SoftBank, Franklin Invest $210 Million in OneTrust at Over $5 Billion Valuation

Including the investment, the total capital raised by OneTrust in it latest Series C round was $510 million. The firm, which counts Insight Partners, Coatue and TCV among its existing investors, has raised $920 million since it was founded.

Funding from SoftBank Vision Fund 2 opens up a strategic geographical position for OneTrust in Japan, the company said, as market demand accelerates in Asia Pacific and across the globe.

Japan’s SoftBank has made serial investments in multiple tech companies in the past few weeks, such as U.S. genetic diagnostics company Invitae Corp and Facebook-backed Indian social commerce startup Meesho.

On Wednesday, SoftBank made investments in Israeli cloud analytics firm Redis Labs and image recognition technology firm Trax.

Atlanta and London-based OneTrust’s platform, used by more than 8,000 companies to operationalize privacy, security and data governance, is backed by 140 patents and powered by OneTrust Athena, an artificial intelligence and robotic automation engine.

(Reporting by Sohini Podder in Bengaluru; Editing by Shinjini Ganguli)

SoftBank to Lead Nearly $1.2 Billion Investment in Diagnostics Firm Invitae

It said the investment, to be used for its growth initiatives, will be in convertible senior notes, which will bear 1.5% interest per year.

The company said the notes will have an initial conversion price of $43.18 per share of its common stock, representing a premium of 10.2% to Invitae’s closing price on Friday.

Earlier this year, SoftBank invested $900 million in gene sequencing firm Pacific Biosciences of California Inc.

San Francisco-based Invitae offers genetic testing services for a range of diseases, including skin and eye conditions, cancers as well as reproductive health in and outside the United States.

Shares of the company, which started operations in 2010, have more than tripled in the past twelve months, giving it a market valuation of $7.7 billion.

J. Wood Capital Advisors LLC and Perella Weinberg Partners LP were financial advisers to Invitae on the transaction.

(Reporting by Amruta Khandekar in Bengaluru; Editing by Shinjini Ganguli)

Nvidia Shares Jump 6% on Deal with SoftBank to Buy UK Chipmaker Arm; Target Price $600

Nvidia Corp, an American multinational technology company, announced to acquire UK-based chip designer Arm Limited from SoftBank in a transaction valued at $40 billion, sending its shares up about 6% in pre-market trading on Monday.

Under the terms of the transaction, NVIDIA will pay to SoftBank a total of $21.5 billion in NVIDIA common stock and $12 billion in cash, which includes $2 billion payable at signing. The number of NVIDIA shares to be issued at closing is 44.3 million, determined using the average closing price of NVIDIA common stock for the last 30 trading days, the company said.

Additionally, SoftBank may receive up to $5 billion in cash or common stock under an earn-out construct, subject to satisfaction of specific financial performance targets by Arm. NVIDIA will also issue $1.5 billion in equity to Arm employees.

SoftBank will remain committed to Arm’s long-term success through its ownership stake in NVIDIA, expected to be under 10%.

Nvidia’s shares rose about 6% to $514 in pre-market trading on Monday; the stock is up over 100% so far this year. Also, the SoftBank ended 8.96% higher at JPY 6,385 in Tokyo.

Executive comments

“AI is the most powerful technology force of our time and has launched a new wave of computing,” said Jensen Huang, founder and CEO of NVIDIA.

“In the years ahead, trillions of computers running AI will create a new internet-of-things that is thousands of times larger than today’s internet-of-people. Our combination will create a company fabulously positioned for the age of AI.”

Nvidia stock forecast

Twenty-nine analysts forecast the average price in 12 months at $546.00 with a high forecast of $650.00 and a low forecast of $260.00. The average price target represents a 12.21% increase from the last price of $486.58. From those 29 equity analysts, 24 rated “Buy”, four rated “Hold” and one rated “Sell”, according to Tipranks.

Nvidia had its price target raised by investment analysts at Royal Bank of Canada to $610 from $528. The brokerage currently has an “outperform” rating on the computer hardware maker’s stock. Jefferies raised their target price to $680 from $570.

