Happy Wednesday. Here’s what we’ve got today…

• A look at what an EU soccer transfer market ruling means for club economics and investment in the sport

• Plus, a sweetened offer for 7-Eleven

Transfer upheaval:

The European Court of Justice delivered a ruling on Friday that could dramatically reshape the soccer transfer market and private equity investment in the sport.

The judgement was related to a compensation dispute involving former French international player Lassana Diarra, who challenged FIFA rules that restricted his ability to sign with a new club following an altercation with Russian team Lokomotiv Moscow in 2014.

After a falling out with the club's manager, Lokomotiv alleged Diarra refused to appear at training or accept a lower salary, and subsequently dismissed him three years before his scheduled contract expiration. Diarra then agreed to a new deal with a Belgian club, but the move collapsed after FIFA declined to clear the transfer and prevented Diarra's would-be team from registering him as a player.

Subsequent FIFA proceedings found Diarra liable for breach of contract, ordered him to pay €10 million to Lokomotiv, and banned him from competition for 15 months.

Last week's ECJ decision ruled that FIFA's financial penalties levied against players who break contracts without "just cause" and its practice of making new clubs jointly liable in disputes are "contrary to EU law." The court's position is that these rules "impede the free movement of professional footballers" and prevent "cross-border competition" between clubs in EU member states.

It’s still early days, but the expected outcome is a reshaping of the transfer fee system that backs soccer's global player market. The ruling appears likely to hand players more leverage and could hamper clubs’ ability to profit from player sales.

"It's entirely possible this means players will feel they can now break contracts and sign on with new clubs, without the selling club being able to hold them or demand significant transfer fees," said Ian Giles, head of antitrust for EMEA at law firm Norton Rose Fulbright.

Transfer fees, often reaching into the tens or hundreds of millions of euros for top players, can be a critical driver of club economics.

Smaller outfits across Europe’s second and third-tier leagues frequently source, develop, and then sell players to wealthier teams in the most popular competitions (with lucrative media deals) like the U.K.’s Premier League. This dynamic is, in some ways, not much different from pharma’s effective R&D outsourcing to specialized biotechs, from which it can then acquire or license promising assets to plug into its existing distribution.

Dutch club Ajax, for example, brought in €95 million for its sale of Brazilian winger Antony to Manchester United in 2022, part of a €225 million total haul for the club in a single transfer window. Another abundant source of talent is Portuguese side Benfica, which has booked average annual net transfer earnings of €66 million over the past decade.

Behind these numbers are extensive global scouting networks and world-class player development academies—perfected over time to turn a somewhat unpredictable model into a systematized source of revenue.

Disruption could be problematic for financial backers. Data from Chronograph show around 35 percent of European soccer clubs are owned or financed by private equity, venture capital, or other private consortiums.

Consider RedBird Capital Partners' $1.2 billion acquisition of AC Milan in 2022 from Elliott Management. Italian outlet La Gazzetta dello Sport has previously reported that the investment was underwritten in part by assumptions around transfer market profitability, including plans to optimize the timing of player sales to maximize the club's returns on its human capital efforts.

The impact may not be limited to smaller, player development-focused clubs. An erosion in player contract protections could mean that some of the value baked into recent transfer spending has now evaporated.

Since Todd Boehly and Clearlake Capital purchased London club Chelsea in 2022, the team has already shelled out €1.32 billion on new player signings, according to data from Transfermrkt.

Including departures, the club's net spend over the two years is around €870 million. It’s possible the ECJ's ruling could hit Chelsea from two sides: newly-signed players are less secure, and any follow-on sales may be made into a transfer market where player valuations have broadly reset.

• Alimentation Couche-Tard (TSX: ATD) raised its takeover offer for Seven & i Holdings, the Japanese owner of 7-Eleven convenience stores, to around $47 billion, up 22 percent from its initial $38.7 billion bid that was rejected in August.

• Rio Tinto (NYSE: RIO) acquired Philadelphia-based Arcadium Lithium for $6.7 billion.

• KinderCare Learning Cos., a Partners Group-backed childhood education provider, raised $576 million in its NYSE IPO and is trading at a market value of around $3 billion.

• H.I.G. Capital acquired STS Aviation Group, a provider of aircraft maintenance services, from Greenbriar Equity Group.

• Cloudflare (NYSE: NET) acquired Kivera, a cloud security and data protection platform.

• Woodside Energy acquired Tellurian and its Driftwood project, an under-construction LNG production and export terminal in Louisiana, for around $1.2 billion.

• Cannae Holdings (NYSE: CNNE) and KDSA Investment Partners acquired a majority stake in The Watkins Company, a Winona, Minnesota-based manufacturer of spices, seasonings, and extracts.

