Micron & Vivint Announce Mega Deals, and More (Week-in-Review Highlights, June 26—July 2, 2021)
Micron Technology announces $1.5 billion exit from Utah; Vivint Smart Home plans $2.5 billion in fundings; Utah Jazz make major executive move; NIL is here for college athletes; and more.
By the time Micron Technology hightails it out of Utah for good later this year, the company expects to do so with an extra $1.5 billion in its bank account.
According to a Texas Instruments news release published on Wednesday, TI plans to purchase Micron’sLehi, Utah-based semiconductor plant for $900 million, with the transaction expected to close before January 1, 2022.
However, Micron’s own news release further explained that in addition to the sale of its “fab” in Lehi, it also expects to sell “select tools and other assets” to unnamed buyers for an additional $600 million.
As reported earlier this year in the March 19 edition ofDeseret Business Watch, Micron’s entrée into Utah began in November 2005 when
“… two of the leading semiconductor companies on the planet — Intel and Micron — shocked Utah and much of the technology world when they announced a joint venture named IM Flash Technologies and plans to build a state-of-the art fabrication plant in the northern foothills of Lehi.
“Terms of the JV saw Micron with a 51% ownership position and Intel at 49%, with a total financial commitment between them of $5.2 billion.”
Over the years, Micron and Intel (and then Micron on its own) have poured billions of dollars into Lehi and the economy of the State of Deseret.
But … those days are coming to an end, at least for Micron.
For its part, however, TI apparently plans to
“… offer all Lehi site team members the opportunity to become employees upon the closing of the sale.”
That’s good news, especially for those employees and their families/loved ones.
So good luck Micron, and a hearty “Welcome to Utah” Texas Instruments.
Vivint Smart Home Announces Plans to Secure up to $2.5 Billion in Fundings
To be clear, some corporate news releases are so obtuse, you almost need the equivalent of a Rosetta Stone to translate them.
However, if I’ve parsed the relevant language correctly, Vivint Smart Home announced plans this week to raise up to $2.5 billion in total funding through three different funding vehicles:
$800 million through a private placement of “senior notes” that are due in 2029;
“A new $350.0 million senior secured revolving credit facility;” and
A new $1.35 billion “senior secured first lien term loan facility” that will mature in July 2028.
Add it all up, and Vivint is staring at up to $2.5 additional in capital at its corporate fingertips.
However, don’t get too giddy for the smart home giant or its financial team as close to $1.3 billion of the expected fundings will be dedicated to retiring (aka, paying-off) existing loans, debts and other credit facilities.
Then again, $2.5 billion in new fundings is not nothing.
Two Major Announcements Shape the Business of Sport in Utah
The next two top stories from Utah’s business community from this past week both come from the world of sports:
One is from Utah’s largest sports enterprise — The Utah Jazz, while
The second story comes from outside the state but will have a marked impact on amateur sports both in Utah and throughout the “home of the free and the land of the brave.”
Here ya go …
Sports Business Story No. 1: The Utah Jazz and its Top Basketball Exec Part Ways
Earlier this week, the Utah Jazz announced that Dennis Lindsey, its EVP of Basketball Operations is transitioning to an “advisory role” with the team, ending a nine-year run with the Jazz.
In his place, Justin Zanik (General Manager with the Jazz since 2019) will “continue in his role overseeing the day-to-day management of Jazz basketball operations.”
Although the official statement was appropriately professional and evenhanded, several media outlets suggested that Dennis was forced out by tech entrepreneur and new Jazz owner, Ryan Smith, including
NBC Sports: “Report: Friction between former GM Lindsey, coach Snyder led to Jazz GM change”
Larry Brown Sports: “Dennis Lindsey leaving position over issues with Quin Snyder?”
Salt Lake Tribune: “The Story Behind the Utah Jazz’s Front Office Shake-up, and Why It Happened Now”
Regardless if these rumors or true or not, Dennis’ departure from the Utah Jazz is a big, big deal.
Sports Business Story No. 2: The NCAA Blinks on “NIL” and Amateur Sports will Never be the Same
In a move that has been anticipated for literally years, the National Collegiate Athletic Association announced this week that it has voted to allow college athletes the right to make money from their
Name,
Image, and/or
Likeness.
This interim NIL ruling went into effect on Thursday and is already causing ripples throughout the sports and business worlds, especially since there are NOT common laws in place among states, let alone at a federal level.
