Merger activity remained steady last week with seven new deals announced and three deals completed. These seven deals helped make December the most active month this year for deal activity and also helped it surpass the 20 deals announced in December 2019. Four of the seven new deals announced last week were multi-billion dollar deals.
Founded in 1998, RealPage (RP) provides software and data analytics to the real estate industry. On December 21, the company entered into a definitive merger agreement to be acquired by Thoma Bravo for $10.2 billion at a premium of over 30%.
The bidding war for Alaska Communications Systems Group (ALSK) continued last week. The company received another bid, which the board determined as a ‘Superior Proposal’ after amending the terms of the previous agreement.
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 December 18, 2020, and December 25, 2020.
Symbol | Quote | Acquiring Company | Acquiring Company Quote | Current Spread | Last Week Spread | Spread Change Weekly | Deal Type |
---|---|---|---|---|---|---|---|
FIT | 6.84 | Google LLC (GOOG) | 1738.85 | 7.46% | 1.38% | 6.08% | All Cash |
NEWA | 3.35 | Crouching Tiger Holding Limited (N/A) | 8.96% | 5.19% | 3.77% | All Cash | |
APHA | 7.13 | Tilray, Inc. (TLRY) | 8.59 | 0.97% | -2.61% | 3.58% | All Stock |
SOGO | 8.17 | Tencent Parties (N/A) | 8.94% | 5.70% | 3.24% | All Cash | |
LINX | 7.14 | StoneCo Ltd. (STNE) | 85.17 | -12.46% | -15.08% | 2.62% | Special Conditions |
GNW | 4.36 | China Oceanwide Holdings Group Co., Ltd. (N/A) | 24.54% | 27.76% | -3.22% | All Cash | |
ANH | 2.72 | Ready Capital Corporation (RC) | 12.76 | 1.61% | 4.88% | -3.27% | Cash Plus Stock |
DOYU | 11.26 | HUYA Inc. (HUYA) | 18.91 | 22.60% | 25.99% | -3.39% | All Stock |
EIDX | 127.7 | BridgeBio Pharma, Inc. (BBIO) | 69.5 | -42.63% | -38.82% | -3.81% | Special Conditions |
EV | 67.7 | Morgan Stanley (MS) | 68.09 | 0.39% | 7.12% | -6.73% | Cash Plus Stock |
Deal Statistics:
Total Number of Deals Closed in 2020 | 133 |
Total Number of Deals Not Completed in 2020 | 16 |
Total Number of Pending Deals | |
Cash Deals | 45 |
Stock Deals | 23 |
Stock & Cash Deals | 6 |
Special Conditions | 5 |
Total Number of Pending Deals | 79 |
Aggregate Deal Consideration | $974.25 billion |
New Deals:
Deal Updates:
Closed Deals:
Top 10 deals with largest spreads:
Symbol | Announced Date | Acquiring Company | Closing Price | Last Price | Closing Date | Profit | Annualized Profit |
---|---|---|---|---|---|---|---|
GNW | 10/23/2016 | China Oceanwide Holdings Group Co., Ltd. (N/A) | $5.43 | $4.36 | 12/31/2020 | 24.54% | 2239.39% |
DOYU | 10/12/2020 | HUYA Inc. (HUYA) | $13.80 | $11.26 | 06/30/2021 | 22.60% | 44.58% |
GSUM | 10/01/2020 | Gridsum Corporation (N/A) | $2.00 | $1.6722 | 03/31/2021 | 19.60% | 76.12% |
PRVL | 12/15/2020 | Eli Lilly and Company (LLY) | $26.50 | $23.08 | 03/31/2021 | 14.82% | 57.54% |
CXDC | 06/15/2020 | Faith Dawn Limited and Faith Horizon (N/A) | $1.20 | $1.07 | 12/31/2020 | 12.15% | 1108.64% |
XLNX | 10/27/2020 | Advanced Micro Devices, Inc. (AMD) | $158.23 | $141.99 | 12/31/2021 | 11.43% | 11.31% |
IPHI | 10/29/2020 | Marvell Technology Group Ltd. (MRVL) | $175.30 | $160.5 | 12/31/2021 | 9.22% | 9.12% |
NEWA | 10/02/2020 | Crouching Tiger Holding Limited (N/A) | $3.65 | $3.35 | 06/30/2021 | 8.96% | 17.67% |
SOGO | 09/29/2020 | Tencent Parties (N/A) | $8.95 | $8.17 | 12/31/2020 | 8.94% | 815.33% |
CBMG | 08/12/2020 | CBMG management (N/A) | $19.75 | $18.16 | 12/31/2020 | 8.76% | 798.94% |
List of all pending deals:
Conclusion:
We have finally arrived at our last post for the year 2020. M&A activity surged in the second half of the year after a bleak start that was significantly induced by the coronavirus pandemic. The aggregate deal consideration increased to $974.25 billion last week. With a couple of days still left till the year ends, we are hoping to see more active deals moving towards successful completion.
Disclaimer: I have long positions in Otelco (OTEL) and Zagg (ZAGG). 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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