Merger Arbitrage Mondays – Emerson Combines Its Industrial Software Businesses With Aspen Technology

Merger activity remained steady last week with four new deals announced and three deals completed. Two of the new deals announced last week included contingent value rights and one was a successful deal-in-the-works.

Headquartered in Bedford, Massachusetts, Aspen Technology (AZPN) was founded in the year 1981 as a result of a joint research project between the Massachusetts Institute of Technology (MIT) and US Department of Energy, called the Advanced System for Process Engineering (ASPEN) Project. The company provides industrial optimization software to capital-intensive industries.

We added Aspen Technology to our list of potential deals in the works on October 6, 2021, when Bloomberg reported that Emerson Electric (EMR)  was in talks over a combination with Aspen Technology to create an industrial software giant. Aspen’s price on the day before this announcement was $125.52. Emerson is combining its industrial software businesses – OSI Inc. and the Geological Simulation Software business with AspenTech to create a diversified, high-performance industrial software company (“new AspenTech”) with greater scale, capabilities and technologies. Shareholders of AspenTech will receive approximately $87 per share in cash and 0.42 shares of common stock of the newly formed company (new AspenTech), implying a total consideration of approximately $160 per AspenTech share, which represents a premium of approximately 27% compared to AspenTech’s closing stock price on October 6, 2021.

You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.

There were no new deals announced in the Deals in the Works section last week.

SPAC Arbitrage

There were 10 SPAC IPOs filed and 4 new SPAC business combinations announced last week. You can find the new SPAC IPO announcements in our SPACs tool here.

  1. TradeZero Holding Corp., which through its U.S. and Bahamas based broker-dealers offers a trading platform targeting the global active trader community, and Dune Acquisition Corporation (DUNEentered into a definitive agreement for their business combination.
  2. SeatGeek, a mobile-centric technology platform and RedBall Acquisition (RBAC) announced the signing of a definitive business combination agreement to take SeatGeek public.
  3. Tempo Automation, software-accelerated electronics manufacturer and ACE Convergence Acquisition (ACEVentered into a definitive merger agreement.
  4. Tiger Resort, Leisure and Entertainment, operating as Okada Manila, one of the premier destination casino resorts in Asia and the largest integrated resort in the Philippines, along with Miami-based publicly traded special purpose acquisition company, 26 Capital Acquisition (ADER), announced that they have entered into a merger agreement.

Weekly Spread Changes:

The table below shows weekly spread changes between October 8 and October 15, 2021.

Symbol Quote Acquiring
Company
Acquiring
Company Quote
Current
Spread
Last Week
Spread
Spread Change
Weekly
Deal
Type
XONE 21.78 Desktop Metal, Inc. (DM) 6.92 17.08% 12.19% 4.89% Special Conditions
FVCB 20.39 Blue Ridge Bankshares, Inc. (BRBS) 18.57 4.66% 2.02% 2.64% All Stock
KOR 3.27 AngloGold Ashanti Limited (N/A) 0.61% -1.54% 2.15% All Cash
VNE 35.16 Qualcomm Incorporated (QCOM) 130.2 5.23% 3.35% 1.88% All Cash
MSON 24.89 Bioventus Inc. (BVS) 13.64 12.49% 10.72% 1.77% Special Conditions
SLCT 18.88 First Bancorp (FBNC) 45.88 -0.85% 0.17% -1.02% All Stock
AJRD 43.9 Lockheed Martin Corporation (LMT) 365.62 16.17% 17.24% -1.07% All Cash
SVBI 12.9 Shore Bancshares, Inc. (SHBI) 17.96 -1.26% 0.20% -1.46% Cash Plus Stock
RIVE 13.47 Mid Penn Bancorp, Inc. (MPB) 28.21 1.22% 5.29% -4.07% All Stock
TEDU 1.07 Kidedu Holdings Limited (N/A) 273.83% 288.35% -14.52% All Cash

Deal Statistics:

