☕️The Rippling Effect

Good morning.

Just days after Rippling filed a US lawsuit sensationally accusing its American rival Deel of engaging in corporate espionage, new claims involving Employment Hero have surfaced.

Three former staff members told Capital Brief they were directed to use unconventional measures to gain access to Rippling’s software when it launched in the Australian market in early 2024. That included attempts to sign up via small businesses operated by friends and family members and a proposal to get one of Employment Hero’s own customers to migrate to Rippling and share their credentials with the Australian startup. One of the former employees said that when they raised concerns internally they were rebuffed.

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Market movers

Helia’s shares took a dive Wednesday as investors cashed in on its hefty 69-cent dividend. Hopefully the yield was worth the drop.

The quick sync

• Nine and WBD push $1.1m in Max ad deals as HBO’s streaming heavyweight enters the Australian market. (Capital Brief)

• As Ben Power writes, corporate Australia’s governance crisis is choking investment and innovation, with bold reform urgently needed to break its risk-averse stranglehold. (Capital Brief)

• Google’s US$32b Wiz gamble isn’t just about security—it’s a high-stakes bid to break Microsoft’s enterprise cloud dominance. (Capital Brief)

• Super giants push for a WiseTech overhaul as a scathing review exposes governance failures and undisclosed conflicts. (Capital Brief)(AFR)

• A UBS adviser is accused of seducing a client’s wife, seizing control of family funds, and demanding millions. (Bloomberg)

Trading floor

M&A

• SMBC sold its Healthscope debt to Deutsche Bank at discount, with HMC Capital and Bain possibly in focus. (AFR)(The Australian)

• Bruce Mathieson backs Bally’s $250m bid for Star Entertainment as the casino operator faces financial strain. (The Australian)

• Edify Energy seeks a buyer for its $3b green pipeline after securing a $2B solar deal with Rio Tinto. (AFR)

• Brookfield nears adviser choice for La Trobe Financial’s $3b sale, with JPMorgan and UBS leading contenders. (The Australian)

Capital Markets

• Nvidia reveals AI supercomputers, robots, and 6G plans at GTC. (Capital Brief)

• MinRes temporarily paused Onslow Iron haul road operations after a road train incident but expects no impact on full-year volume guidance. (Capital Brief)

• X raised nearly $1b in equity, keeping its $44b value, with Musk and key investors joining. (Bloomberg)

• The Australian Information Commissioner urged federal agencies to improve governance on using messaging apps like Signal and WhatsApp to meet legal obligations. (Capital Brief)

• BGH Capital invests $100m in Virtus Health to cut debt and expand, drawing opportunistic investor interest. (AFR)

• Australia’s $6b radar deal with Canada may be its biggest export. (Capital Brief)

• InfraBuild meets creditors as asset sales, loans, and restructuring plans unfold. (The Australian)

• Rio Tinto's board urges shareholders to reject activist investor Palliser Capital's proposal to review unifying its dual-listed structure. (Capital Brief)

• Bain Capital and GIC offload 9.8% Judo stake in $191m block trade via Goldman Sachs. (AFR)

• Nickel Industries secured approval for a feasibility study to expand its 80%-owned Hengjaya mine in Indonesia, aiming for full approval by late 2025. (Capital Brief)

• Brisbane’s Beforeyouspeak Coffee partners with F1 driver Jack Doohan and Alpine to support global expansion. (SmartCompany)

• Labor pledges to cap PBS medicine costs at $25, cutting prices by over 20% and saving Australians $200m annually. (Capital Brief)

• NetComm nears shutdown as parent company files for bankruptcy. (AFR)

• Tencent Q4 profit jumps 90% on gaming, ads, AI push. (Capital Brief)

• Ord Minnett backs Earlee Products’ management buyout, taking an 85% stake. (AFR)

• Synchron unveils brain-powered AI model at Nvidia’s GTC. (Capital Brief)

• Elon Musk’s xAI joins BlackRock and Microsoft’s $30b AI fund to expand AI infrastructure, alongside Nvidia and energy firms. (Capital Brief)

• The EU charges Google under the DMA for anti-competitive practices, defying Trump’s pushback. (FT)

• EU to cut steel import quotas 15% from April 1 to curb dumping risks. (Capital Brief)

• Mercer predicts Australia’s superannuation industry will consolidate to just 18 funds managing $14t by 2049, driving increased competition and global investments. (AFR)

• Metrics shrugs off Count’s sell call, defending its $22b private credit empire amid rising market scrutiny. (AFR)

VC

• Australian startups are increasingly sponsoring F1 teams to gain global brand exposure, following a long history of local companies backing the sport. (SmartCompany)

• Mercurius Media Capital is launching in Australia to help local startups expand into the US. (BNA)

People moves

• N/A

The watercooler