Merger Arbitrage Mondays – Supercomputer Company CRAY Acquired by Hewlett Packard Enterprise

After a very active prior week where we saw nine new deals announced, merger activity decreased last week with two new deals announced and four pending 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 was one new deal announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2019 80
Total Number of Deals Not Completed in 2019 5
Total Number of Pending Deals
Cash Deals 35
Stock Deals 16
Stock & Cash Deals 11
Special Conditions 2
Total Number of Pending Deals 64
Total Deal Size $912.63 billion

New Deals:

  1. The acquisition of Amber Road (AMBR) by E2open for $425 million or $13.05 per share in cash.
  2. The acquisition of Cray (CRAY) by Hewlett Packard Enterprise (HPE) for $1.3 billion or $35.00 per share in cash.

Deal Updates:

  1. May 13, 2019: T-Mobile US (TMUS) and Sprint (S), fighting to win regulatory clearance for their merger, are considering possible concessions to salvage the deal, according to people familiar with the situation.
  2. On May 14, 2019, Roche and Spark Therapeutics (ONCE) announced that Roche and Spark intend to refile on or about 23 May 2019 their respective Premerger Notification and Report Forms under the Hart-Scott-Rodino Act.

Closed Deals:

  1. The acquisition of Maxwell Technologies (MXWL) by Tesla (TSLA) on May 16, 2019. It took 101 days for this deal to be completed.
  2. The acquisition of InfraREIT (HIFR) by Oncor Electric Delivery Company on May 16, 2019. It took 210 days for this deal to be completed.
  3. The acquisition of MedEquities Realty Trust (MRT) by Omega Healthcare Investors (OHI) on May 17, 2019. It took 135 days for this deal to be completed.
  4. The acquisition of SI Financial Group (SIFI) by Berkshire Hills Bancorp (BHLB) on May 17, 2019. It took 157 days for this deal to be completed.

Top 10 deals with largest spreads:

Symbol Announced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
Profit Annualized
Profit
INUV 11/05/2018 ConversionPoint Technologies, Inc. (N/A) $2.22 $0.65 06/30/2019 241.54% 2150.28%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $3.33 06/30/2019 63.06% 561.42%
S 04/29/2018 T-Mobile US, Inc. (TMUS) $7.73 $6.18 07/29/2019 25.08% 130.77%
STC 03/19/2018 Fidelity National Financial, Inc. (FNF) $50.26 $42.93 06/30/2019 17.07% 151.93%
LKSD 10/31/2018 Quad/Graphics, Inc. (QUAD) $6.24 $5.45 06/30/2019 14.45% 128.64%
WCG 03/27/2019 Centene Corporation (CNC) $309.42 $274.7 06/30/2020 12.64% 11.33%
MLNX 03/11/2019 NVIDIA Corporation (NVDA) $125.00 $112.89 12/31/2019 10.73% 17.40%
PACB 11/01/2018 Illumina, Inc. (ILMN) $8.00 $7.23 06/30/2019 10.65% 94.81%
ZAYO 05/08/2019 affiliates of Digital Colony Partners and EQT Infrastructure IV fund (N/A) $35.00 $32.7 06/30/2020 7.03% 6.31%
BXG 03/04/2019 BBX Capital Corporation (BBX) $16.00 $14.96 06/30/2019 6.95% 61.89%

List of all pending deals:

The list of all pending deals is only available to InsideArbitrage Premium members.

Disclaimer: I hold long positions in Red Hat (RHT), Celgene (CELG), Bristol-Myers Squibb (BMY) and Finisar (FNSR). 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: http://www.linkedin.com/in/asifsuria or follow me on Twitter@asifsuria

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