Market Overview

Wall Street's M&A Chatter From September 18: Walgreens-Rite Aid, Northrup Grumman-Orbital ATK, Itron-Silver Spring Networks


The following are the M&A deals, rumors and chatter circulating on Wall Street for Monday, September 18, 2017.

Northrup Grumman to Acquire Orbital ATK for $134.50/Share in Cash

The Deal:

Northrop Grumman Corporation (NYSE: NOC) and Orbital ATK Inc (NYSE: OA) have entered into a definitive agreement under which Northrop Grumman will acquire Orbital ATK for $134.50 in cash to Orbital ATK shareholders. The deal consists of approximately $7.8 billion in cash, plus the assumption of $1.4 billion in net debt. Orbital ATK shareholders will receive all-cash consideration of $134.50 per share.

The transaction is expected to close in H1 of 2018, subject to regulatory and Orbital ATK shareholder approval.

Orbital ATK closed Monday at $132.25, up $22.21.

Itron to Acquire Silver Spring Networks for $16.25/Share,

The Deal:

Itron, Inc. (NASDAQ: ITRI) and Silver Spring Networks Inc (NYSE: SSNI) announced an agreement under which Itron will acquire all outstanding shares of Silver Spring for $16.25 per share in cash. The transaction value is approximately $830 million, net of $118 million of Silver Spring's cash.

The deal has been unanimously approved by the boards of directors of both companies and is expected to close in late 2017 or early 2018, subject to approval of Silver Spring's stockholders.

Silver Spring Networks closed at $16.10, up $3.10.

Walgreens, RiteAid Said to Tweak Deal to Get US Government Approval

The Rumor:

Walgreens Boots Alliance Inc. (NASDAQ: WBA) is prepared to update its agreement to acquire 2,000 Rite Aid (NYSE: RAD) stores, according to a report from Bloomberg. Sources say the revision could resolve regulatory concerns and gain approval for a deal.

RiteAid closed at $2.73, up 20 cents.

Update: Walgreens Gets Regulatory Clearance To Purchase 1932 Rite Aid Stores & Related Assets For $4.375B Cash; This Deal Is Amended From Original Terms To Purchase 2186 Rite-Aid Stores For $5.175B Cash.

Chatter of Lilly Bid for Clovis

The Rumor:

Shares of Clovis Oncology (NASDAQ: CLVS) surged to nearly $77.00 per share Monday following chatroom chatter of a potential bid from Eli Lilly (NYSE: LLY). Traders circulated an unconfirmed report that Lilly has offered $110.00 per share for Clovis.

A Clovis spokesperson said the company "remains focused on bringing Rubraca (rucaparib) to women with ovarian cancer and, eventually, to patients with other solid tumors that may be addressed by PARP inhibitors."

Clovis closed at $76.74, up $7.28.

Ultragenyx Proposes to Acquire Dimension Therapeutics for $5.50/Share in Cash

The Offer:

Ultragenyx Pharmaceutical Inc. (NASDAQ: RARE) announced a proposal to acquire all of the outstanding shares of common stock of Dimension Therapeutics Inc (NASDAQ: DMTX) for $5.50 per share in cash, or approximately $138 million, via a tender offer.

Dimension confirmed receipt of non-binding, unsolicited proposal from Ultragenyx and said Board of Directors, in consultation with its independent legal and financial advisors, will carefully review and consider the Ultragenyx proposal. On August 25, 2017, Dimension entered into a definitive merger agreement with REGENXBIO Inc. (NYSE: RGNX) under which REGENXBIO would acquire Dimension in an all-stock transaction. Dimension said its Board has not changed its recommendation in support of the merger with REGENXBIO.

Dimension Therapeutics closed at $5.90, up $1.70.

Posted-In: News Rumors M&A


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