14 Notable Mergers & Acquisitions of 2013: Investment Idea of the Day

According to data compiled by Thomson Reuters, more than $1 trillion worth of mergers and acquisitions (M&A) deals were announced in the U.S. during 2013, accounting for 43% of all deals announced worldwide. In an another report by Dealogic, U.S M&A volumes totaled $865.1 billion during the first nine months of 2013, an increase of 39% over the same period a year ago. According to Bloomberg, Canadian companies announced 2,325 deals worth $158.2 billion during 2013.

IHS Herold, a consulting firm, notes that North America’s energy boom failed to attract major M&A deals in the sector during 2013. Energy companies spent $57 billion, down 55% from 2012 to buy other companies or oil and gas fields in the U.S. and Canada. Worldwide, energy M&A in 2013 amounted to $135 billion.

Ubika Research has shortlisted fourteen notable acquisition deals of 2013 across sectors. We note that the acquiring company stocks have accumulated gains during 2013 with six-month daily average traded volumes in excess of 100,000 shares.

Acquiring Company

Exchange

Ticker

Sector

Market Cap 
(MM)

Last Price

Volume Change 
(6-month)

Price Return
(2013)

Target Company

Deal Announced Date

Announced Deal  Value (MM$)

Payment Type

Deal Status

Whitecap Resources Inc

TSX

WCP

Energy

2,129.2

12.36

1,687,920

46.1%

Invicta Energy Corp

18-Mar-13

40.18

Cash or Stock

Complete

Canfor Corp

TSX

CFP

Basic Materials

3,696.4

26.35

506,297

60.8%

Scotch & Gulf Lumber LLC

31-May-13

82.85

Cash

Complete

Secure Energy Services Inc

TSX

SES

Energy

1,996.1

17.18

418,135

78.1%

Target Rentals Ltd

4-Jun-13

38.24

Cash & Stock

Complete

Novavax Inc

NASDAQ

NVAX

Healthcare

1,107.2

5.31

3,548,647

170.9%

Isconova AB

4-Jun-13

24.83

Stock

Pending

Gentherm Inc

NASDAQ

THRM

Industrial

896.4

25.84

299,325

101.6%

WET Automotive Systems AG

12-Jun-13

19.22

Cash

Pending

NQ Mobile Inc

NYSE

NQ

Technology

829.6

15.95

4,934,645

143.4%

Beijing Nation Sky Network Technology Co Ltd

15-Jul-13

25.20

Cash & Stock

Pending

Industrial Alliance Insurance & Financial Services Inc

TSX

IAG

Financial

4,564.6

46.04

223,744

49.6%

Jovian Capital Corp

16-Jul-13

91.95

Cash or Stock

Complete

Real Goods Solar Inc

NASDAQ

RSOL

Energy

97.0

3.35

2,736,963

297.3%

Mercury Energy Inc

9-Aug-13

19.19

Stock

Pending

RR Donnelley & Sons Co

NASDAQ

RRD

Consumer Services

3,590.4

19.76

2,332,133

125.6%

Consolidated Graphics Inc

24-Oct-13

690.81

Cash & Stock

Pending

Gray Television Inc

NYSE

GTN

Communications

833.9

14.58

836,422

576.4%

Yellowstone Television LLC

4-Nov-13

23.00

Cash

Pending

Mitel Networks Corp

NASDAQ

MITL

Technology

510.3

9.46

284,150

221.3%

Aastra Technologies Ltd

11-Nov-13

240.12

Cash & Stock

Pending

EW Scripps Co

NYSE

SSP

Communications

1,173.4

21.07

443,364

100.9%

NEWSY.COM

9-Dec-13

35.00

Cash

Pending

Descartes Systems Group Inc

TSX

DSG

Technology

887.6

14.14

215,766

53.5%

Compudata AG

23-Dec-13

18.97

Cash

Complete

Avigilon Corp

TSX

AVO

Industrial

1,348.6

31.40

208,454

162.8%

VideoIQ Inc

31-Dec-13

34.01

Cash

Pending

Source: Bloomberg 
Market Cap, Last Price and Deal Values are in their respective currencies

Company Description

Whitecap Resources Inc WCP 
Whitecap Resources, Inc. explores for oil and natural gas. The company operates in western Canada.

Canfor Corp CFP        
Canfor Corporation is an integrated forest products company that produces and supplies SPF lumber, oriented strand board, plywood, kraft pulp and kraft paper. The company also produces remanufactured lumber products, hardboard paneling and special baled fibre products.  In addition, Canfor produces kraft pulp and newsprint through a joint venture partnership with Howe Sound Pulp and Paper.

Secure Energy Services Inc SES        
Secure Energy Services Inc., is an energy services company that focuses on providing specialized services to upstream oil and natural gas companies operating in the Western Canadian Sedimentary Basin. The company treats and sells crude oil and the handling of by-products associated with oil and natural gas development and production.

  Novavax Inc NVAX           
Novavax, Inc. is a clinical stage biotechnology company. The company creates novel vaccines to address a broad range of infectious diseases worldwide using proprietary virus-like particle (VLP) technology.

Gentherm Inc THRM        
Gentherm Inc. designs, develops, and manufactures heating, cooling, and ventilating devices for diverse global markets. The company offers heated seating, climate seating, electronics, and cables. for the automotive markets.

NQ Mobile Inc NQ    
NQ Mobile Inc. is a global provider of mobile Internet services. The company's portfolio includes mobile security and mobile games & advertising for the consumer market and consulting, mobile platforms and mobility services for the enterprise market.

Industrial Alliance Insurance & Financial Services Inc IAG     
Industrial Alliance Insurance and Financial Services Inc. is an insurance and financial services company that has operations throughout Canada. The company provides life and health insurance, savings and retirement plans, registered retirement saving plans, investment funds, mortgage loans, securities brokerage services, auto and home insurance, and other financial products and services.

Real Goods Solar Inc RSOL        
Real Goods Solar, Inc. provides residential and commercial solar energy engineering, procurement, and construction services.The company offers solar energy services, including design, procurement, permitting, build-out, grid connection, financing referrals, and warranty and customer satisfaction activities. Real Goods Solar serves clients in the United States.

RR Donnelley & Sons Co RRD     
R. R. Donnelley & Sons Company provides commercial printing and information services. The company provides solutions that include commercial printing, direct mail, financial printing, print fulfillment, labels, forms, logistics, call centers, transactional print-and-mail, print management, online services, digital photography, color services, and content and database management.

Gray Television Inc GTN      
Gray Television, Inc. operates television stations. The company operates in the southern, midwestern, and southwestern United States.

Mitel Networks Corp MITL           
Mitel Networks Corp., is a provider of communications solutions for organizations. The company offers solutions, from business communications to unified communications, from prepackaged to tailored applications.

EW Scripps Co SSP 
The E.W. Scripps Company has interests in television stations, newspapers and digital products and services.

Descartes Systems Group Inc DSG     
The Descartes Systems Group Inc. provides inter-enterprise software for the execution of supply-chain management, especially for delivery-intensive companies. The company's products allow users to share and process information via the Internet.  Descartes licenses software to customers worldwide.

Avigilon Corp AVO     
Avigilon Corporation manufactures surveillance equipment. The company produces high definition, network-based video surveillance systems and equipment for video capture, transmission, recording, and playback.

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