Merger Arbitrage Mondays – December 31, 2018

Merger activity decreased last week with one new deal announced and one pending deal closing. You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.

There was one new deal announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2018 174
Total Number of Deals Not Completed in 2018 15
Total Number of Pending Deals
Cash Deals 42
Stock Deals 29
Stock & Cash Deals 13
Special Conditions 5
Total Number of Pending Deals 89
Total Deal Size $1.38 trillion

New Deals:

  1. The acquisition of Mindbody (MB) by Vista Equity Partners for $1.9 billion or $36.50 per share in cash.

Deal Updates:

  1. On December 21, 2018, SiriusXM (SIRI) and Pandora (Pannounced the termination of the waiting period required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Pandora’s special meeting of stockholders to vote on the transaction is scheduled to be held on January 29, 2019. SiriusXM and Pandora continue to expect that the transaction will close in early 2019.
  2. On December 24, 2018, Cadence Bancorporation (CADE) and State Bank Financial Corporation (STBZ) jointly announced that Cadence has exercised its right to increase the exchange ratio in accordance with the terms of the definitive merger agreement between Cadence and State Bank. State Bank shareholders will receive 1.271 shares of Cadence Class A common stock for each share of State Bank common stock.
  3. On December 24, 2018, KLA-Tencor Corporation (KLAC) and Orbotech (ORBK) announced that KLA-Tencor continues to have advanced discussions with the State Administration for Market Regulation of the People’s Republic of China (SAMR) regarding clearance of the proposed merger involving KLA-Tencor and Orbotech with a goal of obtaining clearance as soon as practicable in 2019.
  4. On December 27, 2018, Industrial Logistics Properties Trust (ILPT) announced that Select Income REIT (SIR) has informed it that SIR has completed the distribution of 45,000,000 common shares of ILPT that SIR owned.
  5. On December 28, 2018, Cloudera (CLDR) announced that its shareholders approved the merger with Hortonworks (HDP).
  6. On December 29, 2018, Nevsun Resources (NSU) and Zijin Mining Group announced that Zijin has been successful in its offer to purchase all of the issued and outstanding Nevsun common shares. In addition, pursuant to applicable Canadian securities laws, Zijin has extended the period shareholders of Nevsun have to tender their shares under the Offer by 10 days to January 7, 2019.

Closed Deals:

  1. The acquisition of Dell Technologies (DVMT) by Dell (DELL) on December 28, 2018. It took 179 days for this deal to be completed.

Top 10 deals with largest spreads:

Symbol Announced
Profit Annualized
INUV 11/05/2018 ConversionPoint Technologies, Inc. (N/A) $2.22 $1.07 03/31/2019 107.48% 435.88%
EHIC 04/06/2018 Teamsport Parent Limited (N/A) $13.50 $9.95 12/31/2018 35.68% 0.00%
AVA 07/19/2017 Hydro One Limited (N/A) $53.00 $42.51 03/29/2019 24.68% 102.35%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $4.6 01/31/2019 18.04% 212.45%
SHPG 05/08/2018 Takeda Pharmaceutical Company Limited (TKPYY) $194.74 $173 01/08/2019 12.57% 573.35%
TAHO 11/14/2018 Pan American Silver Corp. (PAAS) $4.10 $3.66 03/31/2019 12.02% 48.76%
HMTA 10/01/2018 American National Bankshares Inc. (AMNB) $12.03 $10.81 03/31/2019 11.26% 45.65%
S 04/29/2018 T-Mobile US, Inc. (TMUS) $6.49 $5.84 06/30/2019 11.06% 22.30%
LKSD 10/31/2018 Quad/Graphics, Inc. (QUAD) $7.58 $6.88 06/30/2019 10.19% 20.55%
ORBK 03/19/2018 KLA-Tencor Corporation (KLAC) $61.02 $55.78 12/31/2018 9.39% 0.00%

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 Athenahealth (ATHN), Finisar (FNSR) and Pandora (P). 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.

Connect with me on LinkedIn: or follow me on Twitter@asifsuria

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