Merger Arbitrage Mondays – Raymond James Financial Acquires TriState Capital Holdings

Merger activity decreased last week with two new deals announced and five deals completed.

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 18 SPAC IPOs filed and 1 new SPAC business combination announced last week. You can find the new SPAC IPO announcements in our SPACs tool here.

  1. Trump Media & Technology Group and Digital World Acquisition (DWAC) have entered into a definitive merger agreement, providing for a business combination that will result in Trump Media & Technology Group becoming a publicly listed company.

Weekly Spread Changes:

The table below shows weekly spread changes between October 15 and October 22, 2021.

Symbol Quote Acquiring
Company
Acquiring
Company Quote
Current
Spread
Last Week
Spread
Spread Change
Weekly
Deal
Type
JOBS 63.98 Garnet Faith Limited (N/A) 0.00 23.55% 15.76% 7.79% All Cash
CADE 21.48 BancorpSouth Bank (BXS) 30.71 5.90% 0.34% 5.56% Cash Plus Stock
XLNX 172.59 Advanced Micro Devices, Inc. (AMD) 119.82 19.65% 15.60% 4.05% All Stock
TEDU 1.06 Kidedu Holdings Limited (N/A) 277.36% 273.83% 3.53% All Cash
RIVE 13.124 Mid Penn Bancorp, Inc. (MPB) 28.09 3.44% 1.22% 2.22% All Stock
FVCB 20.6 Blue Ridge Bankshares, Inc. (BRBS) 18.16 1.31% 4.66% -3.35% All Stock
CHNG 21.2 UnitedHealth Group Incorporated (UNH) 449.16 21.46% 24.82% -3.36% All Cash
MSON 25.78 Bioventus Inc. (BVS) 15.28 8.61% 12.49% -3.88% Special Conditions
MX 17.97 South Dearborn Limited (N/A) 61.38% 65.81% -4.43% All Cash
KDMN 9.405 Sanofi (SNY) 49.92 1.01% 8.82% -7.81% All Cash

Deal Statistics:

Total Number of Deals Closed in 2021 154
Total Number of Deals Not Completed in 2021 12
Total Number of Pending Deals
Cash Deals 47
Stock Deals 28
Stock & Cash Deals 8
Special Conditions 6
Total Number of Pending Deals 89
Total Deal Size $921.51 billion

New Deals:

  1. The acquisition of TriState Capital Holdings (TSC) by Raymond James Financial (RJF) for $1.1 billion in a cash plus stock deal. Under the terms of the agreement, TriState Capital common stockholders will receive $6.00 cash and 0.25 Raymond James shares for each share of TriState Capital common stock.
  2. The acquisition of FTS International (FTSI) by ProFrac Holdings for $407.5 million or $26.52 per share in cash.

Deal Updates:

  1. October 19, 2021: According to Reuters, IHS Markit (INFO) and S&P Global (SPGI) will offer remedies to quell the UK competition regulator’s concerns that the $44 billion merger between the companies could curb competition in the country.
  2. On October 19, 2021, Kite Realty Group Trust (KRG) and Retail Properties of America (RPAI) announced that their stockholders approved all of the proposals necessary for the closing of the previously announced merger.
  3. On October 20, 2021, the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), expired in connection with the previously announced proposed merger between Kadmon Holdings (KDMN) and Sanofi (SNY).
  4. On October 20, 2021, Santander Holdings USA announced that it has extended the expiration date of its previously announced tender offer to acquire all outstanding shares of common stock of Santander Consumer USA Holdings (SC) to November 2, 2021.
  5. October 21, 2021: According to Bloomberg, Bristol-Myers Squibb (BMY) is planning to tender its shares in Acceleron Pharma (XLRN) after Merck (MRK) agreed to buy the biotechnology company.
  6. On October 21, 2021, Rogers announced that John A. MacDonald has assumed the role of Chairman of the Board of Directors of Rogers Communications (RCI) after Edward Rogers was moved from the role.
  7. On October 21, 2021, M&T Bank Corporation (MTB) announced that it has received approval from the New York State Department of Financial Services and the Connecticut Department of Banking to complete the merger of M&T Bank with People’s United Bank (PBCT).
  8. On October 21, 2021, Sanderson Farms (SAFM) announced that its stockholders approved the previously announced agreement for a joint venture between Cargill and Continental Grain to acquire Sanderson Farms for $203 per share in cash.
  9. On October 22, 2021, S&P Global (SPGI) and IHS Markit (INFO) announced that they have received a conditional Phase 1 approval for their $44 billion merger from the European Commission (EC), marking another significant step toward the combination of these highly complementary companies.
  10. On October 22, 2021, Shore Bancshares (SHBI) and Severn Bancorp (SVBI) announced that, Shore’s shareholders approved the merger of Severn with and into Shore.
  11. On October 22, 2021, Realty Income Corporation (O) and VEREIT (VER) announced that they anticipate closing their previously announced merger on November 1, 2021.

Closed Deals:

  1. The acquisition of Select Bancorp (SLCT) by First Bancorp (FBNC) on October 18, 2021. It took 139 days for this deal to be completed.
  2. The acquisition of Pacific Mercantile Bancorp (PMBC) by Banc of California (BANC) on October 19, 2021. It took 210 days for this deal to be completed.
  3. The acquisition of Score Media and Gaming (SCR) by Penn National Gaming (PENN) on October 19, 2021. It took 75 days for this deal to be completed.
  4. The acquisition of Select Interior Concepts (SIC) by Sun Capital Partners on October 21, 2021. It took 73 days for this deal to be completed.
  5. The acquisition of Retail Properties of America (RPAI) by Kite Realty Group Trust (KRG) on October 22, 2021. It took 98 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 $1.06 12/31/2021 277.36% 1510.98%
MX 03/26/2021 South Dearborn Limited (N/A) $29.00 $17.97 12/31/2021 61.38% 334.38%
JOBS 06/21/2021 Garnet Faith Limited (N/A) $79.05 $63.98 12/31/2021 23.55% 128.32%
CHNG 01/06/2021 UnitedHealth Group Incorporated (UNH) $25.75 $21.2 12/31/2021 21.46% 116.92%
XLNX 10/27/2020 Advanced Micro Devices, Inc. (AMD) $206.50 $172.59 12/31/2021 19.65% 107.03%
XONE 08/11/2021 Desktop Metal, Inc. (DM) $25.50 $22.08 12/31/2021 15.49% 84.38%
AJRD 12/20/2020 Lockheed Martin Corporation (LMT) $51.00 $44.33 12/31/2021 15.05% 81.97%
SJR 03/15/2021 Rogers Communications Inc. (RCI) $32.40 $28.78 06/30/2022 12.58% 18.51%
SOLY 05/10/2021 Allergan Aesthetics (N/A) $22.60 $20.67 12/31/2021 9.34% 50.87%
MSON 07/29/2021 Bioventus Inc. (BVS) $28.00 $25.78 12/31/2021 8.61% 46.91%

List of all pending deals:

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

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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