M&A Weekly Recap: Mashable Deal Big News for CNN, UPS and TNT Still Talking

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Monday

In a move that would be its biggest purchase thus far, CNN (NYSE:TWX) expects to acquire Mashable, a website dedicated to social media stories, for around $200 million. This according to sources close to the deal.

Privately-held Gregor Technologies has been purchased by Metals USA (NYSE:MUSA) for an undisclosed amount. MUSA projects that the deal will immediately add to earnings.

Pacific Capital (NASDAQ:PCBC) is bought by bank holding company UnionBancal at a 60 percent premium over the former’s closing price on Friday. The sale goes for $46 a share, which is 160 percent of the company’s adjusted tangible book value.

Auto-parts producer Visteon’s (NYSE:VC) program to concentrate on its primary businesses, has it selling its automotive lighting business for $92 million in cash. Shares are off Monday.

Tuesday

Within 45 days, Dell (NASDAQ:DELL) expects to buy network security player SonicWall. The present owner, private equity firm Thoma Bravo, took SonicWall private in 2010. The amount of money involved in this current acquisition was not disclosed.

US Airways (NYSE:LCC) is pulling back from its lucrative New York LaGuardia market, as it modifies its East Coast services in the face of its probable merger with American Airlines (AAMRQ). The carrier is scaling back to shuttles only to Boston and to D.C., which will make Delta (NYSE:DAL) more competitive versus United Continental. Additionally, US Airway is buying up domain names such as American-USAirways.com, AmericanUSAirways.net, USandAA.com, and OneworldOneairline.com.

FBN’s Shelby Seyrafi opines that private equity firm Thoma Bravo could be eyeing Brocade (NASDAQ:BRCD) for acquisition, having divested itself of SonicWALL. Brocade’s talks with Blackstone, another possible buyer, have stalled, and Seyrati thinks that a deal with bravo could portend increased rivalry against Fortinet (NASDAQ:FTNT).

In a friendly takeover, TBC Corporation acquires Midas (NYSE:MDS) for $11.50 per share. The agreement involves $310 million, $137 million of which will comprise the assumption of worth of the firm’s debt and pension liabilities.

Wednesday

British gaming retailer GAME is operating under adverse conditions, but the company is on the short list of both Wal-Mart (NYSE:WMT) and GameStop (NYSE:GME) for purchase, according to industry site MCV. GameStop is said to be waiting for GAME’s bankruptcy to occur first, but now that Wal-Mart is in the picture, that plan could quickly change.

Investors react well to a suggestion from Credit Suisse that a Walgreen (NYSE:WAG) acquisition of Rite Aid (NYSE:RAD) is just what the doctor ordered. The analyst notes that such an event would help the latter drugstore chain with its disputes with Express Scripts and CVS, plus assuaging problems with its reimbursement rate. Chances of such a purchase are given as about one in three. Analysts opine that the possible deal would generation the right synergies, and that the Justice Department would likely approve the combination as well.

American suppliers of digital imagery GeoEye (NASDAQ:GEOY) and DigitalGlobe (NYSE:DGI), are said to be on the shopping list of Astrium, Europe’s leading space company, which says it’s “generally interested” in buying either firm. Further, EADS, Astrium’s parent company, is currently searching for takeover targets in the U.S. as well.

Home health and hospice services supplier LHC Group (NASDAQ:LHCG) has suffered several reversals in fortune recently, including adverse effects from new Medicare regulations, cuts in reimbursements, and a federal inquiry into its billing practices. Reports emerging now from Reuters suggest that private equity firm TPG Capital is considering making an offer for the struggling firm.

Human Resources Management Systems has been purchased by Insurance concern Arthur J. Gallagher (NYSE:AJG), in a deal that the company says will strengthen its client base, and augment its employment benefit insurance offerings. The money involved in the acquisition was not disclosed.

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Thursday

Israeli video conferencing firm RADVision (NASDAQ:RVSN) is acquired by Avaya for $11.85 per share, which represents a 57 percent premium to RADVision’s average closing price in the past 90 days. The deal goes down for $230 million in cash.

Cisco (NASDAQ:CSCO) takes a hard look at NDS three months after it filed for an initial public offering. Making NDS an attractive candidate was its revenue of $477 million (up 7 percent year-to-year) and net income of $46.1 million in the second half of 2011. The ability of its software to enhance Cisco’s cloud-based Videoscape platform, didn’t hurt, either.

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Quite a few Cablevision (NYSE:CVC) executives are leaving as rumors that the company might go private spread. Recent actions by CEO James Dolan seem to be affirming the speculation, and one industry expert comments, “There’s something going down when you lose the [head] of cable, the head of technology, the head of marketing and the head of operations.”

In an update concerning how it will pay for its acquisition of Goodrich, United Technologies (NYSE:UTX) says it plans to sell five different business for $3 billion net, and to obtain $1.5 billion from mandatory convertible securities. The closing date on the Goodrich deal remains scheduled for mid 2012.

Hipster, producer of iOS and Android photo-sharing apps with a local emphasis, has been bought by AOL (NYSE:AOL), as the latter company begins a large round of layoffs. Hipster Hipster claims over 100 thousand users, but that number is tiny compared to the 27 million that its rival Instagram says it has.

Friday will not likely see the announcement of a merger agreement between UPS (NYSE:UPS) and TNT Express, according to Reuters, but it could be soon, as Dutch takeover statutes give UPS four weeks to clarify its intentions.

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