WSJ : Software Maker Veeam’s Valuation Triples on $2 Billion Private Share Sale

Software Maker Veeam’s Valuation Triples on $2 Billion Private Share Sale
Investors in the data security and recovery specialist sold their shares to a TPG-led group

Insight Partners-owned Veeam Software, whose products are used to protect corporate data systems from cyber threats, has taken on additional investors through a $2 billion share sale that generated cash for existing backers.

Majority owner Insight and other investors sold the shares in Kirkland, Wash.-based Veeam to a group led by private-equity firm TPG, according to a statement. Singapore sovereign-wealth investor Temasek Holdings and investment manager Neuberger Berman in New York also purchased shares in the transaction, along with other new investors.

The secondary share sale valued Veeam at $15 billion, according to the statement. This represents a threefold increase in value from when Insight first acquired the company in 2020 at a valuation of about $5 billion.

“It helps to have top-tier, blue-chip investors in the event you want to do something major,” said Veeam Chief Executive Anand Eswaran, including options such as a public listing or acquisitions.

Veeam is already the largest business by market share in the so-called data resilience sector, according to market research firm International Data Corp.

The company serves about 550,000 customers globally, including governments and large and small businesses, with software geared toward helping businesses back up, recover, transport, secure and analyze their data.

Veeam’s annualized recurring revenue rose 18% to $1.7 billion as of September compared with a year earlier. Known as ARR, the metric represents contractually guaranteed income from regular operations and is prized by investors for its predictability.

Veeam’s immediate strategic goals include expanding its offering for cloud-computing applications—software that sits on an external server rather than on site—as well as determining how it can use artificial-intelligence technology to increase the scope and effectiveness of its products, Eswaran said.

Veeam is experiencing strong tailwinds in the form of rising demand and an expanding market. IDC said the total data resilience market grew 7.1% last year to $11.8 billion, even as other technology segments struggled.

An IDC survey of corporate technology decision makers found that they considered investing in data recovery and protection a main priority this year and into 2025, beating out spending on investment areas such as infrastructure service management and operating systems.

“AI has been very good for the [data resilience] industry. As with any emerging tech with such power, it has also democratized and lowered the threshold of sophistication for bad actors,” Eswaran said.

Insight, a technology investor with about $80 billion under management, remains Veeam’s largest shareholder. Investment bank Morgan Stanley advised on the share sale, which is set to close in the first quarter.

>>> US Gapping down

Gapping down
In reaction to earnings/guidance
:
  • CURV -20.5%, FL -13.8%, BASE -11%, THO -5.5%, CHWY -5.4%, CPB -2.5% (also CEO to retire; names new CEO; increases dividend), HRL -2.1%, BOX -2%, UNH -0.8%
Other news:
  • LUNR -18.7% (prices offering of 9,523,810 shares of common stock at $10.50 per share)
  • GXO -7.6% (CEO to retire)
  • TIPT -5.5% (subsidiary Fortegra secures licence, launches new UK Subsidiary)
  • TRVI -5% (announces topline results from study of oral nalbuphine)
  • CRGY -4.6% (to acquire Eagle Ford assets from Ridgemar Energy for $905 mln; prices offering of 21.5 mln shares of common stock at $14.00 per share)
  • GRFS -1.8% (Mason Capital Management requests immediate disclosure of important information regarding conflicted Grifols Director Tomas Daga)
  • GM -1.3% (discloses temporary impairment of $2.6-2.9 bln related to equity interest in China JVs and will recognize additional equity losses of approximately $2.7 billion resulting from the implementation of SGM's restructuring plan)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance
:
  • PSTG +21.5%, CRM +13.3%, OKTA +13.2%, MRVL +12.7%, JBLU +5.6% (guidance), DLTR +3.8%, DSGX +1.7%, RY +1.6%
Other news:
  • HRTX +62.7% (favorable court decision)
  • SLND +10.5% (receives $60 million wastewater treatment plant project award)
  • STOK +7.2% (receives FDA Breakthrough Therapy Designation for Zorevunersen)
  • AVIR +6.3% (announces positive results from phase 2 study of bemnifosbuvir and ruzasvir regimen for treatment of Hepatitis C Virus)
  • PBI +4.7% (Hestia Capital Management Discloses Additional Information Regarding 10b5-1 Plan at Pitney Bowes)
  • GSAT +4.3% (PSN and GSAT announce exclusive partnership)
  • BTCM +4.1% (Announces Commitment to Litecoin (LTC) and Dogecoin (DOGE) Mining, Bringing Increased Profitability)
  • HIMX +3.5% (approves $20 million share buyback program)
  • RLGT +3.1% (acquires TCB Transportation)
  • EYPT +3.1% (Announces First Patient Dosed in Second Global Phase 3 LUCIA Clinical Trial of DURAVYU for the Treatment of Wet Age-Related Macular Degeneration)
  • TRMK +2.8% (authorizes new $100 mln share repurchase program)
  • GENI +2.6% (announces collaboration with TNT Sports and NBA 2K)
  • CANF +2.5% (announced that a patient currently treated with Namodenoson in a compassionate use program in Can-Fite's Phase II Liver Cancer Study has an overall survival time of 8 years with a complete response)
  • NVAX +2.3% (sells Czech Republic manufacturing site to Novo Nordisk (NVO) for $200 million)
  • STC +1.9% (CEO contract extension)
  • WULF +1.9% (announces Nov production data)
  • SGML +1.4% (production at full capacity; record shipment of quintuple zero green lithium)
  • CBT +1.2% (authorizes repurchase of up to 10 mln additional shares)
  • TXNM +1.1% (increases dividend)
  • VTEX +1.1% (reports Black Friday sales)
  • G +1% (signs strategic collaboration agreement with AWS)