On the surface, NIL only affects college athletes and prevents colleges and universities from getting sucked into a “pay for play” model, which few higher ed administrators seem to favor.
But make no mistake about this recent vote: It will soon reverberate throughout all of collegiate sports, but will also extend to other aspects of collegiate amateurism, including
Debaters,
Actors and actresses,
Marching band members, and/or
Members of orchestras or singing groups,
Et cetera.
And it won’t stop there. Nope.
In fact, I am confident the impact of the NIL decision will also expand down into high school sports, and eventually into middle schools and junior high schools as well.
Chances are you’re thinking,
“You’re insane, Politis. There’s no way that will happen.”
Oh really?
Then go read this ESPN article about the time the LSU Tigers offered a scholarship to an eighth grader. And then the University of Alabama jumped on board and offered him a scholarship too some seven months later.
Oh yeah, it’s coming. Trust me; it’s coming.
One last thing on this topic (for now): Brigham Young University announced its own NIL policies for its athletes on Thursday, the day the interim NILNCAA rules went into effect.
And as expected, BYU’s NIL policies require its athletes to conform with Honor Code Standards if/when they enter into any NIL agreement or engage in any NIL activities.
Other News Items of Note from This Week
What follows below are five additional Noteworthy News Items taken from the breaking news announcements that hit our radar recently from Utah’s business community, news items we thought you might find worthwhile if not also intriguing.
Case in point —
Canopy Raises $11 Million
Lehi-based Canopy announced this week that it has closed on an $11 million round of funding.
According to Crunchbase, Canopy has raised over $110 million in total to help drive the growth of its suite of online tools for the accounting profession.
Neovest, an Orem-based Subsidiary of JPMorgan Chase, Agrees to Pay $2.75 Million Penalty to Settle Case with the SEC
An Orem, Utah-based subsidiary of JPMorgan Chase (Neovest) has agreed to pay a $2.75 million penalty to the U.S. Securities and Exchange Commission for
“… its failure to register as a broker-dealer in violation of the federal securities laws.”
Additionally,
“Without admitting or denying the SEC’s findings, Neovest consented to the order and agreed to cease and desist from committing or causing any violations and any future violations of Section 15(a) of the Exchange Act …”
According to the SEC’s online filing about this ruling, Neovest violated several basic laws and regulations managing broker-dealers for at least 16 years, from December 2005 through April 2018.
Not cool.
South Jordan Healthcare Data Compliance Firm, Verisys, is Acquired then Merged with Kentucky Company in a Multistep Transaction Led by a $30 Billion Investment Firm
Stone Point Capital announced last week it acquired South Jordan, Utah-based Verisys and Louisville, Kentucky-based Aperture Health, then merged the two firms to create a “market leader in healthcare credentialing and provider data management.”
Stone Point is based in Greenwich, Connecticut and has approximately $30 billion in Assets Under Management (AUM).
No financial details of the transaction were disclosed.
Amp Human Merges with Momentous to Accelerate Growth in the Human Performance Market
Park City, Utah-based Amp Human announced this week that it has merged with Palo Alto, California-based Momentous.
The two venture capital-backed firms make naturally based human performance enhancing products.
Although no financial details of the transaction were disclosed, Momentous will be name of the merged company, suggesting to this writer that it was not actually a merger but an acquisition.
Just saying.
BYU Broadcasting Names Industry Vet as its New Managing Director
Last but not least … following a career that has seen him move from Disney to Deseret News (and places in between), Jeff Simpson has been named as the new Managing Director of BYU Broadcasting.
Jeff replaces Michael Dunn who has accepted a full-time ecclesiastical assignment as a General Authority Seventy of the Church of Jesus Christ of Latter-day Saints.
Provo, Utah-based BYU Broadcasting includes BYUtv, BYUradio, and related digital platforms, with a reach of over 50 million homes for BYUtv and more than 30 million devices for BYUradio.
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About the Author
David Politis is a Marketing Mercenary, which is a fancy way of saying that organizations and individuals hire him to solve their marketing problems. To learn more, please feel free to visit David’s LinkedIn Profile or the website for his business: The David Politis Company. If you have a story idea for him (or would just like to connect), you can reach him at me@davidpolitis.com.
Another great edition! Thanks David.