Market Overview

Benzinga's M&A Chatter for Tuesday August 28, 2012


The following are the M&A deals, rumors and chatter circulating on Wall Street for Tuesday August 28, 2012:

Stratex Announces Offer to Acquire Magellan Petroleum

The Offer:
Stratex Oil & Gas Holdings (OTC: STTX) announced Tuesday that it has made an offer to acquire Magellan Petroleum (NASDAQ: MPET) for $2.30 per share in cash and stock. The offer was made in a letter to Magellan's CEO with a copy to the Board of Directors yesterday after the CEOs of the two companies had previously discussed Stratex's interest in acquiring Magellan, but had failed to come to any definitive understanding.

At $2.30 per share, the offer provides a 137% premium to Magellan's shareholders based on Friday's closing price of $.97 and is 34% above Magellan's 52-week high of $1.72. The total value of the transaction is approximately $124 million. Stratex is fully committed to pursuing this transaction, and has secured committed financing to complete the cash portion of the offer.

A spokesperson for Magellan Petroleum told Benzinga the board was in receipt of the unsolicited offer and was to begin the review process. The spokesperson said the offer from Stratex was being treated as a legitimate offer from a public company, and Magellan would have an announcement regarding the offer in the next few days. He was not able to determine at this time if Stratex was able to finance a deal.

Magellan Petroleum closed at $1.27 Tuesday, a gain of 29.61% on 67 times average volume.

Rackspace to Acquire Mailgun

The Deal:
Rackspace (NYSE: RAX) announced Tuesday that it has entered into a definitive agreement to acquire Mailgun, Inc., a Y Combinator startup. On the heels of the Rackspace Open Cloud launch, the Mailgun acquisition will further enhance Rackspace's product portfolio, making it easy to integrate cloud-based email services into applications and websites within minutes. The acquisition is expected to close this week.

Rackspace closed at $59.56 Tuesday, a gain of 0.86% on lower than average volume.

Autodesk Acquires Inforbix

The Deal:
Autodesk (NASDAQ: ADSK) announced Tuesday it has acquired certain assets of Inforbix, LLC. Inforbix is a software company focused on cloud-based SaaS solutions aimed at increasing the value of product data, productivity, and improved decision making for manufacturing-based companies. Terms of the transaction were not disclosed. As a part of this acquisition, Autodesk also announced that it appointed Oleg Shilovitsky as Senior Director of PLM and Data Management. Shilovitsky is a co-founder of Inforbix, LLC.

Autodesk closed at $31.23 Tuesday, a gain of 2.36% on almost 3 times average volume.

Hearing Chatter of Sale Talks

The Rumor: (NASDAQ: ACOM) is reportedly in sale talks once again, according to DealReporter. There have been several reports over the past few months that the company has been looking for a buyer. In June, it was reported that had hired Qatalyst Partners to help with the search process.

A spokesperson for declined comment on the rumor. closed at $30.78 Tuesday, a gain of 0.42% on average volume.

Hearing Renewed Takeover Chatter in DG

The Rumor:
Digital Generation (NASDAQ: DGIT) was the subject of renewed takeover chatter on Tuesday. On July 16, DG announced a strategic review process and hired Goldman Sachs as an adviser.

A Digital Generation spokesperson was not available for comment.

Digital Generation closed at $11.02 Tuesday, a gain of 8.15% on average volume.

Parkervision Said to be Takeover Target

The Rumor:
Parkervision (NASDAQ: PRKR) could be a target for a large tech company, due to its semi-conductor-related patent portfolio, according to an article in Seeking Alpha.

A Parkervision spokesperson was not available for comment.

Parkervision closed at $2.17 Tuesday, a gain of 1.88% on lower than average volume.

Hearing KAR Auction Services Selects Evercore for Sale

The Rumor:
KAR Auction Services (NYSE: KAR) has selected Evercore Partners as buyer for the company, according to DealReporter. On August 22, it was reported that KAR, which is 78% owned by a group of companies that includes Goldman Sachs (NYSE: GS), was in talks with private equity firms to explore a possible sale.

KAR Auciton Services closed at $17.48 Tuesday, a gain of 2.58% on higher than average volume.

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