Merger Arbitrage Mondays – Five9 Investors Betting On An Independent Future

Zoom Video Communications (ZM) has run into significant challenges when it comes to its first billion dollar acquisition. The company’s acquisition of Five9 (FIVN) presents an interesting situation. When an acquisition runs into hurdles, perceived or real, the spread on the deal normally increases to reflect the increased risk that the deal might not close.

We are seeing the exact opposite with the Five9 acquisition where the spread on the deal was 3.95% the week after the deal was announced and it even eclipsed 5% on August 6, 2021. The first roadblock the deal hit was on August 30, 2021, when the Federal Communications Commission (FCC) said that it won’t allow a “streamlined” review of the transaction and they would have to look deeper into the deal. The FCC was asked to refer the case to the Committee for the Assessment of Foreign Participation in the United States Telecommunications Service Sector for review, to determine whether this application poses a risk to the national security or law enforcement interests of the United States. Under normal circumstances, news like this would have caused the spread on the deal to increase significantly but what we saw was that the spread started going negative shortly after this announcement as you can see from our spread history chart below.

Five9 Spread History Chart

Five9 Spread History Chart (source: InsideArbitrage database)

The second hurdle showed up on September 17, 2021, when proxy advisory firm Institutional Shareholder Services (ISS) recommended a vote by shareholders against Zoom’s deal for Five9, citing growth concerns. We normally do not see ISS recommend that shareholders vote against a deal. It did not help that in its latest earnings report, Zoom mentioned that its business could face potential risks related to Five9’s operations in Russia.

The latest hurdle faced by this deal came on September 21, 2021, when The Wall Street Journal reported that, “A Justice Department-led panel is investigating Zoom Video Communications Inc.’s deal to buy an American customer-service software company, citing potential national-security risks posed by the U.S. videoconferencing giant’s China ties.”

The spread on the deal dropped to -3.02% in the first week of September and continued to decline and is currently at an astounding -12.5%. At its current price Five9 is below where it was trading before the deal with Zoom was announced. This is partially because Zoom has dropped nearly 25% since the deal was announced and since this is an all stock deal, Five9 dropped along with Zoom. However Zoom and Five9’s stock became inversely correlated since the start of September reflecting investor expectations that the deal is unlikely to go through.

Zoom Five9 Stock Correlation

Zoom Five9 Stock Correlation (source: Yahoo Finance)

If you were of the persuasion that Five9 is likely to do well as an independent company and that the deal is unlikely to go through, it might make sense to wait for the deal to fail and pick up Five9 at an attractive price if we see forced selling by arbitrageurs. We saw this recently when Aon’s acquisition of Willis Tower Watson (WLTW) failed and on the third day of forced selling, the stock dipped below $200. WLTW is now trading at $233.83 and recently announced a huge $4 billion buyback accounting for more than 13% of the market cap of the company at the time of announcement.

For more background about the Five9 deal, check out what we wrote in our Merger Arbitrage Mondays post on July 26, 2021 after it was announced:

The acquisition of Five9 (FIVN) by Zoom Video Communications (ZM) was the largest deal announced last week. In the past two years Zoom Video Communications (ZM) has gained momentum during the COVID-19 pandemic as people across the globe started working from home and school continued remotely due to the lockdown. The acquisition of Five9 will enable Zoom to enhance its presence with enterprise customers.

Zoom originally priced its IPO between $28 and $32 before pricing up and going public at $36 in April 2019. The stock closed its first day of trading at $62 implying a price/sales ratio of over 40 times trailing sales. This valuation was too rich for my liking and I decided to stay on the sidelines. Less than a year later the COVID-19 pandemic hit and the stock went parabolic. I did start a position in the early days of the pandemic as the world around us had changed and what had previously looked like very rich valuation seemed less so in this new world of remote work and school.

