A Message from Datasite
Ever tried getting a thousand dealmakers to agree? A new report from Datasite, in collaboration with FT Longitude, comes close.
Based on a global survey of 1,000 senior dealmakers, The new deal team reveals how AI is already changing M&A decisions, workflows, and competitive advantage. The findings point to a clear shift: 96% of dealmakers are using or exploring AI for sourcing and screening, 62% say human-only decision-making is no longer defensible in complex deals, and 71% believe firms that ignore AI today will struggle to compete within five years.
Still, dealmakers agree that signing a deal should remain a human decision. The result is not a story of AI replacing dealmakers, but of dealmakers redefining where human judgment, accountability, and relationships matter most.
Read the full report: The new deal team: What 1,000 dealmakers reveal about AI-driven M&A.
Welcome back.
Stocks remain pressured as the US and Iran’s conflict continued, pushing rates higher and leading to a broader selloff & risk off - $SPY ( ▼ 0.69% ) & $QQQ ( ▼ 1.27% ) . Notably, gold and crypto were off too, as Bitcoin’s stutter step past 80k has cooled down to 77k. With rates back to where they were pre: Bessent’s debasement idea, Warsh’s “play the ball, not the referee” philosophy just means bond vigilantes are in control. Fed Governor Barr has said he’d support a rate hike at the Fed’s next meeting in two weeks if inflation doesn’t ease.
Housekeeping notes - we will be off Friday and push next Sunday’s piece to Monday night because of the holiday. We hope you’re all able to find some time to unwind over the next several days.
We know things can feel like a sprint post Labor Day, and the big announcement we’re expecting next week is Anthropic zoning in on their IPO timing. Let’s get into it.
Here’s a look at the remaining earnings for this week.
Wednesday: Snowflake, Broadcom, Hewlett Packard, NetApp, Five Below, Brown-Forman, Tilly's
Thursday: Ciena, lululemon, DocuSign, UiPath, Victorias Secret & Co., Lands' End, American Outdoor
Here’s a look at economic data this week (estimates are in quotations).
Wednesday: ADP National Employment Report (45,000), Factory Orders (0.5%), Federal Reserve Beige Book
Thursday: U.S. Trade Balance (-89.7B), Weekly Jobless Claims (205K), US Services PMI, ISM Report On Business Services PMI (54.4)
Friday: Employment Report (50K), Unemployment Rate (4.1%), Avg Hourly Earnings, M/M% (0.2%), Avg Hourly Earnings, Y/Y% (3%)
Earnings Corner 💸
Palo Alto Networks $PANW ( ▼ 5.24% ) beat on the top and bottom lines, with revenue of $3.41B vs. $3.35B and EPS of $1.02 vs. $0.98. Results were driven by rising AI-driven cyber threats, helping Next Generation Security ARR jump 63% YoY to $9.1B, while more customers adopted multiple products. Rising cloud hosting and hardware costs pressured gross margin 100 bps YoY. Yet mgmt. guided above expectations, but shares slipped after hours as those higher costs raised concerns around near term profitability.
Dell Technologies $DELL ( ▼ 6.8% ) beat on the top and bottom lines, with revenue of $46.97B vs. $44.92B and EPS of $7.04 vs. $4.92. Results were driven by surging AI infrastructure demand, with AI server revenue reaching $16.4B, quarterly AI orders hitting $60.9B, and backlog climbing to a record $95B, while traditional server and networking revenue rose as customers added more compute capacity for AI workloads. Mgmt. raised guidance well above expectations, driven by stronger AI server demand and higher pricing tied to rising input costs, and now expects $74B of AI server revenue for the year
MongoDB $MDB ( ▼ 4.23% ) beat on the top and bottom lines, with revenue of $771.8M. Results were driven by Atlas revenue up 29% and a record 2,900 customer additions, supported by strong enterprise demand and early AI workloads. Mgmt. raised FY guidance, but shares fell as Atlas growth stoped accelerating and has remained at 29% for a third straight quarter, below the higher expectations priced into the stock after its recent run.
On The Move 📈 📉
California utilities $PCG ( ▲ 5.95% ) and $EIX ( ▲ 8.93% ) jumped despite BofA cutting PG&E to Neutral with a PT of $13 (from $24) over unresolved wildfire liability in California’s Senate Bill 492.
