Merger Arbitrage Mondays – Boston Scientific To Acquire Apollo Endosurgery

  • December 5, 2022

Merger activity declined last week with one new deal announced, and five deals completed.

Boston Scientific Corporation (BSX) entered into a definitive agreement to acquire Apollo Endosurgery (APEN) on November 29, 2022, to expand its portfolio of gastro devices.

Apollo Endosurgery, a medical technology company focuses on less invasive therapies for the treatment of various gastrointestinal conditions, ranging from gastrointestinal defect repairs to the interventional treatment of obesity. The company’s product portfolio includes the OverStitch™ Endoscopic Suturing System, the OverStitch Sx™ Endoscopic Suturing System, and the ORBERA® Intragastric Balloon.

Apollo Endosurgery Product Portfolio


In its third quarter earnings, the company reported that its U.S. revenue grew by 29% and OUS revenue grew by 9% (18% in constant currency) over the same period in 2021.

The deal is valued at $615 million including debt. The offer price of $10, represents a premium of 67% to the stock’s closing price on November 28, the day before the deal was announced.

Under the terms of the agreement, if Apollo Endosurgery accepts a superior bid, it will have to pay a termination fee of $19 million. The current spread on the deal is slightly negative at -0.79%, reflecting the market’s optimism of a potential competitor bid. The transaction is expected to be completed in the first half of 2023.

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

Merger Arbitrage

Deal Statistics:

Total Number of Deals Closed in 2022185
Total Number of Deals Not Completed in 20229
Total Number of Pending Deals
Cash Deals40
Stock Deals15
Stock & Cash Deals2
Special Conditions13
Total Number of Pending Deals70
Total Deal Size$1.16 trillion

New Deals:

  1. The acquisition of Apollo Endosurgery (APEN) by Boston Scientific Corporation (BSX) for $615 million or $10.00 per share in cash.

Deal Updates:

  1. On November 28, 2022, Thoma Bravo withdrew and refiled its HSR notification with respect to its merger with ForgeRock (FORG).
  2. On November 29, 2022, Taylor Maritime Investments Limited and Grindrod Shipping Holdings (GRIN)  announced the expiration of the previously announced voluntary conditional cash offer made by Good Falkirk Limited and the commencement of a subsequent offering period for the remaining Shares. The offer and withdrawal rights expired on November 28, 2022.
  3. On November 29, 2022, STORE Capital Corporation (STOR) announced that leading independent proxy advisory firms Institutional Shareholder Services Inc. (“ISS”) and Glass, Lewis & Co. have each recommended that stockholders vote “FOR” the previously announced all-cash acquisition of the company by affiliates of GIC.
  4. Syncona Limited Portfolio Company extends tender offer to acquire, Applied Genetic Technologies Corporation (AGTC) from November 28, 2022 to November 30, 2022.
  5. On November 29, 2022, PBF Energy (PBF) and PBF Logistics (PBFX) announced that C. Erik Young, Chief Financial Officer, has resigned to pursue other professional opportunities.
  6. On December 2, 2022, Albertsons Companies (ACIfiled its preliminary proxy statement, stating that the parties filed their respective notification and report forms pursuant to the HSR Act with the Antitrust Division of the U.S. Department of Justice and the Federal Trade Commission on November 3, 2022.


  1. Eli Lilly and Company (LLY) – HSR waiting period expired on November 25, 2022
  2. Atlas Air Worldwide (AAWW) announced shareholders approval on November 29, 2022
  3. AVEO Oncology (AVEO) – HSR waiting period expired on December 1, 2022
  4. Also on December 1, 2022, AVEO (AVEO) and LG Chem received a notice from CFIUS indicating that the joint voluntary notice submitted by AVEO and LG Chem on November 25, 2022, has been accepted for review, with December 1, 2022 constituting the first day of the 45-day initial review period, which will expire on January 17, 2023.


  1. On November 28, 2022, Reuters reported that Senator Amy Klobuchar’s office has said in a statement that Kroger (KR) CEO Rodney McMullen and Albertsons’ (ACI) top executive, Vivek Sankaran, will face questions this week on plans for the two companies to merge.
  2. On November 30, 2022, Orthofix Medical (OFIX) announced that it received an unsolicited, non-binding indication of interest from two private equity fund sponsors to acquire all of the outstanding equity of Orthofix for $23.00 per share in cash. The Orthofix board reaffirms to stockholders its recommendation in favor of the SeaSpine (SPNE) merger transaction and remains fully committed to completing the transaction with SeaSpine.
  3. On December 1, 2022, The Toronto-Dominion Bank (TD) reported that it is currently planning to close the acquisition of First Horizon Corporation (FHN) in the first half of fiscal 2023, subject to customary closing conditions, including approvals from U.S. and Canadian regulatory authorities.
  4. December 1, 2022: According to Reuters, the attorneys general of California, Illinois, and Washington D.C. have asked a federal court to temporarily stop Albertsons (ACI) dividend payment. Advocacy groups, including the Open Markets Institute and National Farmers Union asked U.S. antitrust enforcers to stop Kroger’s (KR) planned purchase of Albertsons Companies.
  5. December 4, 2022: According to the New York Post, a rift has emerged at the Federal Trade Commission over Microsoft’s (MSFT) deal to acquire Activision (ATVI) — potentially paving the way for the controversial mega-merger to get approved.

Shareholders Meeting Schedule

  1. Maverix Metals (MMX) – January 12, 2023

Closed Deals:

  1. The acquisition of PBF Logistics (PBFX) by PBF Energy (PBF) on November 30, 2022. It took 125 days for this deal to be completed.
  2. The acquisition of Applied Genetic Technologies Corporation (AGTC) by Syncona Limited on December 1, 2022. It took 39 days for this deal to be completed.
  3. The acquisition of Akouos (AKUS) by Eli Lilly and Company (LLY) on December 1, 2022. It took 44 days for this deal to be completed.
  4. The acquisition of Renovacor (RCOR) by Rocket Pharmaceuticals (RCKT) on December 1, 2022. It took 72 days for this deal to be completed.
  5. The acquisition of Flagstar Bancorp (FBC) by New York Community Bancorp (NYCB) on December 1, 2022. It took 584 days for this deal to be completed.

Weekly Spread Changes:

The table below shows weekly spread changes between November 25, 2022, and December 2, 2022.

Company Quote
Last Week
Spread Change
GRIN20.97Taylor Maritime Investments Limited and Good Falkirk Limited (N/A)23.99%0.58%23.41%Special Conditions
SPNE7.84Orthofix (OFIX)20.026.31%-0.03%6.34%All Stock
FSTX5.62invoX Pharma (N/A)26.69%21.71%4.98%All Cash
LHCG161.73Optum (N/A)5.11%1.02%4.09%All Cash
MMX4.57Triple Flag Precious Metals Corp. (TFPM)13.546.66%2.86%3.80%All Stock
HVBC26.64Citizens Financial Services, Inc. (CZFS)72.89.31%11.64%-2.33%All Stock
ATVI75.76Microsoft Corporation (MSFT)255.0225.40%29.30%-3.90%All Cash
LOTZ0.1699Shift Technologies, Inc. (SFT)0.2626.74%12.11%-5.37%All Stock
SIMO63.57MaxLinear, Inc. (MXL)36.5569.45%75.37%-5.92%Cash Plus Stock
SAVE21.29JetBlue Airways Corporation (JBLU)7.9445.61%54.24%-8.63%All Cash

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.

SIMO05/05/2022MaxLinear, Inc. (MXL)$107.72$63.5706/30/202369.45%122.47%
SAVE07/28/2022JetBlue Airways Corporation (JBLU)$31.00$21.2906/30/202445.61%29.05%
BKI05/04/2022Intercontinental Exchange, Inc. (ICE)$85.00$61.3905/04/202338.46%93.58%
ACI10/14/2022The Kroger Co. (KR)$27.25$20.9803/31/202429.89%22.63%
FSTX06/23/2022invoX Pharma (N/A)$7.12$5.6212/31/202226.69%374.69%
ATVI01/18/2022Microsoft Corporation (MSFT)$95.00$75.7606/30/202325.40%44.78%
TGNA02/22/2022Standard General L.P. (N/A)$24.00$19.9412/31/202220.36%285.84%
TSEM02/15/2022Intel Corporation (INTC)$53.00$44.7602/15/202318.41%93.32%
VMW05/26/2022Broadcom Inc. (AVGO)$142.50$120.8404/30/202317.92%44.81%
IRBT08/05/2022Amazon (AMZN)$61.00$52.8812/31/202215.36%215.57%

Deals In The Works

Five new potential deals were added to the ‘Deals In The Works‘ section last week.

  1. On November 28, 2022, INDUS Realty Trust (INDTreceived an unsolicited, non-binding proposal from Centerbridge Partners, which currently owns approximately 14.8% of the company’s common stock—and GIC Real Estate, to acquire 100% of the outstanding shares of the company’s common stock that Centerbridge does not already own for cash consideration of $65.00 per share.
  2. On November 29, 2022, the Board of Horizon Therapeutics (HZNP) confirmed that it is engaged in highly preliminary discussions with Amgen, Janssen Global Services, and Sanofi (each a Possible Offeror) which may or may not lead to an offer being made for the entire share capital of the company. On December 2, 2022, Sanofi said that if it decides to bid for biotech company Horizon Therapeutics (HZNPit would do so in cash and on December 3, 2022, Johnson & Johnson’s (JNJ) unit Janssen Global Services said that it does not intend to make an offer for Horizon Therapeutics.
  3. On November 30, 2022, Titan Medical (TMDI), announced that its Board of Directors has determined that it is in the best interest of the company and its stakeholders to undertake a review and evaluation of strategic alternatives that may be available to the Company to unlock shareholder value.
  4. On November 30, 2022, Arco Platform Limited (ARCE), announced that its board of directors has received a preliminary non-binding proposal from General Atlantic and Dragoneer Investment Group, to acquire all of the outstanding shares of the company that are not held by such parties or Oto Brasil de Sá Cavalcante and Ari de Sá Cavalcante Netoor their respective affiliates.
  5. On November 30, 2022, Orthofix Medical (OFIX) disclosed it received an unsolicited takeover interest from two private equity firms for $23 per share in cash.


  1. On November 22, 2022, The Wall Street Journal reported that Fortress Investment Group has agreed to help finance Kushner Cos.’ unsolicited $4.3 billion bid to buy rival apartment building owner Veris Residential (VRE).
  2. On November 30, 2022, Bloomberg reported that EQT AB is in talks to acquire Radius Global Infrastructure (RADI).
  3. On December 1, 2022, Rapid Micro Biosystems (RPID) announced that its Board of Directors has concluded its previously announced review of strategic alternatives since no parties submitted binding offers to acquire all outstanding shares of the company.
  4. On December 2, 2022, according to a 13D filing, Meritage Group, which owns 5.3% of Coupa (COUP), contacted the software company to express its views on a potential transaction and the price per share that they believe will be in the shareholders ’ best interests.

SPAC Arbitrage

Potential SPAC IPO

  1. On November 29, 2022, Horizon Space Acquisition 1 Corp. filed for a $60 million IPO
  2. On December 2, 2022, Alchemy Investments Acquisition Corp 1 filed for a $100 million IPO

SPAC Business Combination

  1. On November 29, 2022, Carbon Revolution Limited and Twin Ridge Capital Acquisition Corp. (TRCAsigned a definitive business combination agreement.
  2. On November 30, 2022, Environmental Solutions Group Holdings Limited, a provider of sustainable waste solutions, and Genesis Unicorn Capital Corp. (GENQentered into a definitive merger agreement that upon closing will result in ESG becoming a publicly traded company.
  3. On November 30, 2022, Liminatus Pharma LLC and Iris Acquisition Corp (IRAAannounced they have entered into a definitive business combination agreement.


  1. On November 29, 2022, PropTech Investment Corporation II (PTIC) and Appreciate Holdings, Inc. (SFR) jointly announced today that they have closed their previously announced business combination.

List of all pending deals:

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

Target VolumeEstimated
Closing Date
+SIMO5/05/22MaxLinear, Inc. (MXL)Cash Plus Stock$8 B$107.72$63.57143,5566/30/2369.45%122.47%
+SAVE7/28/22JetBlue Airways Corporation (JBLU)All Cash$7.6 B$31.00$21.29423,6756/30/2445.61%29.05%
+BKI5/04/22Intercontinental Exchange, Inc. (ICE)Special Conditions$16 B$85.00$61.39467,4355/04/2338.46%93.58%
+ACI10/14/22The Kroger Co. (KR)Special Conditions$24.6 B$27.25$20.981,420,4093/31/2429.89%22.63%
+FSTX6/23/22invoX Pharma (N/A)All Cash$161 M$7.12$5.62151,30612/31/2226.69%374.69%
+ATVI1/18/22Microsoft Corporation (MSFT)All Cash$68.7 B$95.00$75.766,146,9206/30/2325.40%44.78%
+TGNA2/22/22Standard General L.P. (N/A)Special Conditions$8.6 B$24.00$19.941,040,67912/31/2220.36%285.84%
+TSEM2/15/22Intel Corporation (INTC)All Cash$5.4 B$53.00$44.76486,1872/15/2318.41%93.32%
+VMW5/26/22Broadcom Inc. (AVGO)Special Conditions$69 B$142.50$120.84579,7054/30/2317.92%44.81%
+IRBT8/05/22Amazon (AMZN)All Cash$1.7 B$61.00$52.88262,95912/31/2215.36%215.57%
+OIIM9/30/22FNOF Precious Honour Limited and Rim Peak Technology Limited (N/A)All Cash$73.94 M$5.00$4.4318,5393/31/2312.87%40.49%
+IAA11/07/22Ritchie Bros. Auctioneers Incorporated (RBA)Cash Plus Stock$7.3 B$41.60$37.791,045,3566/30/2310.09%17.79%
+SJR3/15/21Rogers Communications Inc. (RCI)Special Conditions$26 B$30.15$27.48374,37512/31/229.72%136.43%
+HVBC10/19/22Citizens Financial Services, Inc. (CZFS)All Stock$67.4 M$29.12$26.641476/30/239.31%16.41%
+FCRD10/04/22Crescent Capital BDC, Inc. (CCAP)Special Conditions$145.6 M$4.79$4.4349,7603/31/238.13%25.57%
+FORG10/11/22Thoma Bravo (N/A)All Cash$2.3 B$23.25$21.66628,4546/30/237.34%12.94%
+LOTZ8/09/22Shift Technologies, Inc. (SFT)All Stock-$12.88 M$0.18$0.1699936,66312/31/226.74%94.57%
+MMX11/10/22Triple Flag Precious Metals Corp. (TFPM)All Stock$596.51 M$4.87$4.57167,0991/31/236.66%42.65%
+ONEM7/21/22Amazon (AMZN)All Cash$3.9 B$18.00$16.91,400,34612/31/226.51%91.37%
+SPNE10/11/22Orthofix (OFIX)All Stock$249.93 M$8.33$7.84245,6083/31/236.31%19.84%
+VIVO7/07/22SD Biosensor and SJL Partners (N/A)All Cash$1.53 B$34.00$32127,28012/31/226.25%87.74%
+SGFY9/05/22CVS Health Corporation (CVS)All Cash$8 B$30.50$28.711,743,9196/30/236.23%10.99%
+SWIR8/02/22Semtech Corporation (SMTC)All Cash$1.2 B$31.00$29.22269,2851/31/236.09%39.01%
+SJI2/24/22Infrastructure Investments Fund (N/A)All Cash$8.1 B$36.00$34.111,687,03612/31/225.54%77.79%
+AIMC10/27/22Regal Rexnord Corporation (RRX)All Cash$5 B$62.00$58.91525,4306/30/235.25%9.25%
+LMST10/25/22Peoples Bancorp Inc. (PEBO)All Stock$208.2 M$27.23$25.926,0626/30/235.12%9.02%
+LHCG3/28/22Optum (N/A)All Cash$6.2 B$170.00$161.73572,04512/31/225.11%71.79%
+GSMG7/11/22Cheers Inc (N/A)All Cash$105.59 M$1.55$1.4823,73412/31/224.73%66.40%
+MFGP8/25/22OpenText (OTEX)All Cash$6 B$6.56$6.35317,7773/31/233.38%10.63%
+PNM10/21/20Avangrid, Inc. (AGR)All Cash$8.05 B$50.30$48.83438,91812/31/223.01%42.26%
+EURN7/11/22Frontline Ltd. (FRO)All Stock$4.08 B$20.91$20.371,488,29312/31/222.65%37.15%
+AAWW8/04/22Apollo (APO)All Cash$5.2 B$102.50$100.2373,6323/31/232.30%7.22%
+PFHD8/08/22Seacoast Banking Corporation of Florida (SBCF)All Stock$488.6 M$31.13$30.4364,5023/31/232.29%7.22%
+ELVT11/16/22Park Cities Asset Management LLC (N/A)All Cash$67 M$1.87$1.83273,3403/31/232.19%6.88%
+AGFS11/22/22Paine Schwartz Partners (N/A)All Cash$585.68 M$3.00$2.94253,8723/31/232.04%6.42%
+TRQ9/06/22Rio Tinto (RIO)All Cash$5.63 B$32.01$31.48394,68612/31/221.69%23.71%
+AUY11/08/22Pan American Silver Corp. and Agnico Eagle Mines Limited (PAAS)Special Conditions$5.93 B$5.77$5.6915,681,11412/31/221.41%19.74%
+FHN2/28/22The Toronto-Dominion Bank (TD)Special Conditions$13.4 B$25.00$24.685,385,6866/30/231.30%2.29%
+STOR9/15/22GIC and Oak Street (N/A)All Cash$14 B$32.25$31.841,525,5253/31/231.29%4.05%
+MNRL9/06/22Sitio Royalties Corp. (STR)All Stock$2.21 B$37.49$37.03457,5873/31/231.24%3.92%
+USER10/27/22Thoma Bravo and Sunstone Partners (N/A)All Cash$1.3 B$7.50$7.41295,7806/30/231.21%2.14%
+RNWK7/28/22Greater Heights LLC (N/A)All Cash$12.65 M$0.73$0.721826,83212/31/221.14%15.95%
+BNFT11/01/22Voya Financial, Inc. (VOYA)All Cash$570 M$10.50$10.39316,2793/31/231.06%3.33%
+KNBE10/12/22Vista Equity Partners (N/A)All Cash$4.6 B$24.90$24.641,075,3306/30/231.06%1.86%
+COWN8/02/22TD Bank Group (TD)All Cash$1.3 B$39.00$38.6339,5213/31/231.04%3.26%
+ATCO11/01/22Poseidon Acquisition Corp. (N/A)All Cash$10.9 B$15.50$15.36425,9596/30/230.91%1.61%
+HIL8/16/22Global Infrastructure Solutions Inc. (N/A)All Cash$207 M$3.40$3.3764,35412/31/220.89%12.50%
