The slowdown in merger announcements two weeks ago appears to have only been a temporary breather. For the first time since we launched this service in mid-March, we have seen seven new mergers announced in a single week. Besides the seven new all cash deals announced last week, we had one deal that closed. The deal that closed was the acquisition of Zenith National Insurance (ZNT) by Fairfax on May 20.
The new deals include the acquisition of OSI Pharma (OSIP) by Japan’s Astellas Pharma for $57.50 per share in cash, the acquisition of The South Financial Group (TSFG) by the TD Bank Financial Group for $0.28 in cash or 0.004 shares of TD Bank for each South Financial Group common share held, the acquisition of Virtual Radiological (VRAD) by Providence Equity for $17.25 per share in cash, the acquisition of Double – Take Software (DBTK) by Vision Solutions for $10.55 per share in cash, the acquisition of EF Johnson Technologies (EFJI) by Francisco Partners for $1.05 per share in cash, the acquisition of GLG Partners (GLG) by Man Group for $4.50 per share in cash and the acquisition of Psychiatric Solutions (PSYS) by Universal Health Services for $33.75 per share in cash.
Please note that we revised the closing price of CPI International (CPII) downward to $15.59 from $16.4 last week when the merger with Comtech Telecommunications (CMTL) was announced. The reason for the downward revision was on account of the cash plus stock nature of the deal where the stock portion is determined by a ratio. As stated last week, if the merger is completed, CPI International shareholders will receive a combination of $9.00 in cash plus a fraction of Comtech common stock equal to $8.10 divided by the average closing price of Comtech common stock over a specified period of time prior to closing. The fraction shall not be greater than 0.2382 nor less than 0.2132. Using the midpoint of this range (0.2257) and multiplying by the price of Comtech as of last Friday ($29.15), the stock portion of the deal fell to $6.58 from $7.4 last week.