By Asif Suria from Inside Arbitrage

14 September 2017

 

Merger activity increased last week with five new deals announced and seven deals closing. You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.

There were two new deals announced in the Deals in the Works section.

Deal Statistics:

Total Number of Deals Closed in 2017 141
Total Number of Deals Not Completed in 2017 8
Total Number of Pending Deals
Cash Deals 55
Stock Deals 25
Stock & Cash Deals 11
Special Conditions 8
Total Number of Pending Deals 99
Total Deal Size $874.14 billion

New Deals:

  1. The acquisition of IXYS Corporation (IXYS) by Littelfuse (LFUS) for $655 million in a cash or stock deal. Under the terms of the agreement, each IXYS stockholder will be entitled to elect to receive, per IXYS share, either $23.00 in cash or 0.1265 of a share of Littelfuse common stock, subject to proration.
  2. The acquisition of Kite Pharma (KITE) by Gilead Sciences (GILD) for $11.9 billion or $180 per share in cash.
  3. The acquisition of MaxPoint Interactive (MXPT) by Valassis for $101 million or $13.86 per share in cash.
  4. The acquisition of Arc Logistics Partners (ARCX) by Zenith for $632.96 million or $16.50 per share in cash.
  5. The acquisition of The Advisory Board Company (ABCO) by Optum and Vista Equity Partners. The Company has agreed to sell its health care business to Optum and its education business to affiliates of Vista Equity Partners. Under the terms of the agreement, stockholders of the Advisory Board Company would receive estimated cash per share of $54.29, which includes a fixed amount of $52.65 per share and the after-tax value at closing of the Company’s 7.6% stake in Evolent Health, which has been estimated as of August 28, 2017.

Deal Updates:

  1. On August 30, 2017, Mars, Incorporated and VCA (WOOF) announced that the U.S. Federal Trade Commission (FTC) has cleared Mars’ proposed acquisition of VCA.
  2. On August 31, 2017, Sterling Bancorp (STL) and Astoria Financial Corporation (AF) announced that the Board of Governors of the Federal Reserve System has approved the merger of Astoria with and into Sterling.

Closed Deals:

  1. The acquisition of Whole Foods Market (WFM) by Amazon.com (AMZN) on August 28, 2017. It took 73 days for this deal to be completed.
  2. The acquisition of Global Sources (GSOL) by Expo Holdings on August 28, 2017. It took 97 days for this deal to be completed.
  3. The acquisition of ARI Network Services (ARIS) by True Wind Capital Management on August 29, 2017. It took 69 days for this deal to be completed.
  4. The acquisition of Patheon (PTHN) by Thermo Fisher Scientific (TMO) on August 29, 2017. It took 106 days for this deal to be completed.
  5. The acquisition of Albany Molecular Research (AMRI) by affiliates of The Carlyle Group and GTCR on August 31, 2017. It took 86 days for this deal to be completed.
  6. The acquisition of FelCor Lodging Trust Incorporated (FCH) by RLJ Lodging Trust (RLJ) on September 1, 2017. It took 130 days for this deal to be completed.
  7. The acquisition of Novadaq Technologies (NVDQ) Stryker Corporation (SYK) on September 1, 2017. It took 74 days for this deal to be completed.

Top 10 deals with largest spreads:

Symbol Announced
Date
Acquiring
Company
Closing
Price
Last
Price
Closing
Date
Profit Annualized
Profit
GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) $5.43 $3.51 11/30/2017 54.70% 229.49%
LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) $8.30 $5.67 09/30/2017 46.38% 651.17%
MGI 01/26/2017 Ant Financial Services Group (N/A) $18.00 $15.68 12/31/2017 14.80% 45.77%
CAB 10/03/2016 Bass Pro Shops (N/A) $61.50 $53.75 09/30/2017 14.42% 202.42%
HUN 05/22/2017 CLARIANT N (CLN.VX) $29.58 $26.89 12/31/2017 10.01% 30.97%
CBMX 07/31/2017 Invitae Corporation (NVTA) $8.33 $7.60 12/31/2017 9.61% 29.71%
MON 09/14/2016 Bayer AG (BAYRY) $128.00 $117.21 12/31/2017 9.21% 28.48%
NXTM 08/07/2017 Fresenius Medical Care (N/A) $30.00 $27.97 06/30/2018 7.26% 8.86%
TWX 10/22/2016 AT&T, Inc. (T) $107.50 $101.60 12/31/2017 5.81% 17.96%
HCOM 07/10/2017 Cincinnati Bell (CBB) $32.60 $30.82 12/31/2018 5.78% 4.37%