The stock eventually peaked over $568 this February and then gave back some of those gains in the ensuing months. Trading at $359, the stock is still expensive trading at 31 times trailing sales, 25 times forward sales and a forward P/E of 120. It makes perfect sense that Zoom is using its expensive stock to purchase assets like Five9 that will allow the company to enter adjacent markets. When Twilio (TWLO) acquired SendGrid in a $3 billion deal that almost didn’t happen, the market perceived that deal as indicating that Twilio’s organic growth had peaked and Twilio’s stock dropped after the deal was announced. As an investor in Twilio and a user of both products for several years, the deal made a lot of strategic sense to me and eventually the market warmed up to Twilio again. Zoom did not see its stock drop much in response to this deal either because the market saw the outcome of the Twilio – SendGrid deal or because partial remote work and school appear to be here to stay.

Five9 is a provider of cloud contact center software (“CCaaS”) and it has a $24 billion TAM (total addressable market). Five9’s TAM will join Zoom’s standalone $62B TAM for a cumulative TAM of $86B.

Merger activity declined significantly last week with no new deals announced. Three active deals completed last week. You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.

There were three new deals announced in the Deals in the Works section last week.

SPAC Arbitrage

There were 6 SPAC IPOs filed and 2 new SPAC business combinations announced last week. You can find the new SPAC IPO announcements in our SPACs tool here.

  1. On September 20, 2021, Tiedemann Group, Alvarium Investments Limited and Cartesian Growth Corporation (GLBL) jointly announced entry into a definitive business combination agreement. This proposed transaction will form Alvarium Tiedemann Holdings, which is expected to be a leading independent, global investment firm providing institutions, entrepreneurs, families and emerging next-generation leaders with fiduciary capabilities as well as investment strategies and services.
  2. On September 21, 2021, Transfix, a leading digital freight platform, announced it has entered into a definitive business combination agreement with G Squared Ascend (GSQD).

Weekly Spread Changes:

The table below shows weekly spread changes between September 17 and September 24, 2021.

Symbol Quote Acquiring
Company
Acquiring
Company Quote
Current
Spread
Last Week
Spread
Spread Change
Weekly
Deal
Type
CLDB 27.16 Farmers National Banc Corp. (FMNB) 15.43 -0.58% -3.98% 3.40% All Stock
CIT 50.74 First Citizens BancShares, Inc. (FCNCA) 844.55 3.20% 0.54% 2.66% All Stock
CHNG 21.37 UnitedHealth Group Incorporated (UNH) 407.08 20.50% 17.90% 2.60% All Cash
SOLY 20.65 Allergan Aesthetics (N/A) 9.44% 7.93% 1.51% All Cash
FOE 20.36 Prince International Corporation (N/A) 8.06% 6.64% 1.42% All Cash
SBBP 2.09 Xeris Pharmaceuticals, Inc. (XERS) 2.49 -6.60% -3.85% -2.75% All Stock
BOCH 14.81 Columbia Banking System, Inc. (COLB) 37.08 0.15% 3.12% -2.97% All Stock
FIVN 172.25 Zoom Video Communications, Inc. (ZM) 272.36 -12.51% -9.07% -3.44% All Stock
AJRD 42.66 Lockheed Martin Corporation (LMT) 349.52 19.55% 23.07% -3.52% All Cash
MSON 25.86 Bioventus Inc. (BVS) 14.66 8.28% 12.81% -4.53% Special Conditions

Deal Statistics:

Total Number of Deals Closed in 2021 136
Total Number of Deals Not Completed in 2021 10
Total Number of Pending Deals
Cash Deals 49
Stock Deals 35
Stock & Cash Deals 9
Special Conditions 3
Total Number of Pending Deals 96
Aggregate Deal Consideration $881.13 billion

Deal Updates:

