M&A momentum continued to build as we reach the end of an eventful year with seven new deals announced and two deals completed.
On Sunday, December 20, 2020, Lockheed Martin Corporation (LMT) announced that it is acquiring Aerojet Rocketdyne Holdings (AJRD), a world-known leader in aerospace and defense that provides propulsion systems to the space, missile defense and strategic systems. According to Reuters, ‘The deal is Lockheed’s biggest acquisition since Jim Taiclet took over as chief executive in June. He is seeking to beef up the company’s propulsion capabilities amid competition from new entrants such as SpaceX and Blue Origin, for space contracts with the U.S. government.’
After amending its deal in the previous week, Alaska Communications Systems Group (ALSK) received another proposal from a third party last week, which was considered as a ‘Superior Proposal’ by the Company’s Board of Directors.
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 11, 2020, and December 18, 2020.
Symbol | Quote | Acquiring Company | Acquiring Company Quote | Current Spread | Last Week Spread | Spread Change Weekly | Deal Type |
---|---|---|---|---|---|---|---|
GSUM | 1.63 | Gridsum Corporation (N/A) | 22.70% | 19.05% | 3.65% | All Cash | |
SINA | 42.53 | New Wave Holdings Limited (N/A) | 2.05% | -0.78% | 2.83% | All Cash | |
ANH | 2.6 | Ready Capital Corporation (RC) | 12.54 | 4.88% | 2.31% | 2.57% | Cash Plus Stock |
GNW | 4.25 | China Oceanwide Holdings Group Co., Ltd. (N/A) | 27.76% | 25.69% | 2.07% | All Cash | |
CBMG | 18.16 | CBMG management (N/A) | 8.76% | 6.76% | 2.00% | All Cash | |
ACIA | 71.17 | Cisco Systems, Inc. (CSCO) | 45.44 | -1.64% | -0.34% | -1.30% | All Cash |
IPHI | 160.98 | Marvell Technology Group Ltd. (MRVL) | 47.51 | 9.56% | 11.16% | -1.60% | Cash Plus Stock |
EIDX | 119.74 | BridgeBio Pharma, Inc. (BBIO) | 64.89 | -38.82% | -35.62% | -3.20% | Special Conditions |
SOGO | 8.42 | Tencent Parties (N/A) | 5.70% | 10.16% | -4.46% | All Cash | |
CXDC | 1.09 | Faith Dawn Limited and Faith Horizon (N/A) | 10.09% | 16.50% | -6.41% | All Cash |
Deal Statistics:
Total Number of Deals Closed in 2020 | 129 |
Total Number of Deals Not Completed in 2020 | 16 |
Total Number of Pending Deals | |
Cash Deals | 44 |
Stock Deals | 21 |
Stock & Cash Deals | 6 |
Special Conditions | 5 |
Total Number of Pending Deals | 76 |
Aggregate Deal Consideration | $957.29 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 |
---|---|---|---|---|---|---|---|
AJRD | 12/20/2020 | Lockheed Martin Corporation (LMT) | $56.00 | $42.04 | 12/31/2021 | 33.21% | 32.32% |
GNW | 10/23/2016 | China Oceanwide Holdings Group Co., Ltd. (N/A) | $5.43 | $4.25 | 12/31/2020 | 27.76% | 1013.41% |
DOYU | 10/12/2020 | HUYA Inc. (HUYA) | $15.40 | $12.22 | 06/30/2021 | 25.99% | 49.66% |
GSUM | 10/01/2020 | Gridsum Corporation (N/A) | $2.00 | $1.63 | 03/31/2021 | 22.70% | 82.85% |
PRVL | 12/15/2020 | Eli Lilly and Company (LLY) | $26.50 | $23.08 | 03/31/2021 | 14.82% | 54.09% |
XLNX | 10/27/2020 | Advanced Micro Devices, Inc. (AMD) | $165.31 | $149.19 | 12/31/2021 | 10.80% | 10.52% |
CXDC | 06/15/2020 | Faith Dawn Limited and Faith Horizon (N/A) | $1.20 | $1.09 | 12/31/2020 | 10.09% | 368.35% |
IPHI | 10/29/2020 | Marvell Technology Group Ltd. (MRVL) | $176.37 | $160.98 | 12/31/2021 | 9.56% | 9.30% |
CBMG | 08/12/2020 | CBMG management (N/A) | $19.75 | $18.16 | 12/31/2020 | 8.76% | 319.58% |
WLTW | 03/09/2020 | Aon plc (AON) | $221.93 | $204.89 | 06/30/2021 | 8.32% | 15.89% |
List of all pending deals:
Conclusion:
With shareholders approvals and regulatory approvals, consents and early termination of the HSR Act coming through, we can see a lot of deals moving towards successful completion. There are also instances of deals amending their terms and higher offers being received. For a year that had weeks of almost no deals announced, it is good to see multi billion dollar deals being announced as the year comes to a close. The aggregate deal consideration which was just a little over $500 billion by the end of the second quarter this year, has increased significantly to $957.29 billion.
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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