WSJ : Volkswagen Boss Warns Staff Urgent Measures Needed to Save Company

Volkswagen Boss Warns Staff Urgent Measures Needed to Save Company
In a speech to staff at the German auto giant’s Wolfsburg headquarters, CEO Oliver Blume said labor costs and capacity must now be reduced

Volkswagen Group’s VOW3 2.69%increase; green up pointing triangle chief executive warned staff that urgent measures are needed to secure the company’s future amid heightened competition, price pressure and high labor costs.

In a speech to staff at the German auto giant’s Wolfsburg headquarters, CEO Oliver Blume said the company has made good progress streamlining its operations and creating synergies while the design and quality of its cars has improved, but labor costs and capacity must now be reduced.

“The current situation is serious. New competitors are entering the market with unprecedented force. The price pressure is immense,” he told workers on Wednesday.

“In addition, our labor costs in Germany have now become too high. That is why urgent measures are needed to secure Volkswagen’s future.”

Nearly 100,000 employees, around a third of the company’s total German workforce, staged walk-outs across nine factories in the country earlier this week to push back against plans for potential factory closures and sweeping cuts to jobs and pay.

Volkswagen has put forward plans to cut workers’ pay by 10%. According to the head of Volkswagen’s works council, Daniela Cavallo, the company also aims to shut at least three factories in Germany and lay off tens of thousands of staff.

Negotiations between worker representatives and the company over how to move forward with cost cuts are set for Dec. 9, after the latest round of talks ended last week without agreement.

The company’s work council has proposed measures relating to wages and bonuses that it says would save 1.5 billion euros ($1.58 billion) and avert factory closures and redundancies. CEO Blume said that although the proposal is a positive step, it isn’t enough to defend the company’s future.

Works council chief Cavallo also spoke at the meeting on Wednesday, telling the roughly 20,000 workers in attendance that while she acknowledges there are problems at the company and in the industry as a whole, a solution involving factory closures, mass layoffs and pay cuts is out of the question.

Appealing to the Volkswagen board to ease their demands, she said a resolution will only come when both sides make compromises and concessions.

“We want to bring this to a good end before Christmas,” she told workers.

FT : General Motors writes down more than $5bn from value of China businesses

General Motors writes down more than $5bn from value of China businesses
Carmaker is latest to warn of impact of slowing demand in the country

General Motors is to write down more than $5bn from the value of its businesses in China, as slowing demand in the country hits carmakers.

In an announcement on Wednesday, GM said that there was a “material loss in value of our investments in certain of the China joint ventures . . . in light of the finalisation of a new business forecast and certain restructuring actions”.

GM runs a series of joint ventures in China alongside SAIC Motor Corp.

It added that it would write down the value of its interest in its Chinese joint ventures by as much as $2.9bn, and record an additional $2.7bn in restructuring charges.

Problems in China have recently led to steep falls in quarterly profit for Toyota, Honda and BMW.

MIT News : Photonic processor could enable ultrafast AI computations with extrem

Photonic processor could enable ultrafast AI computations with extreme energy efficiency
This new device uses light to perform the key operations of a deep neural network on a chip, opening the door to high-speed processors that can learn in real-time.