  1. On September 17, 2021, shareholders of Select Bancorp (SLCTapproved the company’s merger with First Bancorp (FBNC) at a special meeting of shareholders.
  2. On September 17, 2021, shareholders of Tremont Mortgage Trust (TRMTapproved the company’s merger with RMR Mortgage Trust (RMRM) at a special meeting of shareholders.
  3. On September 21, 2021, Columbia Banking System (COLB) and Bank of Commerce Holdings (BOCHjointly announced approval by Bank of Commerce shareholders for their proposed merger, and the receipt of all required regulatory approvals. The mtransaction is expected to be completed on or about October 1, 2021.
  4. On September 21, 2021, Magna International and Veoneer (VNEannounced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, or HSR Act, in connection with the previously announced acquisition of Veoneer by Magna.
  5. September 22, 2021: According to Reuters, Zoom Video Communications’s (ZM) proposed deal for Five9 (FIVNmay be delayed by a U.S. Justice Department-led committee review but is unlikely to be scrapped.
  6. On September 23, 2021, Navios Maritime Acquisition Corporation (NNA) announced that the special meeting of stockholders will be held on October 15, 2021.

Closed Deals:

  1. The acquisition of New Senior Investment Group (SNR) by Ventas (VTR) on September 21, 2021. It took 85 days for this deal to be completed.
  2. The acquisition of W. R. Grace & Co. (GRA) by Standard Industries Holdings on September 22, 2021. It took 149 days for this deal to be completed.
  3. The acquisition of Sogou (SOGO) by Tencent Parties on September 23, 2021. It took 359 days for this deal to be completed.

Top 10 deals with largest spreads:

Symbol Announced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
Profit Annualized
Profit
TEDU 04/30/2021 Kidedu Holdings Limited (N/A) $4.00 $1.42 09/30/2021 181.69% 16579.23%
MX 03/26/2021 South Dearborn Limited (N/A) $29.00 $17.97 12/31/2021 61.38% 233.37%
CHNG 01/06/2021 UnitedHealth Group Incorporated (UNH) $25.75 $21.37 12/31/2021 20.50% 77.93%
AJRD 12/20/2020 Lockheed Martin Corporation (LMT) $51.00 $42.66 12/31/2021 19.55% 74.33%
XLNX 10/27/2020 Advanced Micro Devices, Inc. (AMD) $182.34 $157.24 12/31/2021 15.96% 60.68%
SJR 03/15/2021 Rogers Communications Inc. (RCI) $32.40 $29.01 06/30/2022 11.69% 15.40%
JOBS 06/21/2021 Garnet Faith Limited (N/A) $79.05 $71.64 12/31/2021 10.34% 39.33%
SOLY 05/10/2021 Allergan Aesthetics (N/A) $22.60 $20.65 09/30/2021 9.44% 861.68%
MSON 07/29/2021 Bioventus Inc. (BVS) $28.00 $25.86 12/31/2021 8.28% 31.46%
FOE 05/11/2021 Prince International Corporation (N/A) $22.00 $20.36 03/31/2022 8.06% 15.81%

List of all pending deals:

