Merger activity increased last week with two new deals announced and four deals completed.
Micro Focus International (MFGP)
Founded in 1976 and headquartered in Newbury, the United Kingdom, Micro Focus International is one of the few remaining technology firms in Britain, listed in London, that is now being acquired by Ontario-based software company OpenText (OTEX). Micro Focus is an enterprise software provider.
The company entered into a definitive agreement to be acquired by OpenText on August 25, 2022, in a transaction valued at $6 billion, for 532 pence per share or USD$6.21, representing a premium of 99% to Micro Focus’s closing price the day before the announcement. The deal is expected to be completed in the first quarter of 2023.
Hill International (HIL) – Global Infrastructure Solutions deal amended
Another highlight from last week was Global Infrastructure Solutions and Hill International announcing enhancements to their definitive agreement. Following the receipt of an unsolicited proposal from a third party, Hill and GISI negotiated an amended and restated Merger Agreement under the terms of which the per-share price has been increased to $3.40 from $2.85, a 19.3% increase from the previous price. The transaction structure has also been changed to a merger requiring the approval of Hill’s stockholders rather than a tender offer to Hill stockholders.
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 four new potential deals added to the Deals in the Works section last week.
Two new SPAC combinations were announced last week and one completed. You can find new SPAC IPO announcements in our SPACs tool here.
New Business Combinations
Completed
Weekly Spread Changes:
The table below shows weekly spread changes between August 19, 2022, and August 26, 2022.
Symbol | Quote | Acquiring Company | Acquiring Company Quote | Current Spread | Last Week Spread | Spread Change Weekly | Deal Type |
---|---|---|---|---|---|---|---|
TWTR | 40.46 | Elon Musk (N/A) | 33.96% | 23.21% | 10.75% | All Cash | |
SAVE | 23.34 | JetBlue Airways Corporation (JBLU) | 8.03 | 43.53% | 38.20% | 5.33% | All Cash |
ROG | 254.56 | DuPont de Nemours, Inc. (DD) | 57.82 | 8.82% | 4.06% | 4.76% | All Cash |
LOTZ | 0.437 | Shift Technologies, Inc. (SFT) | 0.9214 | 45.94% | 41.85% | 4.09% | All Stock |
VMW | 118.71 | Broadcom Inc. (AVGO) | 520.86 | 20.04% | 17.21% | 2.83% | Special Conditions |
AUY | 4.76 | Gold Fields Limited (GFI) | 8.6 | 8.40% | 10.32% | -1.92% | All Stock |
HLG | 14.26 | Hailiang Education International Limited (N/A) | 0.35% | 2.51% | -2.16% | All Cash | |
PCSB | 19.03 | Brookline Bancorp, Inc. (BRKL) | 13.14 | -8.28% | -5.78% | -2.50% | All Stock |
PTRS | 9.28 | OceanFirst Financial Corp. (OCFC) | 19.94 | -3.05% | -0.48% | -2.57% | All Stock |
EXTN | 5 | Enerflex Ltd. (EFX.TO) | 6.68 | 4.67% | 7.28% | -2.61% | All Stock |
Deal Statistics:
Total Number of Deals Closed in 2022 | 127 |
Total Number of Deals Not Completed in 2022 | 6 |
Total Number of Pending Deals | |
Cash Deals | 57 |
Stock Deals | 20 |
Stock & Cash Deals | 3 |
Special Conditions | 9 |
Total Number of Pending Deals | 89 |
Total Deal Size | $1.04 trillion |
New Deals:
Deal Updates:
Closed Deals:
Top 10 deals with the 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.
Symbol | Announced Date | Acquiring Company | Closing Price | Last Price | Closing Date | Profit | Annualized Profit |
---|---|---|---|---|---|---|---|
LOTZ | 08/09/2022 | Shift Technologies, Inc. (SFT) | $0.64 | $0.437 | 12/31/2022 | 45.94% | 134.14% |
SAVE | 07/28/2022 | JetBlue Airways Corporation (JBLU) | $33.50 | $23.34 | 06/30/2024 | 43.53% | 23.64% |
SIMO | 05/05/2022 | MaxLinear, Inc. (MXL) | $108.50 | $78.02 | 06/30/2023 | 39.06% | 46.60% |
TWTR | 04/25/2022 | Elon Musk (N/A) | $54.20 | $40.46 | 12/31/2022 | 33.96% | 99.16% |
BKI | 05/04/2022 | Intercontinental Exchange, Inc. (ICE) | $85.00 | $67.23 | 06/30/2023 | 26.43% | 31.53% |
IS | 07/13/2022 | Unity (U) | $4.85 | $3.89 | 12/31/2022 | 24.80% | 72.42% |
HIL | 08/16/2022 | Global Infrastructure Solutions Inc. (N/A) | $3.40 | $2.8000 | 12/31/2022 | 21.43% | 62.57% |
SJR | 03/15/2021 | Rogers Communications Inc. (RCI) | $32.40 | $26.78 | 09/30/2022 | 20.99% | 232.12% |
MITO | 08/01/2022 | Stealth Parent Limited (N/A) | $0.38 | $0.3144 | 11/30/2022 | 20.87% | 81.02% |
ATVI | 01/18/2022 | Microsoft Corporation (MSFT) | $95.00 | $78.63 | 06/30/2023 | 20.82% | 24.83% |
List of all pending deals:
Disclaimer: I have long positions in Atlas Air Worldwide (AAWW), Biohaven Pharmaceutical (BHVN), Twitter (TWTR), First Horizon (FHN), Tower Semiconductor (TSEM), 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.