Merger activity spiked sharply higher with thirteen new deals announced and six closing. Four of the new deals announced are over a billion dollars. We have not seen such frenzied activity since we started reporting on mergers more than two years ago. One of the deals that is not included below is the $792 million takeover offer for satellite imaging products company DigitalGlobe (DGI) by rival GeoEye (GEOY), which was rejected by the board on Sunday. We mentioned insider purchases of GeoEye by private equity fund Cerberus Capital Management in one of our Insider Weekends series of posts.
You can find all the active deals listed below in our Merger Arbitrage Tool that automatically updates itself during market hours.
Deal Statistics:
| Total Number of Deals Closed in 2012 | 58 |
| Total Number of Pending Deals | |
| Cash Deals | 41 |
| Stock Deals | 10 |
| Stock & Cash Deals | 7 |
| Total Number of Pending Deals | 58 |
| Total Deal Size | $382.18 billion |
New Deals:
- The acquisition of Sunoco (SUN) by Energy Transfer Partners (ETP) for $5.3 billion in a cash plus stock deal. Under the terms of the transaction, shareholders of Sunoco can either receive $50 in cash, 1.0490 ETP common unit or a combination of $25 in cash and 0.5245 ETP common units for each Sunoco share.
- The acquisition of Books-A-Million (BAMM) by The Anderson Family for $48.8 million or $3.05 per share in cash.* Since the Anderson family already owns 53% of the company and Clyde Anderson is the Chairman of the Board, this is essentially a “going private” transaction. The deal has not yet been approved by the board and hence we have not yet included it in the list of pending deals below or in our merger arbitrage spread tool.
- The acquisition of Gen-Probe (GPRO) by Hologic (HOLX) for $3.7 billion or $82.75 per share in cash.
- The acquisition of PLX Technology (PLXT) by Integrated Device Technology (IDTI) for $330 million in a cash plus stock deal. Under the terms of the agreement, shareholders of PLX Technology will receive $3.50 in cash and 0.525 shares of IDT common stock for each PLX common share outstanding.
- The acquisition of Imperial Sugar (IPSU) by Louis Dreyfus Commodities LLC for $203 million or $6.35 per share in cash.
- The acquisition of P.F. Chang’s China Bistro (PFCB) by Centerbridge Partners LP for $1.09 billion or $51.50 per share in cash.
- The acquisition of Collective Brands (PSS) by a consortium comprised of Wolverine Worldwide (WWW), Blum Capital Partners and Golden Gate Capital for $2 billion or $21.75 per share in cash.
- The acquisition of Central Bancorp (CEBK) by Independent Bank Corp (INDB) for $54.8 million or $32.00 per share in cash. According to the press release, “Under the terms of the agreement, 60% of outstanding Central Bancorp., Inc. shares will be exchanged for shares of Independent Bank Corp., at an exchange ratio subject to limited adjustment, and 40% of outstanding Central Bancorp., Inc. shares will be purchased for $32.00 per share in cash.” Since the exchange ratio is subject to adjustment, we are going to treat this as an all cash deal in our arbitrage tool.
- The acquisition of EasyLink Services International Corporation (ESIC) by Open Text Corp (OTEX) for $232 million or $7.25 per share in cash.
- The acquisition of Charming Shoppes (CHRS) by Ascena Retail Group (ASNA) for $890 million or $7.35 per share in cash.
- The acquisition of Standard Microsystems Corporation (SMSC) by Microchip Technology (MCHP) for $939 million or $37.00 per share in cash.
- The acquisition of Kensey Nash Corporation (KNSY) by Royal DSM for $38.50 per share in cash.
- The acquisition of Alliance Bankshares Corporation (ABVA) by Washington First Bankshares (WFBI.OB) for $24.4 million in a cash plus stock deal. Under the terms of the agreement, shareholders of Alliance Bankshares Corporation will receive, at their election, either 0.4435 shares of WFBI common stock or cash in the amount of $5.30 for each share of Alliance common stock owned, provided that no more than 20% of the Alliance common shares may elect to receive cash.