Other equity analysts also recently updated their stock outlook. At last, Rosenblatt Securities increased their price target to $600 from $500 and gave the stock a “buy” rating. BofA Global Research upped their price objective to $650 from $600, UBS raised target price to $625 from $528, Benchmark increased their target price to $600 from $540, Goldman Sachs raised their target price to $585 from $528 and Mizuho upped their target price to $575 from $520.

We think it is good to buy at the current level and target $600 as 100-day Moving Average and 100-200-day MACD Oscillator signal a strong buying opportunity.

Analyst views

“We view the deal as transformative, positioning Nvidia (NVDA) not just to capture 80% of the ecosystem value in the data center, but also unify the compute ecosystem between the edge and data center. We think the merged company has a 5-year EPS power of $50, and increase our price target to $680, and bull-case to $1,000,” said Mark Lipacis, equity analyst at Jefferies.

“We model Nvidia Data Center processor revenues of $34 billion in 2025, and Data Center Ecosystem (software) of an additional $34 billion,” Lipacis added.

Upside and Downside risks

Upside: 1) Nvidia (NVDA) successfully acquires and integrates ARM expanding its data center TAM and controlling 80% of the DC ecosystem and unifying compute ecosystem from the edge to data centers. 2) Accelerated growth in Deep Learning applications across multiple end markets. 3) Conversational AI demand increases at a faster than expected rate, driving demand for NVDA solutions in the data center. 4) Accelerated growth from Automotive with proliferation of autonomous cars GPU upgrades and incremental demand driven by virtual reality applications. 5) Five-year Non-GAAP EPS: $50; P/E: 20x; Price target: $1000, highlighted by Jefferies.

Downside: 1) NVDA ARM deal is blocked by regulatory authorities. 2) COVID-19 outbreak extends beyond 2020 causing greater than expected demand destruction and supply chain constraints. 3) Slowing Datacenter capex spending. 4) Slower than expected sales of Automotive products. 5) Adoption challenges with GPU Accelerators in the Data Center. 6) Emerging competitive threats from INTC, AMD and other startups. 7) C2021E Non-GAAP EPS: $9; P/E: 44x; Price target: $400.

Check out FX Empire’s earnings calendar

Deutsche Telekom in Talks to Buy Out Shares in T-Mobile From Softbank

Deutsche Telekom, by revenue the largest telecommunications provider in Europe, announced that it is in talks to acquire stakes in its U.S. subsidiary T-Mobile from Japanese multinational conglomerate holding company Softbank.

The European telecommunications leader, Deutsche Telekom, that delivers services to more than 150 million global customers, owns over 40% stake in its U.S. subsidiary T-Mobile but it can vote shares owned by Japanese holding company SoftBank.

That brings its voting stake to 67%, ensuring overall financial control and allow the company to consolidate the financial statement of T-Mobile. Hoettges added that the negotiation is still in its nascent stage will inform when one has reached.

CEO Tim Hoettges’ comment

CEO Tim Hoettges on Friday said that the deal will be under a shareholder agreement and it has the right of first refusal.

According to Reuters, Hoettges, answering a question at Deutsche Telekom’s annual general meeting, said Softbank was seeking to sell down its stake due to “heightened liquidity needs arising from the demanding economic environment”.

He further noted that, under a 4-year shareholder agreement that entered effect when T-Mobile completed its acquisition of Sprint, Deutsche Telekom had the pre-emptive purchase right to ensure it retains control of its U.S. subsidiary, Reuters reported.

CEO also confirmed that the profit outlook was resilient to the coronavirus pandemic.

“Of course, we are also feeling the effects. From bad debts. Forgone roaming revenues and temporary shop closures,” Hoettges said, according to pre-released extracts of his video address to the event which is being held online.

“But we are confident that we will bounce back. Because digitalization is everywhere right now. And this brings us opportunities.”

Stock price outlook

According to Tipranks, three analysts forecast the average price in 12 months at $18.83 with a high of $19.28 and a low of $17.93. The average price target represents a 10.76% increase from the last price of $17.00.