Today - Monday, December 22, 2014
- In addition to announced a dividend hike, SunEdison's TerraForm Power (TERP -1.2%) YieldCo has announced the purchase of 77.6MW of solar plants from a Capital Dynamics fund. The 39 plants come with power purchase agreements that have a weighted average lifetime of 19 years.
- The assets are expected to produce $21M in unlevered cash available for distribution (CAFD) in 2015, and be immediately accretive to CAFD/share.
- Terraform is paying for the deal by expanding the size of its term loan facility. The company is also increasing the size of its revolving credit facility (thus far undrawn) to $215M.
- Wells Fargo turns the spotlight back on the potential unlocked by a combination of Coca-Cola (KO +1.1%) and WhiteWave Foods (WWAV +1.2%).
- The investment firm thinks a deal, full or partial acquisition, is more likely with Coca-Cola in a "partnership" frame of mind.
- WhiteWave brings new categories to the table, while Coca-Cola's enormous distribution network could take WWAV to the next level.
- Sierra Wireless (NASDAQ:SWIR) is acquiring Wireless Maingate, a Swedish provider of M2M connectivity and messaging services for 500+ European clients, for $90M in cash. The deal is expected to close in February.
- With Maingate forecasting 2014 revenue of over $19M (to go with EBITDA of $6M), Sierra is paying less than 5x sales. The purchase is expected to be immediately accretive to earnings.
- Maingate's services connect over 500K M2M devices, and are paired with a service management platform for handling customer interactions. The company also has a data management business (focused on energy services) that will be retained by current shareholders.
- Sierra, already a major provider of M2M hardware, plans to use Maingate to offer European firms "complete device-to-cloud solutions, with fully integrated hardware, embedded software development tools, cloud-based application development, device and subscription management, and wireless services."
- M2M rival Novatel (MIFI +3.1%) is also higher today.
- Oracle (NYSE:ORCL) is buying Datalogix, a top provider of data used to link online ad campaigns with offline purchases. Terms are undisclosed, but the price is likely substantial - Datalogix has raised over $85M over its lifetime, and was reportedly weighing an IPO earlier this year.
- Datalogix's audience analysis solutions provide anonymized demographic data about the consumers targeted through an online ad campaign, and its campaign analysis solutions provide data about the offline purchases yielded by online ads (still more an art than a science).
- Google, Facebook, and Twitter are among the online ad giants to have hired Datalogix. Its 650+ customers also include 82 of the top 100 U.S. advertisers, such as Ford and Kraft.
- The acquisition follows Oracle's purchases of cloud marketing data management platform BlueKai, cloud marketing automation software vendors Eloqua and Responsys, and cloud social media marketing tool providers Vitrue and Collective Intellect.
- Like Salesforce, Adobe, and IBM, Oracle is trying to provide a broad set of online/mobile ad tools for marketers, as more and more ad spend shifts to digital channels and CMOs direct a larger portion of corporate IT spend.
- Datalogix rival Acxiom (NASDAQ:ACXM) is up 0.7% premarket.
- The combined company will have a market cap of $3.2B, based on Friday's closing prices, and a combined cash balance of $1.7B, excluding cash at CEOC.
- Terms: Owners of Caesars Acquisition (NASDAQ:CACQ) will receive 0.664 shares of Caesars Entertainment (NASDAQ:CZR) for each share of CACQ they hold. At the end, Caesars Entertainment stockholders will own about 62% of the combined company. Roughly 90% of stockholders of CZR also own shares of CACQ.
- Caesars Chairman and CEO Gary Loveman will hold the same roles at the combined company, which will be known as Caesars Entertainment and trade under the same symbol.
- Shares are currently halted from premarket trade.
- Source: Press Release (Dec. 22, 2014)
- Caesars Entertainment (NASDAQ:CZR) plans to buy affiliate Caesars Acquisition (NASDAQ:CACQ) in a stock-for-stock merger, the WSJ reports.
- The acquisition, to be announced as soon as today, would better position Caesars Entertainment to restructure the $18.4B debt load of its largest subsidiary - Caesars Entertainment Operating Company.
- Based on Friday's closing share price, Caesars Acquisition is valued at $1.3B.
- XL Group (NYSE:XL) has finalized a £2.5B ($3.95B) takeover of Lloyd’s insurer Catlin (OTCPK:CNGRY), reports the Sunday Times.
- Last Wednesday, Catlin announced that it had been approached by XL about a possible offer of 410 pence in cash and 0.130 share for each Catlin share.
- Previously: XL Group confirms purchase discussions with Catlin Group (Dec. 17 2014)
- Mexico's Federal Competition Commission has approved AT&T's (NYSE:T) $1.7B purchase of local cellphone company Iusacell.
- The competition regulator set conditions on the deal to "avoid risks to the process of competition" in markets where Iusacell would compete with America Movil (NYSE:AMX), which previously counted AT&T as a minority investor.
- AT&T sold its America Movil shares in the summer, before announcing its deal with Iusacell in November.
Sunday, December 21, 2014
- "I consider it unlikely that Pfizer (NYSE:PFE) will return with a bid," reports Swedish business daily Dagens Industri quoting AstraZeneca (NYSE:AZN) CEO Pascal Soriot. "I can't say it will never happen, but the probability that Pfizer returns is much less."
- Although British takeover rules now allow Pfizer to renew its pursuit of AstraZeneca, the recent U.S. clampdown on tax inversions makes an acquisition unlikely.
- Pfizer also reached a major cancer drug deal with Merck KGaA last month, reducing its need for AstraZeneca's products.