List of all pending deals:

Symbol Announced
Date
Acquiring
Company
Deal
Type
Closing
Value
Closing
Price
Last
Price
Volume Closing
Date
Profit Annu.
Profit
+ GNW 10/23/2016 China Oceanwide Holdings Group Co., Ltd. (N/A) All Cash $2.7 billion $5.43 $3.51 1,611,935 11/30/2017 54.70% 229.49%
+ LSCC 11/03/2016 Canyon Bridge Capital Partners, Inc. (N/A) All Cash $1.3 billion $8.30 $5.67 495,228 09/30/2017 46.38% 651.17%
+ MGI 01/26/2017 Ant Financial Services Group (N/A) All Cash $1.2 billion $18.00 $15.68 160,757 12/31/2017 14.80% 45.77%
+ CAB 10/03/2016 Bass Pro Shops (N/A) All Cash $5 billion $61.50 $53.75 280,496 09/30/2017 14.42% 202.42%
+ HUN 05/22/2017 CLARIANT N (CLN.VX) All Stock $6.72 billion $29.61 $26.89 2,035,628 12/31/2017 10.11% 31.27%
+ CBMX 07/31/2017 Invitae Corporation (NVTA) All Cash $20.22 million $8.33 $7.60 85,059 12/31/2017 9.61% 29.71%
+ MON 09/14/2016 Bayer AG (BAYRY) All Cash $66 billion $128.00 $117.21 949,311 12/31/2017 9.21% 28.48%
+ NXTM 08/07/2017 Fresenius Medical Care (N/A) All Cash $1.62 billion $30.00 $27.97 294,002 06/30/2018 7.26% 8.86%
+ TWX 10/22/2016 AT&T, Inc. (T) Special Conditions $108.7 billion $107.50 $101.60 2,598,296 12/31/2017 5.81% 17.96%
+ HCOM 07/10/2017 Cincinnati Bell (CBB) Cash Plus Stock $650 million $32.60 $30.82 34,662 12/31/2018 5.78% 4.37%
+ SNI 07/31/2017 Discovery Communications, Inc. (DISCK) Special Conditions $14.6 billion $90.00 $85.65 743,005 03/31/2018 5.08% 8.91%
+ XCRA 04/10/2017 an affiliate of Sino IC Capital and Unic Capital Management (N/A) All Cash $439.97 million $10.25 $9.81 363,831 12/31/2017 4.49% 13.87%
+ WGL 01/25/2017 AltaGas Ltd. (N/A) All Cash $6.4 billion $88.25 $84.50 107,284 06/30/2018 4.44% 5.42%
+ TRCO 05/08/2017 Sinclair Broadcast Group, Inc. (SBGI) Cash Plus Stock $6.6 billion $41.98 $40.37 734,297 12/31/2017 3.99% 12.34%
+ CPN 08/18/2017 Energy Capital Partners (N/A) All Cash $17.3 billion $15.25 $14.67 6,198,356 03/31/2018 3.95% 6.94%
+ RICE 06/19/2017 EQT Corporation (EQT) Cash Plus Stock $8.2 billion $28.47 $27.41 1,873,815 12/31/2017 3.85% 11.91%
+ AKRX 04/24/2017 Fresenius Kabi (N/A) All Cash $4.75 billion $34.00 $32.94 872,778 03/31/2018 3.22% 5.65%
+ BRCD 11/02/2016 Broadcom Limited (AVGO) All Cash $5.5 billion $12.75 $12.39 2,576,801 10/28/2017 2.91% 19.64%
+ AVA 07/19/2017 Hydro One Limited (N/A) All Cash $5.3 billion $53.00 $51.54 646,010 12/31/2018 2.83% 2.14%
+ ATW 05/30/2017 Ensco plc (ESV) All Stock $1.7 billion $7.25 $7.05 3,326,458 09/30/2017 2.81% 39.43%
+ ANCB 04/11/2017 Washington Federal, Inc. (WAFD) Special Conditions $63.9 million $25.75 $25.05 911 09/30/2017 2.79% 39.23%
+ STRP 05/11/2017 Verizon Communications Inc. (VZ) Special Conditions $3.1 billion $184.00 $179.09 141,665 03/15/2018 2.74% 5.21%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.3 billion $51.00 $49.68 699,297 09/30/2017 2.66% 37.30%
+ TESO 08/14/2017 Nabors Industries Ltd. (NBR) All Stock $157.23 million $4.49 $4.40 987,550 12/31/2017 2.15% 6.66%
+ SGBK 03/27/2017 Home Bancshares, Inc. (HOMB) Special Conditions $778.4 million $49.00 $48.06 92,262 12/31/2017 1.96% 6.05%
