Market Overview

Benzinga's M&A Chatter for Tuesday January 17, 2012

The following are the M&A deals, rumors and chatter circulating on Wall Street for Tuesday January 17, 2012:

ConAgra Foods Agrees to Acquire Del Monte Canada

The Deal:
ConAgra Foods (NYSE: CAG) announced Tuesday that it has agreed to acquire Toronto-based Del Monte Canada Inc., a leading provider and marketer of packaged fruits, fruit snacks and vegetables in Canada, from an affiliate of Sun Capital Partners. The agreement includes the acquisition of all Del Monte branded packaged fruit, fruit snacks and vegetable products in Canada, as well as Aylmer tomato products. Del Monte fresh produce, juices, and Aylmer soups will remain under separate ownership.

The agreement also includes a manufacturing facility in Dresden, Ontario, and headquarters offices in Toronto, Ontario. Del Monte Canada has 190 employees and fiscal 2011 revenue of approximately $150 million. The transaction is subject to the satisfaction of closing conditions as well as applicable regulatory reviews. Financial terms were not disclosed.

ConAgra Foods closed at $26.90 Tuesday, a gain of 0.19% for the day on twice the average daily volume.

Blackbaud to Acquire Convio

The Deal:
Blackbaud (NASDAQ: BLKB) announced Tuesday that it has entered into a definitive merger agreement with Convio. (NASDAQ: CNVO).

Under the terms of the agreement, Blackbaud will acquire all outstanding shares of common stock of Convio for $16.00 per share, representing a premium of 49% compared to Convio's recent closing price and an enterprise value of approximately $275 million (based on fully diluted shares). Blackbaud will finance the deal through a combination of cash and debt. In addition to providing meaningful and immediate value for Convio's shareholders, the transaction is expected to be accretive to Blackbaud's non-GAAP financial results for the full year 2012 and increasingly so in future years.

Convio closed at $15.89 Tuesday, a gain of 48% for the day on 247 times the average daily volume.

Venoco Announces Merger Agreement With Denver Parent Corporation

The Deal:
Venoco (NYSE: VQ) announced Monday that it has entered into a definitive merger agreement under which Timothy M. Marquez, Venoco's Chairman and CEO, who, together with affiliated trusts and foundations, holds 50.3% of Venoco's common stock, will acquire Venoco through a wholly owned entity, Denver Parent Corporation.

Under the agreement, Venoco shareholders, excluding Mr. Marquez and his affiliated entities, will receive $12.50 per share in cash upon completion of the transaction. The price represents a premium of 63% to Venoco's closing price on Friday, January 13, 2012, the last trading day before the announcement of the transaction and a premium of 75% to the volume-weighted one-month moving average for that date, and implies a total enterprise value of approximately $1.5 billion.

Venoco closed at $9.99 Tuesday, a gain of 29% for the day on 16 times the average daily volume.

Hertz Acquires Remaining Stake in Navigation Solutions

The Deal:
Hertz Global (NYSE: HTZ) announced Tuesday that it has acquired, from Thales Navigation, the remaining 35% stake in Navigation Solutions, the operational arm of Hertz's award winning NeverLost customized, in car GPS system. Navigation Solutions will become a wholly-owned subsidiary of The Hertz Corporation.

Hertz closed at $12.70 Tuesday, a loss of 0.78% for the day on 78% of the average daily volume.

Lockheed Martin Acquires Procerus Technologies

The Deal:
Lockheed Martin (NYSE: LMT) announced Tuesday the acquisition of Procerus Technologies. The terms of the agreement were not disclosed, but are not material to Lockheed Martin's results.

Lockheed Martin closed at $81.64 Tuesday, a gain of 0.15% for the day on 82% of the average daily volume.

Mentor Capital Acquires 50% of Brighter Day Health

The Deal:
Mentor Capital (MNTR) announced Tuesday that it has executed a long-term funding agreement to receive a current 50% ownership in Brighter Day Health, LLC, pending their expected shareholder approval. Brighter Day provides face-to-face doctor interaction through secure computer video set-ups for ultra-economic health care delivery at nursing homes and similar treatment facilities. Mentor Capital is to provide $5.0 Million in future growth funding for Brighter Day Health to continue its multi-state expansion plan.

Mentor Capital closed at $0.13 Tuesday, a gain of 16% for the day on 83% of the average daily volume.

Tyler Technologies Acquires Longtime Partner Akanda Innovation

The Deal:
Tyler Technologies, Inc. (NYSE: TYL) announced Tuesday that it has acquired substantially all of the assets of Akanda Innovation, Inc. of Toronto, Ontario, Canada. This acquisition is the logical next step in continuing a partnership that has been in place since 1997, when Akanda began working with Tyler's Appraisal & Tax Division developing complementary modules to Tyler's iasWorld® appraisal and tax software.

