Notable Mergers and Acquisitions of the Day 02/01: AIG, DISH, GENZ, CMLS

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Prudential Financial, Inc. (NYSE: PRU) announced Tuesday that it has acquired AIG Star Life Insurance and AIG Edison Life Insurance from American International Group (NYSE: AIG) for a total transaction price of $4.8 billion.

The terms of the deal will see Prudential pay $4.2 billion in cash and $600 million in third-party debt.

"With the successful conclusion of this transaction, we look forward to maximizing synergies and realizing the benefits generated by our greater scale to further enhance our services and strengthen our competitive position in this market. This will enable us to bring our products and services to more customers in Japan,” said John Strangfeld, chairman and chief executive officer of Prudential Financial.
DISH Network Corporation (Nasdaq: DISH) announced that they have entered into an agreement for the acquisition of DBSD North America, Inc., for a consideration of $1 billion subject to certain adjustments, including interest accruing on DBSD North America's existing debt.

DISH Network is also committing to provide a debtor-in-possession credit facility to DBSD North America in connection with filings under Chapter 11 of the U.S. Bankruptcy Code.

This transaction is to be completed upon satisfaction of certain conditions, including approval by the Federal Communications Commission and DBSD North America's emergence from bankruptcy.
Genzyme Corporation (Nasdaq: GENZ) announced that they have completed the $265 million cash sale of its diagnostic products business to Sekisui Chemical Co., Ltd.

Genzyme also announced today that it has entered into a purchase agreement under which an affiliate of International Chemical Investors Group (ICIG) will acquire Genzyme’s pharmaceutical intermediates business.

Closing is expected to be in Q111. Financial terms of the deal were not disclosed.
After the market yesterday, Cumulus Media Inc. (NASDAQ: CMLS) announced that they have entered into an agreement to acquire the balance of outstanding equity interests of Cumulus Media Partners, LLC.

In connection with the acquisition, Cumulus will issue 9,945,714 shares of its common stock to affiliates of the three private equity firms that collectively own 75% of CMP −− Bain Capital Partners, LLC, The Blackstone Group L.P. and Thomas H. Lee Partners. Blackstone will receive shares of Cumulus’ Class A common stock and, in accordance with Federal Communications Commission broadcast ownership rules, Bain and THL will receive shares of a new class of Cumulus non-voting common stock. Cumulus currently owns the remaining 25% of CMP’s equity interests. In connection with the acquisition, Cumulus also intends to acquire all of the outstanding warrants to purchase common stock of a subsidiary of CMP, in exchange for an additional 8,267,968 shares of Cumulus common stock.

Based on the closing price of Cumulus’ common stock on January 28, 2011, the implied enterprise value of CMP is approximately $740 million, which includes an estimated $660 million of CMP net debt and preferred stock as of December 31, 2010.