M&A Weekly Recap: Intel Acquires Whamcloud, PayPal Purchases card.io
Finally, GlaxoSmithKline (NYSE:GSK) acquires Human Genome Sciences (NASDAQ:HGSI), following a protracted struggle and increasing the offer from $2.8 billion ($13 per share) to $3.6 billion on equity at 14.25 per share. The latter amount is almost twice Human Genome’s $7.17 close on April 18th, which was just before the public announcement of Glaxo’s initial offer. The transaction is being valued at $3 billion, net of cash and debt.
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NBC’s parent company Comcast (NASDAQ:CMCSA) has purchased all of Microsoft’s (NASDAQ:MSFT) 50 percent investment in MSNBC.com, and has renamed the site as NBCNews.com. Sources estimate that the price was approximately $300 million, although the financials weren’t divulged.
Facebook (NASDAQ:FB) recruits the staff of mobile bookmarking startup Spool, through what is called an “acqui-hire”. The team should be useful in building tools that facilitate mobile content consumption.
ING (NYSE:ING) receives a final round of bids for its Asian life insurance operations, which should raise more than $7 billion. Manulife (NYSE:MFC) of Canada, and AIA Group of Hong Kong are among the insurers who submitted bids, according to the WSJ.
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Royal Dutch Shell (RDS.A) will not change its bid for Cove Energy (CNVGF.PK), which effectively concedes the auction of the company to Thailand’s PTT. Shell had wanted to buy Cove in order to gain access to potential liquefied natural gas developments in Mozambique and other exploration positions in the region.
Cisco’s (NASDAQ:CSCO) has purchased Virtuata, which developes software for securing data on servers running virtualization software. Enterprise interest in virtualization, which enhances a server’s efficiency by enabling it to run multiple operating system instances, continues to jump. The virtualization performance of Cisco’s UCS server line, differentiates the small but quickly-growing part of its business.
Precision Castparts Corporation (NYSE:PCP) will purchase the aerostructure and industrial products operations of Canada’s Heroux-Devtek for C$300 million, or $295.32 million. The buyer, which supplies metal parts for aircraft engines and power plant turbines, says that the deal will reinforce its relationships with firms such as Lockheed Martin (NYSE:LMT) and Bombardier.
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Intel Corporation (NASDAQ:INTC) acquires Whamcloud, which supplies advanced file system software for supercomputers. This purchase is the most recent in Intel’s moves that exhibit the firm’s increasing ambitions regarding supercomputers; in the past three months, Intel has introduced accelerator cards for high-performance computing, or HPC, bought HPC interconnect technology from Cray, and announced HPC research and development contracts with the Department of Energy.
Steris Corporation (NYSE:STE) buys privately held U.S. Endoscopy Group for $270 million, in a transaction that should widen Steris’ imprint in the medical-device market for gastrointestinal diseases. The purchaser expects that the acquisition will decrease its fiscal year 2013 earnings per share by 5 cents, but will be accretive to earnings from 2014.
State Street Corporation (NYSE:STT) will acquire Goldman Sachs Administration Services for $550 million, with the transaction being expected to close in the fourth quarter. GSAS administers approximately $200 billion for around 150 hedge fund clients. The buyer says that the purchase will be accretive to earnings in its first year.
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Samsung (SSNLF.PK) buys the mobile phone connectivity and location chip operations of the United Kingdom’s CSR (CSRE) for £200 million, or $319 million. The deal covers Bluetooth, Wi-Fi, and GPS chips, and is potentially a threat to Samsung vendor Broadcom Corporation (NASDAQ:BRCM), which has been longtime rival to CSR in these areas. The purchase also provides Samsung with 21 patents which could prove valuable in its disputes with Apple (NASDAQ:AAPL).
Olin Corporation (NYSE:OLN) purchases privately-held K. A. Steel Chemicals, which is one of North America’s largest distributors of caustic soda. The price of the transaction is $328 million, paid in cash. The buyer expects that the acquisition should be immediately accretive to both earnings and cash flow.
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PayPal (NASDAQ:EBAY) acquires card.io, a supplier of tech that allows developers to scan credit-card info by using a phone’s camera. Card.io’s solutions have won a following because of their ease-of-use relative to manually inputting credit card data onto a phone. PayPal, which recently introduced a mobile card reader, handled nearly $4 billion worth of mobile payments in 2011, and is aiming at $8 billion in 2012.
Shares of Monster Worldwide Inc. (NYSE:MWW) pop, following reports that company executives are in the process of presenting to potential suitors.
Sinclair Broadcast Group (NASDAQ:SBGI) acquires six television stations owned by Newport Television, in a deal that amounts to $412.5 million, and should close by the end of 2012. As a group, the stations can be accessed by some 3 percent of households in the United States.
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Shares of OCZ Technology Group, Inc. (NASDAQ:OCZ) gain a fourth of their value, on word that Seagate Technology (NASDAQ:STX) is considering buying the firm, while other suitors are said to be present. Acquiring OCZ would boost Seagate’s position in the solid-state drive market, as the drives steadily take market share from other hard drives. Rivals of OCZ shares also moving up include Fusion-io, Inc. (NYSE:FIO), which also is the subject of acquisition chatter, along with STEC, Inc. (NASDAQ:STEC).
United Technologies Corporation (NYSE:UTX) is in final talks to divest its Rocketdyne unit to Gencorp, Inc. (NYSE:GY), according to sources, as the company focuses upon selling off non-core businesses and concentrates on closing its Goodrich purchase. The transaction could be closed late this week or early next.
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Houston American Energy Corporation (NYSE:HUSA) shares move up modestly on word that it is looking at strategic alternatives, which include the divestiture of some of or all of the firm’s assets and the possible sale of the company itself.
Humana, Inc. (NYSE:HUM) will sell assets of Arcadian Health Plan to WellCare Health Plans, Inc. (NYSE:WCG), as part of the terms under which Humana’s purchase of Arcadian was okayed by regulators. It is thought that the transaction will reinforce WellCare’s footprint in Arizona.
Siemens A.G. (NYSE:SI) is ready to offer €1.3 billion, or $1.6 billion, to purchase the electricity turbines firm Ansaldo Energia from Italian group Finmeccanica Spa (FINMF.PK) and U.S. fund First Reserve, according to Reuters. Ansaldo is relatively small, but an analyst in London says that “Siemens will get access to those markets where it is not present”.
Google, Inc. (NASDAQ:GOOG) has acquired Sparrow, which develops popular Mac and iOS e-mail applications that feature a Twitter-like interface. Harry McCracken of Time believes that Sparrow will soon be discontinued, however. Verge reports Google paid less than $25 million for the company, and wants it so as to enhance Gmail’s polish and ease-of-use.
Shares of Magellan Health Services, Inc. (NASDAQ:MGLN) rise again Friday, following Thursday’s 8 percent jump, on word that the firm has been working with Credit Suisse for months, looking at strategic alternatives, which might include a potential sale. Chatter has it that the sale process has reached an advanced stage.
Heineken Nv Adr (HINKY.PK) is bidding as much as $6 billion for 100 percent control of Asia Pacific Breweries (APBRY.PK), in order to prevent Thai Beverage billionaire Charoen Sirivadhanabhakdi from acquiring the vital emerging-market asset. Heineken currently owns 42 percent of Asia Pacific, the maker of Tiger Beer, and intends to attempt the purchase of the outstanding shares in the company which is based in Singapore.
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