DONE DEAL! M&A Activity for the Week Ending Jan. 28

We had a little bit more real M&A activity than last week, and the deal rumors were juicy as well!

Here’s your Cheat Sheet to mergers and acquisitions completed last week:

  • After emerging from bankruptcy less than a year ago, paper and packing company Smurfit-Stone Container Corp (NYSE:SSCC) will be acquired by its smaller rival RockTenn Co (NYSE:RKT) for $3.5 billion, a 27 percent premium to last Friday’s closing price.  This is a vote of confidence in the economy from RockTenn management, because an improved economic environment will inevitably lead to higher demand for containerboard as consumers buy more packaged goods.
  • Healthcare manufacturer Novartis (NYSE:NVS) announced that it will spend a little cash on Genoptix (NASDAQ:GXDX), a cancer diagnostic lab for $470 million, which represents a 27 percent premium to January 21st’s closing price.  Genoptix will add to Novartis’ molecular diagnostics portfolio and will aid in speeding up the development of companion diagnostics.
  • Another tech deal is one step closer to completion.  The European Commission just approved Intel’s (NASDAQ:INTC) $7.7 billion plan to acquire software security producer McAfee (NYSE:MFE), as long as Intel allows its competitors to utilize its technology.  Intel wants to buy McAfee because (surprise), it wants to bolster its internet security capabilities.  Why? According to an analyst at Roth Capital Partners, at some time “it could be possible to hack into your refrigerator.”  Take note, Intel:  as pretty much everything we know goes wireless, we’ll need to protect ourselves, and what better way than with McAfee?
  • Verizon (NYSE:VZ) announced that it will acquire Terremark (NASDAQ:TMRK), which provides managed IT services across the globe, for $1.4 billion, or $19 per share.  Verizon figures this is a good buy because Terremark will expand its services business for companies and governments.   It looks like this one will go through: Terremark’s three largest shareholders, which represent almost 30 percent of the stock ownership, agreed to tender their shares.  Plus, it doesn’t seem like any trash talk has occurred, yet.

Not all deals get done. Don’t Miss: The Rumor Mill: Mergers & Acquisitions in Question >>

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