Merger activity increased last week with twelve new deals announced and three pending deals closing.
|Total Number of Deals Closed in 2018||141|
|Total Number of Deals Not Completed in 2018||14|
|Total Number of Pending Deals|
|Stock & Cash Deals||17|
|Total Number of Pending Deals||103|
|Total Deal Size||$1.32 trillion|
- The acquisition of Datawatch Corporation (DWCH) by Altair (ALTR) for $176 million, or $13.10 per share in cash. We added DWCH as a potential deal to the Deals in the Works section on January 5, 2018, and the price after the news of the potential deal came out was $11.40.
- The acquisition of Inuvo (INUV) by ConversionPoint Technologies for $75.5 million, or $2.22 per share in cash.
- The acquisition of Bojangles' (BOJA) by Durational Capital Management and The Jordan Company for $675.15 million, or $16.10 per share in cash. We added BOJA as a potential deal to the Deals in the Works section on September 28, 2018, and the price after the news of the potential deal came out was $15.70.
- The acquisition of ConvergeOne Holdings (CVON) by affiliates of CVC Fund VII for $1.8 billion, or $12.50 per share in cash.
- The acquisition of Investment Technology Group (ITG) by Virtu Financial (VIRT) for $558.73 million, or $30.30 per share in cash. We added ITG as a potential deal to the Deals in the Works section on October 4, 2018, and the price after the news of the potential deal came out was $27.65.
- The acquisition of Owens Realty Mortgage (ORM) by Ready Capital Corporation (RC) for $257.89 million in an all-stock deal. Under the terms of the agreement, each ORM share will be converted into 1.441 Ready Capital shares, based on a fixed exchange ratio. The exchange ratio is subject to certain adjustments if either company’s book value per share, as defined in the merger agreement, declines by more than 3%.
- The acquisition of Asterias Biotherapeutics (AST) by BioTime (BTX) for $79.21 million in an all-stock deal. Under the terms of the merger agreement, Asterias stockholders will receive 0.71 common share of BioTime for each share of common stock of Asterias they own.
- The acquisition of Western Gas Partners (WES) by Western Gas Equity Partners (WGP) for $11.47 billion in an all-stock deal. Under the terms of the Agreement, the public unitholders of WES will receive 1.525 units of WGP per WES unit owned.
- The acquisition of ARRIS International (ARRS) by CommScope (COMM) for $7.4 billion, or $31.75 per share in cash.
- The acquisition of Finisar Corporation (FNSR) by II-VI Incorporated (IIVI) for $2.15 billion in a cash-plus-stock deal. Under the terms of the agreement, Finisar’s stockholders will receive $15.60 per share in cash and 0.2218 shares of II-VI common stock.
- The acquisition of Black Box Corporation (BBOX) by AGC Networks for $209.52 million, or $1.08 per share in cash.
- The acquisition of Apptio (APTI) by an affiliate of Vista Equity Partners for $1.94 billion, or $38.00 per share in cash.
- On November 5, 2018, Barrick Gold Corporation (ABX) announced that the company’s shareholders have voted to approve the issuance of Barrick common shares in connection with the merger of Barrick and Randgold Resources Limited (GOLD).
- On November 6, 2018, B. Riley Financial (RILY) and magicJack VocalTec (CALL) announced that they have received regulatory approval from the U.S. Federal Communications Commission related to B. Riley’s pending acquisition of magicJack. The parties have agreed to a scheduled closing date of November 14, 2018.
- On November 6, 2018, Walt Disney's (DIS) offer to buy Twenty-First Century Fox Inc's (FOXA) entertainment assets won approval from the European Commission, subject to Disney selling interests in factual TV channels in Europe.
- On November 7, 2018, Randgold Resources shareholders approved the all-stock takeover by Barrick Gold.
- On November 7, 2018, Hydro One Limited (OTC:HRNNF) and Avista Corporation (AVA) announced the five independent directors selected to serve on the new Avista Board of Directors, if the proposed merger is approved by utility commissions in Washington, Idaho and Oregon.
- On November 7, 2018, Dun & Bradstreet (DNB) announced that its stockholders voted to approve the proposed merger transaction with an investor group led by affiliates of CC Capital Partners LLC, Bilcar, LLC, Cannae Holdings, Inc. (CNNE) and funds affiliated with Thomas H. Lee Partners, L.P.
- On November 7, 2018, stockholders of K2M Group Holdings (KTWO) approved the adoption of the Agreement and Plan of Merger by and among Stryker Corporation (SYK), Austin Merger Sub Corp. and K2M.
- November 12, 2018: According to Reuters, Takeda Pharmaceutical (OTCPK:TKPHF) announced that it will seek investor backing for its acquisition of Shire (SHPG) next month and aims to close the deal on January 8, 2019. Takeda also said that it would hold an extraordinary general meeting of shareholders to vote on the purchase on December 5, 2018.
- The acquisition of CA, Inc. (CA) by Broadcom (AVGO) on November 5, 2018. It took 117 days for this deal to be completed.
- The acquisition of WSI Industries (WSCI) by Polaris Industries (PII) on November 7, 2018. It took 62 days for this deal to be completed.
- The acquisition of K2M Group Holdings by Stryker Corporation on November 9, 2018. It took 71 days for this deal to be completed.
Top 10 deals with largest spreads:
|Symbol||AnnouncedDate||Acquiring Company||Closing Price||Last Price||Closing Date||Profit||Annualized Profit|
|INUV||11/05/2018||ConversionPoint Technologies, Inc. (N/A)||$2.22||$1.18||03/31/2019||88.14%||231.44%|
|APTI||11/11/2018||An affiliate of Vista Equity Partners (N/A)||$38.00||$24.85||03/31/2019||52.92%||138.96%|
|KANG||03/26/2018||IK Healthcare Investment Limited (N/A)||$20.60||$15.9||10/31/2018||29.56%||-899.11%|
|EHIC||04/06/2018||Teamsport Parent Limited (N/A)||$13.50||$10.5||12/31/2018||28.57%||212.83%|
|BBOX||11/11/2018||AGC Networks Ltd (N/A)||$1.08||$0.87||12/31/2018||24.14%||179.80%|
|SCG||01/03/2018||Dominion Energy, Inc. (D)||$48.34||$40.18||12/31/2018||20.30%||151.19%|
|GNW||10/23/2016||China Oceanwide Holdings Group Co., Ltd. (OTC:HHRBF)||$5.43||$4.63||12/01/2018||17.28%||331.93%|
|ORBK||03/19/2018||KLA-Tencor Corporation (KLAC)||$62.68||$54.7||12/31/2018||14.59%||108.67%|
|S||04/29/2018||T-Mobile US, Inc. (TMUS)||$7.04||$6.19||06/30/2019||13.79%||21.89%|
|RSYS||07/02/2018||Reliance Industries Limited (N/A)||$1.72||$1.54||12/31/2018||11.69%||87.07%|
Disclaimer: I hold positions in Finisar Corp., Rockwell Collins (COL), Pandora (P), Radisys, and magicJack VocalTec. 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.
Disclosure: I am/we are long FNSR, COL, P, RSYS, CALL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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