Merger activity decreased with one new deal announced, eight deals closing and one deal falling apart. You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.
There were no new deals announced in the Deals in the Works section.
Deal Statistics:
Total Number of Deals Closed in 2020 | 4 |
Total Number of Deals Not Completed in 2020 | 1 |
Total Number of Pending Deals | |
Cash Deals | 43 |
Stock Deals | 20 |
Stock & Cash Deals | 4 |
Special Conditions | 5 |
Total Number of Pending Deals | 72 |
Aggregate Deal Consideration | $404.78 billion |
New Deals:
We did not have any traditional mergers or acquisitions announced last week and the only deal inked was the merger of a special purpose acquisition company (SPAC), Leisure Acquisition (LACQ), with the operating company GTWY Holdings Limited in a one for one share exchange. The enterprise value of the combined entity is expected to be $1.115 billion. SPACs or blank check companies are publicly traded companies with no operations of their own. They are set up to find an operating business and eventually merge into that operating business, which in this case is GTWY Holdings, the Canadian holding company for Gateway Casinos & Entertainment Limited.
The combined company will be listed on the NYSE with the symbol GTWY. Since all outstanding public warrants to purchase Leisure shares will be converted automatically into warrants to purchase shares of GTWY at an exercise price of US$11.50 per share, we are treating this as a “Special Conditions” deal in our Merger Arbitrage Tool with a price of $11.50.
The deal also includes “earn-outs” (similar to the Contingent Value Rights or CVRs we often see with biotech deals) in the form of warrants for existing GTWY Holdings shareholders that become exercisable if the stock rises to $12.50 or $15 at specific time intervals.
Overall the deal is worth looking into further considering it is priced at around 7.5 times expected 2020 adjusted EBITDA and there are both earn outs as well as additional warrants for existing GTWY Holdings shareholders that aligns their incentives with shareholders.
Deal Updates:
Closed Deals:
Deals Terminated:
Top 10 deals with largest spreads:
Symbol | Announced Date | Acquiring Company | Closing Price | Last Price | Closing Date | Profit | Annualized Profit |
---|---|---|---|---|---|---|---|
S | 04/29/2018 | T-Mobile US, Inc. (TMUS) | $8.02 | $5.18 | 01/31/2020 | 54.77% | 799.65% |
GNW | 10/23/2016 | China Oceanwide Holdings Group Co., Ltd. (N/A) | $5.43 | $4.37 | 03/31/2020 | 24.26% | 104.16% |
ABDC | 08/13/2019 | Crescent Capital BDC, Inc. (N/A) | $11.02 | $9.13 | 03/31/2020 | 20.70% | 88.89% |
FIT | 11/01/2019 | Google LLC (N/A) | $7.35 | $6.44 | 06/30/2020 | 14.13% | 29.30% |
LACQ | 12/30/2019 | GTWY Holdings Limited (N/A) | $11.50 | $10.43 | 06/30/2020 | 10.26% | 21.28% |
TSG | 10/02/2019 | Flutter Entertainment PLC (PDYPF) | $28.39 | $26.02 | 09/30/2020 | 9.10% | 12.39% |
MLNX | 03/11/2019 | NVIDIA Corporation (NVDA) | $125.00 | $117.55 | 03/31/2020 | 6.34% | 27.21% |
SORL | 11/29/2019 | Ruili International Inc. (N/A) | $4.72 | $4.44 | 06/30/2020 | 6.31% | 13.08% |
YTRA | 07/17/2019 | Ebix, Inc. (EBIX) | $3.32 | $3.1500 | 03/31/2020 | 5.33% | 22.90% |
ACHN | 10/16/2019 | Alexion Pharmaceuticals, Inc. (ALXN) | $6.30 | $6.07 | 06/30/2020 | 3.79% | 7.86% |
List of all pending deals:
Disclaimer: I hold long positions in Sprint (S), Mellanox Technologies (MLNX) and Pacific Biosciences of California (PACB). 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.
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