Merger Arbitrage Mondays – September 4, 2017
Merger activity increased last week with five new deals announced and seven deals closing. You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.
There were two new deals announced in the Deals in the Works section.
Deal Statistics:
| Total Number of Deals Closed in 2017 | 141 |
| Total Number of Deals Not Completed in 2017 | 8 |
| Total Number of Pending Deals |
| Cash Deals | 55 |
| Stock Deals | 25 |
| Stock & Cash Deals | 11 |
| Special Conditions | 8 |
| Total Number of Pending Deals | 99 |
| Total Deal Size | $874.14 billion |
New Deals:
- The acquisition of IXYS Corporation (IXYS) by Littelfuse (LFUS) for $655 million in a cash or stock deal. Under the terms of the agreement, each IXYS stockholder will be entitled to elect to receive, per IXYS share, either $23.00 in cash or 0.1265 of a share of Littelfuse common stock, subject to proration.
- The acquisition of Kite Pharma (KITE) by Gilead Sciences (GILD) for $11.9 billion or $180 per share in cash.
- The acquisition of MaxPoint Interactive (MXPT) by Valassis for $101 million or $13.86 per share in cash.
- The acquisition of Arc Logistics Partners (ARCX) by Zenith for $632.96 million or $16.50 per share in cash.
- The acquisition of The Advisory Board Company (ABCO) by Optum and Vista Equity Partners. The Company has agreed to sell its health care business to Optum and its education business to affiliates of Vista Equity Partners. Under the terms of the agreement, stockholders of the Advisory Board Company would receive estimated cash per share of $54.29, which includes a fixed amount of $52.65 per share and the after-tax value at closing of the Company’s 7.6% stake in Evolent Health, which has been estimated as of August 28, 2017.
Deal Updates:
- On August 30, 2017, Mars, Incorporated and VCA (WOOF) announced that the U.S. Federal Trade Commission (FTC) has cleared Mars’ proposed acquisition of VCA.
- On August 31, 2017, Sterling Bancorp (STL) and Astoria Financial Corporation (AF) announced that the Board of Governors of the Federal Reserve System has approved the merger of Astoria with and into Sterling.
Closed Deals:
- The acquisition of Whole Foods Market (WFM) by Amazon.com (AMZN) on August 28, 2017. It took 73 days for this deal to be completed.
- The acquisition of Global Sources (GSOL) by Expo Holdings on August 28, 2017. It took 97 days for this deal to be completed.
- The acquisition of ARI Network Services (ARIS) by True Wind Capital Management on August 29, 2017. It took 69 days for this deal to be completed.
- The acquisition of Patheon (PTHN) by Thermo Fisher Scientific (TMO) on August 29, 2017. It took 106 days for this deal to be completed.
- The acquisition of Albany Molecular Research (AMRI) by affiliates of The Carlyle Group and GTCR on August 31, 2017. It took 86 days for this deal to be completed.
- The acquisition of FelCor Lodging Trust Incorporated (FCH) by RLJ Lodging Trust (RLJ) on September 1, 2017. It took 130 days for this deal to be completed.
- The acquisition of Novadaq Technologies (NVDQ) Stryker Corporation (SYK) on September 1, 2017. It took 74 days for this deal to be completed.
Top 10 deals with largest spreads:
Closing
Price |
|---|
| GNW | 10/23/2016 | China Oceanwide Holdings Group Co., Ltd. (N/A) | $5.43 | $3.51 | 11/30/2017 | 54.70% | 229.49% |
| LSCC | 11/03/2016 | Canyon Bridge Capital Partners, Inc. (N/A) | $8.30 | $5.67 | 09/30/2017 | 46.38% | 651.17% |
| MGI | 01/26/2017 | Ant Financial Services Group (N/A) | $18.00 | $15.68 | 12/31/2017 | 14.80% | 45.77% |
| CAB | 10/03/2016 | Bass Pro Shops (N/A) | $61.50 | $53.75 | 09/30/2017 | 14.42% | 202.42% |
| HUN | 05/22/2017 | CLARIANT N (CLN.VX) | $29.58 | $26.89 | 12/31/2017 | 10.01% | 30.97% |
| CBMX | 07/31/2017 | Invitae Corporation (NVTA) | $8.33 | $7.60 | 12/31/2017 | 9.61% | 29.71% |
| MON | 09/14/2016 | Bayer AG (BAYRY) | $128.00 | $117.21 | 12/31/2017 | 9.21% | 28.48% |
| NXTM | 08/07/2017 | Fresenius Medical Care (N/A) | $30.00 | $27.97 | 06/30/2018 | 7.26% | 8.86% |
| TWX | 10/22/2016 | AT&T, Inc. (T) | $107.50 | $101.60 | 12/31/2017 | 5.81% | 17.96% |
| HCOM | 07/10/2017 | Cincinnati Bell (CBB) | $32.60 | $30.82 | 12/31/2018 | 5.78% | 4.37% |
List of all pending deals:
The list of all pending deals is only available to InsideArbitrage Premium and Plus members.
Disclaimer: I hold positions in Staples (SPLS), Cabela’s (CAB), Fortress Investment Group (FIG), MaxPoint Interactive (MXPT) and CombiMatrix (CBMX). Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.
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