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Granicus Owners Consider $4 Billion Sale of Government-Services Software Maker

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Granicus, a government-services software maker based in Denver, is reportedly preparing for a potential sale that could value the company at approximately $4 billion, including debt. The firm, owned by private equity firms Vista Equity Partners and Harvest Partners, has engaged investment banks Jefferies and William Blair to explore the sale process, which is expected to begin in the second half of the year, according to sources familiar with the situation.

The discussions are still in the early stages, and the sources cautioned that the sale’s timing and details are not yet finalized. The owners are aiming for a valuation that reflects more than 20 times the company’s projected earnings before interest, taxes, depreciation, and amortization (EBITDA) of approximately $175 million.

Founded in 1999, Granicus offers cloud-based software and various technology tools to governments at the federal, state, and local levels. These tools are designed to improve government efficiency, transparency, and citizen engagement, including services like website design and maintenance, public records management, and technological upgrades to help citizens better connect with public officials.

Vista Equity Partners acquired a majority stake in Granicus in 2016, followed by a merger with another Vista-backed company, GovDelivery. Harvest Partners acquired a significant stake in Granicus from Vista and K1 Investment Management in 2020. Neither Vista, Harvest Partners, Granicus, Jefferies, nor William Blair immediately responded to requests for comment.

Nvidia-Backed Cloud Firm CoreWeave to Acquire AI Platform Weights & Biases

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CoreWeave, a cloud infrastructure provider backed by Nvidia, announced on Tuesday its acquisition of the AI developer platform Weights & Biases. The move is part of CoreWeave’s strategy to expand its cloud offerings ahead of its upcoming IPO.

The acquisition will integrate CoreWeave’s infrastructure and managed cloud services with Weights & Biases’ AI platform, which is widely used for training, evaluating, and monitoring AI models. Prominent technology companies such as OpenAI and Meta utilize Weights & Biases’ platform to build and deploy AI applications.

While the financial terms of the deal were not disclosed, sources familiar with the transaction told The Information that the acquisition could be valued at approximately $1.7 billion.

CoreWeave, based in Roseland, New Jersey, has seen significant growth, reporting an eight-fold increase in revenue for 2024. The company is also advancing with its plans to list publicly later this year, with expectations to achieve a valuation exceeding $35 billion in its New York flotation.

CoreWeave’s customer base includes major players like hedge fund Jane Street, as well as tech giants Meta, IBM, and Microsoft.

TE Connectivity to Acquire Richards Manufacturing for $2.3 Billion

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TE Connectivity (TEL.N) announced it will acquire utility grid products manufacturer Richards Manufacturing Co for approximately $2.3 billion in cash, aiming to bolster its position in the electrical utilities sector amid surging power demand.

The acquisition comes as the power needs of data centers are expected to double within five years due to the rapid development and adoption of artificial intelligence. Demand is projected to rise from 176 TWh in 2023 to between 325 and 580 TWh by 2028.

President Donald Trump recently supported a $500 billion investment pledge by tech companies and investors to build infrastructure for AI facilities, highlighting the sector’s growing energy demands. Additionally, aging grid infrastructure, increased extreme weather events, and a shift toward greener energy sources are driving the need for grid upgrades and more resilient systems.

TE Connectivity CEO Terrence Curtin said, “The acquisition of Richards Manufacturing aligns with our strategy and positions us to further capitalize on an accelerating grid replacement and upgrade cycle in North America.”

Following the news, TE Connectivity’s shares rose about 4% in pre-market trading.

The Galway, Ireland-based company will acquire Richards Manufacturing from funds managed by Oaktree Capital Management, L.P., and the Bier family, long-time owners of the business. The deal is expected to close in June, financed through a combination of cash and new debt.

Once completed, Richards Manufacturing will become part of TE’s Industrial Solutions segment, contributing an estimated $400 million to annual sales. The acquisition is expected to enhance TE’s sales growth and adjusted operating margins, with projected accretion of about 10 cents to adjusted EPS in the first full year.

Goldman Sachs & Co. LLC is serving as TE Connectivity’s financial advisor, with Davis Polk & Wardwell LLP providing legal counsel.