Updated Deals:
- On May 1, 2012, shares of Pep Boys (PBY) fell 25% to $11 after the company reported that the Gores Group is trying to delay the deal following a drop in Pep Boys sales.
Closed Deals:
- The acquisition of Midas (MDS) by TBC Corporation on April 30, 2012.
- The acquisition of RSC Holdings (RRR) by United Rentals (URI) on April 30, 2012.
- The acquisition of LoopNet (LOOP) by CoStar Group (CSGP) on May 01, 2012.
- The acquisition of Harleysville Group Inc. (HGIC) by Nationwide Mutual Insurance Company on May 01, 2012.
- The acquisition of Convio (CNVO) by Blackbaud (BLKB) on May 03, 2012.
- The acquisition of Great Wolf Resorts, Inc. (WOLF) by an affiliate of Apollo Global Management, LLC on May 04, 2012.
Top 10 deals with largest spreads:
| Symbol | Announced Date | Acquiring Company | Closing Price | Last Price | Closing Date | Profit | Annualized Profit |
|---|---|---|---|---|---|---|---|
| PBY | 01/30/2012 | The Gores Group (N/A) | $15.00 | $11.19 | 06/30/2012 | 34.05% | 230.14% |
| CADC | 10/24/2011 | Novel Gain Holdings Limited (N/A) | $2.65 | $2.12 | 06/30/2012 | 25.00% | 168.98% |
| VQ | 01/16/2012 | Denver Parent Corporation (N/A) | $12.50 | $10.83 | 06/30/2012 | 15.42% | 104.23% |
| GEOI | 04/25/2012 | Halcon Resources (HK) | $38.84 | $35.92 | 09/30/2012 | 8.12% | 20.30% |
| INCB | 01/25/2012 | Old National Bancorp Capital (ONB) | $23.48 | $21.75 | 06/30/2012 | 7.97% | 53.89% |
| TUDO | 03/12/2012 | Youku Inc. (YOKU) | $38.31 | $36.01 | 09/30/2012 | 6.39% | 15.98% |
| CEBK | 05/01/2012 | Independent Bank Corp. (INDB) | $32.00 | $30.27 | 12/31/2012 | 5.72% | 8.76% |
| ABVA | 05/03/2012 | Washington First Bankshares (WFBI.OB) | $4.77 | $4.51 | 12/31/2012 | 5.71% | 8.76% |
| TAM | 01/19/2011 | LAN Airlines S.A. (LFL) | $25.08 | $24.21 | 06/30/2012 | 3.61% | 24.37% |
| SCMF | 03/27/2012 | Capital Bank Financial Corp (N/A) | $2.88 | $2.78 | 06/30/2012 | 3.60% | 24.31% |
List of all pending deals:
| Symbol | Announced Date | Acquiring Company | Deal Type | Closing Value | Closing Price | Last Price | Volume | Closing Date | Profit | Annu. Profit | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| + | PBY | 01/30/2012 | The Gores Group (N/A) | All Cash | $1 billion | $15.00 | $11.19 | 1,442,384 | 06/30/2012 | 34.05% | 230.14% |
| + | CADC | 10/24/2011 | Novel Gain Holdings Limited (N/A) | All Cash | N/A | $2.65 | $2.12 | 5,800 | 06/30/2012 | 25.00% | 168.98% |
| + | VQ | 01/16/2012 | Denver Parent Corporation (N/A) | All Cash | $1.5 billion | $12.50 | $10.83 | 375,973 | 06/30/2012 | 15.42% | 104.23% |