- Previously: Astrazeneca cools speculation for another takeover bid (Nov. 28 2014)
Saturday, December 20, 2014
- Safeway (NYSE:SWY) and Albertsons have agreed to sell 168 stores across eight states, mostly in the western U.S., in a bid to gain merger approval from U.S. antitrust regulators.
- The companies, which together own ~2,400 stores, say they expect the buyers to hire most, if not all existing store workers.
- The biggest beneficiary of the deal appears to be the Haggen chain, which is purchasing 146 stores and adding ~$750M in sales.
Friday, December 19, 2014
- News Corp. (NASDAQ:NWS) has bought BigDecisions.com, a site that "aims to help Indian consumers make smarter financial decisions through interactive, decision-making tools powered by sophisticated algorithms and data." Terms are undisclosed.
- With News Corp. stating BigDecisions.com has "helped some 40,000 users," the site appears to have a fairly small base as of now. Last month, News Corp. spent $30M to take a 25% stake in Indian real estate site PropTiger.com.
- S&W Seed (NASDAQ:SANW) agrees to acquire of all of DuPont Pioneer's (NYSE:DD) alfalfa production and research facility assets, as well as all non-GMO alfalfa germplasm, for up to $42M.
- S&W also agrees to be DuPont Pioneer's sole supplier of alfalfa seed through 2024.
- S&W expects the alfalfa business to contribute $26M of incremental annual revenues in FY 2015 and $40M in FY 2016.
- The Delaware Supreme Court overturns a lower court ruling that had halted a deal by C&J Energy Services (CJES +0.7%) and Nabors Industries (NBR +6.1%), saying there was not enough evidence showing the C&J board had short-changed its shareholders.
- A lower court last month held up C&J’s merger with a Nabors unit, finding C&J’s board did not adequately shop the company; the situation was unusual in part because C&J's board and management would keep control, while the new entity is to be incorporated in NBR’s home of Bermuda and 53% controlled by NBR.
10:17 AM| 4 Comments
- Republic Services (NYSE:RSG) has agreed to acquire Tervita LLC, an environmental waste solutions subsidiary of Tervita Corporation.
- "The acquisition of this vertically integrated operation allows Republic Services to establish a significant platform in the E&P waste sector and positions us well for future growth opportunities," announced CEO of Republic Services Donald Slager.
- Xerox (NYSE:XRX) has agreed to sell its IT outsourcing unit to French IT services firm Atos for $1.05B.
- "By divesting the slower-growing unit...Xerox can now focus on building up the faster-growing units, business process outsourcing and document outsourcing," said president of Xerox services business Robert Zapfel.
- Xerox also revised its adjusted earnings forecast of $0.28-$0.30 per share for the current quarter ending Dec. 31 from $0.30-$0.32 per share. Analysts were expecting a profit of $0.31.
- XRX +3.7% AH
Thursday, December 18, 2014
- Bloomberg reports Telecom Italia (NYSE:TI) is "leaning toward making an all-stock offer" through 67%-owned TIM Participacoes (NYSE:TSU) to merge with Brazilian rival Oi (NYSE:OIBR), should it bid for Oi.
- However, sources add TI wants a thumbs-up from Brazil's telecom regulator before it makes a move, and is unlikely to decide on its plans before February or March. An all-stock offer would allow debt-laden TI to avoid hurting its credit rating.
- The latest wrinkle to Brazil's telecom drama comes a week after Bloomberg reported Oi, America Movil/Claro, and Telefonica/Vivo plan to jointly offer $15B for TIM. Such a deal could be easier for regulators to swallow, since it would spread TIM's assets between three carriers.
- Oi rose 10.7% in regular trading today, aided by a market rally. Shares made a new 52-week low of $0.33 on Wednesday.
- Prior Oi/TIM coverage
- Along with its results, NQ Mobile announces it has signed an MOU with Hong Kong-listed Chinese apparel retailer Tack Fiori, under which Tack proposes to buy NQ's FL Mobile game-publishing unit for $570M-$630M in stock.
- The shares would be issued at a price representing a 10%-20% discount to Tack's average closing price over the 30 trading days prior to the signing of the MOU. With Tack having a $666M market cap as of today's close, the deal would make NQ Tack's controlling shareholder.
- NQ previously sold a 3.58% stake in FL to Bison Capital for $15M, and a 0.92% stake to other investors for $3.85M.
- Q3 results, PR
- Germany's Manager Magazin reports Alcatel-Lucent (ALU +4.8%) and Nokia (NOK +0.6%) have revived M&A talks this fall, and could agree to a merger or close partnership.
- Reuters reported a year ago Nokia was "discussing internally" whether it should pursue a tie-up with Alcatel-Lucent, after reaching a deal to sell its phone unit to Microsoft. The WSJ later reported Nokia had decided not to pursue an Alcatel deal for the time being.
- Nokia and Alcatel have considerable mobile infrastructure overlap, but a relatively limited amount of wireline equipment overlap. Alcatel's carrier IP networking (router/switch) ops are often seen as the company's most valuable asset.
- Nokia is currently worth $30B, and Alcatel $9.8B. The latter has been aggressively cutting costs.
- Merck (NYSE:MRK) acquires privately-held Lausanne, Switzerland-based Oncoethix for an upfront payment of $110M and up to an additional $265M in clinical and regulatory milestones.
- Oncoethix's lead product is OTX015, a BET bromodomain inhibitor (2,3,4) currently in Phase 1b development for the treatment of hematological malignancies and advanced solid tumors.
- Bromodomain proteins 2,3 and 4 are considered potential cancer targets because of their pivotal role in regulating the transcription of growth-promoting genes and cell cycle regulators. In experimental models, the inhibition of BRD2/3/4 produced a potent antiproliferative effect associated with cell cycle arrest and cellular senescence.