Merger Arbitrage Mondays – Siemens Healthineers to acquire Varian Medical Systems

  • August 3, 2020

Merger activity increased last week with four new deals announced and seven deals closing.

Over the past month, we have seen early signs of a pickup in new deals and two large deals announced in the energy and healthcare sectors. The acquisition of Noble Energy by Chevron was a significant deal announced in the energy sector in the third week of July. The acquisition of Varian Medical Systems by Siemens for $16.4 billion is the largest health care deal announced this year.

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 last week.

Weekly Spread Changes:

The table below shows weekly spread changes between July 24, 2020, and July 31, 2020.

SymbolQuoteAcquiring
Company
Acquiring
Company Quote
Current
Spread
Last Week
Spread
Spread Change
Weekly
Deal
Type
GNW2.04China Oceanwide Holdings Group Co., Ltd. (N/A)166.18%147.95%18.23%All Cash
ONDK1.46Enova International, Inc. (ENVA)16.099.61%0.00%9.61%Cash Plus Stock
FIT6.54Google LLC (GOOG)1482.9612.39%8.09%4.30%All Cash
OTEL11.51Oak Hill Capital (N/A)0.002.09%0.00%2.09%All Cash
DLPH14.99BorgWarner Inc. (BWA)36.65.16%3.26%1.90%All Stock
CETV3.98PPF Group N.V. (N/A)15.08%18.65%-3.57%All Cash
GRUB72.24Just Eat Takeaway.com N.V. (TKAYF)106.7-0.89%3.99%-4.88%All Stock
CNXM8.96CNX Resources Corporation (CNX)9.65-5.22%0.00%-5.22%All Stock
GILT5.59Comtech Telecommunications Corp. (CMTL)16.4253.19%65.29%-12.10%Cash Plus Stock
CDOR4.15NexPoint Hospitality Trust (N/A)167.47%201.63%-34.16%All Cash

Deal Statistics:

Total Number of Deals Closed in 202088
Total Number of Deals Not Completed in 202013
Total Number of Pending Deals
Cash Deals25
Stock Deals10
Stock & Cash Deals3
Total Number of Pending Deals38
Aggregate Deal Consideration$594.73 billion

New Deals:

  1. The acquisition of Otelco (OTEL) by Oak Hill Capital for $105.6 million or $11.75 per share in cash.
  2. The acquisition of CNX Midstream Partners (CNXM) by CNX Resources Corporation (CNX) for $357 million in an all stock deal. Under the terms of the agreement, each outstanding common unit of CNX Midstream that CNX does not already own will be converted into 0.88 shares of CNX common stock.
  3. The acquisition of On Deck Capital (ONDK) by Enova International (ENVA) for $90 million in an all stock deal. Under the terms of the agreement, OnDeck shareholders will receive $0.12 cents per share in cash and 0.092 shares of Enova common stock for each share of OnDeck held.
  4. The acquisition of Varian Medical Systems (VAR) by Siemens Healthineers AG for $16.4 billion or $177.50 per share in cash.

Deal Updates:

  1. On July 25, 2020, Tiffany (TIFreceived an additional regulatory approval necessary for the completion of its proposed acquisition by LVMH Moët Hennessy-Louis Vuitton. The State Administration for Market Regulation of China decided that it will not prohibit the Merger. The transaction remains subject to receiving additional regulatory clearances by the European Commission, the Japan Fair Trade Commission, the Mexican competition authority (Comisión Federal de Competencia Económica) and the Taiwan Fair Trade Commission. The transaction also remains subject to the satisfaction or waiver of other customary closing conditions.
  2. On July 29, 2020, Brookfield Renewable Partners (BEP) and TerraForm Power (TERP) jointly announced that TERP’s stockholders voted to approve the previously announced merger transactions with Brookfield Renewable.  The Merger is expected to close on July 31.
  3. July 29, 2020: LogMeIn (LOGM) and Francisco Partners have received the final regulatory approvals required to complete the transaction and now anticipate the merger to close later in the third quarter of 2020.
  4. July 30, 2020: According to Reuters, Google’s (GOOG) bid for Fitbit (FIT) will face a full-scale EU antitrust investigation next week.

Closed Deals:

  1. The acquisition of Quintana Energy Services (QES) by KLX Energy Services Holdings (KLXE) on July 28, 2020. It took 85 days for this deal to be completed.
  2. The acquisition of Tetraphase Pharmaceuticals (TTPH) by La Jolla Pharmaceutical Company (LJPC) on July 29, 2020. It took 35 days for this deal to be completed.
  3. The acquisition of El Paso Electric Company (EE) by J.P. Morgan Investment Management on July 29, 2020. It took 422 days for this deal to be completed.
  4. The acquisition of GAIN Capital Holdings (GCAP) by INTL FCStone (INTL) on July 31, 2020. It took 155 days for this deal to be completed.
  5. The acquisition of Legg Mason (LM) by Franklin Resources (BEN) on July 31, 2020. It took 164 days for this deal to be completed.
  6. The acquisition of TerraForm Power (TERP) by Brookfield Renewable Partners (BEP) on July 31, 2020. It took 137 days for this deal to be completed.
  7. The acquisition of SB One Bancorp (SBBX) by Provident Financial Services (PFS) on July 31, 2020. It took 141 days for this deal to be completed.

Top 10 deals with largest spreads:

SymbolAnnounced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
ProfitAnnualized
Profit
CDOR07/22/2019NexPoint Hospitality Trust (N/A)$11.10$4.1509/30/2020167.47%1053.91%
GNW10/23/2016China Oceanwide Holdings Group Co., Ltd. (N/A)$5.43$2.0409/30/2020166.18%1045.77%
GILT01/29/2020Comtech Telecommunications Corp. (CMTL)$8.56$5.5910/31/202153.19%42.76%
VAR08/02/2020Siemens Healthineers AG (N/A)$177.50$142.7206/30/202124.37%26.87%
CETV10/27/2019PPF Group N.V. (N/A)$4.58$3.9809/30/202015.08%94.87%
FIT11/01/2019Google LLC (GOOG)$7.35$6.5409/30/202012.39%77.94%
BREW11/12/2019Anheuser-Busch (N/A)$16.50$14.8112/31/202011.41%27.77%
ONDK07/28/2020Enova International, Inc. (ENVA)$1.60$1.4612/31/20209.61%23.38%
INWK07/16/2020HH Global Group Limited (N/A)$3.00$2.7512/31/20209.09%22.12%
TIF11/25/2019LVMH Moët Hennessy Louis Vuitton SE (LVMUY)$135.00$125.3609/30/20207.69%48.39%

List of all pending deals:

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

Disclaimer: 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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