Merger Arbitrage Mondays – Cypress Semiconductor (CY) Deal Speculation Confirmed

Merger activity decreased last week with two new deals 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 were six new deals announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2019 83
Total Number of Deals Not Completed in 2019 6
Total Number of Pending Deals
Cash Deals 34
Stock Deals 18
Stock & Cash Deals 11
Special Conditions 2
Total Number of Pending Deals 65
Total Deal Size $947.88 billion

New Deals:

  1. The acquisition of Total System Services (TSS) by Global Payments (GPN) for $21.5 billion in an all stock deal. Under the terms of the merger agreement, TSYS shareholders will receive 0.8101 Global Payments shares for each share of TSYS common stock.
  2. The acquisition of Cypress Semiconductor Corporation (CY) by Infineon Technologies AG (IFNNY) for $9.56 billion or $23.85 per share in cash.  We added CY as a potential deal to the Deals in the Works section on May 29, 2019 and the price after the news of the potential deal came out was $17.25.

Deal Updates:

  1. On May 28, 2019, Netshoes Limited (NETS) announced that it has entered into an amendment to the Agreement and Plan of Merger by and among Netshoes, Magazine Luiza S.A. and its subsidiary to increase the Per Share Merger Consideration from US$2.00 to US$3.00.
  2. On May 29, 2019, Brazilian retailer Grupo SBF SA, which controls sports retailer Centauro, has raised its bid for Netshoes (NETS). SBF raised its bid, to $3.50 per share, valuing the firm at about $109 million.
  3. On May 30, 2019, Amcor Limited (AMC.AX) and Bemis Company (BMS) announce that regulatory clearance has been received from the US Department of Justice in relation to the combination of the two companies.

Closed Deals:

  1. The acquisition of Travelport Worldwide Limited (TVPT) by affiliates of Siris Capital Group on May 30, 2019. It took 171 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 $0.69 08/05/2019 221.74% 1284.68%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $2.91 06/30/2019 86.60% 1170.68%
CY 06/02/2019 Infineon Technologies AG (IFNNY) $23.85 $17.82 01/31/2020 33.84% 51.04%
AVP 05/22/2019 Natura Cosméticos S.A. (NATU3.SA) $4.59 $3.76 01/31/2020 22.01% 33.20%
STC 03/19/2018 Fidelity National Financial, Inc. (FNF) $49.77 $41.13 06/30/2019 21.00% 283.92%
PACB 11/01/2018 Illumina, Inc. (ILMN) $8.00 $6.7 06/30/2019 19.40% 262.30%
WCG 03/27/2019 Centene Corporation (CNC) $315.20 $276.19 06/30/2020 14.12% 13.12%
MLNX 03/11/2019 NVIDIA Corporation (NVDA) $125.00 $109.78 12/31/2019 13.86% 23.98%
S 04/29/2018 T-Mobile US, Inc. (TMUS) $7.53 $6.87 07/29/2019 9.64% 62.81%
LKSD 10/31/2018 Quad/Graphics, Inc. (QUAD) $5.23 $4.85 06/30/2019 7.86% 106.27%

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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