The deep neural network models that power today’s most demanding machine-learning applications have grown so large and complex that they are pushing the limits of traditional electronic computing hardware.

Photonic hardware, which can perform machine-learning computations with light, offers a faster and more energy-efficient alternative. However, there are some types of neural network computations that a photonic device can’t perform, requiring the use of off-chip electronics or other techniques that hamper speed and efficiency.

Building on a decade of research, scientists from MIT and elsewhere have developed a new photonic chip that overcomes these roadblocks. They demonstrated a fully integrated photonic processor that can perform all the key computations of a deep neural network optically on the chip.

The optical device was able to complete the key computations for a machine-learning classification task in less than half a nanosecond while achieving more than 92 percent accuracy — performance that is on par with traditional hardware.

The chip, composed of interconnected modules that form an optical neural network, is fabricated using commercial foundry processes, which could enable the scaling of the technology and its integration into electronics.

In the long run, the photonic processor could lead to faster and more energy-efficient deep learning for computationally demanding applications like lidar, scientific research in astronomy and particle physics, or high-speed telecommunications.

“There are a lot of cases where how well the model performs isn’t the only thing that matters, but also how fast you can get an answer. Now that we have an end-to-end system that can run a neural network in optics, at a nanosecond time scale, we can start thinking at a higher level about applications and algorithms,” says Saumil Bandyopadhyay ’17, MEng ’18, PhD ’23, a visiting scientist in the Quantum Photonics and AI Group within the Research Laboratory of Electronics (RLE) and a postdoc at NTT Research, Inc., who is the lead author of a paper on the new chip.

Bandyopadhyay is joined on the paper by Alexander Sludds ’18, MEng ’19, PhD ’23; Nicholas Harris PhD ’17; Darius Bunandar PhD ’19; Stefan Krastanov, a former RLE research scientist who is now an assistant professor at the University of Massachusetts at Amherst; Ryan Hamerly, a visiting scientist at RLE and senior scientist at NTT Research; Matthew Streshinsky, a former silicon photonics lead at Nokia who is now co-founder and CEO of Enosemi; Michael Hochberg, president of Periplous, LLC; and Dirk Englund, a professor in the Department of Electrical Engineering and Computer Science, principal investigator of the Quantum Photonics and Artificial Intelligence Group and of RLE, and senior author of the paper. The research appears today in Nature Photonics.

Machine learning with light

Deep neural networks are composed of many interconnected layers of nodes, or neurons, that operate on input data to produce an output. One key operation in a deep neural network involves the use of linear algebra to perform matrix multiplication, which transforms data as it is passed from layer to layer.

But in addition to these linear operations, deep neural networks perform nonlinear operations that help the model learn more intricate patterns. Nonlinear operations, like activation functions, give deep neural networks the power to solve complex problems.

In 2017, Englund’s group, along with researchers in the lab of Marin Soljačić, the Cecil and Ida Green Professor of Physics, demonstrated an optical neural network on a single photonic chip that could perform matrix multiplication with light.

But at the time, the device couldn’t perform nonlinear operations on the chip. Optical data had to be converted into electrical signals and sent to a digital processor to perform nonlinear operations.

“Nonlinearity in optics is quite challenging because photons don’t interact with each other very easily. That makes it very power consuming to trigger optical nonlinearities, so it becomes challenging to build a system that can do it in a scalable way,” Bandyopadhyay explains.

They overcame that challenge by designing devices called nonlinear optical function units (NOFUs), which combine electronics and optics to implement nonlinear operations on the chip.

The researchers built an optical deep neural network on a photonic chip using three layers of devices that perform linear and nonlinear operations.

A fully-integrated network

At the outset, their system encodes the parameters of a deep neural network into light. Then, an array of programmable beamsplitters, which was demonstrated in the 2017 paper, performs matrix multiplication on those inputs.

The data then pass to programmable NOFUs, which implement nonlinear functions by siphoning off a small amount of light to photodiodes that convert optical signals to electric current. This process, which eliminates the need for an external amplifier, consumes very little energy.

“We stay in the optical domain the whole time, until the end when we want to read out the answer. This enables us to achieve ultra-low latency,” Bandyopadhyay says.

Achieving such low latency enabled them to efficiently train a deep neural network on the chip, a process known as in situ training that typically consumes a huge amount of energy in digital hardware.

