Notable Mergers and Acquisitions of the Day 10/13: CSCO/STAR, URX, HCII/TCHC, SIGM
- Cisco (Nasdaq: CSCO) announced an agreement today to acquire Starent Networks (Nasdaq: STAR) for $35 per share, or about $2.9 billion. Starent clsoed at $29.03 on Monday.
Starent Networks is a leading supplier of IP-based mobile infrastructure solutions targeting mobile and converged carriers and the acquisiton expands Cisco's mobile internet offers for service providers.
The acquisition is expected to close during the first half of calendar year 2010; however, the close date is subject to customary closing conditions and regulatory reviews.
Cisco expects the acquisition to be dilutive to non-GAAP earnings in fiscal years 2010 and 2011 and accretive to non-GAAP earnings in fiscal year 2012.
This is Ciscos' second large acquistion in as many weeks. On October 1st, Cisco acquired TANDBERG for $3 billion.
- United Refining Energy Corp. (NYSE: URX) and Chaparral Energy, Inc. jointly announced today that they have entered into an agreement through which Chaparral and URX will merge.
The proposed transaction is expected to close no later than December 11, 2009. The combined company will be named Chaparral Energy, Inc. and will continue to trade on the NYSE Amex until approval of a planned application to transfer listing to the NYSE, where the symbol "CPR" has been reserved. The proposed transaction is valued at approximately $1.8 billion.
"This merger with URX will allow us to achieve our strategic goal of becoming a publicly traded company on one of the major stock exchanges," said Fischer. "This merger will give Chaparral access to capital we need to exploit our large inventory of drilling and development opportunities and to significantly step up our EOR program."
URX is a special purpose acquisition company (SPAC) formed in December 2007 for the purpose of acquiring through a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses or assets in the energy industry.
Chaparral is an independent oil and natural gas exploitation and production company headquartered in Oklahoma City, Oklahoma.
- Homeowners Choice, Inc. (Nasdaq: HCII) today announced that it has delivered a letter to the board of directors of 21st Century Holding Company (Nasdaq: TCHC) expressing its interest in a potential business combination between the two companies.
Homeowners Choice Board Member Paresh Patel wrote a letter to Bruce Simberg, board chairman of 21st Century, offering $1.00 in cash and 0.5 share of Homeowners Choice common stock for each share of 21st Century common stock. The proposed offer values 21st Century stock at $5.30 per share, approximately a 36% premium over the October 9 closing price of $3.89.
- Sigma Designs, Inc. (NASDAQ: SIGM) and CopperGate Communications Ltd. today announced that the companies have entered into a definitive agreement for Sigma to acquire CopperGate in a cash and stock transaction with an agreed value of $160 million, net of CopperGate's cash at the closing of the transaction.
The estimated amount of cash to be paid by Sigma on the closing date is approximately $92 million, plus the amount of cash and cash equivalents estimated to be held by CopperGate at the closing, net of CopperGate transaction expenses and debt outstanding at the closing. In addition, Sigma will issue shares of its common stock to CopperGate shareholders estimated at the time of signing to equal approximately 4.0 million shares.
UBS Securities LLC is acting as Sigma's exclusive financial advisor.
CopperGate is a leading provider of silicon-based modem solutions enabling distribution of broadband digital content over all three types of wires in the home: coax, phone and power.
To see all the Mergers & Acquisitions for today in real-time go to http://www.streetinsider.com/Mergers+and+Acquisitions
Create E-mail AlertRelated Categories
Special ReportsStocks Mentioned
+0.00Related Entities
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
