Notable Mergers and Acquisitions of the Day 02/04: (ORCL)/(APKT) (JBL) (JCOM)/(NWSA) (COWN)
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Price: $147.23 +3.63%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.7%
EPS Growth %: +17.7%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.7%
EPS Growth %: +17.7%
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* Oracle (NASDAQ: ORCL) today announced that it has entered into an agreement to acquire Acme Packet (NASDAQ: APKT), the leading global provider of session border control technology for $29.25 per share or approximately $1.7 billion, net of Acme Packet's cash. Acme Packet enables the trusted, first-class delivery of next-generation voice, data and unified communications services and applications across IP networks. The company's solutions are deployed by more than 1,900 service providers and enterprises globally, including 89 of the world's top 100 communications companies.
The combination of Oracle and Acme Packet is expected to accelerate the migration to all-IP networks by enabling secure and reliable communications from any device, across any network. Users are increasingly connected and expect to communicate anytime and anywhere using their application, device, and network of choice. Oracle Communications along with Acme Packet can help service providers and enterprises meet these demanding requirements by delivering an end-to-end portfolio of technologies that will support the deployment, innovation and monetization of all-IP networks.
The Board of Directors of Acme Packet has unanimously approved the transaction. The transaction is expected to close in the first half of 2013, subject to Acme Packet stockholder approval, certain regulatory approvals and other customary closing conditions.
* Jabil Circuit, Inc. (NYSE: JBL) announced an agreement to acquire Nypro Inc., a provider of manufactured precision plastic products for customers in the Healthcare, Packaging and Consumer Electronics industries, with over $1 billion in total annual revenues.
Nypro was founded in 1955 in Clinton, Massachusetts. Current chairman, Gordon Lankton, a member of the Manufacturing Hall of Fame and the Plastics Hall of Fame, took an ownership interest when joining the company in 1962. Mr. Lankton acquired complete ownership in 1968 and led the company to success in new markets and a global presence. In 1998, Mr. Lankton sold most of his stock to an Employee Stock Ownership Plan (ESOP) which now owns a substantial portion of Nypro's stock along with employee-owners. “I have always believed in growing our business in order to create meaningful opportunities for our employees. Our partnership with Jabil does just that, and I am confident they are an ideal partner for Nypro,” said Lankton. The company has approximately 12,000 employees and manufacturing operations in 10 countries. The company has advanced capabilities in product design, tooling, injection molding, surface decoration and complete product manufacturing.
Completion of the transaction, which is subject to a shareholder vote by participants in Nypro's ESOP, as well as by Nypro's shareholders, regulatory antitrust clearances in the US, China and other jurisdictions and certain other customary closing conditions, is currently expected to take place during Jabil’s fiscal third quarter. The total purchase price is expected to be $665 million, subject to certain adjustments, and is expected to be funded from Jabil's existing cash and credit facilities. The transaction is expected to be neutral to slightly accretive to Jabil's core earnings per share for the balance of fiscal 2013 and accretive to earnings per share on both a core and GAAP basis in fiscal 2014.
* j2 Global, Inc. (Nasdaq: JCOM) announced that its Ziff Davis, Inc. subsidiary has acquired IGN Entertainment, a leader in video game, entertainment and men’s lifestyle content, from News Corporation (Nasdaq: NWSA). The acquisition provides j2 with a group of world-class digital properties.
The combination of Ziff Davis’ properties including, amongst others, PCMAG.com, Geek.com and Toolbox.com, with IGN’s properties, IGN.com, UGO.com, 1UP.com and AskMen.com, make the group one of the largest digital publishers reaching tech, video game and entertainment enthusiasts. In addition, these properties have over 600 advertisers and 53 million global monthly unique visitors. This acquisition more than doubles the revenues of j2’s digital media business.
All of these properties predominantly attract males 18-34, and the group’s advertisers will now have access to a larger audience and a broader array of premium inventory. In addition, IGN’s strength in video content coupled with Ziff Davis’ strength in data analytics will allow the group’s marketing partners to more efficiently reach its demographically attractive audience.
The transaction is expected to be accretive to j2’s 2013 earnings, exclusive of transition costs.
* Cowen Group, Inc. (Nasdaq: COWN) and Dahlman Rose & Company, LLC, entered a definitive agreement under which Cowen will acquire Dahlman Rose, a privately-held investment bank specializing in the energy, metals and mining, transportation, chemicals and agriculture sectors. This acquisition is an all-stock transaction and financial terms of the deal were not disclosed. The definitive agreement was approved by the board of directors of both companies.