Fervo Energy $FRVO ( ▲ 28.41% ) popped on a 396-MW power purchase agreement with Google with an option to scale to nearly 1 GW by 2030. Geothermal peer $ORA ( ▲ 5.19% ) also jumped on the news.
GoPro $GPRO ( ▲ 40.38% ) rocketed after announcing a merger with Starman Optical to pivot to AI data center and defense markets. Shareholders get $285M, with YouTuber Markiplier (8.5% stake) as the top individual beneficiary.
Duolingo $DUOL ( ▲ 7.02% ) rose after Evercore ISI upgraded to Outperform with a $210 PT, arguing the ChatGPT threat is overstated. Evercore’s survey found that most ChatGPT language learners also use Duolingo, with 63% using it daily.
Air Liquide has seen Elliott take an activist stake in the French industrial gas supplier. Elliott has engaged with the company for months and wants the Company to improve its profit margins
MiniMed Group $MMED ( ▲ 10.66% ) surged after US revenue growth accelerated to 13.1% from 1.5% in Q4, driven by the MiniMed Flex and Simplera sensor launch that lifted new pumps 20% and new prescribers 24%.
Moderna $MRNA ( ▲ 9.93% ) climbed after the FDA approved Moderna’s updated 2026-2027 Spikevax and mNEXSPIKE COVID vaccines and the launch of ~$4.6B in convertible notes to fund oncology growth.
IPO Roundup 📍
Shein $SHEIN ( 0.0% ) had a weak Hong Kong debut Tuesday for its $1.7B IPO, which valued the fast-fashion retailer at $26B, a fraction of its $100B peak. Growth has stalled as US and EU tariffs killed the de minimis loophole and Temu as well as AliExpress stepped up competition.
Softbank-backed SB Energy filed for an IPO to fund AI infrastructure buildout, with 8.8 gigawatts of data center capacity contracted or under construction in Texas and Ohio and a $430B backlog in its data center segment.
Entrata filed for a US IPO that could raise ~$500M, listing on the NYSE as $ENT. The Silver Lake-controlled property management software company powers 2.5M units (~10% of the US multifamily market) and posted $536.2M revenue in the 12 months ended March 31.
Today’s Headlines 📖🍿
Banks are pushing major law firms to lower fees, arguing that AI has sped up routine work enough that costs should fall proportionally. Citi expects a new bidding-based fee model, while Morgan Stanley’s general counsel called the traditional hourly-billing model “extraordinarily unstable.”
Golub Capital co-CEO David Golub says private credit is having a “Darwinian moment,” a cyclical dip in returns and capital inflows that will separate stronger managers from weaker ones, leading to fewer but larger firms.
Goldman CEO David Solomon isn’t worried about higher long-term Treasury yields, but says the US needs faster growth or less spending to handle the debt. The 10-year is up 60 basis points this year, and Solomon called the move a reflection of fiscal decisions, debt growth, and economic growth.
Anthropic has signed a $35B cloud-computing deal with Lambda, a Nvidia backed cloud provider. Hut 8 is developing the Texas data center, and Lambda is in recent discussions to raise as much as $3B at a $12B+ valuation.
Cognition is nearing a $1B raise at a $47B valuation, as the AI coding startup continues scaling aggressively; now at $900mm of ARR
Software companies face a $40B maturity wall in 2028 and are opting for short-term “amend-and-extend” deals rather than full refinancings, paying steep premiums for the flexibility.
PIMCO says most US corporate borrowers can absorb higher refinancing costs, but CCCs face a coupon shock. Coverage ratios remain healthy (6x IG, 3x HY), but CCCs with 2027-2028 maturities could see coupons double if refinanced at today’s index yields.
Apollo is structuring its $9Bn equity stake in Oneok into a debt instrument it can sell to investors, slicing the investment into tranches that carry investment-grade ratings.
Apollo-backed broadband provider Brightspeed warned of “substantial doubt” about its ability to continue after Q2 revenue fell 8.7% to $396MM, and it posted CFO of -$341mm in 1H 2026.