Tyler Technologies closed at $33.73 Tuesday, a gain of 1% for the day on 1.2 times the average daily volume.

Valeant Pharmaceuticals Increases Proposed Price for Acquisition of ISTA Pharmaceuticals to $7.50 Per Share in Cash

The Offer:
Valeant Pharmaceuticals (NYSE: VRX) announced Tuesday that it has increased from $6.50 to $7.50 per share in cash the proposed price of its previously announced offer to acquire ISTA Pharmaceuticals (NASDAQ: ISTA). Valeant also communicated to ISTA that Valeant believed that it could achieve a price of up to $8.50 per share, assuming that ISTA provides it selected confirmatory due diligence related to the company that is consistent with what Valeant expects to see. Valeant reaffirmed that its proposal would only remain open until January 31, 2012. The transaction is expected to be significantly accretive in Lionsgate's 2013 fiscal year beginning April 1, 2012.

ISTA Pharmaceuticals closed at $8.22 Tuesday, a gain of 13% for the day on 5.5 times the average daily volume.

Amazon to Acquire Netflix

The Rumor:
Amazon (NASDAQ: AMZN) to acquire Netflix (NASDAQ: NFLX) for $130 per share.

Supposedly, the deal was put together on Monday and may be announced as early as Wednesday. A Netflix spokesperson would not comment on the rumored deal.

Netflix closed at $94.72 Tuesday, a gain of 0.36% for the day on slightly less than the average daily volume.

Samsung to Acquire Research in Motion

The Rumor:
Samsung (SSNLF) to acquire Research in Motion NASDAQ: RIMM), according to an article in BGR.com. The sale price is expected to be between $22.90 and $28.60 per share.

A spokesperson for Research in Motion declined comment on the rumor. A Samsung spokesperson commented after-hours his company was not interested in buying Research in Motion.

Jefferies commented that a licensing deal was more likely than a takeover.

Research in Motion closed at $17.47 Tuesday, a gain of 8% for the day on 2.75 times the average daily volume.

Google to Acquire Research in Motion

The Rumor:
Samsung (SSNLF) to acquire Research in Motion NASDAQ: RIMM) The transaction is expected to be significantly accretive in a story circulating on Twitter.

Expect the cast of bidders to grow over the next few weeks until a deal is made.

Sears Holdings to be Acquired by Private Equity

The Rumor:
Sears Holdings (NASDAQ: SHLD) to be acquired by private equity, according to sources. Bruce Berkowitz of Fairholme and Chairman Eddie Lampert could be the acquirers.

Lampert Bought $142.5 million of Sears stock on Wednesday. It's not likely he will look to take the company private soon after that transaction.

Sears Holdings closed at $36.75 Tuesday, a gain of 9.51% for the day on 4.4 times the average daily volume.

Liberty Global to Acquire Barnes & Noble

The Rumor:
Liberty Global (NASDAQ: LBTYA) to acquire Barnes & Noble (NYSE: BKS) for $17.50 per share.

A spokesperson for Barnes & Noble would not comment on the rumor.

Barnes & Noble closed at $11.05 Tuesday, a loss of 1.78% for the day on just under the average daily volume.

Eli Lilly or Novartis to Acquire Incyte

The Rumor:
Eli Lilly (NYSE: LLY) or Novartis (NYSE: NVS) are the most likely candidates to Acquire Incyte (NASDAQ: INCY), according to a MSN Money blog post.

The article indicates that Incyte is worth $25 to $30 per share. A company spokesperson acknowledged seeing the article, but would not comment further.

Incyte closed at $16.95 Tuesday, a gain of 0.47% for the day on 85% of the average daily volume.

Pharmerica Shareholders Seeking Offers

The Rumor:
Pharmerica (NYSE: PMC) shareholders are seeking $20 to $25 for a sale of the company, according to sources.

Back in September 2011, Pharmerica's board rejected an unsolicited bid of $15 per share from Omnicare.

Pharmerica closed at $13.65 Tuesday, a loss of 0.07% for the day on 1.6 times the average daily volume.

Statoil to Acquire Range Resources

The Rumor:
Statoil (NYSE: STO) is working with advisors to prepare an offer for Range Resources (NYSE: RRC), according to sources.

Range Resources has been a frequent takeover name, the last time on January 6. As always, management will not comment on rumors.

Range Resources closed at $54.53 Tuesday, a gain of 0.68% for the day on twice the average daily volume.

Posted-In: Long Ideas News Short Ideas Rumors M&A After-Hours Center Movers Tech

 

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