⏫Situational awareness: U.S. GDP grew 4.1% in Q2, the highest mark in nearly four years. Q1 was revised up from 2% to 2.2%.
Yesterday we noted that Qualcomm will pay $2 billion to Dutch chipmaker NXP, after pulling the plug on a $44 billion takeover attempt. But it didn't need to be this way.
Bottom line: Qualcomm, which also declined comment, seems to have made a $2 billion bet in April that trade tensions between the U.S. and China would settle down by mid-July. It was wrong.
• Leveraged buyout multiples fell a bit in the first half of 2018, per new data from S&P LCD:
• Crypto: The SEC yesterday again rejected a proposal from the Winklevoss twins for a Bitcoin ETF. But not all commissioners were in agreement. Kia has more.
🎙 On air: The first week of Pro Rata Podcast is in the books, with four episodes now available for your listening pleasure. Check them out via Apple, Google Play or other platforms. Or, for Amazon Echo folks, you can just tell Alexa to "play Axios Pro Rata Podcast."
Hillhouse Capital is in early talks to lead a takeover offer for Yum China (NYSE: YUMC), the exclusive operator of KFC and Pizza Hut stores in mainland China, per The Information.
• WeWork’s China business has raised $500 million in new funding from Trustbridge Partners, Temasek, SoftBank, SoftBank Vision Fund and Hony Capital. http://axios.link/y6l3
• TheRealReal, a San Francisco-based luxury consignment startup, raised $115 million in Series G funding. PWP Growth Equity led, and was joined by Sandbridge Capital and return backer Great Hill Partners. http://axios.link/BZ6u
🚑 Sutro Biopharma, a South San Francisco-based cancer therapeutics company, raised $85.4 million in Series E funding. Samsara BioCapital and Surveyor Capital co-led, and were joined by Merck, Eventide, Nexthera Capital, Vida Ventures, Tekla Capital and return backers Alta Partners, Amgen Ventures, Celgene, Lilly Ventures, Skyline Ventures and SV Health Investors. http://axios.link/9i1X
• Groundspeed Analytics, an Ann Arbor, Mich.-based provider of data solutions to the global commercial property and casualty insurance market, raised $30 million in Series B funding led by Oak HC/FT. http://axios.link/SuoI
• Tikin Media, a Beijing-based in-building advertising company, raised around $18 million in new funding. Sequoia Capital China led, and was joined by IDG Capital. http://axios.link/EZx9
• OpenInvest, a San Francisco-based digital advisor for socially-responsible investing, raised $10.4 million in Series A funding. QED Investors led, and was joined by Andreessen Horowitz, SYSTEMIQ, Wireframe Ventures, Yard Ventures and Abstract Ventures. www.openinvest.com
• ODX, a Singaporean developer of a “blockchain-based data marketplace,” raised over $60 million from a private token sale. Backers included Pantera Capital, BlockTower Capital, DNA Fund, Kenetic Capital, Andromeda, Hexa Labs and Wavemaker Genesis. http://axios.link/6uIU
⛽ Encino Acquisition Partners, backed by CPPIB and Encino Energy, has agreed to buy the Ohio shale acreage of Chesapeake Energy (NYSE: CHK) for around $2 billion.
• KKR agreed to acquire Bay Club, a San Francisco-based fitness club chain, from York Capital Management, JMA Ventures and Roxborough Group. www.bayclubs.com
• PennSpring Capital has acquired PSST, a Louisville, Ky.-based provider of data integration software for school districts and municipalities. www.psst.com
• Trinity Hunt Partners has acquired Improving, a Dallas-based provider of custom software development services. www.improving.com
• Aurora Mobile, a Chinese provider of services to mobile app developers, raised $77 million in its IPO. It priced 9.1 million shares at $8.50 (low end of range), and will trade on the Nasdaq (JG). Goldman Sachs (Asia) was lead underwriter. Shareholders include IDG-Accel (11.1% pre-IPO stake) and Fidelity (7.9%). www.jiguang.cn
• Endava, a London-based provider of outsourced IT development services, raised $127 million in its IPO. The company priced 6.3 million shares at $20, versus original plans to offer 5.6 million shares at $17-$19. It reports $20 million of net income on $219 million in revenue for the nine months ending March 30, 2018, and will trade on the NYSE (DAVA). Morgan Stanley was lead underwriter. www.endava.com
• Facebook (Nasdaq: FB) paid around $100 million to acquire Redkix, an Israeli team messaging startup that had raised over $10 million from Salesforce Ventures, Wicklow Capital and SG VC. http://axios.link/1c2f
• Hammond, Kennedy, Whitney & Co. sold ProAct Services, a Ludington, Mich.-based environmental treatment solutions provider, to Evoqua Water Technologies (NYSE: AQUA). www.evoqua.com
• Novelis has agreed to buy Aleris, a Cleveland-based maker of rolled aluminum products, for $2.6 billion (including debt). Sellers include Oaktree Capital Management, Apollo Management and Sankaty Advisors. http://axios.link/d2JT
• Slack has agreed to acquire (and shut down) two competing products from Atlassian (Nasdaq: TEAM), which will receive an undisclosed amount of equity in the collaboration software unicorn. http://axios.link/2Ggr
• The Timkin Co. (NYSE: TKR) agreed to buy Rollon Group, an Italian maker of engineered linear motion products that is expecting $140 million in 2018 sales, from Chequers Capital and IGI Private Equity. www.rollon.com
⛽ BP (LSE: BP) is buying most of BHP Billiton's (ASX: BHP) U.S. onshore holdings for $10.5 billion. Axios energy reporter Ben Geman has more on this blockbuster.
• Eastman Kodak (NYSE: KODK) is considering a sale of its flexible-packaging unit, which could garner more than $400 million, per WSJ. http://axios.link/Aj6z
• Hyatt Hotels (NYSE: H) has expressed interest in acquiring Spain’s NH Hotel Group (BME: NHH), which already received a $2.9 billion takeover offer from Thailand’s Minor International. http://axios.link/Sbed
• Wells Fargo (NYSE: WFC) is seeking buyers for its Eastdil Secured real estate brokerage unit, per the WSJ. http://axios.link/QynL
• Root Ventures, a San Francisco-based firm focused on hardware and automation, closed its second fund with nearly $77 million in capital commitments. http://axios.link/rOiF
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