Merger activity increased last week with three new deals announced and two pending deals closing.
Deal Statistics:
| Total Number of Deals Closed in 2019 | 51 |
| Total Number of Deals Not Completed in 2019 | 1 |
| Total Number of Pending Deals | |
| Cash Deals | 29 |
| Stock Deals | 19 |
| Stock & Cash Deals | 11 |
| Special Conditions | 5 |
| Total Number of Pending Deals | 64 |
| Total Deal Size | $698.75 billion |
New Deals:
- The acquisition of Mellanox Technologies (MLNX) by NVIDIA Corporation (NVDA) for $6.9 billion or $125 per share in cash.
- The acquisition of Osiris Therapeutics (OSIR) by Smith & Nephew (SNN) for $660.5 million or $19.00 per share in cash.
- The acquisition of Pointer Telocation (PNTR) by I.D. Systems (IDSY) for $140 million in a cash plus stock deal. Under the terms of the agreement, Pointer shareholders will receive $8.50 in cash and 1.272 shares of PowerFleet common stock for each share of Pointer common stock they own.
Deal Updates:
- On March 11, 2019, eHi Car Services Limited (EHIC) announced that it has called an extraordinary general meeting of shareholders to be held on April 8, 2019.
- On March 11, 2019, Entegris (ENTG) and Versum Materials (VSM) announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, in connection with the previously-announced merger of equals between the two companies.
- March 11, 2019, According to Bloomberg, Barrick Gold (GOLD) may have withdrawn its pursuit of rival Newmont Mining (NEM), but the hostile-takeover bid did yield a big prize: Control over the largest single gold mining operation in the world.
- March 12, 2019: According to the Wall Street Journal, Walt Disney (DIS) expects to close its acquisition of major assets of Twenty-First Century Fox (FOX) on March 20.
- On March 12, 2019, Tribune Media Company (TRCO) announced that the stockholders of the Company voted overwhelmingly to approve the Company’s previously announced acquisition by Nexstar Media Group (NXST).
- On March 13, 2019, Mexico's telecoms regulator approved Walt Disney's purchase of Twenty-First Century Fox.
- On March 14, 2019, Genworth Financial (GNW) and China Oceanwide Holdings announced that they have agreed to a ninth waiver and agreement of each party’s right to terminate the previously announced merger agreement. The ninth waiver and agreement extends the previous deadline of March 15, 2019, to April 30, 2019, in consideration of pending regulatory reviews.
- March 14, 2019: According to Reuters, the U.S. Federal Reserve said that it will hold two public hearings related to BB&T's (BBT) proposal to acquire SunTrust Banks (STI).
- On March 15, 2019, The Walt Disney Company and Twenty-First Century Fox announced the preliminary results of the elections made by 21CF stockholders regarding the form of consideration they wish to receive in exchange for their shares of 21CF common stock in the Acquisition. 51.57% elected to receive cash; 36.65% elected to receive shares of common stock of New Disney; and 11.79% did not make an election.
Closed Deals:
- The acquisition of Antero Midstream Partners (AM) by Antero Midstream (AMGP) on March 12, 2019. It took 154 days for this deal to be completed.
- The acquisition of Esterline Technologies Corporation (ESL) by TransDigm Group Incorporated (TDG) on March 14, 2019. It took 155 days for this deal to be completed.
Top 10 deals with largest spreads:
| Symbol | AnnouncedDate | AcquiringCompany | ClosingPrice | LastPrice | ClosingDate | Profit | AnnualizedProfit |
|---|---|---|---|---|---|---|---|
| INUV | 11/05/2018 | ConversionPoint Technologies, Inc. (N/A) | $2.22 | $1.31 | 06/30/2019 | 69.47% | 243.80% |
| GNW | 10/23/2016 | China Oceanwide Holdings Group Co., Ltd. (N/A) | $5.43 | $4 | 04/30/2019 | 35.75% | 303.46% |
| S | 04/29/2018 | T-Mobile US, Inc. (TMUS) | $7.53 | $6.39 | 06/30/2019 | 17.90% | 62.84% |
| CELG | 01/03/2019 | Bristol-Myers Squibb Company (BMY) | $99.96 | $88.46 | 09/30/2019 | 13.00% | 24.21% |
| STC | 03/19/2018 | Fidelity National Financial, Inc. (FNF) | $47.53 | $42.34 | 06/30/2019 | 12.26% | 43.04% |
| PACB | 11/01/2018 | Illumina, Inc. (ILMN) | $8.00 | $7.36 | 06/30/2019 | 8.70% | 30.52% |
| LKSD | 10/31/2018 | Quad/Graphics, Inc. (QUAD) | $7.56 | $7 | 06/30/2019 | 8.04% | 28.20% |
| MLNX | 03/11/2019 | NVIDIA Corporation | $125.00 | $117.97 | 12/31/2019 | 5.96% | 7.55% |
| RHT | 10/28/2018 | IBM (IBM) | $190.00 | $181.78 | 12/31/2019 | 4.52% | 5.73% |
| CTWS | 03/15/2018 | SJW Group (SJW) | $70.00 | $67 | 03/31/2019 | 4.48% | 125.72% |
Disclaimer: I hold long positions in Celgene (CELG), Bristol-Myers Squibb (BMY) and Finisar (FNSR). 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.
