Merger activity decreased last week with one new deal announced and four deals completed.
Founded in 1966 and headquartered in Santa Clara, California, Coherent is a photonics manufacturer that provides laser-based technologies and laser-based system solutions in a broad range of commercial, industrial and scientific applications. On January 19, Lumentum Holdings (LITE) agreed to buy Coherent (COHR) for $5.7 billion, in a cash plus stock deal.
Another highlight from last week was a deal amendment. Collectors Universe (CLCT) and Nat Turner, D1 Capital Partners and Cohen Private Ventures entered into an amendment in which the investor group increased its offer to acquire CLCT, from $75.25 per share to $92.00 per share in cash.
You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.
There were two new deals announced in the Deals in the Works section last week.
SPAC Arbitrage
There were 14 new IPOs filed last week and 1 new SPAC business combination announced. An astounding 68 SPACs have gone public in just the first three weeks of this year. This compares with just one SPAC IPO last January. You can find the new SPAC IPO announcements in our new SPACs tool here.
Weekly Spread Changes:
The table below shows weekly spread changes between January 15, 2020, and January 22, 2020.
Symbol | Quote | Acquiring Company | Acquiring Company Quote | Current Spread | Last Week Spread | Spread Change Weekly | Deal Type |
---|---|---|---|---|---|---|---|
DOYU | 12.81 | HUYA Inc. (HUYA) | 24.03 | 36.94% | 32.05% | 4.89% | All Stock |
GMLP | 3.43 | New Fortress Energy Inc. (NFE) | 46.17 | 3.50% | 0.00% | 3.50% | All Cash |
LINX | 6.83 | StoneCo Ltd. (STNE) | 79 | -8.49% | -11.97% | 3.48% | Special Conditions |
CLCT | 91.65 | D1 Capital Partners L.P., and Cohen Private Ventures, LLC (N/A) | 0.38% | -2.88% | 3.26% | All Cash | |
HCAP | 7.76 | Portman Ridge Finance Corporation (PTMN) | 1.97 | 8.29% | 5.48% | 2.81% | Cash Plus Stock |
SINA | 43.08 | New Wave Holdings Limited (N/A) | 0.74% | 3.98% | -3.24% | All Cash | |
CKH | 43.66 | American Industrial Partners (N/A) | 0.00 | -4.95% | -1.19% | -3.76% | All Cash |
GSUM | 1.82 | Gridsum Corporation (N/A) | 9.89% | 14.29% | -4.40% | All Cash | |
CXDC | 1.14 | Faith Dawn Limited and Faith Horizon (N/A) | 5.26% | 12.15% | -6.89% | All Cash | |
APHA | 12.92 | Tilray, Inc. (TLRY) | 18.02 | 16.89% | 32.94% | -16.05% | All Stock |
Deal Statistics:
Total Number of Deals Closed in 2021 | 10 |
Total Number of Pending Deals | |
Cash Deals | 49 |
Stock Deals | 18 |
Stock & Cash Deals | 10 |
Special Conditions | 4 |
Total Number of Pending Deals | 81 |
Aggregate Deal Consideration | $427.61 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 | $3.11 | 01/31/2021 | 74.60% | 3889.76% |
DOYU | 10/12/2020 | HUYA Inc. (HUYA) | $17.54 | $12.81 | 06/30/2021 | 36.94% | 85.88% |
APHA | 12/16/2020 | Tilray, Inc. (TLRY) | $15.10 | $12.92 | 06/30/2021 | 16.89% | 39.27% |
XLNX | 10/27/2020 | Advanced Micro Devices, Inc. (AMD) | $159.91 | $142.94 | 12/31/2021 | 11.88% | 12.71% |
GSUM | 10/01/2020 | Gridsum Corporation (N/A) | $2.00 | $1.8200 | 03/31/2021 | 9.89% | 54.70% |
ALXN | 12/12/2020 | AstraZeneca (AZN) | $173.12 | $159.73 | 09/30/2021 | 8.38% | 12.29% |
HCAP | 12/23/2020 | Portman Ridge Finance Corporation (PTMN) | $8.40 | $7.76 | 06/30/2021 | 8.29% | 19.28% |
OSN | 12/17/2020 | New Ossen Group Limited (N/A) | $5.10 | $4.71 | 06/30/2021 | 8.28% | 19.25% |
CBMG | 08/12/2020 | CBMG management (N/A) | $19.75 | $18.24 | 03/31/2021 | 8.28% | 45.78% |
WLTW | 03/09/2020 | Aon plc (AON) | $222.98 | $206.5 | 06/30/2021 | 7.98% | 18.55% |
List of all pending deals:
Conclusion:
M&A activity declined last week with just a single deal announced. There were however, multiple deals that received approval from their shareholders. The aggregate deal consideration increased to $427.61 billion.
Disclaimer: I have long positions in Otelco (OTEL), Zagg (ZAGG), Prevail Therapeutics (PRVL) and B. Riley Financial (RILY). 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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