“This is especially useful for systems where you are doing in-domain processing of optical signals, like navigation or telecommunications, but also in systems that you want to learn in real time,” he says.

The photonic system achieved more than 96 percent accuracy during training tests and more than 92 percent accuracy during inference, which is comparable to traditional hardware. In addition, the chip performs key computations in less than half a nanosecond.

“This work demonstrates that computing — at its essence, the mapping of inputs to outputs — can be compiled onto new architectures of linear and nonlinear physics that enable a fundamentally different scaling law of computation versus effort needed,” says Englund.

The entire circuit was fabricated using the same infrastructure and foundry processes that produce CMOS computer chips. This could enable the chip to be manufactured at scale, using tried-and-true techniques that introduce very little error into the fabrication process.

Scaling up their device and integrating it with real-world electronics like cameras or telecommunications systems will be a major focus of future work, Bandyopadhyay says. In addition, the researchers want to explore algorithms that can leverage the advantages of optics to train systems faster and with better energy efficiency.

This research was funded, in part, by the U.S. National Science Foundation, the U.S. Air Force Office of Scientific Research, and NTT Research.

>>> Eli Lilly Zepbound superior to Novo Nordisk's (NVO) Wegovy in head-to-head t

Eli Lilly Zepbound superior to Novo Nordisk's (NVO) Wegovy in head-to-head trial showing an average weight loss of 20.2% vs. 13.7% (813.33)
  • Co announced topline results from the SURMOUNT-5 phase 3b open-label randomized clinical trial. Zepbound provided a 47% greater relative weight loss compared to Wegovy. On average, Zepbound led to a superior weight loss of 20.2% compared to 13.7% with Wegovy.
  • At 72 weeks, Zepbound beat Wegovy on both the primary endpoint and all five key secondary endpoints in this trial of adults living with obesity or overweight with at least one weight-related medical problem and without diabetes.
  • The overall safety profile of Zepbound in SURMOUNT-5 was similar to previously reported SURMOUNT trials. The most commonly reported adverse events in SURMOUNT-5 for both Zepbound and Wegovy were gastrointestinal-related and were generally mild to moderate in severity.
  • "Given the increased interest around obesity medications, we conducted this study to help health care providers and patients make informed decisions about treatment choice," said Leonard C. Glass, MD, FACE, senior vice president of global medical affairs at Lilly Cardiometabolic Health. "We are thrilled that today's findings showed the superior weight loss of Zepbound, which helped patients achieve 47% more relative weight loss compared to Wegovy. Zepbound is in a class of its own as the only FDA-approved dual GIP and GLP-1 receptor agonist obesity medication, and it's changing how millions of people manage this chronic disease."

>>> US Early premarket gappers

Early premarket gappers
  • Gapping up:
    • HRTX +83.9%, PSTG +23%, OKTA +15.1%, MRVL +14.1%, CRM +12.5%, DLTR +6%, PBI +4.5%, NVAX +3.7%, RY +3.6%, SGML +3.3%, RLGT +3.1%, HIMX +3.1%, WULF +2.8%, DSGX +2.8%, GENI +2.6%, GSAT +2.4%, LLY +2.3%, JANX +1.6%, BTCM +1.4%, CBT +1.2%, G +1.1%, TXNM +1.1%, PSN +1.1%, VTEX +1.1%, ODFL +1%, CUK +1%, IREN +0.9%, TEVA +0.9%
  • Gapping down:
    • CURV -20.5%, LUNR -15.3%, TRVI -14%, BASE -8.7%, FL -7.5%, GXO -5.5%, TIPT -5.5%, CRGY -5.2%, THO -4.3%, HRL -3.7%, BOX -2.5%, RVMD -2.2%, GRFS -2.1%, CPB -1.5%, TRMK -1.3%, GM -1.2%, STC -0.9%, LYV -0.9%, UNH -0.8%

>>> Europe : Brokers Upgrades & Downgrades - 3rd of December 2024 V3(++)