Total Number of Deals Closed in 2021 149
Total Number of Deals Not Completed in 2021 12
Total Number of Pending Deals
Cash Deals 49
Stock Deals 31
Stock & Cash Deals 8
Special Conditions 4
Total Number of Pending Deals 92
Total Deal Size $920 billion

New Deals:

  1. The acquisition of Flexion Therapeutics (FLXN) by Pacira BioSciences (PCRX) for $570.84 million or $8.50 per share in cash. Shareholders of Flexion Therapeutics will also be entitled to receive one non-tradeable CVR. The CVR will entitle Flexion stockholders to up to an additional $8.00 per share in cash payable (subject to certain terms and conditions) upon achievement of the following milestones:
    • $1.00 per share if total calendar year ZILRETTA net sales achieve $250 million;
    • $2.00 per share if total calendar year ZILRETTA net sales achieve $375 million;
    • $3.00 per share if total calendar year ZILRETTA net sales achieve $500 million;
    • $1.00 per share upon U.S. FDA approval of FX201; and
    • $1.00 per share upon U.S. FDA approval of FX301.

    The milestones associated with each contingent cash payment must be achieved, if at all, on or before December 31, 2030. There can be no assurance any payments will be made with respect to the CVR. Because of the uncertain value of the CVR, we are treating this as a ‘special conditions’ deal and using the cash value as the deal price.

  2. The acquisition of Adamas Pharmaceuticals (ADMS) by Supernus Pharmaceuticals (SUPN) for $460.12 million or $8.10 per share in cash. The shareholders of Adamas Pharmaceuticals will also be entitled to receive two non-tradable contingent value rights (CVR) collectively worth up to $1.00 per share in cash (or an aggregate of approximately $50 million), for a total consideration of $9.10 per share in cash (or an aggregate of approximately $450 million). The first CVR, worth $0.50 per share, is payable upon achieving net sales of GOCOVRI of $150 million in any four consecutive quarters between closing and the end of 2024. The second CVR, worth $0.50 per share, is payable upon achieving net sales of GOCOVRI of $225 million in any four consecutive quarters between closing and the end of 2025. The transaction is expected to close in late fourth quarter 2021 or in early first quarter 2022. Because of the uncertain value of the CVR, we are treating this as a ‘special conditions’ deal and using the cash value as the deal price.
  3. The merger of Umpqua Holdings Corporation (UMPQ) and Columbia Banking System (COLB) for $4.5 billion in an all stock deal. Under the terms of the agreement, Umpqua shareholders will receive 0.5958 of a share of Columbia stock for each Umpqua share they own.
  4. The merger of Aspen Technology (AZPN) with Emerson’s (EMR) industrial software businesses for $12.34 billion. Under the terms of the agreement, AspenTech shareholders will receive approximately $87 per share in cash and 0.42 shares of common stock of the new AspenTech, a newly formed company, for each share of AspenTech common stock they own, which implies total consideration of approximately $160 per AspenTech share. We have added this as a special conditions deal since the stock portion of the transaction will be determined only after the new company is formed. We added AZPN as a potential deal to the Deals in the Works section on October 6, 2021, and the price after the news of the potential deal came out was $125.52.

Deal Updates:

