Merger Arbitrage Mondays – May 23, 2011
Merger activity increased last week with five new deals announced and seven closing.
You can find all the active deals listed below in our Merger Arbitrage Tool that automatically updates itself during market hours.
|Total Number of Deals Closed in 2011||74|
|Total Number of Deals Not Completed in 2011||1|
|Total Number of Pending Deals|
|Stock & Cash Deals||15|
|Total Number of Pending Deals||88|
- The acquisition of Integral Systems (ISYS) by Kratos Defense & Security Solutions (KTOS) for $266 million in a cash plus stock deal, where where each Integral Systems share will be converted into $5.00 in cash and 0.588 of a share of Kratos common stock.
- The acquisition of Orthovita (VITA) by Stryker Corporation (SYK) for $316 million or $3.85 per share in cash.
- The acquisition of PRIMEDIA (PRM) by TPG Capital for $525 million or $7.10 per share in cash.
- The acquisition of Nobel Learning (NLCI) by Leeds Equity Partners for $149 million or $11.75 per share in cash.
- The acquisition of China Fire and Security Group (CFSG) by Bain Capital Partners for $265.5 million or $9.00 per share in cash. This deal was announced after the close on Friday and hence the spread looks big right now but will probably narrow significantly at the open on Monday. China Fire and Security Group went public in 2006 through a reverse merger. The stock lost almost half its value over the last year taking a hit along with other Chinese companies listed in the United States. It is interesting to see Bain step in and buy one of these reverse merger companies. There is obviously value to be found amongst these stocks provided one has the time and resources to do the necessary due diligence.
- RAE Systems Inc. Announces Amended Merger Agreement With Vector Capital increasing the acquisition price to $2.05 per share in cash on May 20, 2011. This has been the third upward revision in the offer price in a span of less than two months.
- The acquisition of Wilmington Trust Corp (WL) by M&T Bank (MTB) on May 16, 2011.
- The acquisition of Technology Research Corporation (TRCI) by Coleman Cable (CCIX) on May 16, 2011.
- The acquisition of Inspire Pharmaceuticals (ISPH) by Merck (MRK) on May 16, 2011.
- The acquisition of Epicor Software Corporation (EPIC) by Apax Partners on May 16, 2011.
- The acquisition of Silverleaf Resorts (SVLF) by an affiliate of Cerberus Capital Management on May 16, 2011.
- The acquisition of Celera Corporation (CRA) by Quest Diagnostics (DGX) on May 17, 2011.
- The acquisition of Dionex Corporation (DNEX) by Thermo Fisher Scientific Inc. (TMO) on May 18, 2011
Top 10 deals with largest spreads:
|GRAN||04/27/2011||FNB United Corp (FNBN)||$1.86||$0.91||09/30/2011|
|CSR||04/20/2011||Rightmark Holdings Limited (N/A)||$6.50||$5.15||09/30/2011||
|CFSG||05/20/2011||Bain Capital Partners (N/A)||$9.00||$7.33||11/15/2011||
|TAM||01/19/2011||LAN Airlines S.A. (LFL)||$25.89||$21.41||12/31/2011||
|HYC||11/17/2010||Verifone Systems (PAY)||$10.72||$10.07||09/30/2011|
|CASB||03/04/2011||Opus Bank (N/A)||$0.45||$0.425||06/30/2011||
List of all pending deals: