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Online Marketplaces Company CoStar Acquires 3D Technology Company – Merger Arbitrage Mondays

  • April 29, 2024
Matterport (MTTR): $4.72 Market Cap: $1.48B Deal Size: $1.6B It has been a while since I saw deals with collars and in the span of two weeks, we have had two of them that we ended up classifying as “special conditions” deals. In deals with collars, the stock portion of a cash plus stock deal or all stock deal is not fixed. For example, when Synopsys (SNPS) announced the acquisition of Ansys (ANSS) in January, it agreed to pay Ansys shareholders $197 in cash and 0.345 shares of Synopsys shares for a total deal value of about $390 at announcement. The stock portion in this deal remains fixed and so the deal value rises and falls based on the price of Synopsys shares. The shares of Ansys currently trade at $333.80 despite a rise in Synopsys shares since January, translating to a spread of 15.17% on the deal. The acquisition of Matterport (MTTR) by CoStar (CSGP) in a $1.6 billion transaction announced last week is also a cash plus stock deal but the stock portion is subject to a collar. CoStar is a company that operates several online property marketplaces including Apartments.com, LoopNet, CoStar, and Homes.com. Matterport develops 3D technology...

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