  1. On October 11, 2021, First Bancorp (FBNCreceived all required regulatory approvals to acquire Select Bancorp (SLCT).
  2. On October 12, 2021, Score Media and Gaming (SCR) announced that its shareholders voted in favour of the previously announced acquisition by Penn National Gaming (PENN).
  3. On October 12, 2021, Covanta Holding Corporation (CVA) announced that its stockholders voted to approve the previously announced acquisition of Covanta by EQT Infrastructure.
  4. On October 12, 2021, Cornerstone OnDemand (CSOD) announced that its stockholders voted to approve the previously announced acquisition by Clearlake Capital Group.
  5. On October 12, 2021, Pfizer (PFEvoluntarily withdrew its HSR Act filing, and expects to re-file such form on or about October 14, 2021, restarting the 30-day waiting period. The withdrawal and re-filing are procedural steps to provide the Federal Trade Commission with an additional 30 days to complete its review of the proposed Arrangement with Trillium Therapeutics (TRIL). The waiting period with respect to the notification and report forms under the HSR Act is scheduled to expire on or about November 15, 2021, unless extended or earlier terminated.
  6. On October 12, 2021, Itamar Medical (ITMR) announced that the special meeting of stockholders will be held on November 16, 2021.
  7. On October 14, 2021, Medallia (MDLA) announced that its shareholders voted to approve the acquisition of Medallia by Thoma Bravo.
  8. On October 15, 2021, BancorpSouth Bank (BXS) and Cadence Bancorporation (CADE) announced that their proposed merger has received final Federal Deposit Insurance Corporation approval.

Closed Deals:

  1. The acquisition of GP Strategies Corporation (GPX) by Learning Technologies Group on October 14, 2021. It took 91 days for this deal to be completed.
  2. The acquisition of Cornerstone OnDemand (CSOD) by Clearlake Capital Group on October 15, 2021. It took 71 days for this deal to be completed.
  3. The acquisition of Navios Maritime Acquisition Corporation (NNA) by Navios Maritime Partners (NMM) on October 15, 2021. It took 50 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 $1.07 12/31/2021 273.83% 1332.65%
MX 03/26/2021 South Dearborn Limited (N/A) $29.00 $17.49 12/31/2021 65.81% 320.27%
CHNG 01/06/2021 UnitedHealth Group Incorporated (UNH) $25.75 $20.63 12/31/2021 24.82% 120.78%
XONE 08/11/2021 Desktop Metal, Inc. (DM) $25.50 $21.78 12/31/2021 17.08% 83.12%
AJRD 12/20/2020 Lockheed Martin Corporation (LMT) $51.00 $43.9 12/31/2021 16.17% 78.71%
JOBS 06/21/2021 Garnet Faith Limited (N/A) $79.05 $68.29 12/31/2021 15.76% 76.68%
XLNX 10/27/2020 Advanced Micro Devices, Inc. (AMD) $193.23 $167.15 12/31/2021 15.60% 75.93%
MSON 07/29/2021 Bioventus Inc. (BVS) $28.00 $24.89 12/31/2021 12.49% 60.81%
SOLY 05/10/2021 Allergan Aesthetics (N/A) $22.60 $20.45 12/31/2021 10.51% 51.17%
SJR 03/15/2021 Rogers Communications Inc. (RCI) $32.40 $29.34 06/30/2022 10.43% 14.87%

