☕️Spying-as-a-Service

Good morning.

HR tech platform Rippling is suing rival Deel for allegedly using a corporate spy to steal trade secrets. Rippling’s lawsuit alleges that Deel cultivated a Rippling employee to conduct thousands of suspicious searches and funnel stolen confidential business intelligence directly back to Deel.

When Rippling noticed the mole’s unusual searches on their systems, Rippling set a honeypot. A bait letter was sent to Deel execs alerting them to an empty Rippling Slack channel which would be of interest, and within hours of the letter being sent, the spy searched for the channel, unintentionally revealing his identity.

When the mole was confronted at Rippling’s Dublin office with a court order to hand over his phone, he reportedly fled to the bathroom and locked the door. When warned not to delete materials from his device and that his non-compliance could result in jail time, the spy responded: “I’m willing to take that risk,” and fled the premises.

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Market movers

New Hope shares surged Tuesday as the miner’s first-half profit jumped 35%, with dividends also rising and a $100m buyback unveiled.

The quick sync

• Amazon hits back at Labor’s digital crackdown, warning new rules could choke innovation and deter investment in Australia’s tech sector. (Capital Brief)

• Evergreen funds are surging in popularity, offering private market access with flexibility—yet experts caution against hidden risks and liquidity traps. (Capital Brief)

• As Eva Zhuang writes, Aussie startups risk burning capital by expanding overseas too soon—winning at home first could be the key to lasting global success. (Capital Brief)

• Crypto has flopped as an inflation hedge—Zenith tells investors it has no place in a serious portfolio. (Capital Brief)

• Count Financial sounds the alarm on private credit, telling advisers to dump Metrics funds as sector risks mount. (AFR)

Trading floor

M&A

• xAI acquires Hotshot to enhance AI video features for Grok. (Capital Brief)

• Veracity Business Solutions seeks a new owner, drawing private equity interest. (AFR)

• Alphabet agrees to buy Wiz for at least US$32b in record deal: FT. (Capital Brief)(FT)

• Swyftx acquires NZ's Easy Crypto in its first major deal post-leadership change. (AFR)

• Brennan acquires CBR Cyber to boost cybersecurity and government ties. (Brennan)

• Oracle explores TikTok U.S. deal with security guarantees, small stake. (Bloomberg)

• Navis Capital plans a $1b+ sale of Device Technologies by June, with Carlyle and CVC showing interest. (The Australian)

• Musk bought US$150m in X shares at near-2022 valuation, open to more. (Bloomberg)

Capital Markets

• Telix’s Illuccix gets Brazilian approval with exclusive distribution. (Capital Brief)

• Active Super fined $10.5m for greenwashing misrepresentations. (Capital Brief)

• Hawke’s Point cut its Ora Banda stake in a $97m UBS block trade but remains the top shareholder. (AFR)

• RBA’s Sarah Hunter warns forecasts are uncertain amid US policy shifts. (Capital Brief)

• Peter Dutton under pressure before budget as Labor gains ground. (Capital Brief)

• Chalmers signals cost-of-living relief but no revenue boost; ANZ forecasts $10b extra spending in 2025-26. (Capital Brief)

• Findi launches a $45m raising for capex and restructuring, with Morgans, MST, and Ord Minnett as brokers. (AFR)

• Uber’s payroll tax case in NSW could reshape gig economy payments. (Capital Brief)

• Ex-Star lawyer Paula Martin was rebuked by a Federal Court judge for a panicked call amid ASIC case. (Capital Brief)

• Bluechiip enters administration after insolvency declaration. (BNA)

• Australia's major banks are struggling with internal succession planning, increasingly hiring external candidates for top executive roles instead of promoting from within. (Capital Brief)

• Multiplex faces scrutiny over cost blowouts but remains resilient, posting $3b in revenue for 2023. (The Australian)

• Atlassian gains US FedRAMP approval to provide cloud solutions for government agencies. (Capital Brief)

• Valiant Finance has processed $2.5b in small business loans, driven by the rise of non-bank lending options. (SmartCompany)

• Nasdaq to open Dallas headquarters, expanding in Texas' business-friendly climate. (Capital Brief)

• Endeavour chairman Ari Mervis is under investor pressure over governance concerns and the lack of a permanent CEO after Steven Donohue's departure. (AFR)

• BYD surges on five-minute EV charging breakthrough, challenging Tesla. (Capital Brief)

• Trump administration probes top law firms over DEI policies. (AFR)

VC

• Australian startups often expand overseas too soon, burning capital and facing setbacks. (Capital Brief)

• Westpac boosts $1b fund for female entrepreneurs to bridge startup funding gap. (SmartCompany)

• King River Capital nears $157m AI fund close, backed by Gonski, Future Super, and family offices. (Startup Daily)

• BetterFleet raises $23.7m to scale globally, improve EV transition tech. (SmartCompany)

People moves

• Citi names Ben Connolly & Philippe Perzi as new capital markets co-heads. (Capital Brief)

The watercooler