The transaction, which is expected to close by the end of the first quarter of 2013, is subject to customary closing conditions and regulatory approval.
Willkie Farr & Gallagher LLP acted as legal advisor to Cowen on this transaction. Morgan Lewis & Bockius, LLP acted as legal advisor to Dahlman Rose for this transaction.
To keep up on all the Mergers & Acquisitions data in real-time, go to our new M&A Insider page.
The combination of Oracle and Acme Packet is expected to accelerate the migration to all-IP networks by enabling secure and reliable communications from any device, across any network. Users are increasingly connected and expect to communicate anytime and anywhere using their application, device, and network of choice. Oracle Communications along with Acme Packet can help service providers and enterprises meet these demanding requirements by delivering an end-to-end portfolio of technologies that will support the deployment, innovation and monetization of all-IP networks.
The Board of Directors of Acme Packet has unanimously approved the transaction. The transaction is expected to close in the first half of 2013, subject to Acme Packet stockholder approval, certain regulatory approvals and other customary closing conditions.
* Jabil Circuit, Inc. (NYSE: JBL) announced an agreement to acquire Nypro Inc., a provider of manufactured precision plastic products for customers in the Healthcare, Packaging and Consumer Electronics industries, with over $1 billion in total annual revenues.
Nypro was founded in 1955 in Clinton, Massachusetts. Current chairman, Gordon Lankton, a member of the Manufacturing Hall of Fame and the Plastics Hall of Fame, took an ownership interest when joining the company in 1962. Mr. Lankton acquired complete ownership in 1968 and led the company to success in new markets and a global presence. In 1998, Mr. Lankton sold most of his stock to an Employee Stock Ownership Plan (ESOP) which now owns a substantial portion of Nypro's stock along with employee-owners. “I have always believed in growing our business in order to create meaningful opportunities for our employees. Our partnership with Jabil does just that, and I am confident they are an ideal partner for Nypro,” said Lankton. The company has approximately 12,000 employees and manufacturing operations in 10 countries. The company has advanced capabilities in product design, tooling, injection molding, surface decoration and complete product manufacturing.
Completion of the transaction, which is subject to a shareholder vote by participants in Nypro's ESOP, as well as by Nypro's shareholders, regulatory antitrust clearances in the US, China and other jurisdictions and certain other customary closing conditions, is currently expected to take place during Jabil’s fiscal third quarter. The total purchase price is expected to be $665 million, subject to certain adjustments, and is expected to be funded from Jabil's existing cash and credit facilities. The transaction is expected to be neutral to slightly accretive to Jabil's core earnings per share for the balance of fiscal 2013 and accretive to earnings per share on both a core and GAAP basis in fiscal 2014.
* j2 Global, Inc. (Nasdaq: JCOM) announced that its Ziff Davis, Inc. subsidiary has acquired IGN Entertainment, a leader in video game, entertainment and men’s lifestyle content, from News Corporation (Nasdaq: NWSA). The acquisition provides j2 with a group of world-class digital properties.
The combination of Ziff Davis’ properties including, amongst others, PCMAG.com, Geek.com and Toolbox.com, with IGN’s properties, IGN.com, UGO.com, 1UP.com and AskMen.com, make the group one of the largest digital publishers reaching tech, video game and entertainment enthusiasts. In addition, these properties have over 600 advertisers and 53 million global monthly unique visitors. This acquisition more than doubles the revenues of j2’s digital media business.
All of these properties predominantly attract males 18-34, and the group’s advertisers will now have access to a larger audience and a broader array of premium inventory. In addition, IGN’s strength in video content coupled with Ziff Davis’ strength in data analytics will allow the group’s marketing partners to more efficiently reach its demographically attractive audience.
The transaction is expected to be accretive to j2’s 2013 earnings, exclusive of transition costs.
* Cowen Group, Inc. (Nasdaq: COWN) and Dahlman Rose & Company, LLC, entered a definitive agreement under which Cowen will acquire Dahlman Rose, a privately-held investment bank specializing in the energy, metals and mining, transportation, chemicals and agriculture sectors. This acquisition is an all-stock transaction and financial terms of the deal were not disclosed. The definitive agreement was approved by the board of directors of both companies.
The transaction, which is expected to close by the end of the first quarter of 2013, is subject to customary closing conditions and regulatory approval.
Willkie Farr & Gallagher LLP acted as legal advisor to Cowen on this transaction. Morgan Lewis & Bockius, LLP acted as legal advisor to Dahlman Rose for this transaction.
To keep up on all the Mergers & Acquisitions data in real-time, go to our new M&A Insider page.
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