| + | GEOI | 04/25/2012 | Halcon Resources (HK) | Cash Plus Stock | $1 billion | $38.84 | $35.92 | 583,752 | 09/30/2012 | 8.12% | 20.30% |
| + | INCB | 01/25/2012 | Old National Bancorp Capital (ONB) | All Stock | $79.2 million | $23.48 | $21.75 | 5,960 | 06/30/2012 | 7.97% | 53.89% |
| + | TUDO | 03/12/2012 | Youku Inc. (YOKU) | All Stock | $1 billion | $38.31 | $36.01 | 49,991 | 09/30/2012 | 6.39% | 15.98% |
| + | CEBK | 05/01/2012 | Independent Bank Corp. (INDB) | All Cash | $54.8 million | $32.00 | $30.27 | 1,200 | 12/31/2012 | 5.72% | 8.76% |
| + | ABVA | 05/03/2012 | Washington First Bankshares (WFBI.OB) | All Stock | $24.4 million | $4.77 | $4.51 | N/A | 12/31/2012 | 5.71% | 8.76% |
| + | TAM | 01/19/2011 | LAN Airlines S.A. (LFL) | All Stock | N/A | $25.08 | $24.21 | 322,221 | 06/30/2012 | 3.61% | 24.37% |
| + | SCMF | 03/27/2012 | Capital Bank Financial Corp (N/A) | All Cash | N/A | $2.88 | $2.78 | 5,200 | 06/30/2012 | 3.60% | 24.31% |
| + | PGN | 01/10/2011 | Duke Energy Corporation (DUK) | All Stock | $13.7 billion | $56.33 | $54.43 | 3,259,944 | 07/01/2012 | 3.48% | 23.11% |
| + | MMI | 08/15/2011 | Google (GOOG) | All Cash | $12.5 billion | $40.00 | $38.80 | 4,092,372 | 06/30/2012 | 3.09% | 20.90% |
| + | EP | 10/16/2011 | Kinder Morgan, Inc. (KMI) | Cash Plus Stock | $21 billion | $30.37 | $29.61 | 8,072,464 | 06/30/2012 | 2.56% | 17.33% |
| + | CMFB | 12/20/2011 | Sandy Spring Bancorp Inc. (SASR) | All Stock | $25.4 million | $14.20 | $13.86 | N/A | 06/30/2012 | 2.42% | 16.38% |
| + | PSS | 05/01/2012 | a consortium comprised of Wolverine Worldwide, Blum Capital Partners and Golden Gate Capital (WWW) | All Cash | $2 billion | $21.75 | $21.25 | 2,115,298 | 10/31/2012 | 2.35% | 4.85% |
| + | RFMI | 04/13/2012 | Murata Manufacturing (N/A) | All Cash | $19.6 million | $1.78 | $1.74 | 41,791 | 09/30/2012 | 2.30% | 5.75% |
| + | GPRO | 04/30/2012 | Hologic, Inc. (HOLX) | All Cash | $3.7 billion | $82.75 | $81.13 | 3,033,835 | 12/31/2012 | 2.00% | 3.06% |
| + | GR | 09/21/2011 | United Technologies Corp. (UTX) | All Cash | $18.4 billion | $127.50 | $125.10 | 551,740 | 06/30/2012 | 1.92% | 12.97% |
| + | SRSL | 04/17/2012 | DTS, Inc. (DTSI) | Cash Plus Stock | $148 million | $9.52 | $9.35 | 175,192 | 09/30/2012 | 1.87% | 4.68% |
| + | SMSC | 05/02/2012 | Microchip Technology Inc. (MCHP) | All Cash | $939 million | $37.00 | $36.41 | 1,215,153 | 09/30/2012 | 1.62% | 4.05% |
| + | CHSI | 04/18/2012 | SXC Health Solutions, Corp. (SXCI) | Cash Plus Stock | $4.4 billion | $88.44 | $87.07 | 832,036 | 12/31/2012 | 1.58% | 2.42% |
