes its $350m IC3 Super West centre and prepares for expansion and new financing plans. (Capital Brief)

• OpenAI opens Australian HQ, giving top VC-backed start-ups free access and forging corporate partnerships. (AFR)

• Fund managers say ASX should be penalised or pay compensation for ongoing tech outages. (Capital Brief)

• Advent International eyes global growth for Automic after $725m acquisition. (AFR)

• Epiminder IPO falls 10%+ as ASX outage delays debut, raising $125m for US rollout. (Startup Daily)

• Airwallex rejects claims that US customer data is accessible to China, saying strict data controls keep all US data outside Chinese reach. (Capital Brief)

• OpenAI CEO Sam Altman redirects OpenAI resources to boost ChatGPT, putting other projects on hold. (AFR)

• The Dells pledge $6.25b to create “Trump Accounts” for 25m US children under 10. (Capital Brief)

• Corporate Travel Management to audit Australian government charges after GBP80m UK overcharge scandal. (AFR)

• Eric Trump’s American Bitcoin shares drop 50%+ as crypto market tumbles. (Capital Brief)

• Tim Goyder’s Minerals 260 jumps to $900m after Goyder’s gold mine bet pays off. (AFR)

• Australia needs $26b in digital infrastructure to power its AI-driven future. (Capital Brief)

• OpenAI’s Sam Altman declares ‘code red’ after rivals make advances. (FT)

• Traders race to price in dovish Fed policy shift under new chair. (Bloomberg)

• Yacht Club Games paused other projects, cut staff and is going all-in on Mina the Hollower. (Bloomberg)

• Crypto firm tied to Trumps see shares sink after lockup ends. (Bloomberg)

VC 

• Melbourne start-up Bodd raises $15m, valuing its body-scanning start-up at $110m. (AFR)

• Rob Silverwood reboots consulting venture with BGH Capital support. (AFR)

People moves

• Deep Yellow taps ex–Rio Tinto executive Greg Field as its new CEO. (Capital Brief)

• PwC hires former Bondi Partners chief Anthony Lazzoppina as M&A partner. (AFR)

• Startmate CEO Michael Batko exits; COO Phoebe Pincus named new CEO. (Startup Daily)

• Ex-PwC CEO Tom Seymour suspended, fined $25k over tax leaks scandal. (AFR)

• Apple replaces head of AI with executive poached from Microsoft. (FT)

The watercooler