Mergers and Acquisitions Recap: Deals and Rumors of the Week
Apple (NASDAQ:AAPL) might be making a bid for the Hulu online video service owned by Disney (NYSE:DIS), News Corp. (NASDAQ:NWSA), and Comcast (NASDAQ:CMCSA). Hulu would give Apple a subscription service to compete with Netflix (NASDAQ:NFLX). Hulu’s owners have agreed to give its buyer a five-year extension of program rights, including two years of exclusive access. Hulu’s price tag is expected to exceed $2 billion.
Bristol-Myers Squibb Co. (NYSE:BMY) will acquire privately held Amira Pharmaceuticals Inc. in an all-cash transaction that offers an upfront purchase price of $325 million plus potential milestone payments that could add another $150 million to that price. The San Diego-based Amira is working on drugs that would treat inflammatory and fibrotic diseases.
Books-A-Million Inc. (NASDAQ:BAMM) has submitted a bid to acquire 30 Borders Inc. locations, including inventory, fixtures, equipment, and leasehold interests. Books-A-Million, a Birmingham, Alabama-based book retailer with 231 stores in 23 states and the District of Columbia, plans to continue operations at those 30 stores, pending court approval.
Express Scripts (NASDAQ:ESRX) announced Thursday that it would buy smaller rival Medco Health Solutions (NYSE:MHS) in a $29.1 billion deal that would make Express the largest pharmacy benefits manager in the country. Express will pay $28.80 in cash and 0.81 of its own shares for each Medco share, a total value of $71.36 a share and a 28% premium of Medco’s last closing price. Once the deal is finalized, Express will own 59% of Medco.
U.S. private equity investor Blackstone (NYSE:BX) will buy German clothier Jack Wolfskin for roughly 700 million euros. Blackstone plans to expand the outdoor clothing brand, which is already gaining popularity in China, into eastern Europe and Scandinavia. Wolfskin, which competes with companies like V.F. North Face (NYSE:VFC) and Adidas (ETR:ADS), saw sales grow 21% percent in 2010, to 304 million euros, and expects to see double-digit growth in 2011 as well.
Google (NASDAQ:GOOG) has acquired Fridge, a developer of group messaging and content sharing platforms for social networking, in a deal that closed yesterday. Google plans to utilize Fridge’s four-person team to develop its new social networking platform, Google+, which has already reportedly gained 18 million users just in its limited “field” tests.
Temple-Inland (NYSE:TIN) has asked its shareholders to reject the $3.3 billion hostile bid from International Paper (NYSE:IP), saying it undervalues the company’s assets. The offer, which International Paper took directly to Temple shareholders after its friendly, unsolicited bid was rejected last month, valued the paper company at $30.60 a share. Shareholders have yet to make a decision, but International Paper has the “poison pill” option, which would allow the company to increase its total share count at a discount in order to ward off a potential takeover.
Spreadtrum (NASDAQ:SPRD), a Chinese wireless chipmaker, will acquire Telegent, a maker of broadcast TV receiver chips for mobile phones. Mobile TV is popular in Japan and South Korea, and the service is separate from one’s 3G data plan, so it doesn’t incur expensive charges. Spreadtrum is hoping to gain traction in the Chinese market.
Hertz (NYSE:HTZ) car-rental service announced Sunday that it will buy privately-held Donlen Corp. for $250 million and assume the company’s $680 million in debt.
Pharmaceutical Product Development (NASDAQ:PPDI) is considering a sale, expecting interest from both private equity firms and clinical research firms.
Adobe (NASDAQ:ADBE) will acquire EchoSign, a maker of electronic signature automation software, allowing Adobe to offer value-added products and services to its Acrobat platform.
Maxim Integrated (NASDAQ:MXIM) will acquire SensorDynamics, a MEMS sensor chip developer, which will help Maxim compete with other MEMS makers including Texas Instruments (NYSE:TXN), Hewlett-Packard (NYSE:HPQ), and STMicroelectronics (NYSE:STM). In 2010, estimates had the MEMS market growing from $7 billion to $16 billion in 2014.
Aetna (NYSE:AET) has agreed to buy health-plan administrator PayFlex for roughly $202 million.