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

Target Announced
Date
Acquirer Deal
Type
Closing
Value
Deal
Price
Last
Price
Target Volume Estimated
Closing Date
Return Annualized
Return
+ TEDU 4/30/21 Kidedu Holdings Limited (N/A) All Cash $230.6 M $4.00 $1.4200 384,716 9/30/21 181.69% 22105.63%
+ MX 3/26/21 South Dearborn Limited (N/A) All Cash $1.4 B $29.00 $17.97 263,327 12/31/21 61.38% 235.83%
+ CHNG 1/06/21 UnitedHealth Group Incorporated (UNH) All Cash $13.28 B $25.75 $21.37 1,096,405 12/31/21 20.50% 78.75%
+ AJRD 12/20/20 Lockheed Martin Corporation (LMT) All Cash $3.79 B $51.00 $42.66 861,430 12/31/21 19.55% 75.11%
+ XLNX 10/27/20 Advanced Micro Devices, Inc. (AMD) All Stock $33.43 B $182.34 $157.24 1,350,764 12/31/21 15.96% 61.32%
+ SJR 3/15/21 Rogers Communications Inc. (RCI) Special Conditions $26 B $32.40 $29.01 107,818 6/30/22 11.69% 15.45%
+ JOBS 6/21/21 Garnet Faith Limited (N/A) All Cash $3.63 B $79.05 $71.64 193,556 12/31/21 10.34% 39.74%
+ SOLY 5/10/21 Allergan Aesthetics (N/A) All Cash $550 M $22.60 $20.65 63,257 9/30/21 9.44% 1148.91%
+ MSON 7/29/21 Bioventus Inc. (BVS) Special Conditions $518 million $28.00 $25.86 36,417 12/31/21 8.28% 31.79%
+ FOE 5/11/21 Prince International Corporation (N/A) All Cash $2.1 B $22.00 $20.36 281,101 3/31/22 8.06% 15.89%
+ XONE 8/11/21 Desktop Metal, Inc. (DM) Special Conditions $418.26 M $25.50 $23.62 185,640 12/31/21 7.96% 30.58%
+ COHR 3/25/21 II-VI Incorporated (IIVI) Cash Plus Stock $6.84 B $275.95 $255.98 129,068 12/31/21 7.80% 29.97%
+ SAFM 8/09/21 Cargill and Continental Grain Company (N/A) All Cash $4.49 B $203.00 $188.54 247,423 1/31/22 7.67% 22.22%
+ KDMN 9/08/21 Sanofi (SNY) All Cash $1.64 B $9.50 $8.83 2,052,741 12/31/21 7.59% 29.15%
+ MRLN 4/19/21 HPS Investment Partners LLC (N/A) All Cash $109.4 M $23.50 $22.2 38,020 3/31/22 5.86% 11.55%
+ NFH 8/04/21 Unicorn II Holdings Limited (N/A) All Cash $2.09 billion $12.00 $11.36 364,400 12/31/21 5.63% 21.65%
+ TRIL 8/23/21 Pfizer Inc. (PFE) All Cash $1.2 B $18.50 $17.53 684,190 12/31/21 5.53% 21.26%
+ XENT 8/06/21 Medtronic plc (MDT) All Cash $1.1 billion $28.25 $27.14 206,504 3/31/22 4.09% 8.07%
+ HRC 9/02/21 Baxter International Inc. (BAX) All Cash $12.4 B $156.00 $150 808,087 3/31/22 4.00% 7.89%
+ GWB 9/16/21 First Interstate BancSystem, Inc. (FIBK) All Stock $2 B $32.77 $31.57 561,464 3/31/22 3.81% 7.52%
+ HBMD 7/13/21 F.N.B. Corporation (FNB) All Stock $418 M $20.45 $19.7 88,853 1/31/22 3.80% 11.00%
+ GTS 8/24/21 GuideWell Mutual Holding Corporation (N/A) All Cash $665.93 M $36.00 $34.78 303,479 6/30/22 3.51% 4.64%
+ INFO 11/30/20 S&P Global (SPGI) All Stock $44 B $128.58 $124.57 1,010,200 12/31/21 3.22% 12.38%
+ CIT 10/16/20 First Citizens BancShares, Inc. (FCNCA) All Stock $2.42 B $52.36 $50.74 487,750 9/30/21 3.20% 388.95%
