Deal Dispatch: Metaverse Mergers, 23andMe Under Investigation, Burger King Franchise Goes Bankrupt

New On The Block

• Willow Tree Credit Partners seeks to sell a minority stake and is soliciting potential buyers, according to Bloomberg. The New York-based firm has about $5 billion in assets under management.

• Bloomberg also reports that Zurich-based Partners Group is divesting a 49% stake in Italian toll road business Telepass. It first purchased the stake in 2021. Italy's Benetton family maintains control with a 51% stake.

Updates From The Block

• GeneDx (NASDAQ:WSG) agreed to acquire Fabric Genomics, a pioneer in AI-powered genomic interpretation, for $33 million in cash . Upon achieving certain milestones, the total price tag could potentially reach $51 million.

• Axios broke the news that a New Zealand-based metaverse company called Futureverse acquired NFT startup Candy Digital. Major League Baseball, Netflix and DC Comics are among Candy Digital’s partners. That wasn’t the only metaverse deal this past week.

• Infinite Reality, which boasts a $15-billion valuation, agreed to buy agentic AI company Touchcast for $500 million. Last month, Infinitie Reality acquired digital music innovator Napster for $207 million.

• Lyft, Inc. (NASDAQ:LYFT) announced that it purchased a taxi app from BMW Group and Mercedes-Benz Mobility for €175 million ($197 million) in cash.

Off The Block

• Onsemi (NASDAQ:ON) terminated its efforts to acquire Allegro MicroSystems, Inc. (NASDAQ:ALGM). In early March, Allegro received a proposal from Onsemi, or ON Semiconductor Corporation, for $35.10 per share, with an implied enterprise value of $6.9 billion.

• Paychex (NASDAQ:PAYX) closed its $4.1-billion acquisition of payroll and HR software firm Paycor HCM. The deal was first announced in January.

• TPG completed its $2.2-billion take-private buyout of Altus Power, the largest owner of commercial-scale solar in the U.S. Approximately 40% of the company’s stock is already committed to the deal. Altus Power expects the transaction to officially close within the second quarter.

Bankruptcy On The Block

• Consolidated Burger Holdings, a Burger King franchisee operating 57 locations across Florida and Georgia, has filed for Chapter 11 bankruptcy. The company, based in Destin, Florida, cited financial struggles worsened by the COVID-19 pandemic, including reduced foot traffic and declining revenue, while costs like rent and debt service remained high. Its restaurants include sites in cities like Valdosta, Tallahassee, West Palm Beach, and Naples, with four located inside Walmart stores.

• The House Committee on Energy and Commerce is investigating 23andMe‘s Chapter 11 bankruptcy filing, raising concerns about the security of its sensitive genetic data. Lawmakers fear the company’s genetic database could be compromised as its assets are now up for sale. In a letter to interim CEO Joe Selsavage, three Republican congressmen requested answers about the company’s data and privacy practices by May 1. The inquiry follows similar concerns from the FTC and the House Oversight Committee. Once valued at $6 billion, 23andMe has struggled to maintain revenue and expand into research and therapeutics.

Check out last week’s edition of the Deal Dispatch.

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