Merger Arbitrage Mondays – Five New Deals Announced And Ten Active Deals Close

Merger activity increased for the third week in a row with five new deals announced and ten deals closing. Four out of the five deals announced last week were valued at over $2 billion and two of them were rumored to be in the works before the actual announcement. 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 166
Total Number of Deals Not Completed in 2019 9
Total Number of Pending Deals
Cash Deals 33
Stock Deals 19
Stock & Cash Deals 8
Special Conditions 6
Total Number of Pending Deals 66
Aggregate Deal Consideration $1.22 trillion

New Deals:

  1. The acquisition of Central European Media Enterprises (CETV) by PPF Group for $2.1 billion or $4.58 per share in cash. We added CETV as a potential deal to the Deals in the Works section on March 25, 2019, and the price after the news of the potential deal came out was $3.74.
  2. The acquisition of InterXion Holding (INXN) by Digital Realty Trust (DLR) for $8.4 billion in an all stock deal, Under the terms of the definitive agreement, a subsidiary of Digital Realty will commence a tender offer to acquire all Interxion’s issued and outstanding ordinary shares in exchange for 0.7067 shares of Digital Realty common stock for each Interxion ordinary share.
  3. The acquisition of Anixter International (AXE) by Clayton, Dubilier & Rice for $3.8 billion or $81.00 per share in cash.
  4. The acquisition of MutualFirst Financial (MFSF) by Northwest Bancshares (NWBI) for $346 million in an all stock deal. Under the terms of the merger agreement, shareholders of MutualFirst will be entitled to receive 2.4 shares of Northwest common stock for each common share of MutualFirst.
  5. The acquisition of Fitbit (FIT) by Google LLC for $2.1 billion or $7.35 per share in cash. We added FIT as a potential deal to the Deals in the Works section on September 20, 2019, and the price after the news of the potential deal came out was $4.10.

Deal Updates:

  1. On October 28, 2019, CBS Corporation (CBS) and Viacom (VIAB) announced that the registration statement on Form S-4 filed by CBS with the U.S. Securities and Exchange Commission was declared effective by the SEC on October 25, 2019. The companies also announced that their pending merger and the related proposals have been approved by National Amusements, Inc. and its affiliate, which satisfies the closing conditions to the merger requiring approval of a majority of the CBS Class A shares and a majority of the Viacom Class A shares.
  2. On October 29, 2019, Roche and Spark Therapeutics (ONCE) announced that Roche has extended the offering period of its previously announced tender offer to provide additional time for the U.S. Federal Trade Commission and the UK Competition and Markets Authority to complete their previously disclosed reviews of Roche’s pending acquisition of Spark. The offer has been extended until November 25, 2019.
  3. On October 29, 2019, New Media Investment Group (NEWM) and Gannett (GCIannounced the expected members of the Board of Directors for the combined company, effective upon completion of the proposed acquisition of Gannett by New Media.
  4. On November 1, 2019, Bristol-Myers Squibb Company (BMYannounced the extension of the expiration date of the offers to exchange notes issued by Celgene Corporation (CELG) from September 30, 2019 to October 15, 2019. The closing of the Merger is expected to occur by the end of 2019.

Closed Deals:

  1. The acquisition of Rudolph Technologies (RTEC) by Nanometrics Incorporated (NANO) on October 28, 2019. It took 126 days for this deal to be completed.
  2. The acquisition of Medidata Solutions (MDSO) by Dassault Systèmes on October 28, 2019. It took 139 days for this deal to be completed.
  3. The acquisition of Corindus Vascular Robotics (CVRS) by Siemens Healthineers AG on October 29, 2019. It took 82 days for this deal to be completed.
  4. The acquisition of Highpower International (HPJ) by HPJ Parent Limited on October 31, 2019. It took 125 days for this deal to be completed.
  5. The acquisition of C&J Energy Services (CJ) by Keane Group (FRAC) on October 31, 2019. It took 136 days for this deal to be completed.
  6. The acquisition of Stewardship Financial Corporation (SSFN) by Columbia Financial (CLBK) on November 1, 2019. It took 147 days for this deal to be completed.
  7. The acquisition of NRC Group Holdings (NRCG) by US Ecology (ECOL) on November 1, 2019. It took 130 days for this deal to be completed.
  8. The acquisition of United Financial Bancorp (UBNK) by People’s United Financial (PBCT) on November 1, 2019. It took 130 days for this deal to be completed.
  9. The acquisition of Buckeye Partners (BPL) by IFM Global Infrastructure Fund on November 1, 2019. It took 175 days for this deal to be completed.
  10. The acquisition of LegacyTexas Financial Group (LTXB) by Prosperity Bancshares (PB) on November 1, 2019. It took 137 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
PACB 11/01/2018 Illumina, Inc. (ILMN) $8.00 $4.9 03/31/2020 63.27% 154.98%
S 04/29/2018 T-Mobile US, Inc. (TMUS) $8.46 $6.3 01/31/2020 34.26% 140.49%
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $4.23 12/31/2019 28.37% 178.53%
ABDC 08/13/2019 Crescent Capital BDC, Inc. (N/A) $11.02 $8.85 12/31/2019 24.52% 154.31%
CRZO 07/15/2019 Callon Petroleum Company (CPE) $8.12 $7.32 12/31/2019 10.90% 68.61%
OHAI 08/01/2019 Portman Ridge Finance Corporation (PTMN) $1.46 $1.32 12/31/2019 10.61% 66.75%
MLNX 03/11/2019 NVIDIA Corporation (NVDA) $125.00 $113.76 12/31/2019 9.88% 62.18%
AGN 06/25/2019 AbbVie Inc. (ABBV) $191.10 $178.29 03/31/2020 7.18% 17.59%
GHDX 07/29/2019 Exact Sciences Corporation (EXAS) $72.00 $68.01 12/31/2019 5.87% 36.92%
ACIA 07/08/2019 Cisco Systems, Inc. (CSCO) $70.00 $66.29 07/31/2020 5.60% 7.54%

List of all pending deals:

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

 

Disclaimer: I hold long positions in Mellanox Technologies (MLNX), Pacific Biosciences of California (PACB), Celgene (CELG) and Bristol-Myers Squibb (BMY). 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

Leave A Comment

You must be logged in to post a comment.