There were some big gainers on Tuesday, led by Radiant Systems (RADS) after it was bought out.
RADS rose 30% after it agreed to be acquired. NCR Corporation (NCR) and the company announced a definitive agreement for NCR to acquire Radiant Systems, a provider of multichannel point-of-sale and managed hosted service solutions to the hospitality and specialty retail markets, through a cash tender offer of $28.00 per Radiant Systems share. The equity purchase price of $1.2 billion has been approved by the boards of directors of each company. NCR and Radiant Systems currently anticipate the transaction will close during the third quarter of 2011, subject to regulatory approval. The acquisition will be financed through a combination of new debt and existing balance sheet cash. NCR will raise approximately $1.1 billion of new funded debt to finance the transaction.
Clean Energy Fuels (CLNE) jumped 15% after Chesapeake Energy (CHK) agreed to invest $150 million in the company. In a major alliance supporting the growing transition by major shippers and trucking operators from diesel to natural gas fuel, Chesapeake Energy is investing $150 million in Clean Energy Fuels. The investment is dedicated to help fund the development of approximately 150 LNG truck fueling stations at strategic truck-stop locations along major trucking corridors to form the backbone of “America’s Natural Gas Highway.” The investment is in the form of convertible debt issued in three tranches of $50 million each that will provide the funding for a newly formed subsidiary of Clean Energy that will be dedicated to the LNG station build out. The first $50 million investment closed today, July 11, 2011, and the second and third tranches are expected to close in June 2012, and June 2013, respectively.
Lentuo International (LAS) rose 10% after it provided FY11 guidance and agreed to acquire an Audi dealership. The company said that in 2011, it expects to generate total revenue of RMB 3.5 billion to 4.0 billion, or $541 million to $618 million. The analyst forecast was for $537 million.
The company also announced that it signed a binding Letter of Intent to acquire a controlling interest in an Audi dealership in Zhejiang Province, People's Republic of China. The dealership sold 1,800 vehicles and generated RMB 800 million ($124 million) in revenue during 2010. The company expects the dealership to contribute approximately RMB 200 million ($31 million) in revenue to Lentuo for the fourth quarter ending December 31, 2011, and approximately RMB 1 billion ($154 million) in revenues to Lentuo for 2012
CVD Equipment (CVV) rose 6% after recording record 1H2011 orders. The company announced record orders of approximately $24.6M for the six months ended June 30, 2011, an increase of 165% compared with $9.3M for the 6 months ended June 30, 2010. Orders continue to be booked at high levels, as the company received approximately $8.4M of new orders for the three months ended June 30, 2011, also a record high for a quarter ended June 30. Orders for the twelve months ended June 30, 2011 were $40.4M, an increase of 193% compared with $13.8M for the 12 months ended June 30, 2010. The orders received in the 6 and 12 month periods surpass those of all previous 6 and 12 month periods respectively.
Conmed Healthcare Management (CONM) climbed 6% after it agreed to be bought out. The company said that it entered into a definitive merger agreement to be acquired by Ayelet Investments, an affiliate of James Desnick, M.D., for $3.85 per share in cash, or an aggregate purchase price of approximately $57.2 million. The board of directors of Conmed has unanimously approved the transaction. The transaction has fully committed financing to be provided by Levine Leichtman Capital Partners, a Los Angeles, California, based private equity firm with approximately $5.0 billion of assets under management, and Ayelet Investments and its affiliates. The transaction is expected to close in the third quarter of 2011, subject to the satisfaction of a number of closing conditions, including the approval of Conmed’s stockholders and other customary closing conditions.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.