+ ABCO 08/29/2017 Optum and Vista Equity Partners (N/A) Special Conditions $2.66 billion $54.29 $53.30 2,004,157 03/31/2018 1.86% 3.26%
+ DMTX 08/25/2017 Regenxbio Inc. (RGNX) All Stock $41 million $3.56 $3.500 399,048 12/31/2017 1.80% 5.55%
+ PBNC 04/27/2017 TowneBank (TOWN) All Stock $323.7 million $52.70 $51.80 675 12/31/2017 1.74% 5.37%
+ SPA 07/07/2017 Ultra Electronics Holdings (N/A) All Cash $308.13 million $23.50 $23.12 58,013 01/08/2018 1.64% 4.76%
+ SVA 06/26/2017 Sinovac Limited and Sinovac Amalgamation Sub Limited (N/A) All Cash $437.59 million $7.00 $6.89 64,170 12/31/2017 1.60% 4.94%
+ XBKS 05/22/2017 Union Bankshares Corporation (UBSH) All Stock $701.2 million $29.31 $28.87 3,998 01/15/2018 1.51% 4.15%
+ RBPAA 01/30/2017 Bryn Mawr Bank Corporation (BMTC) All Stock $127.7 million $4.20 $4.14 5,859 09/30/2017 1.51% 21.19%
+ FSBK 06/12/2017 Carolina Financial Corporation (CARO) All Stock $162 million $17.83 $17.58 5,824 12/31/2017 1.43% 4.41%
+ CBF 05/04/2017 First Horizon National Corp. (FHN) Cash Plus Stock $2.2 billion $38.44 $37.90 505,529 12/31/2017 1.41% 4.38%
+ MSFG 07/25/2017 First Financial Bancorp. (FFBC) All Stock $1 billion $33.37 $32.91 98,914 03/31/2018 1.40% 2.45%
+ FIG 02/14/2017 SoftBank Group Corp. (SFTBY) All Cash $3.3 billion $8.08 $7.97 1,144,172 12/31/2017 1.38% 4.27%
+ NMRX 08/02/2017 Sierra Wireless, Inc. (SWIR) All Stock $107 million $3.94 $3.89 7,023 12/31/2017 1.34% 4.13%
+ PSTB 04/27/2017 South State Corporation (SSB) All Stock $690.8 million $11.55 $11.40 53,405 12/31/2017 1.32% 4.07%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $19.09 $18.85 146,251 10/06/2017 1.29% 14.75%
+ BCR 04/23/2017 Becton, Dickinson and Company (BDX) Cash Plus Stock $24 billion $324.04 $320.04 409,910 11/30/2017 1.25% 5.24%
+ AMFW 03/13/2017 John Wood Group Plc (WG.L) All Stock $4.3 billion $5.57 $5.50 4,607 12/31/2017 1.22% 3.77%
+ KITE 08/28/2017 Gilead Sciences, Inc. (GILD) All Cash $11.9 billion $180.00 $178.05 5,003,728 12/31/2017 1.10% 3.39%
+ SNC 07/26/2017 Markel Corporation (MKL) All Cash $919 million $21.00 $20.78 115,650 12/31/2017 1.06% 3.27%
+ NDRM 07/24/2017 Mitsubishi Tanabe Pharma Corporation (N/A) All Cash $654.33 million $39.00 $38.60 806,806 12/31/2017 1.04% 3.21%
+ GLBL 03/07/2017 Brookfield Asset Management Inc. (BAM) All Cash $1.3 billion $5.10 $5.05 190,450 12/31/2017 0.99% 3.06%
+ SBCP 08/14/2017 CenterState Banks, Inc. (CSFL) All Stock $176.7 million $21.69 $21.50 13,190 03/31/2018 0.88% 1.55%
+ SCLN 06/08/2017 a consortium consisting of entities affiliated with GL Capital Management GP Limited, Bank of China Group Investment Limited, CDH Investments, Ascendent Capital Partners and Boying (N/A) All Cash $605 million $11.18 $11.10 685,128 12/31/2017 0.72% 2.23%
+ RATE 07/03/2017 Red Ventures (N/A) All Cash $1.4 billion $14.00 $13.90 281,227 12/31/2017 0.72% 2.23%
+ OKSB 12/14/2016 Simmons First National Corporation (SFNC) Cash Plus Stock $564.4 million $25.58 $25.40 54,201 09/30/2017 0.71% 10.02%
+ DDC 07/17/2017 The Washington Companies (N/A) All Cash $1.06 billion $14.25 $14.15 598,557 12/31/2017 0.71% 2.19%
