M&A activity this week moderate, relative to the talk about the AT&T/T-Mobile deal. (Don’t Miss what’s going on with that situation in “Rumor Mill for Mergers and Acquisitions in Question“.)
Here’s Wall Street Cheat Sheet’s take on mergers and acquisitions completed last week:
- Walter Investment Management Corp (AMEX:WAC) will pay $1.07 billion to acquire GTCS Holdings (Green Tree), a privately-held home-loan servicing group. Walter will have to issue equity and debt to finance the acquisition.
- More Japanese deals are in the works! Advantest (NYSE:ATE), a Japanese producer of chip-testing equipment, will acquire Verigy (NASDAQ:VRGY), a U.S.-based company in the same industry, for $1.1 billion. This will allow Advantest to compete in the smartphone market with rivals such as Teradyne (NYSE:TER). The newly combined company will control about 48 percent of the world’s chip-testing market, surpassing Teradyne’s 40 percent market share.
- EBay (NASDAQ:EBAY), in an attempt to stick it to Amazon.com (NASDAQ:AMZN), will acquire e-commerce service company GSI Commerce (NASDAQ:GSIC) for $2.4 billion or $29.25 per share, a 51 percent premium over the unaffected share price. GSI, which helps over 180 brands conduct their online businesses. EBay needed to step it up, because consumers are pretty much sick of the online auction model in favor of buying outright, as on Amazon.com. This is EBay’s biggest acquisition since 2005 when it acquired Skype, although it has bought smaller companies over the past year.
- GE’s (NYSE:GE) energy business will buy a 90 percent stake from Barclays Private Equity and LBO France in Converteam, which provides replacement and improvement services for mechanical processes with high-efficiency electric alternatives, for $3.2 billion. This acquisition will likely keep GE nimble and responsive to the ever-evolving demands of clients for energy-efficient solutions.
- Vodafone (NASDAQ:VOD) will acquire Indian joint venture partner Essar’s 33 percent stake in Vodafone Essar for $5 billion, giving it a 75 percent stake in India’s third largest mobile operator. Why buy this? Essar was simply exercising its put option. Vodafone has spent quite a bit of money on Indian investment projects, but has found the competitive landscape more difficult than expected.
Not all deals get done. Check Out: The Rumor Mill: Mergers & Acquisitions in Question.