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 $1.07 203,458 12/31/21 273.83% 1350.66%
+ MX 3/26/21 South Dearborn Limited (N/A) All Cash $1.4 B $29.00 $17.49 260,925 12/31/21 65.81% 324.60%
+ CHNG 1/06/21 UnitedHealth Group Incorporated (UNH) All Cash $13.28 B $25.75 $20.63 859,970 12/31/21 24.82% 122.41%
+ XONE 8/11/21 Desktop Metal, Inc. (DM) Special Conditions $418.26 M $25.50 $21.78 452,205 12/31/21 17.08% 84.25%
+ AJRD 12/20/20 Lockheed Martin Corporation (LMT) All Cash $3.79 B $51.00 $43.9 330,214 12/31/21 16.17% 79.77%
+ JOBS 6/21/21 Garnet Faith Limited (N/A) All Cash $3.63 B $79.05 $68.29 120,949 12/31/21 15.76% 77.72%
+ XLNX 10/27/20 Advanced Micro Devices, Inc. (AMD) All Stock $33.43 B $193.23 $167.15 1,695,255 12/31/21 15.60% 76.95%
+ MSON 7/29/21 Bioventus Inc. (BVS) Special Conditions $518 million $28.00 $24.89 63,465 12/31/21 12.49% 61.63%
+ SOLY 5/10/21 Allergan Aesthetics (N/A) All Cash $550 M $22.60 $20.45 111,618 12/31/21 10.51% 51.86%
+ SJR 3/15/21 Rogers Communications Inc. (RCI) Special Conditions $26 B $32.40 $29.34 142,772 6/30/22 10.43% 14.93%
+ KDMN 9/08/21 Sanofi (SNY) All Cash $1.64 B $9.50 $8.73 2,633,970 12/31/21 8.82% 43.50%
+ SAFM 8/09/21 Cargill and Continental Grain Company (N/A) All Cash $4.49 B $203.00 $186.7 273,393 1/31/22 8.73% 30.35%
+ COHR 3/25/21 II-VI Incorporated (IIVI) Cash Plus Stock $6.84 B $272.38 $252.47 162,794 12/31/21 7.89% 38.90%
+ NFH 8/04/21 Unicorn II Holdings Limited (N/A) All Cash $2.09 billion $12.00 $11.35 30,249 12/31/21 5.73% 28.25%
+ TRIL 8/23/21 Pfizer Inc. (PFE) All Cash $1.2 B $18.50 $17.5 1,032,554 12/31/21 5.71% 28.19%
+ FOE 5/11/21 Prince International Corporation (N/A) All Cash $2.1 B $22.00 $20.86 281,574 3/31/22 5.47% 12.16%
+ MRLN 4/19/21 HPS Investment Partners LLC (N/A) All Cash $109.4 M $23.50 $22.31 33,241 3/31/22 5.33% 11.87%
+ VNE 10/04/21 Qualcomm Incorporated (QCOM) All Cash $3.87 B $37.00 $35.16 2,361,490 6/30/22 5.23% 7.49%
+ FVCB 7/14/21 Blue Ridge Bankshares, Inc. (BRBS) All Stock $113.36 M $21.34 $20.39 168,853 1/31/22 4.66% 16.21%
+ XLRN 9/30/21 Merck (MRK) All Cash $10.8 B $180.00 $172.94 408,425 12/31/21 4.08% 20.14%
+ XENT 8/06/21 Medtronic plc (MDT) All Cash $1.1 billion $28.25 $27.16 149,231 3/31/22 4.01% 8.93%
+ GWB 9/16/21 First Interstate BancSystem, Inc. (FIBK) All Stock $2 B $34.30 $33.02 449,315 3/31/22 3.87% 8.62%
+ HRC 9/02/21 Baxter International Inc. (BAX) All Cash $12.4 B $156.00 $151 775,339 3/31/22 3.31% 7.37%
+ GTS 8/24/21 GuideWell Mutual Holding Corporation (N/A) All Cash $665.93 M $36.00 $34.97 74,884 6/30/22 2.95% 4.22%
+ HBMD 7/13/21 F.N.B. Corporation (FNB) All Stock $418 M $21.60 $21 78,662 1/31/22 2.86% 9.93%
+ INFO 11/30/20 S&P Global (SPGI) All Stock $44 B $125.98 $122.9 1,228,501 12/31/21 2.51% 12.38%