+ MYCC 07/10/2017 Certain Investment Funds Affiliated with Apollo Global Management (N/A) All Cash $1.1 billion $17.12 $17.00 781,780 12/31/2017 0.71% 2.18%
+ DGI 02/24/2017 MacDonald, Dettwiler and Associates Ltd. (MDA.TO) Cash Plus Stock $3.6 billion $34.84 $34.60 134,845 10/31/2017 0.70% 4.47%
+ CUNB 04/06/2017 PacWest Bancorp (PACW) Cash Plus Stock $705 million $36.05 $35.80 37,534 12/31/2017 0.69% 2.12%
+ SNBC 06/30/2017 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $640.73 million $23.55 $23.40 6,456 01/31/2018 0.65% 1.60%
+ WBKC 06/14/2017 Horizon Bancorp (HBNC) Cash Plus Stock $88.9 million $40.44 $40.20 159 10/31/2017 0.59% 3.76%
+ MXPT 08/28/2017 Valassis (N/A) All Cash $101 million $13.86 $13.78 20,317 12/31/2017 0.58% 1.80%
+ HNH 06/26/2017 Steel Partners Holdings L.P. (SPLP-PA) All Stock $693.48 million $32.87 $32.70 1,006 12/31/2017 0.52% 1.61%
+ LVLT 10/31/2016 CenturyLink, Inc. (CTL) Cash Plus Stock $34 billion $55.13 $54.85 987,565 09/30/2017 0.51% 7.14%
+ ASBB 05/01/2017 First Bancorp (FBNC) All Stock $175 million $44.91 $44.70 312 12/31/2017 0.48% 1.48%
+ SFR 08/10/2017 Invitation Homes Inc. (INVH) All Stock $7.36 billion $37.54 $37.37 653,891 12/31/2017 0.46% 1.42%
+ WSTC 05/09/2017 affiliates of certain funds managed by affiliates of Apollo Global Management, LLC (APO) All Cash $5.1 billion $23.50 $23.40 55,145 12/31/2017 0.43% 1.32%
+ VWR 05/05/2017 Avantor (N/A) All Cash $6.4 billion $33.25 $33.11 225,541 09/30/2017 0.42% 5.94%
+ PCBK 01/09/2017 Columbia Banking System, Inc. (COLB) All Stock $644.1 million $24.25 $24.15 74,265 09/30/2017 0.40% 5.67%
+ PKY 06/30/2017 Canada Pension Plan Investment Board (N/A) All Cash $1.2 billion $23.05 $22.96 149,612 12/31/2017 0.39% 1.21%
+ FPO 06/28/2017 Government Properties Income Trust (GOV) All Cash $1.4 billion $11.15 $11.11 333,842 12/31/2017 0.36% 1.11%
+ SPLS 06/28/2017 Sycamore Partners (N/A) All Cash $6.9 billion $10.25 $10.22 4,720,573 12/31/2017 0.29% 0.91%
+ LMOS 02/20/2017 EQT Infrastructure investment strategy (N/A) All Cash $950 million $18.00 $17.95 203,121 09/30/2017 0.28% 3.91%
+ SWFT 04/10/2017 Knight Transportation, Inc. (KNX) All Stock $3.24 bilion $28.73 $28.65 2,816,868 09/30/2017 0.27% 3.82%
+ PRXL 06/20/2017 Pamplona Capital Management, LLP (N/A) All Cash $5 billion $88.10 $87.88 806,242 10/31/2017 0.25% 1.60%
+ DFT 06/09/2017 Digital Realty Trust, Inc. (DLR) All Stock $7.6 billion $64.15 $64.03 268,111 12/31/2017 0.19% 0.59%
+ MORE 07/05/2017 Greystar Growth and Income Fund (N/A) All Cash $3 billion $12.00 $11.98 597,034 12/31/2017 0.17% 0.52%
+ HSNI 07/06/2017 Liberty Interactive Corporation (QVCA) All Stock $2.6 billion $37.49 $37.45 536,541 12/31/2017 0.10% 0.31%
+ STS 08/08/2017 Wabash National Corporation (WNC) All Cash $260.9 million $21.00 $20.98 172,829 12/31/2017 0.10% 0.29%
+ WBMD 07/24/2017 Internet Brands (N/A) All Cash $2.8 billion $66.50 $66.47 843,628 12/31/2017 0.05% 0.14%
+ WOOF 01/07/2017 Mars, Incorporated (N/A) All Cash $9.1 billion $93.00 $92.99 487,050 09/30/2017 0.01% 0.15%