+ ATH 3/08/21 Apollo Global Management, Inc. (APO) All Stock $6.01 B $71.71 $69.79 438,890 1/31/22 2.75% 7.97%
+ KSU 9/15/21 Canadian Pacific Railway Limited (CP) Cash Plus Stock $30.44 B $279.74 $272.43 520,582 12/31/21 2.68% 10.31%
+ ITMR 9/13/21 ZOLL Medical Corporation (N/A) All Cash $399.11 M $31.00 $30.29 50,943 12/31/21 2.34% 9.01%
+ ATC 7/01/21 MKS Instruments, Inc. (MKSI) Cash Plus Stock $6.5 B $24.66 $24.12 233,578 12/31/21 2.26% 8.68%
+ ACBI 7/23/21 SouthState Corporation (SSB) All Stock $542 M $25.33 $24.77 59,916 3/31/22 2.24% 4.43%
+ TRMT 4/26/21 RMR Mortgage Trust (RMRM) Cash Plus Stock $252.33 M $5.60 $5.48 17,118 9/30/21 2.16% 262.69%
+ RBNC 7/15/21 United Community Banks, Inc. (UCBI) All Stock $517 M $30.00 $29.37 31,033 3/31/22 2.14% 4.22%
+ WBT 7/14/21 Ali Holding S.r.l. (N/A) All Cash $4.8 B $24.00 $23.5 931,373 1/31/22 2.13% 6.16%
+ FRTA 2/22/21 Quikrete Holdings, Inc. (N/A) All Cash $2.74 B $24.00 $23.51 95,143 12/31/21 2.08% 8.01%
+ GSKY 9/15/21 The Goldman Sachs Group (GS) All Stock $2.24 B $11.73 $11.49 5,668,014 3/31/22 2.05% 4.04%
+ RIVE 7/01/21 Mid Penn Bancorp, Inc. (MPB) All Stock $124.7 M $12.99 $12.7353 2,348 12/31/21 2.01% 7.72%
+ ISBC 7/28/21 Citizens Financial Group, Inc. (CFG) Cash Plus Stock $3.5 B $14.92 $14.63 932,762 6/30/22 1.98% 2.62%
+ SLCT 6/01/21 First Bancorp (FBNC) All Stock $314.3 M $17.26 $16.94 5,922 12/31/21 1.88% 7.22%
+ FVCB 7/14/21 Blue Ridge Bankshares, Inc. (BRBS) All Stock $113.36 M $19.86 $19.5 7,755 1/31/22 1.84% 5.32%
+ FBC 4/26/21 New York Community Bancorp, Inc. (NYCB) All Stock $2.6 B $50.95 $50.08 225,149 12/31/21 1.74% 6.69%
+ STFC 7/12/21 Liberty Mutual Holding Company Inc. (N/A) All Cash $2.48 B $52.00 $51.14 73,670 3/31/22 1.68% 3.32%
+ GNOG 8/09/21 DraftKings Inc. (DKNG) All Stock $1.52 B $18.74 $18.44 615,076 3/31/22 1.60% 3.16%
+ PNM 10/21/20 Avangrid, Inc. (AGR) All Cash $8.05 B $50.30 $49.51 834,378 12/31/21 1.60% 6.13%
+ CXP 9/07/21 Pacific Investment Management Company LLC (N/A) All Cash $3.9 B $19.30 $19.02 3,501,107 12/31/21 1.47% 5.66%
+ FMBI 6/01/21 Old National Bancorp (ONB) All Stock $2.86 B $18.76 $18.49 393,058 1/31/22 1.47% 4.25%
+ INOV 8/19/21 Nordic Capital (N/A) All Cash $7.3 B $41.00 $40.41 858,421 1/31/22 1.46% 4.23%
+ ESXB 6/03/21 United Bankshares, Inc. (UBSI) All Stock $303.3 M $10.69 $10.54 24,728 12/31/21 1.45% 5.58%
+ NUAN 4/12/21 Microsoft Corp (MSFT) All Cash $19.7 B $56.00 $55.22 1,660,200 12/31/21 1.41% 5.43%
+ PPD 4/15/21 Thermo Fisher Scientific Inc. (TMO) All Cash $20.9 B $47.50 $46.85 942,414 12/31/21 1.39% 5.33%
+ STL 4/19/21 Webster Financial Corporation (WBS) All Stock $5.12 B $23.91 $23.6 1,386,974 12/31/21 1.33% 5.11%
+ ENBL 2/17/21 Energy Transfer LP (ET) All Stock $7.2 B $7.98 $7.88 364,556 12/31/21 1.22% 4.69%