+ ATH 3/08/21 Apollo Global Management, Inc. (APO) All Stock $6.01 B $77.47 $75.75 359,937 1/31/22 2.26% 7.87%
+ FCCY 7/12/21 Lakeland Bancorp, Inc. (LBAI) All Stock $244.4 M $24.34 $23.83 11,722 1/31/22 2.16% 7.49%
+ ITMR 9/13/21 ZOLL Medical Corporation (N/A) All Cash $399.11 M $31.00 $30.36 54,491 12/31/21 2.11% 10.40%
+ KRA 9/27/21 DL Chemical Co., Ltd. (N/A) All Cash $2.5 B $46.50 $45.55 366,074 6/30/22 2.09% 2.99%
+ ACBI 7/23/21 SouthState Corporation (SSB) All Stock $542 M $27.87 $27.35 64,128 3/31/22 1.91% 4.24%
+ FBC 4/26/21 New York Community Bancorp, Inc. (NYCB) All Stock $2.6 B $55.61 $54.57 276,313 12/31/21 1.90% 9.39%
+ MGP 8/04/21 VICI Properties Inc. (VICI) All Stock $17.2 billion $41.08 $40.38 832,895 6/30/22 1.72% 2.47%
+ ISBC 7/28/21 Citizens Financial Group, Inc. (CFG) Cash Plus Stock $3.5 B $15.74 $15.48 881,768 6/30/22 1.70% 2.43%
+ STFC 7/12/21 Liberty Mutual Holding Company Inc. (N/A) All Cash $2.48 B $52.00 $51.15 67,102 3/31/22 1.66% 3.70%
+ GNOG 8/09/21 DraftKings Inc. (DKNG) All Stock $1.52 B $17.55 $17.27 1,277,055 3/31/22 1.62% 3.60%
+ ESBK 10/04/21 Community Bank System, Inc. (CBU) All Cash $82.8 M $23.10 $22.74 7,092 3/31/22 1.58% 3.52%
+ KSU 9/15/21 Canadian Pacific Railway Limited (CP) Cash Plus Stock $30.44 B $300.10 $295.59 687,889 12/31/21 1.53% 7.52%
+ GSKY 9/15/21 The Goldman Sachs Group (GS) All Stock $2.24 B $12.18 $12 4,005,195 3/31/22 1.52% 3.38%
+ NUAN 4/12/21 Microsoft Corp (MSFT) All Cash $19.7 B $56.00 $55.17 1,826,702 12/31/21 1.50% 7.42%
+ ATC 7/01/21 MKS Instruments, Inc. (MKSI) Cash Plus Stock $6.5 B $24.19 $23.83 549,924 12/31/21 1.49% 7.36%
+ MDP 10/06/21 IAC/InterActiveCorp and Gray Television, Inc. (IAC) All Cash $6.02 B $59.17 $58.3 1,146,637 12/31/21 1.49% 7.36%
+ WBT 7/14/21 Ali Holding S.r.l. (N/A) All Cash $4.8 B $24.00 $23.65 706,157 1/31/22 1.48% 5.14%
+ ESXB 6/03/21 United Bankshares, Inc. (UBSI) All Stock $303.3 M $11.50 $11.34 22,350 12/31/21 1.43% 7.05%
+ SPWH 12/21/20 The Great American Outdoors Group (N/A) All Cash $1.5 B $18.00 $17.75 446,302 12/31/21 1.41% 6.95%
+ PNM 10/21/20 Avangrid, Inc. (AGR) All Cash $8.05 B $50.30 $49.62 503,501 12/31/21 1.37% 6.76%
+ FRTA 2/22/21 Quikrete Holdings, Inc. (N/A) All Cash $2.74 B $24.00 $23.68 322,192 12/31/21 1.35% 6.67%
+ RIVE 7/01/21 Mid Penn Bancorp, Inc. (MPB) All Stock $124.7 M $13.63 $13.47 1,900 12/31/21 1.22% 6.00%
+ PPD 4/15/21 Thermo Fisher Scientific Inc. (TMO) All Cash $20.9 B $47.50 $46.95 1,114,092 12/31/21 1.17% 5.78%
+ STL 4/19/21 Webster Financial Corporation (WBS) All Stock $5.12 B $26.38 $26.08 1,336,957 12/31/21 1.16% 5.71%
+ CLDB 6/23/21 Farmers National Banc Corp. (FMNB) All Stock $124 M $29.40 $29.07 15,601 12/31/21 1.14% 5.60%
