Avago Technologies Limited and Emulex Corporation recently declared that they have signed a definitive agreement, whereby, Avago will take control over Emulex. The all-cash transaction as market worth around $606 million or $609 million net of cash and debt acquired. Pursuant to the terms of the deal, which received backing of the Boards of Directors of both companies, a Avago subsidiary is going to lauch a tender offer for all of the outstanding shares of Emulex common stock for $8 a share in cash, representing a 26% premium to Wednesday’s close. The transaction is expected to be financed with cash available on Avago’s balance sheet and will be completed in the second half of Avago’s fiscal year ending November 1, 2015.
T-Mobile US has been upgraded to buy from neutral at Citigroup. The analyst firm also raised its PT for the mobile carrier to $40 from $37. Citigroup analyst Michael Rollins said the upgrade comes in the wake of T-Mobile’s Un-carrier strategy, saying the strategy “is showing greater resilience.”
They also said that T-Mobile’s emerging catalysts can “support above-consensus revenue & OIBDA” for 2016. Those catalysts include: “1) expanding its addressable market for both postpaid and prepaid; 2) retaining positive operating leverage; and 3) capturing the remaining MetroPCS synergies through 2016.”
Amarin Corporation plc made public an exclusive agreement, requiring Eddingpharm to develop and commercialize Vascepa® (icosapent ethyl) across the Mainland China, the Hong Kong and Macao Special Administrative Regions and Taiwan. The product will be offered for uses similar to Amarin in the United States on the basis of the MARINE, ANCHOR and ongoing REDUCE-IT clinical trials of Vascepa. The terms of the deal held Eddingpharm responsible for development and commercialization activities in the territory and will be bear related expenses. On the other side, Amarin is going to offer development assistance and will supply finished, and later bulk, product.
Amarin is entitled to receive up-front and milestone payments of as much as $169.0 million. The total includes a $15.0 million up-front payment which is non-refundable. It will have an opportunity to receive an additional $154.0 million based performances related to development, regulatory and sales.
salesforce.com posted Q4 earnings and revenue that came in line with analyst expectations. The cloud enterprise software company reported adjusted EPS of 14 cents on revenue of $1.44 billion, exactly same as average analysts forecast. The key point to note was its deferred revenue and bookings both of which were above market expectations.
Dunkin’ Brands entered into agreements with J.M. Smucker and Keurig Green Mountain with an aim to expand distribution of its K-Cup single-serve coffee pods. Currently, they are not being sold at any other places except at Dunkin’ Donut stores.
The expanded deals call for Smucker to make available Dunkin’ K-Cup packs at grocery chains, mass merchandisers, club stores, drugstores dollar stores and home improvement stores. Dunkin’ bagged coffee is already available to retailers.
Keurig also will be responsible for distribution of Dunkin’ K-Cups to specialty stores and office superstores.
Financial terms of the deals were kept secret.