+IMGO11/21/22Merck & Co., Inc. (MRK)All Cash$848.46 M$36.00$35.731,555,6613/31/230.76%2.38%
+ABMD11/01/22Johnson & Johnson (JNJ)Special Conditions$16.6 B$380.00$377.2700,9993/31/230.74%2.34%
+EVOP8/01/22Global Payments Inc. (GPN)All Cash$4 B$34.00$33.75227,2983/31/230.74%2.33%
+UMPQ10/12/21Columbia Banking System, Inc. (COLB)All Stock$4.5 B$20.22$20.1936,3683/31/230.57%1.81%
+MGI2/15/22Madison Dearborn Partners, LLC (N/A)All Cash$1.8 B$11.00$10.942,903,75612/31/220.55%7.70%
+AVEO10/18/22LG Chem, Ltd. (N/A)All Cash$440.99 M$15.00$14.92335,3073/31/230.54%1.69%
+POSH10/03/22Naver Corp. (N/A)All Cash$1.2 B$17.90$17.83658,4663/31/230.39%1.24%
+LFG10/17/22BP p.l.c. (BP)All Cash$4.1 B$26.00$25.91,838,62112/31/220.39%5.42%
+MYOV10/23/22Sumitovant Biopharma Ltd. (N/A)All Cash$2.9 B$27.00$26.91327,4333/31/230.33%1.05%
+BTRS9/28/22EQT (N/A)All Cash$1.4 B$9.50$9.471,351,2983/31/230.32%1.00%
+LBAI9/27/22Provident Financial Services, Inc. (PFS)All Stock$1.3 B$18.71$18.68106,7996/30/230.16%0.28%
+GRIN10/12/22Taylor Maritime Investments Limited and Good Falkirk Limited (N/A)Special Conditions$506 M$21.00$20.97308,8913/31/230.14%0.45%
+SWCH5/11/22DigitalBridge Group, Inc. (DBRG)All Cash$11 B$34.25$34.231,042,18512/31/220.06%0.82%
+EMCF3/24/22Farmers National Banc Corp. (FMNB)All Stock$105 M$33.11$33.223,94912/31/22-0.33%-4.65%
+LBC11/13/22Washington Federal, Inc. (WAFD)All Stock$654 M$11.71$11.7620,4416/30/23-0.44%-0.77%
+APEN11/29/22Boston Scientific Corporation (N/A)All Cash$615 M$10.00$10.082,507,1176/30/23-0.79%-1.40%
+OPNT11/14/22Indivior PLC (INDV.L)Special Conditions$145 M$20.00$20.1733,7403/31/23-0.84%-2.65%
+OYST11/07/22Viatris Inc. (VTRS)Special Conditions$281 M$11.00$11.1289,5303/31/23-1.08%-3.40%
+VLDR11/07/22Ouster, Inc. (OUST)All Stock-$16.26 M$1.13$1.163,288,5376/30/23-2.40%-4.23%
+RFP7/06/22The Paper Excellence Group (N/A)Special Conditions$2.7 B$20.50$21.06241,9166/30/23-2.66%-4.69%
+ELSE6/13/22Mobile X Global, Inc. (N/A)All Cash$9.89 M$4.83$4.9978712/31/22-3.21%-45.01%
+PCSB5/24/22Brookline Bancorp, Inc. (BRKL)All Stock$313 M$18.62$19.9729,14712/31/22-6.77%-95.08%
+AYLA10/19/22Advaxis, Inc. (ADXS)All Stock-$4.22 M$0.31$0.5959,6883/31/23-47.43%-149.25%

Disclaimer: I have long positions in Abiomed (ABMD), Activision Blizzard (ATVI), Spirit Airlines (SAVE), Atlas Air Worldwide (AAWW), First Horizon (FHN), Tower Semiconductor (TSEM) and TEGNA (TGNA). 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.