Category: Mergers & Acquisitions

Merger: Lumentum Holdings Makes A Nice Deal Acquiring Oclaro, Inc.

Lumentum Holdings [LITE] has agreed to acquire Oclaro Inc [OCLR] for $5.60/share plus 0.0636 shares of each Oclaro share. This makes the deal worth approximately $8.46/share to Oclaro shareholders. . Fair value for Oclaro is $7.00/share and Lumentum is at $45.00/share. The offer represents a 20.8% premium. Placing the arrangement on the high side of the fair value trading range and very acceptable

Merger: CommScope Over Pays for ARRIS

CommScope has agreed to acquire ARRIS International [ARRS] for $31.75/share. Fair value for the stock is $24.00/share. The offer represents a 32% premium placing the transaction price at overvalue.

Acquisition: IBM Acquires Red Hat

IBM an Undervalued stock at 74.6% Fv agreed to acquire a previously Overvalued stock that recently dropped from 160% Fv to 110% Fv. At the announcement, Red Hat instantly returned to 160% Fv or over $172/share. IBM’s offer of $190/share represents a 77.6% premium over fair value.

Merger Consideration Brief (November 2018)

Currently, 20.1% of the overall market has an elevated probability of being involved in some level of merger, acquisition or breakup activity. This is a 0.1 point drop over the previous report in August. Approximately, 58% of the activity is expected in SmallCap alone, the remaining activity is expected in MidCap at 23% and LargeCap at 19%.

Inspire Acquires Sonic

Inspire has agreed to pay $43.50/share cash for the company. Did the shareholders get enough?