+ FCCY 7/12/21 Lakeland Bancorp, Inc. (LBAI) All Stock $244.4 M $23.45 $23.18 12,606 1/31/22 1.15% 3.34%
+ SPWH 12/21/20 The Great American Outdoors Group (N/A) All Cash $1.5 B $18.00 $17.8 305,512 12/31/21 1.12% 4.32%
+ ECHO 9/10/21 The Jordan Company, L.P. (N/A) All Cash $939.64 M $48.25 $47.73 612,568 12/31/21 1.09% 4.19%
+ PBCT 2/22/21 M&T Bank Corporation (MTB) All Stock $7.6 B $16.90 $16.73 1,817,063 12/31/21 1.04% 4.01%
+ DSPG 8/30/21 Synaptics Incorporated (SYNA) All Cash $399.78 M $22.00 $21.78 183,714 12/31/21 1.01% 3.88%
+ UFS 5/11/21 Paper Excellence (N/A) All Cash $3.02 B $55.50 $54.98 188,379 12/31/21 0.95% 3.63%
+ SVBI 3/03/21 Shore Bancshares, Inc. (SHBI) Cash Plus Stock $146 M $12.46 $12.35 560 9/30/21 0.93% 112.96%
+ RAVN 6/21/21 CNH Industrial N.V (CNHI) All Cash $2.1 B $58.00 $57.52 181,934 12/31/21 0.83% 3.21%
+ RPAI 7/16/21 Kite Realty Group Trust (KRG) All Stock $4.96 B $12.95 $12.85 898,866 12/31/21 0.75% 2.87%
+ GPX 7/15/21 Learning Technologies Group (N/A) All Cash $394 M $20.85 $20.7 43,720 12/31/21 0.72% 2.78%
+ VER 4/29/21 Realty Income Corporation (O) All Stock $17.66 B $46.85 $46.54 1,314,097 12/31/21 0.68% 2.59%
+ CADE 4/12/21 BancorpSouth Bank (BXS) Cash Plus Stock $2.7 B $21.94 $21.79 605,122 12/31/21 0.67% 2.56%
+ SIC 8/09/21 Sun Capital Partners, Inc. (N/A) All Cash $411 M $14.50 $14.41 68,854 10/31/21 0.62% 6.70%
+ SCR 8/05/21 Penn National Gaming, Inc. (PENN) Cash Plus Stock $2 B $35.16 $34.96 180,107 3/31/22 0.57% 1.12%
+ CVA 7/14/21 EQT Infrastructure (N/A) All Cash $5.35 B $20.25 $20.14 316,683 12/31/21 0.55% 2.10%
+ JMP 9/08/21 Citizens Financial Group, Inc. (CFG) All Cash $149 M $7.50 $7.46 24,904 12/31/21 0.54% 2.06%
+ CLDR 6/01/21 Clayton, Dubilier & Rice and KKR (N/A) All Cash $5.3 B $16.00 $15.92 979,581 12/31/21 0.50% 1.93%
+ EBSB 4/23/21 Independent Bank Corp. (INDB) All Stock $1.15 B $20.33 $20.23 318,026 12/31/21 0.48% 1.86%
+ CNBKA 4/07/21 Eastern Bankshares, Inc. (EBC) All Cash $642 M $115.28 $114.75 19,544 12/31/21 0.46% 1.77%
+ NNA 8/26/21 Navios Maritime Partners L.P. (NMM) All Stock $1.93 B $3.80 $3.78 118,237 12/31/21 0.45% 1.72%
+ VEI 8/10/21 Chesapeake Energy Corporation (CHK) Cash Plus Stock $2.2 B $15.77 $15.7 123,250 12/31/21 0.42% 1.60%
+ MGLN 1/04/21 Centene Corporation (CNC) All Cash $2.2 B $95.00 $94.61 77,409 12/31/21 0.41% 1.58%
+ CSOD 8/05/21 Clearlake Capital Group, L.P. (N/A) All Cash $5.2 B $57.50 $57.27 658,835 12/31/21 0.40% 1.54%
+ BMTC 3/10/21 WSFS Financial Corporation (WSFS) All Stock $976.4 M $42.41 $42.25 42,794 12/31/21 0.37% 1.44%
+ MDLA 7/26/21 Thoma Bravo (N/A) All Cash $6.4 B $34.00 $33.88 971,242 12/31/21 0.35% 1.36%
+ XEC 5/24/21 Cabot Oil & Gas Corporation (COG) All Stock $8.59 B $81.66 $81.39 888,458 12/31/21 0.33% 1.26%