>>> Up
* Ageas Raised to Overweight at JPMorgan; PT 65 euros
* ASR Nederland Raised to Overweight at JPMorgan; PT 58 euros
* BE Semiconductor Raised to Buy at BofA (+)
* Besqab Raised to Buy at Kepler Cheuvreux; PT 30 kronor
* Coca-Cola HBC Raised to Outperform at BNPP Exane; PT 3,400 pence (+)
* Epiroc Raised to Overweight at Barclays; PT 205 kronor
* Fresenius Medical Care Raised to Buy at HSBC; PT 48 euros
* Helvetia Raised to Buy at Bank Vontobel; PT 180 Swiss francs (+)
* Hugo Boss Raised to Buy at Baader Helvea; PT 45 euros
* IAG PT Raised to 500 pence from 340 pence at JPMorgan
* Merck & Co Raised to Buy at HSBC; PT $130
* Nel Raised to Hold at Nordea; PT 1.40 kroner
* NKT Raised to Buy at Jyske Bank; PT 615 kroner (+)
* Pernod Ricard Raised to Hold at Deutsche Bank (+)
* Schindler Raised to Overweight at Barclays; PT 258 Swiss francs
* Spirax Raised to Overweight at Barclays; PT 8,350 pence
* Zurich Airport Raised to Buy at UBS (++)

>>> Down
* Andritz Cut to Underweight at Barclays; PT 40 euros
* Ariston Cut to Equal-Weight at Barclays; PT 3.81 euros
* Bunzl Cut to Hold at HSBC; PT 3,625 pence
* Campari Cut to Hold at Deutsche Bank (+)
* Carlsberg Cut to Neutral at BNPP Exane; PT 795 kroner
* Carlsberg Cut to Sell at Nordea; PT 620 kroner
* Dekuple Cut to Add at IDMidcaps; PT 37 euros (+)
* Hapag-Lloyd PT Cut to 80 euros from 85 euros at JPMorgan
* Heineken Cut to Hold at Deutsche Bank (+)
* Helvetia Cut to Neutral at JPMorgan; PT 170 Swiss francs
* ITM Power PT Cut to 24 pence from 60 pence at Goodbody (+)
* Maersk PT Cut to 8,450 kroner from 9,000 kroner at JPMorgan
* NN Group Cut to Neutral at JPMorgan; PT 50 euros
* Novartis Cut to Reduce at HSBC; PT 82 Swiss francs
* Novartis ADRs Cut to Reduce at HSBC; PT $95 (++)
* Remy Cointreau Cut to Sell at Deutsche Bank (+)
* Ringkjoebing Landbobank Cut to Sell at ABG; PT 1,000 kroner
* Signify Cut to Underweight at Barclays; PT 18 euros
* St James's Place Cut to Reduce at HSBC; PT 790 pence
* Swiss Life Cut to Reduce at HSBC; PT 640 Swiss francs
* Swiss Life Cut to Underweight at JPMorgan; PT 670 Swiss francs
* YPF ADRs Cut to Neutral at UBS

>>> Initiation
* Abivax ADRs Rated New Market Outperform at JMP; PT $33
* Accelleron Rated New Hold at Jefferies; PT 49 Swiss francs
* Applied Nutrition Rated New Buy at Deutsche Bank; PT 180 pence (+)
* Bossard Rated New Hold at Jefferies; PT 203 Swiss francs
* Burckhardt Rated New Buy at Jefferies; PT 804 Swiss francs
* CompuGroup Reinstated Sell at Hauck & Aufhaeuser; PT 10 euros (+)
* Essentra Rated New Outperform at Davy; PT 170 pence (+)
* Georg Fischer Rated New Buy at Jefferies; PT 82 Swiss francs
* Planisware Rated New Outperform at Oddo BHF; PT 30 euros
* Puig Rated New Buy at Bestinver; PT 23 euros
* SFS Rated New Buy at Jefferies; PT 154 Swiss francs
* Spar Nord Cut to Hold at ABG; PT 140 kroner
* Sulzer Rated New Buy at Jefferies; PT 156 Swiss francs
* Thule Rated New Buy at DNB Markets; PT 445 kronor

>>> Call
* BE Semi Raised to Buy at BofA on Potential Demand Recovery (+)
* Georg Fischer, Sulzer Top Swiss Industrial Picks at Jefferies
* Helvetia Seen Higher as Vontobel Raises to Buy on New Leadership (+)
* IAG Among Top Picks in Mixed 2025 for Transport Sector: JPMorgan (+)
* JPMorgan Sees Further Positive Signs for Europe Insurers in 2025
* Maersk Cut, IAG Among Morgan Stanley’s Favored Transport Names
* Merck Raised to Buy at HSBC on Valuation Potential, Track Record (++)
* Vestas Wind Drops as RBC Says CFO Exit Timing Seems ‘Abrupt’ (++)
* Victrex Upgraded at Jefferies on Attractive Recovery Opportunity