+ WNRL 08/14/2017 Andeavor Logistics LP (ANDX) All Stock $1.8 billion $26.00 $26.00 161,626 12/31/2017 0.01% 0.03%
+ SEV 07/17/2017 BorgWarner (N/A) All Cash $200 million $22.00 $22.00 223 12/31/2017 0.00% 0.00%
+ FUEL 07/18/2017 Sizmek Inc. (N/A) All Cash $145 million $2.60 $2.60 575,835 09/30/2017 0.00% 0.00%
+ WMAR 06/29/2017 a wholly owned affiliate of Monomoy Capital Partners (N/A) All Cash $258 million $12.97 $12.97 22,124 09/30/2017 0.00% 0.00%
+ CDI 07/31/2017 affiliates of AE Industrial Partners, LLC (N/A) All Cash $168 million $8.25 $8.25 135,717 09/30/2017 0.00% 0.00%
+ BSF 08/22/2017 Arvest Bank (N/A) All Cash $391 million $10.28 $10.28 70,597 03/31/2018 0.00% 0.00%
+ VTTI 05/08/2017 VTTI B.V. (N/A) All Cash $1.59 billion $19.50 $19.50 346,003 09/30/2017 0.00% 0.00%
+ GUID 07/26/2017 Open Text Corporation (OTEX) All Cash $161.94 million $7.10 $7.10 593,971 09/30/2017 0.00% 0.00%
+ SHOR 07/27/2017 Mitel Networks Corporation (MITL) All Cash $430 million $7.50 $7.50 258,712 09/30/2017 0.00% 0.00%
+ PMC 08/03/2017 KKR & Co. L.P. Unit (KKR) All Cash $1.39 billion $29.25 $29.25 243,518 05/01/2018 0.00% 0.00%
+ NEFF 08/16/2017 United Rentals, Inc. (URI) All Cash $838 million $25.00 $25.00 129,911 12/31/2017 0.00% 0.00%
+ BKMU 07/20/2017 Associated Banc-Corp (ASB) All Stock $482 million $9.35 $9.35 255,979 03/31/2018 -0.03% -0.05%
+ AF 03/07/2017 Sterling Bancorp (STL) All Stock $2.2 billion $19.73 $19.76 448,318 12/31/2017 -0.15% -0.45%
+ NORD 04/25/2017 Canada Pension Plan Investment Board and Baring Private Equity Asia (N/A) All Cash $4.3 billion $32.50 $32.57 306,234 08/31/2017 -0.21% 19.61%
+ IXYS 08/28/2017 Littelfuse, Inc. (LFUS) All Cash $655 million $23.00 $23.05 668,669 03/31/2018 -0.22% -0.38%
+ FGL 05/24/2017 CF Corporation (CFCO) All Cash $1.835 billion $31.10 $31.25 159,572 12/31/2017 -0.48% -1.48%
+ DGAS 02/21/2017 Peoples Natural Gas (N/A) All Cash $227 million $30.50 $30.65 5,659 12/31/2017 -0.49% -1.51%
+ ZPIN 04/06/2017 SEEK International Investments Pty Ltd. (N/A) All Cash $678.59 million $18.20 $18.24 104,825 12/31/2017 -0.49% -1.53%
+ WFBI 05/16/2017 Sandy Spring Bancorp, Inc. (SASR) All Stock $489 million $33.82 $34.02 20,138 12/31/2017 -0.58% -1.78%
+ OB 05/02/2017 Intact Financial Corporation (N/A) All Cash $1.7 billion $18.10 $18.23 26,420 12/31/2017 -0.71% -2.21%
+ ARCX 08/29/2017 Zenith (N/A) All Cash $632.96 million $16.50 $16.63 103,369 01/31/2018 -0.78% -1.91%
+ NXPI 10/27/2016 QUALCOMM Incorporated (QCOM) All Cash $38 billion $110.00 $112.90 1,200,031 12/31/2017 -2.57% -7.95%
+ GNCMA 04/04/2017 Liberty Ventures (LVNTA) Special Conditions $2.68 billion $32.50 $43.03 142,708 12/31/2017 -24.47% -75.70%
+ ANGI 05/02/2017 IAC/InterActiveCorp (IAC) Special Conditions $331.67 million $8.50 $11.97 355,724 12/31/2017 -28.99% -89.67%

Disclaimer: I hold positions in Staples (SPLS), Cabela’s (CAB), Fortress Investment Group (FIG), MaxPoint Interactive (MXPT) and CombiMatrix (CBMX). 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.

 

This post by Asif Suria was originally published at Inside Arbitrage.