+ IEC 8/12/21 Creation Technologies Inc. (N/A) All Cash $242.3 M $15.35 $15.31 210,335 10/31/21 0.26% 2.80%
+ CAI 6/17/21 Mitsubishi HC Capital Inc. (N/A) All Cash $2.9 B $56.00 $55.86 70,975 12/31/21 0.25% 0.96%
+ JAX 7/02/21 SPB Hospitality LLC (N/A) All Cash $220 M $14.00 $13.97 40,541 11/15/21 0.21% 1.60%
+ LDL 6/21/21 Unifrax (N/A) All Cash $1.3 B $62.10 $61.98 81,775 12/31/21 0.19% 0.74%
+ STMP 7/09/21 Thoma Bravo (N/A) All Cash $6.6 B $330.00 $329.39 203,239 9/30/21 0.19% 22.53%
+ QADA 6/28/21 Thoma Bravo (N/A) All Cash $2 B $87.50 $87.37 112,032 12/31/21 0.15% 0.57%
+ BOCH 6/24/21 Columbia Banking System, Inc. (COLB) All Stock $266 M $14.83 $14.81 128,698 12/31/21 0.15% 0.57%
+ ALTA 5/18/21 Glacier Bancorp, Inc. (GBCI) All Stock $933.5 M $41.81 $41.79 48,462 12/31/21 0.04% 0.16%
+ LMRK 8/23/21 Landmark Dividend LLC (N/A) All Cash $997.25 M $16.50 $16.5 209,393 12/31/21 0.00% 0.00%
+ KOR 9/13/21 AngloGold Ashanti Limited (N/A) All Cash $450 M $3.20 $3.2 173,727 3/31/22 0.00% 0.00%
+ SC 8/24/21 Santander Holdings USA, Inc. (N/A) All Cash $12.7 B $41.50 $41.52 1,064,775 12/31/21 -0.05% -0.19%
+ PMBC 3/23/21 Banc of California (BANC) All Stock $235 M $9.35 $9.36 34,225 9/30/21 -0.11% -13.00%
+ ANAT 8/09/21 Brookfield Asset Management Reinsurance Partners Ltd. (BAMR) All Cash $5.1 B $190.00 $190.36 37,255 6/30/22 -0.19% -0.25%
+ MGP 8/04/21 VICI Properties Inc. (VICI) All Stock $17.2 billion $40.61 $40.8 485,420 6/30/22 -0.46% -0.61%
+ CLDB 6/23/21 Farmers National Banc Corp. (FMNB) All Stock $124 M $27.00 $27.16 13,225 12/31/21 -0.58% -2.23%
+ XOG 5/10/21 Bonanza Creek Energy, Inc. (BCEI) All Stock $2.6 B $53.79 $54.16 122,892 9/30/21 -0.69% -83.43%
+ ICBK 6/22/21 Nicolet Bankshares, Inc. (NCBS) All Stock $219 M $35.25 $35.68 18,792 12/31/21 -1.22% -4.67%
+ SBBP 5/24/21 Xeris Pharmaceuticals, Inc. (XERS) All Stock $267 M $1.95 $2.09 75,969 11/15/21 -6.60% -49.13%
+ VNE 7/22/21 Magna International Inc. (MGA) All Cash $3.3 B $31.25 $34.86 541,257 12/31/21 -10.36% -39.79%
+ FIVN 7/18/21 Zoom Video Communications, Inc. (ZM) All Stock $14.7 B $150.70 $172.25 1,460,604 6/30/22 -12.51% -16.55%

Conclusion:

Even as we see multiple deals receiving shareholder approvals every week, we also notice regulators stepping in every now and then to challenge deals and ask companies to refile to provide more time for review. In the case of the Five9 – Zoom deal, there is evident risk involved with respect to regulatory approvals with Five9 having operations in Russia and Zoom having ties in China.

Disclaimer: I have long positions in Nuance Communications (NUAN), Change Healthcare (CHNG), Trillium Therapeutics (TRIL), Zoom (ZM) and Twilio (TWLO). I also have put options in Change Healthcare. 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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