Merger activity decreased last week with one new deal announced, two deals completed and one deal terminated.
Founded in 1996 and headquartered in El Segundo, California, Stamps.com was one of the first companies to receive approval from the United States Postal Services for introducing internet postage to the market. For a monthly subscription fee of $17.99, Stamps.com allows users to print official USPS stamps and shipping labels. PhotoStamps, a product offered by the Company enables users to upload personal photographs or logos that can be printed on real U.S. postage stamps.
Those who have followed Stamps.com for several years will recollect how volatile the stock has been and how it was a perennial favorite on the short seller list. An acquisition is often a big risk for short sellers and we have seen this unfold several times in the past including the acquisition of Keurig Green Mountain by JAB in December 2015. On Friday, July 9, 2021, Stamps.com entered into an agreement to be acquired by Thoma Bravo for $330 a share, representing a 67% premium to its closing price on Thursday. The deal also includes a 40-day “go-shop” agreement allowing Stamps.com to seek a higher offer.
Proofpoint (PFPT), QAD Inc. (QADA) and Talend (TLND) are other companies in our list of active deals that entered into a definitive agreement to be acquired by Thoma Bravo this year.
The proposed merger of Huya (HUYA) and DouYu (DOYU) was blocked by China’s market regulator. The merger was orchestrated by gaming giant Tencent. According to the regulator, this merger would strengthen Tencent’s dominant position in the video game live-streaming market leading to eliminating or restricting competition which not conducive to fair market competition. The spread on this deal was very wide for an extended period of time reflecting the regulatory risk the deal faced.