Benzinga's M&A Chatter for Friday June 15, 2012
The following are the M&A deals, rumors and chatter circulating on Wall Street for Friday June 15, 2012:
Valeant Pharmaceuticals Agrees To Acquire OraPharma
Valeant Pharmaceuticals (NYSE: VRX) announced Friday that Valeant has agreed to acquire OraPharma, a specialty oral health company that develops and commercializes products that improve and maintain oral health, from Water Street Healthcare Partners, a private equity firm focused exclusively on the health care industry.
Total consideration is approximately $312 million and up to $114 million in potential contingent payments based on certain milestones, including revenue targets. OraPharma's lead product is Arestin, a locally administered antibiotic for the treatment of periodontitis that utilizes an advanced controlled-release delivery system and is indicated for use in conjunction with scaling and root planing for the treatment of adult periodontitis. OraPharma currently has the largest specialized pharmaceutical salesforce in the dental industry and, as of March 31st, 2012, OraPharma's trailing twelve month net revenue was approximately $95 million with the business growing at a high single digit rate.
The transaction is expected to close in June 2012, subject to the satisfaction of certain closing conditions, and is expected to be accretive in 2012.
Valeant Pharmaceuticals closed at $44.93 Friday, a loss of 2.22% on slightly more than the average daily volume.
Motorola Solutions to Acquire Psion for $200M in Cash
Motorola Solutions (NYSE: MSI) and Psion announced Friday that they have agreed on the terms of a recommended offer by Motorola Solutions for all Psion shares for 88 pence (US $1.36) in cash per Psion share. It is intended that the acquisition will be effected by way of a recommended cash offer.
Under the terms of the acquisition, Psion shareholders will receive 88 pence (US $1.36) in cash for each Psion share through a recommended cash offer, valuing Psion's issued ordinary share capital at approximately £129 million (US $200 million). The consideration represents a premium of approximately 45 percent to the closing price of 60.5 pence per Psion share on June 14, 2012, the last trading day prior to this announcement and a premium of approximately 66 percent to the six-month average price of 52.9 pence per Psion share prior to June 15, 2012. The acquisition is expected to close in the fourth quarter of 2012.
Motorola Solutions closed at $48.70 Friday, a gain of 2.85% on 1.5 times the average daily volume.
Human Genome Sciences Sets July 16 as Date for Submission of Definitive Acquisition Proposals
Human Genome Sciences (NASDAQ: HGSI) announced Friday that, in connection with its ongoing strategic alternative review process, it had previously set a bid date of July 16, 2012 for the submission of definitive proposals to acquire all outstanding common shares of HGS. In this regard, HGS yesterday sent a letter to GlaxoSmithKline (NYSE: GSK) once again inviting GSK to participate in the ongoing process according to the same procedures previously established and to provide, by no later than July 16, 2012, GSK's final bid terms, including a response to a draft agreement which will be provided to all interested bidders. The letter specifically noted that the HGS Board of Directors has previously rejected $13.00 per share as inadequate.
Human Genome Sciences closed at $13.19 on Friday, a gain of 0.69% on slightly more than the average daily volume.
Hearing Chatter of Private Equity Bids for AsiaInfo-Linkage
Three private equity firms: Silverlake, TPG Capital and Primavera Capital are all interested in acquiring China's telecommunications software company, AsiaInfo-Linkage (NASDAQ: ASIA), according to Reuters. The deal could be worth more than $1 billion.
In February, AsiaInfo-Linkage confirmed with Benzinga that the company was in discussions for a deal with Chinese private equity firm CITIC Capital. The rumored acquisition price at that time was $15 to $17 per share.
On Friday, AsiaInfo-Linkage told Benzinga they had "no news on any potential buyout". A spokesperson for TPG Capital declined comment, while the other rumored buyers were not available.
AsiaInfo-Linkage closed at $12.79 on Friday, a gain of 15.43% on 3.5 times the average daily volume.
Hearing Chatter of Broadcom and Cisco Eyeing PMC-Sierra
Broadcom (NASDSQ: BRCM) and Cisco (NASDAQ: CSCO) are looking at a possible acquisition of PMC-Sierra (NASDAQ: PMCS), according to sources. The rumored purchase price is $8.50 per share. Reuters reported on April 4 that the company was in talks with potential buyers.
Both Cisco and Broadcom declined comment on the chatter. A spokesperson for PMC-Sierra was not available for comment.
PMC-Sierra closed at $6.24 on Friday, a gain of 0.32% on average volume.
Hearing Microsoft to Buy Yammer
Neither Microsoft nor Yammer have confirmed the deal.
Microsoft closed at $30.02 on Friday, a gain of 2.32% on slightly more than the average daily volume.