Friday, 7 October 2011

Mergers & Acquisitions - Week Ending 07/10/11

On Sunday, it was announced that Intel would buy Telemap, a developer of map software for an undisclosed fee, estimated to be in the region of $300 million. Despite this move creating an alternative to the services of firms such as Nokia and Google, the tech giants closed down 3.4% the following day. On Monday, Pharmaceutical Product Development was purchased by the Carlyle Group and Hellman & Friedman for $3.9 billion. This is the latest in a string of large private equity buyouts in the healthcare industry since the credit crunch. The pharmaceutical research company was boosted by 25.8%, reflecting the large premium being paid. Best Buy sold music sharing service Napster to its competitor Rhapsody. At one time Napster dominated the p2p market, but subsequently ran into difficulty over copyright infringement. The terms were not disclosed. The electronics retailer fell 5% on the news. Agco bought GSI Holdings for $940 million. Despite this decision expanding their business into the grain storage and protein production market, the agricultural giant dropped 6.3%.

It was announced that ACI Worldwide would takeover S1 Corporation, a provider of financial software solutions, in a deal valued at $516 million. The buyer hopes to create a global leader in payments solutions. The markets reacted negatively to the news; the target shrunk by 1.2% as ACI lost 8.3%. Also that day, McGraw-Hill Companies said in after hours announcement that they would sell their broadcasting unit to media firm E.W. Scripps to $212 million in an all-cash deal. The latest in a series of spin-offs designed to improve its share price and refocus attention on its business information unit. The buyer closed 1.5% lower on Tuesday, while the information services giant grew 2.9%. The next major deal came on Thursday, when Blackstone’s GSO Capital Partners acquired Harbourmaster Capital, a European leveraged loan manager, for an undisclosed price. The asset management company was up 7.2%. The following day, Nuance Communications purchased Swype, creators of touch screen text solutions, for $102.5 million. The bidder ended the day 1.4% lower.