+ FMBI 6/01/21 Old National Bancorp (ONB) All Stock $2.86 B $19.33 $19.15 483,580 1/31/22 0.93% 3.23%
+ INOV 8/19/21 Nordic Capital (N/A) All Cash $7.3 B $41.00 $40.66 924,653 1/31/22 0.84% 2.91%
+ CXP 9/07/21 Pacific Investment Management Company LLC (N/A) All Cash $3.9 B $19.30 $19.14 2,401,285 12/31/21 0.84% 4.12%
+ ENBL 2/17/21 Energy Transfer LP (ET) All Stock $7.2 B $8.59 $8.52 293,756 12/31/21 0.78% 3.84%
+ LMRK 8/23/21 Landmark Dividend LLC (N/A) All Cash $997.25 M $16.50 $16.38 93,855 12/31/21 0.73% 3.61%
+ RAVN 6/21/21 CNH Industrial N.V (CNHI) All Cash $2.1 B $58.00 $57.58 236,707 12/31/21 0.73% 3.60%
+ UFS 5/11/21 Paper Excellence (N/A) All Cash $3.02 B $55.50 $55.1 218,260 12/31/21 0.73% 3.58%
+ RBNC 7/15/21 United Community Banks, Inc. (UCBI) All Stock $517 M $33.42 $33.19 53,036 3/31/22 0.70% 1.57%
+ CVA 7/14/21 EQT Infrastructure (N/A) All Cash $5.35 B $20.25 $20.12 699,509 12/31/21 0.65% 3.19%
+ DSPG 8/30/21 Synaptics Incorporated (SYNA) All Cash $399.78 M $22.00 $21.86 90,634 12/31/21 0.64% 3.16%
+ KOR 9/13/21 AngloGold Ashanti Limited (N/A) All Cash $450 M $3.29 $3.27 75,654 3/31/22 0.61% 1.36%
+ PBCT 2/22/21 M&T Bank Corporation (MTB) All Stock $7.6 B $17.83 $17.73 2,318,258 12/31/21 0.58% 2.87%
+ EBSB 4/23/21 Independent Bank Corp. (INDB) All Stock $1.15 B $22.12 $21.99 210,395 12/31/21 0.57% 2.82%
+ ANAT 8/09/21 Brookfield Asset Management Reinsurance Partners Ltd. (BAMR) All Cash $5.1 B $190.00 $189.02 39,603 6/30/22 0.52% 0.74%
+ CIT 10/16/20 First Citizens BancShares, Inc. (FCNCA) All Stock $2.42 B $52.96 $52.7 362,791 3/31/22 0.50% 1.12%
+ ECHO 9/10/21 The Jordan Company, L.P. (N/A) All Cash $939.64 M $48.25 $48.02 480,910 12/31/21 0.48% 2.36%
+ UMPQ 10/12/21 Columbia Banking System, Inc. (COLB) All Stock $4.5 B $20.73 $20.64 2,803,897 6/30/22 0.45% 0.65%
+ VER 4/29/21 Realty Income Corporation (O) All Stock $17.66 B $49.11 $48.9 2,922,402 12/31/21 0.43% 2.12%
+ MGLN 1/04/21 Centene Corporation (CNC) All Cash $2.2 B $95.00 $94.63 209,238 12/31/21 0.39% 1.93%
+ ADMS 10/11/21 Supernus Pharmaceuticals, Inc. (SUPN) Special Conditions $460.12 M $8.10 $8.07 946,811 1/31/22 0.37% 1.29%
+ BMTC 3/10/21 WSFS Financial Corporation (WSFS) All Stock $976.4 M $49.19 $49.01 91,026 12/31/21 0.36% 1.76%
+ VEI 8/10/21 Chesapeake Energy Corporation (CHK) Cash Plus Stock $2.2 B $16.80 $16.74 264,243 12/31/21 0.36% 1.76%
+ CADE 4/12/21 BancorpSouth Bank (BXS) Cash Plus Stock $2.7 B $22.24 $22.16 3,939,918 12/31/21 0.34% 1.69%
+ CNBKA 4/07/21 Eastern Bankshares, Inc. (EBC) All Cash $642 M $115.28 $115.05 6,933 12/31/21 0.20% 0.99%
+ CAI 6/17/21 Mitsubishi HC Capital Inc. (N/A) All Cash $2.9 B $56.00 $55.89 146,396 12/31/21 0.20% 0.97%
