M&A Weekly Recap: Salesforce’s New Best Bud, Nike Set to Divorce 2 Brands
FedEx (NYSE:FDX) acquires Brazilian company Rapidão Cometa, in a move that the former claims will reinforce its presence in Latin America. The transaction, the financial details of which were not reported, is forecast to close in the third quarter.
Defense equipment manufacturer Teledyne (NYSE:TDY) purchases LeCroy (NASDAQ:LCRY) for $240.5 million. This represents an offer of $14.30 per share, which is a premium of more than 56 percent over the latter’s close on Friday. The buyer says that “LeCroy will broaden our portfolio of analytical instrumentation businesses”.
Facebook (NASDAQ:FB), with its IPO now behind it (sort of), is looking for acquisitions. One of its targets is Opera Software, and observers calculate that such a purchase might require more than $1 billion, since interest from Google (NASDAQ:GOOG) and other suitors might spark a bidding war. Meanwhile, Opera’s shares have soared 20 percent on the Oslo exchange in reaction, which gives it a market cap of 4.9 billion Norwegian krones, or $816 million. In addition, chatter has it that FB might be eyeing facial-recognition tech developer Face.com, along with its valuable domain name. Face.com has created a popular Facebook app called Photo Tagger, plus releasing an iOS app. The price for that purchase could be between $80 million and $100 million, sources say.
Kinross Gold (NYSE:KGC) divests its 50 percent investment in the Crixas gold mine in Brazil to AngloGold Ashanti (NYSE:AU) for $220 milion in cash. The seller calls Crixas a “non-operated, non-core asset”, and its sale is “consistent with our strategy of portfolio optimization.”.
Black & Decker (NYSE:SWK) is said to be included in the list of possible buyers for Infastech, which supplies industrial fasteners, and is based in Singapore. The latter produces sales of more than $500 million, and was acquired by CVC and Standard Chartered’s (SCBFF.PK) private equity division in 2010 for between $350 million and $400 million. First-round bids should be submitted on Wednesday.
Research In Motion (NASDAQ:RIMM) shares move down significantly Wednesday, due to its fiscal first quarter warning, and especially comments from analysts that disparage any possibility of its being bought out by any entity offering a commendable premium. Sterne Agee thinks that an offer at or below current levels might be all that RIM can hope for, and Baird believes that it’s unlikely that Microsoft or Facebook would be interested.
Shutterfly (NASDAQ:SFLY) acquires Photoccino, an Israeli developer of photo ranking, analysis, and organization tech that is based on proprietary algorithms, which the buyer expects to integrate across its line of products. Financials of the transaction were undisclosed.
GlaxoSmithKline (NYSE:GSK) has by no means given up on its intentions to take over Human Genome (NASDAQ:HGSI), as it now has a plan to attempt to replace the entire board of the latter with its own nominees, says Reuters. In addition, GSK is extending its $2.6 billion tender offer beyond June 7th.
Chesapeake’s (NYSE:CHK) current slumped valuation could make it a possible target for takeover, says Bloomberg, which figures that the firm’s equity and net debt are valued at $9.19 for each barrel of oil equivalent. If true, that would set CHK as the lowest among domestic oil and gas explorers which have market caps greater than $5 billion.
US Airways (NYSE:LCC) and TPG Capital might link up in an offer for AMR Corp (AAMRQ.PK), according to sources. The benefit to US of partnering with TPG would be greater financial flexibility and credibility with its offer. The talks are said not to be exclusive, and also that the two companies are both looking into other options.
Talbots (NYSE:TLB) finally finds a buyer, but for below the previous $3 and $3.05 per share offers that it turned down in December and in April, respectively. Sycamore Partners will now acquire the company for $2.75 a share.
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Nike (NYSE:NKE) expects to divest its Cole Haan and Umbro brands, in order “to sharpen its focus on driving growth in the Nike, Jordan, Converse and Hurley brands.” Cole Haan, which makes casual and dress leather footwear and bags, was acquired in 1988, and Umbro, which is based in the United Kingdom, was bought by Nike in 2008.
Liberty Media (LMCA) requests that the FTC rethink its refusal to allow it to take control of Sirius XM Radio (NASDAQ:SIRI). The former raised its investment in the satellite radio company from 40 percent to 46.2 percent already in May.
Martin Marietta (NYSE:MLM) had its hopes dashed by the Delaware Supreme Court Thursday, which affirmed a lower-court ruling that halted Martin Marietta’s $4.5 billion hostile bid and proxy battle for Vulcan Materials (NYSE:VMC) for four months. The latter’s annual meeting begins Friday, and now MLM will not be allowed to try to get four of its nominees elected at that event.
Verizon (NYSE:VZ) purchases Hughes Telematics (HUTC.OB) for $612 million or $12 per share in cash, in a deal that the buyer says would expand its capabilities in the automotive and fleet telematics marketplace, plus speed up growth in key vertical segments, which include emerging machine-to-machine services applications.
Samsung (SSNLF.PK) buys Nanoradio, which is a developer of Wi-Fi chips for mobile devices based in Sweden. The acquisition reflects Samsung’s strategy to internally source its mobile components as much as can be done. However, the buyout is probably not a good thing for Broadcom (NASDAQ:BRCM), which is currently a major provider of Wi-Fi/Bluetooth combo chips for the world’s largest phone supplier.
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MetLife (NYSE:MET) takes itself out of the race for the $7 billion acquisition of ING’s Asia life insurance unit, says a source. This isn’t good news for ING, as MetLife is the second large potential buyer to drop out – Prudential was the first – which implies that the sale might need to be divided into pieces.
Oracle’s (NASDAQ:ORCL) acquisition of Vitrue, and Salesforce.com’s (NYSE:CRM) purchase of Buddy Media (said to be pending) might not be the smartest moves, says Jim Edwards, who notes ‘Madison Ave.’s long history of crushing upstarts trying to “disrupt” it’. In an evaluation that is relevant to both buyers, plus Bazarrvoice (BV) and Constant Contact Inc. (NASDAQ:CTCT), Edwards questions the effectiveness of advertising in social media, and notes that Facebook could turn into a direct rival, and Oracle and Salesforce’s enterprise software focus might be a downside.
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