Stan Kroenke is buying the LA Angels at a record $4B valuation. The deal adds MLB to Kroenke’s sports portfolio, which already includes NFL Rams, NBA Nuggets, NHL Avalanche, MLS Rapids, and Arsenal FC.
Dragoneer Investment Group raised $1B for its new continuation fund, half its $2B target. The firm fell short despite dangling stakes in OpenAI, SpaceX, and Databricks to attract buyers. The deal priced at 5-20% discounts.
American Industrial Partners is considering raising $8B for its next buyout fund, up from $5B for Fund VIII in 2023. The step-up reflects PE’s pivot to aerospace, defense, and other heavy assets after this year’s software selloff.
M&A Transactions💭
National Capital Hospital, provider of hospital services and a subsidiary of Healthscope, was acquired for AUD 251M by Ramsay Health Care (ASX: RHC). McGrathNicol advised on the sale.
Spectre (Ikast), manufacturer of clothing products, was acquired for an estimated DKK 1.025 billion by Schouw & Co (CSE: SCHO). ABG Sundal Collier advised on the sale.
Al Rowad Industrial Transformation, a subsidiary of National Industrialization (SAU: 2060), was acquired for SAR 684.0M by Tahweel Holding. Trussbridge advised on the sale.
Iplan Networks, provider of telecommunications services, has reached a definitive agreement to be acquired for $260.0M by Telecentro. J.P. Morgan advised on the sale.
Valco Melton, manufacturer of adhesive dispensing equipment, was acquired for $447.0M by Graco (NYS: GGG). EV/Revenue was 3.08. Harris Williams and William Blair advised on the sale.
Wilson, Sons Ultratug Participações, provider of offshore vessel services, was acquired for $500.0M by Tidewater (NYS: TDW).
Coller Capital, provider of independent investor services, was acquired for $3.7B by EQT (STO: EQT). Morgan Stanley advised on the sale.
Kelvion, manufacturer of heat exchange solutions, has reached a definitive agreement to be acquired for from investors including Apollo Global Management Inc. for $4.1B by SLB (NYS: SLB), deepening its push into data center services.
Merida Biosciences, developer of targeted immunotherapies, has reached a definitive agreement to be acquired for $2.88B by Lilly USA (NYS: LLY).
USI Insurance Services, provider of insurance brokerage and consulting services, has reached a definitive agreement to be acquired for $17.0B by Aon (NYS: AON). Insurance Advisory Partners, Morgan Stanley, and Goldman Sachs advised on the sale.
Atlantic Alumina Company, operator of alumina refining and bauxite mining assets, received $350.0M of financing from United States Department of War and Concord Resources. Goldman Sachs Asset Management advised on the transaction.
Australian Strategic Materials, operator of a multi-line mining business, was acquired for AUD 450M by Energy Fuels (TSE: EFR). MA Financial Group and Moelis & Company advised on the sale.
Cloudwave, manufacturer of precision machined parts, has reached a definitive agreement to be acquired for $234.0M by AXISCADES Technologies (BOM: 532395). EV/Revenue was 21,316.17x.
Private Placement Transactions💭
Polymarket, operator of a prediction market platform, is raising $1.0B of venture funding led by 1789 Capital, which includes Donald Trump Jr. among its partners at a reported valuation of $21.0B.
HiBob, developer of a human resources software platform, raised $166.0M of venture funding led by Salesforce, with participation from Farallon Capital Management, at a valuation of over $3.2B.
PLD Space, aerospace company, raised EUR 288.0M of Series C venture funding led by Mitsubishi Electric. Sego Finance, MCH Private Equity, and other investors also participated in the round.
Boddie & Associates, provider of legal services, raised $160.0M of venture funding from undisclosed investors.
Sharpa, manufacturer of electronic equipment, raised CNY 4.5B of venture funding from Alibaba Group, Meituan, and Tencent Holdings at a pre-money valuation of CYN 17.5B.
Noteworthy Chart 🧭
Odds of the Day 🍒
Polymarket traders are pricing in a 27% chance of the Strait of Hormuz traffic returning to normal levels.
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Obviously, none of this constitutes financial or investment advice. *Today’s Odds of the Day is in paid partnership with Polymarket