+ PMBC 3/23/21 Banc of California (BANC) All Stock $235 M $9.53 $9.51 35,636 10/18/21 0.16% 0.00%
+ MDLA 7/26/21 Thoma Bravo (N/A) All Cash $6.4 B $34.00 $33.95 4,682,192 12/31/21 0.15% 0.73%
+ SIC 8/09/21 Sun Capital Partners, Inc. (N/A) All Cash $411 M $14.50 $14.48 73,772 10/31/21 0.14% 3.88%
+ JMP 9/08/21 Citizens Financial Group, Inc. (CFG) All Cash $149 M $7.50 $7.49 12,709 12/31/21 0.13% 0.66%
+ SCR 8/05/21 Penn National Gaming, Inc. (PENN) Cash Plus Stock $2 B $35.63 $35.6 571,585 3/31/22 0.09% 0.20%
+ RPAI 7/16/21 Kite Realty Group Trust (KRG) All Stock $4.96 B $13.61 $13.61 1,408,572 12/31/21 0.02% 0.09%
+ QADA 6/28/21 Thoma Bravo (N/A) All Cash $2 B $87.50 $87.54 167,682 12/31/21 -0.05% -0.23%
+ SC 8/24/21 Santander Holdings USA, Inc. (N/A) All Cash $12.7 B $41.50 $41.63 1,240,677 12/31/21 -0.31% -1.54%
+ TPG 10/05/21 Stonepeak (N/A) All Cash $6.2 B $17.00 $17.10 N/A 12/31/21 -0.58% -2.88%
+ ICBK 6/22/21 Nicolet Bankshares, Inc. (NCBS) All Stock $219 M $36.21 $36.46 222 12/31/21 -0.70% -3.43%
+ XOG 5/10/21 Bonanza Creek Energy, Inc. (BCEI) All Stock $2.6 B $62.74 $63.25 160,210 11/30/21 -0.81% -6.90%
+ SLCT 6/01/21 First Bancorp (FBNC) All Stock $314.3 M $18.72 $18.88 934,072 12/31/21 -0.85% -4.21%
+ KL 9/28/21 Agnico Eagle Mines Limited (AEM) All Stock $9.53 B $45.57 $45.98 1,384,806 3/31/22 -0.89% -1.98%
+ SVBI 3/03/21 Shore Bancshares, Inc. (SHBI) Cash Plus Stock $146 M $12.74 $12.9 4,390 12/31/21 -1.26% -6.20%
+ AZPN 10/11/21 Emerson Electric Co. (EMR) Special Conditions $12.34 B $160.00 $163.51 576,091 6/30/22 -2.15% -3.07%
+ FLXN 10/11/21 Pacira BioSciences, Inc. (PCRX) Special Conditions $570.84 M $8.50 $9.44 1,073,275 12/31/21 -9.96% -49.12%

Conclusion:

We have been seeing a significant increase in the number of potential deals in the works announced in the past few months and it is interesting to see some of them becoming successful in a short period of time. The highlight of our new Mid-Month Update was Healthcare Trust of America (HTA). We added HTA to our list of potential deals on October 6, 2021. We wrote the following in our Mid-Month Update, with respect to the success rate of potential deals,

The number of deals in the DITW tool have more than doubled since we last analyzed the data and there are 477 deals in the database now. Interestingly, the success rate has improved to 43.4% and potential deals classified as “unsolicited bid” had the highest success rate with more than 51% of them ending up with a definitive merger agreement.

Disclaimer: I have long positions in Nuance Communications (NUAN), Change Healthcare (CHNG) and Trillium Therapeutics (TRIL). 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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