• Staple Street Capital agreed to acquire substantially all assets of Avante Health Solutions, a medical equipment distributor, through a bankruptcy sale process.

• Experian (LSE: EXPN) agreed to acquire ClearSale, a Brazilian digital fraud prevention provider, for up to $350 million.

• GIC is considering options for its 50 percent stake in India's Greenko Energy Holdings, a renewable energy provider, including a possible stake sale that could value the business at around $10 billion, per Bloomberg.

• HealthQuest Capital acquired a minority stake in Cellipont Bioservices, a cell therapy CDMO.

• Ares Management agreed to acquire the non-China international business of infrastructure investor GLP Capital Partners for $3.7 billion, plus an earnout of up to $1.5 billion.

• Oak HC/FT invested $100 million to launch Auger, an AI-powered supply chain management software startup founded by former Amazon executive Dave Clark.

• Cloudbreak Health, a portfolio company of GTCR, acquired Voyce Global, a provider of tech-enabled language interpretation services for healthcare.

• Avania, backed by Astorg, acquired Anagram, a Barcelona-based medtech CRO.

• KKR acquired near-airport parking provider The Parking Spot from Green Courte Partners.

• First Principles Capital invested in Logic Tech, a provider of dental practice management software.

• Peterson Partners formed Govineer through the combination of public accounting software providers Caselle, Civic Systems, and Black Mountain Software.

• IQVentures Holdings acquired The Aaron's Company (NYSE: AAN), a provider of lease-to-own and retail purchase solutions for home goods, for around $504 million.

• STG Logistics raised $300 million in combined debt and equity financing from existing lenders and sponsors, including Wind Point Partners, Duration Capital Partners and Oaktree Capital Management, to fund growth initiatives for its containerized logistics services business.

• Holcim agreed to acquire OX Engineered Products, a U.S. provider of insulation systems for residential and commercial applications, from Wind Point Partners.

• Radial Equity Partners invested in Plasticade, a Des Plaines, Illinois-based manufacturer of traffic safety and signage products.

• BlackRock and J.P. Morgan Asset Management invested in Dynasty Financial Partners, a provider of tech-enabled wealth management solutions for financial advisory firms.

• Transom Capital has formed Artivo Surfaces through the combination of Virginia Tile and Galleher, two flooring products distributors.

• Saudi Arabia's Public Investment Fund (PIF) acquired a 40 percent stake in Selfridges Group, a UK-based luxury department store chain, from insolvent Signa Group.

• Blue Point Capital Partners recapitalized Pinnacle MEP Holdings, a Midwestern HVAC and plumbing services provider for commercial customers.

• Bain Capital Credit invested in Chartbeat, an Austin-based provider of media operations software for content analytics, joining existing investor Cuadrilla Capital.

• Honeywell (Nasdaq: HON) announced plans to spin off its Advanced Materials business into an independent, publicly traded company by early 2026.

• Broco Rankin, a portfolio company of Argosy Private Equity, acquired Ready Welder, a manufacturer of portable battery-powered welding systems.

• DGS Retail, backed by San Francisco Equity Partners, acquired SMS Display Group, a designer and manufacturer of retail fixtures and displays.

Tech, Vertical SaaS, & Misc. Enterprise

• Q-CTRL, a quantum infrastructure startup, raised $59 million in Series B-2 funding led by GP Bullhound, with participation from Alpha Edison, Lockheed Martin Ventures, NTT Finance, Salus Group, TISI, Alumni Ventures, DCVC, ICM Allectus, Main Sequence Ventures, Morpheus Ventures, and Salesforce Ventures.

• HUMAN Security, an enterprise cybersecurity provider, raised more than $50 million in growth funding led by WestCap, with participation from Goldman Sachs, ClearSky, NightDragon, and Vertex Ventures US.

• xFarm Technologies, a Swiss farm management software platform, raised €36 million in Series C funding led by Partech's Impact Growth Fund, with participation from Mouro Capital, Swisscom Ventures, and United Ventures.

• Unify, a go-to-market technology platform, raised $19 million in Series A and Seed funding led by Emergence Capital and Thrive Capital, with participation from OpenAI Startup Fund, Neo, Abstract, and Altcap.

• Distributional, an AI testing startup, raised $19 million in Series A funding led by Two Sigma Ventures, with participation from Andreessen Horowitz, Operator Collective, Oregon Venture Fund, Essence VC, and Alumni Ventures.

• Lightdash, an open-source business intelligence platform, raised $11 million in Series A funding led by Accel, with participation from Operator Partners, Shopify Ventures, and Y Combinator.

• Driver, an automation platform for interactive technical documentation, raised $8 million in seed funding led by GV, with participation from Y Combinator.

• Building Radar, a Munich-based sales enablement platform for the construction industry, raised $7.2 million in Series A funding led by Socii Capital, with participation from existing backers.

