Notable Mergers and Acquisitions of the Day 09/20: IBM/NZ, ID, ARW/NUHC

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International Business Machines Corp. (NYSE: IBM) announced Monday that it has agreed to acquire Netezza Corp. (NYSE: NZ) for about $1.7 billion to expand to expand its business analytics products.

The deal values Netezza at $27 per share, representing an 85 percent premium over the 3-month trading average of $14.54 per share. However, the deal only represents a premium of just 10 percent over Friday's close as the shares have risen 63 percent in the last month on takeover speculation.

“We continue to evolve our capabilities for systems integration, bringing together optimized hardware and software, in response to increasing demand for technology that delivers true business value. Netezza is a perfect example of this approach," said Steve Mills, senior vice president and group executive, IBM Software and Systems. "Netezza strongly complements our business analytics capabilities and client base. Together, we have the opportunity to quickly leverage the technology and accelerate the offering."

Netezza, which has 500 employees, develops products that more efficiently loads and extracts large amounts of historical data, while also taking less time to run analytic queries in less time.

"Our vision of an appliance-based Intelligent Economy aligns very well with IBM's Smarter Planet strategy. Netezza appliances set the standard for performance and simplicity in data warehousing and analytics," said Jim Baum, President and CEO of Netezza. "Our customers choose our appliances for their fast time to value and how they simplify analytics against big data."

IBM said that it has invested more than $12 billion in the last four years in 23 analytics-related acquisitions.

The companies said that the deal is expected to close in the fourth quarter.
France's Safran announced on Monday $1.1 billion deal to acquire L-1 Identity Solutions (NYSE: ID) and its core biometric identity business. The deal will also see BAE Systems extending its reach into the U.S.

According to the terms of the deal, shareholders of L-1 Identity will receive $12 per share in cash, representing a 24 percent premium over the closing price of the stock on Friday. The deal will split the security firm’s assets among the two European buyers.

The deal also represents a premium of 66 percent over the closing price on January 5 when the company announced its strategic alternatives review process.

"We are all highly impressed with the quality and expertise of L-1’s teams and we are looking forward to working with them to bring L-1 and Morpho together.” Jean-Paul Herteman, Chief Executive Officer of Safran said. "This will allow us to grow L-1’s business, while expanding the reach of L-1’s services to other key territories around the world."

L-1 Identity agreed to also sell its consulting services business to BAE Systems for $296 million.

“The acquisition of L-1’s Intelligence Services Group will significantly advance our offerings to the U.S. intelligence community,” said Linda Hudson, President and CEO of BAE Systems. “Their capabilities will enhance BAE Systems’ existing knowledge and expertise, and will better position us to offer our government customers the security and intelligence support they need to complete their missions, now and in the future."

The deals are expected to close in the first quarter of 2011 and the Board of Directors at L-1 Identity approved both of the transactions.
Arrow Electronics (NYSE: ARW) and Nu Horizons Electronics (Nasdaq: NUHC) today announced that they have agreed to an all-cash deal in which Arrow will acquire Nu Horizons for $7/share.

The deal is expected to close during Q4 of this year.

Martin Kent, President and CEO of Nu Horizons said, "This transaction represents an excellent value for Nu Horizons’ shareholders and a compelling opportunity for our employees, customers and suppliers. To compete successfully in today’s global marketplace, size and scale are very important. We are pleased to become part of a leading global company with enhanced resources. Arrow’s world-class operational capabilities and supply chain will enable Nu Horizons to continue to deliver industry-leading value to our customers."
Internet Brands (Nasdaq: INET) to be acquired by Hellman & Friedman Capital Partners for about $640 million, or about $13.35/share.