Category: Mergers & Acquisitions
Merger Candidate Brief (Hunters & Hunted)
Currently, 20.2% of the overall market has an elevated probability of being involved in some level of merger, acquisition or breakup activity. This is a 1.2-point increase over the previous report. Approximately, half (54%) of the activity is expected in SmallCap alone, the other half is split between MidCap at 24% and LargeCap at 21%.
Merger: AXA acquires XL Group [XL]
AXA has agreed to buy XL Group [XL] for $57.60/share. This is a price represents a 28% premium over fair value. This is a reasonable offer.
Buyout: Vintage Capital buys Rent-A-Center [RCII]
Why should the shareholders take an offer that only represents 88% of fair value? We have Rent-A-Center rated as an A- in probability of being involved in a merger, acquisition or buyout (MAB). Vintage Capital Management has offered to acquire Rent-A-Center [RCII] for $15/share. This is a price that is only 88% of fair value ($17/share).
Merger: Broadcom & CA Technology
Broadcom [AVGO] a leading designer, developer and supplier of a broad range of analog semiconductor devices on a global basis has agreed to acquire CA, Technology [CA] a provider of information technology management software solutions with expertise in mainframe, virtual and network (cloud) environments for $44.50/share. The combination of the two enterprises sounds interesting. But,
Merger: SS&C with DST
On just a stock value basis, DST shareholders are getting a 26.8% premium for a company that has a fair value of $66/share, ranks in the lower 1/3rd in terms of free cash flow/share and the middle 1/3rd in terms of revenue growth over the past 12 months. DST shareholders should be pleased with the transaction, but I wouldn’t stick around for the implementation.