Notable Mergers and Acquisitions of the Day 11/11: CHK/STO, ELRN/ENDO, AFFX

• Chesapeake Energy Corporation (NYSE: CHK) today announced the execution of an agreement for a joint venture with StatoilHydro (NYSE: STO) whereby StatoilHydro will acquire a 32.5% interest in Chesapeake's Marcellus Shale assets in Appalachia for $3.375 billion, leaving Chesapeake with a 67.5% working interest.
  
  The assets include approximately 1.8 million net acres of leasehold, of which StatoilHydro will own approximately 0.6 million net acres and Chesapeake will own approximately 1.2 million net acres.
  
  StatoilHydro will pay $1.25 billion in cash at closing and will pay a further $2.125 billion from 2009 to 2012 by funding 75% of Chesapeake's 67.5% share of drilling and completion expenditures until the $2.125 billion obligation has been funded. Chesapeake plans to continue acquiring leasehold in the Marcellus Shale play and StatoilHydro will have the right to a 32.5% participation in any such additional leasehold.
  
  
• Elron Electronic Industries Ltd. (NASDAQ: ELRN) announced that Galil Medical Ltd., a group company held by Elron and its 50.1% held subsidiary Rafael Development Corporation Ltd, announced yesterday that it signed a definitive merger agreement with Endocare (NASDAQ: ENDO).
  
  The transaction, which is expected to close in the first quarter of 2009, will combine the complementary clinical, technological and marketing strengths of the two companies, which both have expertise in cryoablation. The combination of Galil and Endocare will form a company whose pro forma combined revenues and gross profit in the twelve months ended September 30, 2008 were approximately $55.6 million and $39.1 million (70.3% of revenues), respectively. Martin J. Emerson, Galil Medical's President and Chief Executive Officer, will lead the combined company.
  
  
• Affymetrix (Nasdaq: AFFX) today announced that it has entered into a definitive agreement to acquire Panomics Inc., a privately held company that offers a powerful suite of assay products for a wide variety of low to mid-plex genetic, protein and cellular analysis applications. The acquisition will strengthen Affymetrix' position in high-growth validation and routine-testing market segments. The combination will also enable a more complete customer workflow, beginning with whole-genome Affymetrix microarray studies and then focusing on genes and proteins of interest with the Panomics products.
  
  Under the terms of the agreement, Affymetrix will pay approximately $73 million in cash to acquire Panomics. The transaction is expected to close by the end of 2008, subject to customary closing conditions and regulatory approvals.

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