| + | KNOL | 04/18/2012 | WOW! Internet, Cable & Phone (N/A) | All Cash | $1.5 billion | $19.75 | $19.45 | 380,939 | 09/30/2012 | 1.54% | 3.86% |
| + | SURW | 02/06/2012 | Consolidated Communications Holdings, Inc. (CNSL) | All Cash | $340.9 million | $23.00 | $22.66 | 101,508 | 06/30/2012 | 1.50% | 10.14% |
| + | ERT | 04/10/2012 | Genstar Capital LLC (N/A) | All Cash | $400 million | $8.00 | $7.89 | 376,862 | 09/30/2012 | 1.39% | 3.49% |
| + | ESIC | 05/01/2012 | Open Text Corp. (OTEX) | All Cash | $232 million | $7.25 | $7.16 | 2,719,849 | 09/30/2012 | 1.26% | 3.14% |
| + | EBTX | 03/06/2012 | Cadence Bancorp (N/A) | All Cash | $250 million | $20.62 | $20.37 | 33,340 | 12/31/2012 | 1.23% | 1.88% |
| + | PCBC | 03/12/2012 | UnionBanCal Corp. (N/A) | All Cash | $1.51 billion | $46.00 | $45.46 | 53,352 | 12/31/2012 | 1.19% | 1.82% |
| + | DRJ | 04/16/2012 | Fanatics (N/A) | All Cash | $183 million | $3.45 | $3.41 | 167,517 | 09/30/2012 | 1.17% | 2.93% |
| + | COMV | 03/26/2012 | Peak Merger Corp (N/A) | All Cash | $49 million | $1.75 | $1.73 | 798,057 | 06/30/2012 | 1.16% | 7.81% |
| + | ABVT | 03/19/2012 | Zayo Group (N/A) | All Cash | $2.2 billion | $84.00 | $83.14 | 269,532 | 06/30/2012 | 1.03% | 6.99% |
| + | RDEA | 04/23/2012 | AstraZeneca (AZN) | All Cash | $1.26 billion | $32.00 | $31.70 | 2,583,952 | 09/30/2012 | 0.95% | 2.37% |
| + | CV | 07/12/2011 | Gaz metro Limited Partnership (N/A) | All Cash | $702 million | $35.25 | $34.95 | 41,947 | 06/30/2012 | 0.86% | 5.80% |
| + | EF | 04/16/2012 | Lee Equity Partners, LLC (N/A) | All Cash | $258 million | $8.85 | $8.78 | 170,082 | 09/30/2012 | 0.80% | 1.99% |
| + | PLXT | 04/30/2012 | Integrated Device Technology, Inc. (IDTI) | Cash Plus Stock | $330 million | $6.64 | $6.59 | 1,331,873 | 06/30/2012 | 0.75% | 5.08% |
| + | ADGF | 03/19/2012 | TaylorMade-adidas Golf business (N/A) | All Cash | $70 million | $10.80 | $10.72 | 9,516 | 06/30/2012 | 0.75% | 5.04% |
| + | SOA | 01/27/2012 | Eastman Chemical Company (EMN) | Cash Plus Stock | $4.7 billion | $28.09 | $27.90 | 1,888,104 | 06/30/2012 | 0.66% | 4.49% |
| + | ISTA | 03/26/2012 | Bausch + Lomb (N/A) | All Cash | $500 million | $9.10 | $9.04 | 554,028 | 06/30/2012 | 0.66% | 4.49% |
| + | QSFT | 03/09/2012 | Insight Venture Partners (N/A) | All Cash | $2 billion | $23.00 | $22.85 | 991,153 | 09/30/2012 | 0.66% | 1.64% |
| + | CHRS | 05/02/2012 | Ascena Retail Group Inc. (ASNA) | All Cash | $890 million | $7.35 | $7.305 | 9,366,634 | 06/30/2012 | 0.62% | 4.16% |
| + | RVSN | 03/15/2012 | Avaya (N/A) | All Cash | $230 million | $11.85 | $11.78 | 96,942 | 06/15/2012 | 0.59% | 5.56% |