• Kiva AI, an AI data labeling provider, raised $7 million in seed funding led by CoinFund, with participation from Protagonist, Hashkey, and Peer VC.

• Third Dimension AI, a 3D real-time environments platform, raised $6.9 million in seed funding led by Felicis, with participation from Abstract Ventures, MVP, Soma Capital, and Solari Capital.

• Cove, developer of an AI-powered visual workspace for collaborative thinking, raised $6 million in seed funding led by Sequoia Capital, with participation from Homebrew and Adverb.

Fintech

• Asaas, a Brazilian financial automation provider for SMEs, raised $148 million reais in Series C funding led by BOND, with participation from Softbank, 23S Capital, and Endeavor Catalyst.

• TrueLayer, a European pay-by-bank network, raised $50 million in Series E extension funding led by Northzone, with participation from Tencent, Tiger Global, Temasek, and Stripe.

• Salmon, a Philippines-based consumer fintech, raised $30 million in Series A-2 funding from the International Finance Corporation and Lunate of Abu Dhabi.

Consumer & Media

• La Vie, a French plant-based pork alternative startup, raised €25 million in Series A funding from Zintinus amd Sparkfood.

• Perlego, a subscription-based digital library for academic titles, raised $20 million in new funding from ITHAKA, MediaHuis, Raine, and KPN Ventures.

• Claim, a social shopping app, raised $12 million in Series A funding led by VMG Technology, with participation from Sequoia Capital, Susa Ventures, and Lightbank.

Healthcare

• City Therapeutics, a Cambridge-based biotech developing next-generation RNAi-based medicines, raised $135 million in Series A funding led by ARCH Venture Partners, with participation from Fidelity Management & Research Company, Invus, Slate Path Capital, Rock Springs Capital, Regeneron Ventures, and AN Ventures.

• Maven Clinic, a virtual clinic for women's and family health, raised $125 million in Series F funding led by StepStone Group, with participation from General Catalyst, Sequoia, Oak HC/FT, Icon Ventures, Dragoneer Investment Group, and Lux Capital.

• ShiraTronics, a Minneapolis-based neurostimulation startup, raised $66 million in Series B funding led by Norwest Venture Partners, with participation from Seroba, OSF Ventures, Global BioAccess Fund, U.S. Venture Partners, Amzak Health, Treo Ventures, and Aperture Venture Partners.

• Basecamp Research, an AI biotech research platform, raised $60 million in Series B funding led by Singular, with participation from S32, redalpine, True Ventures, and Hummingbird Ventures.

• Arda Therapeutics, a developer of targeted cell depletion therapies for chronic diseases, raised $43 million in Series A funding led by Andreessen Horowitz (a16z Bio + Health), with participation from Two Sigma Ventures, RV Invest, Eli Lilly and Company, GV, Biovision Ventures, Valhalla Ventures, Indicator Ventures, Alumni Ventures, LifeLink Ventures, Mana Ventures, and ExitFund.

• Eleanor Health, an outpatient addiction treatment provider, raised $30 million in Series D funding led by General Catalyst, with participation from Town Hall Ventures, Echo Health Ventures, Northpond Ventures, Rethink Impact, and Emerson Collective.

• Centaur Labs, a health data annotation platform, raised $16 million in Series B funding led by SignalFire, with participation from Matrix, Accel, Susa, Omega, Y Combinator, Samsung Next, and Alumni Ventures.

Industrials, Greentech, & Other

• Gropyus, a Vienna-based sustainable prefab construction startup, raised €100 million in Series B funding led by Semapa and Practical Venture Capital.

• Paebbl, a startup turning captured CO2 into carbon-storing building materials, raised $25 million in Series A funding led by Capnamic, with participation from Amazon's Climate Pledge Fund, Holcim, Aurum Impact, 2050, Pale Blue Dot, and the Grantham Foundation.

• Airloom Energy, a wind turbine developer, raised $13.75 million in new funding led by Lowercarbon Capital, with participation from Breakthrough Energy Ventures, WYVC, Crosscut Ventures, WovenEarth Ventures, and Adiuvans.

• Voltfang, an EV battery recycler, raised €8.8 million in Series A funding led by FORWARD.One, with participation from Interzero, PT1, AENU, Helen Ventures, Daphni, and Aurum Impact.

• Renovus Capital Partners raised $875 million for its fourth buyout fund.

• General Catalyst is raising an $800 million to $1 billion continuation fund to purchase existing assets from older funds, including Stripe, Gusto, and Circle, per TechCrunch.

Interested in partnering with Transacted? If you’re a financial services firm looking to connect with an engaged audience, please reach out.

Got a tip or an idea for a story? Email [email protected], or Tweet/DM @transactedInc