Merger activity decreased last week with three new deals announced and three deals completed.
After a significant increase in the previous week, merger activity decreased slightly with three new deals announced last week. Johnson & Johnson (NYSE:JNJ) announced the acquisition Momenta Pharmaceuticals (NASDAQ:MNTA) last week for $6.1 billion or $52.50 per share in cash, representing a 70% premium to Momenta’s closing price on August 18, 2020. There have been six deals announced in the health care sector in the month of August so far, for a total value of over $45 billion.
Weekly Spread Changes:
The table below shows weekly spread changes between August 14, 2020, and August 21, 2020.
|Symbol||Quote||Acquiring Company||Acquiring Company Quote||Current Spread||Last Week Spread||Spread Change Weekly||Deal Type|
|CDOR||4.38||NexPoint Hospitality Trust (N/A)||153.42%||146.67%||6.75%||All Cash|
|GILT||5.45||Comtech Telecommunications Corp. (CMTL)||16.67||57.51%||53.32%||4.19%||Cash Plus Stock|
|CXDC||1.15||Faith Dawn Limited and Faith Horizon (N/A)||4.35%||2.56%||1.79%||All Cash|
|ONDK||1.51||Enova International, Inc. (ENVA)||16.21||6.71%||5.17%||1.54%||Cash Plus Stock|
|GSB||9.54||HelpSystems (N/A)||-0.42%||-1.76%||1.34%||All Cash|
|CETV||4.12||PPF Group N.V. (N/A)||11.17%||13.09%||-1.92%||All Cash|
|BREW||15.89||Anheuser-Busch (N/A)||3.84%||5.77%||-1.93%||All Cash|
|GNW||2.61||China Oceanwide Holdings Group Co., Ltd. (N/A)||108.05%||111.28%||-3.23%||All Cash|
|SUNW||0.761||The Peck Company Holdings, Inc. (PECK)||3.64||-11.43%||-4.79%||-6.64%||All Stock|
|Total Number of Deals Closed in 2020||91|
|Total Number of Deals Not Completed in 2020||14|
|Total Number of Pending Deals|
|Stock & Cash Deals||4|
|Total Number of Pending Deals||49|
|Aggregate Deal Consideration||$632.83 billion|
- The acquisition of Yintech Investment Holdings Limited (NASDAQ:YIN) for $540.2 million in a going-private transaction. Under the terms of the merger agreement, each common share will be exchanged for the right to receive US$0.365 in cash without interest, and each American Depositary Share of the company, each representing twenty common shares will be exchanged for the right to receive US$7.30 in cash per ADS without interest. We added YIN as a potential deal to the Deals in the Works section on June 22, 2020, and the price after the news of the potential deal came out was $6.55.
- The acquisition of Momenta Pharmaceuticals by Johnson & Johnson for $6.5 billion or $52.50 per share in cash.
- The acquisition of Hudson (NYSE:HUD) by Dufry AG Group for $3.5 billion or $7.70 per share in cash.
- On August 18, 2020, Sunrun (NASDAQ:RUN) and Vivint Solar (NYSE:VSLR) announced that Coatue US 24 LLC, a vehicle affiliated with Coatue Management, has entered into a Stock Purchase Agreement with 313 Acquisition LLC.
- On August 20, 2020, The Federal Trade Commission (FTC) has granted early termination of the required waiting period under the Hart-Scott-Rodino Act with respect to the acquisition of Noble Energy (NASDAQ:NBL) by Chevron Corporation (NYSE:CVX).
- On August 21, 2020, InnerWorkings (NASDAQ:INWK) announced that the special meeting of stockholders of Gaming Partners International Corporation will be held virtually via the Internet on September 24, 2020.
- On August 21, 2020, UK’s CMA announced that it has extended the consideration of undertakings with respect to investigations of the anticipated acquisition by Stryker Corporation (NYSE:SYK) of Wright Medical Group (NASDAQ:WMGI) until 4 November 2020.
- The acquisition of Forescout Technologies (FSCT) by Advent International on August 17, 2020. It took 193 days for this deal to be completed.
- The acquisition of Franklin Financial Network (FSB) by FB Financial Corporation (NYSE:FBK) on August 17, 2020. It took 209 days for this deal to be completed.
- The acquisition of Benefytt Technologies (NASDAQ:BFYT) by Madison Dearborn Partners on August 21, 2020. It took 39 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|
|CDOR||07/22/2019||NexPoint Hospitality Trust (N/A)||$11.10||$4.38||09/30/2020||153.42%||1473.68%|
|GNW||10/23/2016||China Oceanwide Holdings Group Co., Ltd. (N/A)||$5.43||$2.61||09/30/2020||108.05%||1037.81%|
|GILT||01/29/2020||Comtech Telecommunications Corp. (NASDAQ:CMTL)||$8.58||$5.45||10/31/2021||57.51%||48.37%|
|FIT||11/01/2019||Google LLC (NASDAQ:GOOG) (NASDAQ:GOOGL)||$7.35||$6.35||12/31/2020||15.75%||44.22%|
|CETV||10/27/2019||PPF Group N.V. (N/A)||$4.58||$4.12||10/27/2020||11.17%||62.70%|
|TIF||11/25/2019||LVMH Moët Hennessy Louis Vuitton SE (OTCPK:LVMUY)||$135.00||$126.01||09/30/2020||7.13%||68.53%|
|ONDK||07/28/2020||Enova International, Inc. (NYSE:ENVA)||$1.61||$1.51||12/31/2020||6.71%||18.84%|
|MXIM||07/13/2020||Analog Devices, Inc. (NASDAQ:ADI)||$73.09||$68.51||06/30/2021||6.69%||7.85%|
|WLTW||03/09/2020||Aon plc (NYSE:AON)||$209.13||$198.08||06/30/2021||5.58%||6.55%|
|CBMG||08/12/2020||CBMG management (N/A)||$19.75||$18.74||12/31/2020||5.39%||15.13%|
The aggregate deal consideration decreased to $632.83 billion last week.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.
Additional disclosure: Disclaimer: 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.