Merger activity decreased significantly last week with one new deal announced and seven deals completed.
There were fourteen deals announced in the month of June worth over $53 billion. The two largest deals announced were the acquisition of Duke Realty Corporation (DRE) by Prologis (PLD) for $26 billion and the acquisition of Zendesk (ZEN) by Permira and Hellman & Friedman for $10.2 billion.
M&A Highlights H1 2022
M&A activity increased significantly in the first half of 2022, with a 23.22% increase in deal volume compared to the $429.05 billion worth of deals announced in the first half of 2021 and a 225.69% increase in deal volume compared to the $162.33 billion worth of deals announced in the first half of 2022.
There were 98 deals worth almost $529 billion announced in the first half of 2022. The three largest deals announced in the first half of 2022 were the acquisition of VMware (VMW) by Broadcom (AVGO) for $69 billion, the acquisition of Activision Blizzard (ATVI) by Microsoft Corporation (MSFT) for $68.7 billion and the acquisition of Twitter (TWTR) by Elon Musk for $44 billion. Each of these currently trade at large spreads on account of regulatory concerns for ATVI and VMW and performance/financing concerns in the case of TWTR.
93 deals were completed successfully in the first half of 2022. Some of the multi-billion dollar deals that were completed, include the merger of IHS Markit (INFO) and S&P Global (SPGI) for $44 billion, the acquisition of Xilinx (XLNX) by Advanced Micro Devices (AMD), the acquisition of Cerner Corporation (CERN) by Oracle Corporation (ORCL) and the acquisition of Nuance Communications (NUAN) by Microsoft (MSFT).
Some of the multi-billion dollar deals that were announced and completed in the first half of 2022 include the acquisition of Zynga (ZNGA) by Take-Two Interactive Software (TTWO) for $12.7 billion, the acquisition of Anaplan (PLAN) by Thoma Bravo for $10.7 billion, the acquisition of Datto Holding (MSP) by Kaseya for $6.2 billion and the acquisition of Preferred Apartment Communities (APTS) by Blackstone Real Estate Income Trust for $5.8 billion.
Additionally, there were 92 potential deals in the works announced in the first half of 2022 and 21 of these were successful. This is lower than what we have seen in the past and it is possible that more of them will come to fruition in the coming months.
Multiple deals went through bidding wars in H1 2022. The most significant one that is still ongoing is the acquisition Spirit Airlines (SAVE) by Frontier Group Holdings (ULCC). The latest update regarding this deal is Spirit Airlines (SAVE) announcing that it intends to open and immediately adjourn its special meeting of stockholders, to allow the Spirit Board of Directors to continue discussions with Frontier and JetBlue Airways Corporation (JBLU).
There was a significant increase in spreads in H1 2022 due to adverse market conditions. Three deals were terminated in the first half of 2022. In comparison, four deals were terminated in H1 2021 and eleven deals terminated in H1 2020.
You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.
Deals In The Works
There were seven new deals announced in the Deals in the Works section last week.
There was one new SPAC combination announced last week. You can find new SPAC IPO announcements in our SPACs tool here.
Weekly Spread Changes:
The table below shows weekly spread changes between June 24 and July 1, 2022.
|EXTN||3.89||Enerflex Ltd. (EFX.TO)||6.07||23.67%||8.75%||14.92%||All Stock|
|CTEK||1.18||Clearwater Compliance LLC (N/A)||5.93%||-1.57%||7.50%||All Cash|
|SAVE||24.55||Frontier Group Holdings, Inc. (ULCC)||10.17||-3.95%||-9.10%||5.15%||Cash Plus Stock|
|TWTR||38.23||Elon Musk (N/A)||41.77%||37.53%||4.24%||All Cash|
|VMW||114.06||Broadcom Inc. (AVGO)||477.84||24.93%||20.80%||4.13%||Special Conditions|
|MILE||0.9212||Lemonade (LMND)||18.73||6.95%||11.58%||-4.63%||All Stock|
|TEN||17.45||Apollo Global Management, Inc. (APO)||49.26||14.61%||19.76%||-5.15%||All Cash|
|MBII||1.03||Bioceres Crop Solutions Corp. (BIOX)||12.76||9.02%||16.73%||-7.71%||All Stock|
|VG||19.08||Ericsson (ERIC)||7.43||10.06%||18.78%||-8.72%||All Cash|
|HMTV||7.7||Gato Investments LP (N/A)||-9.09%||2.64%||-11.73%||All Cash|
|Total Number of Deals Closed in 2022||93|
|Total Number of Deals Not Completed in 2022||4|
|Total Number of Pending Deals|
|Stock & Cash Deals||5|
|Total Number of Pending Deals||87|
|Aggregate Deal Consideration||$973.63 billion|
Top 10 deals with largest spreads:
Please do your own due diligence on deals with large spreads. Some of these large spreads might be related to regulatory issues or because of the way the deal is structured. We classify some of these deals as “special situation” deals in our merger arbitrage tool and provide additional details to help with the analysis. There may be unique situations related to special dividends, spinoffs, proration, etc. that need to be accounted for when looking at these spreads.
|TWTR||04/25/2022||Elon Musk (N/A)||$54.20||$38.23||12/31/2022||41.77%||84.24%|
|SIMO||05/05/2022||MaxLinear, Inc. (MXL)||$105.81||$81.95||06/30/2023||29.11%||29.35%|
|BKI||05/04/2022||Intercontinental Exchange, Inc. (ICE)||$85.00||$66.18||06/30/2023||28.44%||28.67%|
|VMW||05/26/2022||Broadcom Inc. (AVGO)||$142.50||$114.06||04/30/2023||24.93%||30.24%|
|EXTN||01/24/2022||Enerflex Ltd. (EFX.TO)||$4.81||$3.89||09/30/2022||23.67%||97.05%|
|ATVI||01/18/2022||Microsoft Corporation (MSFT)||$95.00||$78.57||06/30/2023||20.91%||21.08%|
|NLSN||03/29/2022||Evergreen Coast Capital Corporation (N/A)||$28.00||$23.62||12/31/2022||18.54%||37.39%|
|AUY||05/31/2022||Gold Fields Limited (GFI)||$5.62||$4.76||12/31/2022||18.11%||36.52%|
|CHNG||01/06/2021||UnitedHealth Group Incorporated (UNH)||$27.75||$23.72||12/31/2022||16.99%||34.26%|
|TSEM||02/15/2022||Intel Corporation (INTC)||$53.00||$45.71||02/15/2023||15.95%||25.64%|
List of all pending deals:
List of all pending deals:
Disclaimer: I have long positions in Biohaven Pharmaceutical (BHVN), Twitter (TWTR), First Horizon (FHN), Tower Semiconductor (TSEM), Healthcare Trust of America (HTA), TEGNA (TGNA) and Bluerock Residential Growth REIT (BRG). 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.