| + | ALTH | 04/05/2012 | Spectrum Pharmaceuticals (SPPI) | All Cash | $206 million | $1.82 | $1.81 | 488,107 | 06/30/2012 | 0.55% | 3.73% |
| + | VIST | 01/26/2012 | Tompkins Financial Corporation (TMP) | All Stock | 86 million | $11.43 | $11.37 | 5,338 | 09/30/2012 | 0.52% | 1.30% |
| + | KNSY | 05/03/2012 | Royal DSM (N/A) | All Cash | N/A | $38.50 | $38.32 | 736,445 | 06/30/2012 | 0.47% | 3.18% |
| + | NVLS | 12/14/2011 | Lam Research Corp (LRCX) | All Stock | $3.3 billion | $45.27 | $45.10 | 1,053,786 | 06/30/2012 | 0.38% | 2.55% |
| + | ARCL | 03/05/2012 | PLATO Learning (N/A) | All Cash | $291 million | $11.10 | $11.06 | 96,045 | 06/30/2012 | 0.36% | 2.44% |
| + | XRIT | 04/10/2012 | Danaher (DHR) | All Cash | $625 million | $5.55 | $5.53 | 383,733 | 06/30/2012 | 0.36% | 2.44% |
| + | DDIC | 04/04/2012 | Viasystems Group Inc. (VIAS) | All Cash | $268 million | $13.00 | $12.96 | 108,776 | 07/31/2012 | 0.31% | 1.33% |
| + | FFFD | 03/13/2012 | Great Western Bancorporation, Inc. (N/A) | All Cash | $41.5 million | $30.58 | $30.50 | N/A | 08/31/2012 | 0.26% | 0.83% |
| + | SUN | 04/30/2012 | Energy Transfer Partners, L.P. (ETP) | Cash Plus Stock | $5.3 billion | $50.32 | $50.23 | 3,209,070 | 12/31/2012 | 0.17% | 0.27% |
| + | TNB | 01/30/2012 | ABB Ltd (ABB) | All Cash | $3.9 billion | $72.00 | $71.88 | 423,104 | 06/30/2012 | 0.17% | 1.13% |
| + | PFCB | 05/01/2012 | Centerbridge Partners LP (N/A) | All Cash | $1.09 billion | $51.50 | $51.44 | 2,165,956 | 09/30/2012 | 0.12% | 0.29% |
| + | CHUX | 02/06/2012 | Fidelity National Financial, Inc. (FNF) | All Cash | $221 million | $9.85 | $9.84 | 179,858 | 06/30/2012 | 0.10% | 0.69% |
| + | OPXT | 03/26/2012 | Oclaro, Inc. (OCLR) | All Stock | $177 million | $1.07 | $1.07 | 332,415 | 06/30/2012 | 0.09% | 0.63% |
| + | CRYP | 02/02/2012 | Amaya Gaming Group (N/A) | All Cash | $35.82 million | $2.54 | $2.538 | 4,600 | 05/15/2012 | 0.08% | 3.60% |
| + | CHG | 02/21/2012 | Fortis Inc. (N/A) | All Cash | $1.5 billion | $65.00 | $65.42 | 71,067 | 03/31/2013 | -0.64% | -0.71% |
| + | IPSU | 05/01/2012 | Louis Dreyfus Commodities LLC (N/A) | All Cash | $203 million | $6.35 | $6.42 | 461,339 | 06/30/2012 | -1.09% | -7.37% |
| + | DFG | 12/21/2011 | Tokio Marine Holdings (N/A) | All Cash | $2.7 billion | $44.80 | $45.30 | 397,511 | 06/30/2012 | -1.10% | -7.46% |
| + | BXG | 11/14/2011 | BFC Financial Corporation (BFCF.PK) | All Stock | N/A | $4.95 | $5.15 | 67,229 | 06/30/2012 | -3.80% | -25.67% |
Disclosure: I hold long positions in GeoEye (GEOY) and Motorola Mobility (MMI) in my personal portfolio. See author's portfolio holdings here.
