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M and A Navigator: Deal pipeline -1 April.

M2 EQUITYBITES-April 1, 2016-M and A Navigator: Deal pipeline -1 April

(C)2016 M2 COMMUNICATIONS http://www.m2.com

The following is a list of deals covered in detail by M and A Navigator this week:

-DR REDDY'S TO ACQUIRE EX-ASIA RIGHTS TO INVESTIGATIONAL ANTICANCER AGENT FROM JAPAN'S EISAI

Indian drugmaker Dr. Reddy's Laboratories (NYSE: RDY) has entered into a licensing agreement with Eisai Co., Ltd, Japan by which Dr. Reddy's will be granted exclusive worldwide development and commercialisation rights (excluding Japan and Asia) for Eisai's investigational anticancer agent E7777, the company said.

Under the deal, Eisai will be responsible for the development and marketing of E7777 in Japan and Asia, while Dr. Reddy's holds the option for rights to develop and market the agent in India. In exchange of these rights, Eisai will receive milestone payments in line with obtaining marketing approval and the achievement of agreed upon sales targets.

Status: Agreed

-CHINA'S XUEDA EDUCATION TO CLOSE GOING PRIVATE TRANSACTION IN 2Q16

Chinese tutoring services provider Xueda Education Group (NYSE: XUE) will close its merger with Xiamen Insight Investment Co., Ltd. (Shenzhen:000526.SZ) in 2Q16, the company said.

Under the deal, Insight will acquire Xueda for USD 2.75 in cash per ordinary share or USD 5.50 in cash per American Depositary Share of the company.

Status: Agreed

-IBM TO ACQUIRE CLOUD CONSULTING AND IMPLEMENTATION SERVICES FIRM BLUEWOLF

US-based IT company IBM (NYSE: IBM) plans to acquire US-based cloud consulting and implementation services firm Bluewolf Group LLC, the company said.

Combined, Bluewolf and IBM will extend IBM's analytics, experience design and industry consulting leadership with one of the world's leading Salesforce consulting practices to deliver differentiated, consumer-grade experiences via the cloud.

Status: Agreed

-UNIVISION ENGINEERING TO SELL STAKE IN TAIWAN-BASED CCTV FIRM T-COM

Hong Kong-based closed circuit television and surveillance systems company UniVision Engineering (AIM: UVEL) has decided to sell its 52.25% interest in Taiwan-based CCTV specialist T-Com Technology, the company said.

Univision said that its board is confident that it will be able to enter into an agreement to dispose of its interest in T-Com shortly. The board has made the decision to dispose of its interest in T-Com following a continuation of weak trading in the second half of the financial year ending 31 March 2016 as reported on 03 December 2015 and in the interim results announced on 11 December 2016.

Status: Agreed

-PREMIER FOODS THINKS REVISED MCCORMICK OFFER STILL UNDERVALUES COMPANY

UK-based food company Premier Foods plc's board believes that a revised buyout offer from US-based spice maker McCormick and Co, Inc. (NYSE: MKC) received this week continues to undervalue Premier and its prospects but will meet with McCormick, the company said.

McCormick's revised offer of 65 pence in cash per Premier Foods share was made "on the basis of prompt and full engagement from Premier Foods", McCormick said. The move comes just days after Premier Foods announced that it wasn't interested in pursuing a merger deal with McCormick and had instead agreed to be partially acquired by Japan's Nissin Foods.

Status: Bidding

-AGGREGATED MICRO POWER CLOSES ACQUISITION OF FOREST FUELS HOLDINGS

UK-based renewable energy developer Aggregated Micro Power Holdings plc (AIM: AMPH) has completed the acquisition of the entire issued share capital of UK-based woodchip fuel supplier Forest Fuels Holdings Ltd., the company said.

This follows the announcements on 9 March 2016 in relation to the acquisition and placing, and approval of the resolutions at the general meeting of the company on 29 March 2016. Under the deal, Aggregated agreed to pay GBP 2.82m (USD 4.06m) cash plus up to 2.5m shares dependent on performance.

Status: Closed

-ECOVISTA ACQUIRES HERTFORDSHIRE, UK PROPERTY

UK-based property investor Ecovista plc (ISD: EVTP) has purchased the entire share capital of 100 Rye Street Ltd. for the sum of GBP 665,000 (USD 956,700), the company said.

Rye Street is a special purpose vehicle incorporated in February 2016 that owns one property at 100 RyE Street in the Hertfordshire town of Bishops Stortford.

Status: Closed

-ICAP BONDHOLDERS CONSENT TO USD 2.3BN SALE OF UNIT TO TULLETT PREBON

UK-based dealer broke ICAP plc and ICAP Group Holdings plc have obtained consent to amend certain terms and conditions in respect of the proposed disposal of ICAP's global hybrid voice-broking and information business to UK-based inter-dealer money broker Tullett Prebon plc from the holders of the GBP 125m 5.50%, the company said.

Early in March, Tullett Prebon issued a combined class 1 circular and prospectus relating to its proposed acquisition of the global hybrid voice broking and information business of UK-based dealer broker ICAP plc, the company said. The deal is worth around USD 2.3bn.

Status: Agreed

-DUKE ROYALTY SELLS INTERESTS IN AUSGOLD, A-CAP, MAYA GOLD AND SILVER, REVELO

Guernsey-based mining royalty company Duke Royalty Ltd. (AIM: DUKE) has sold its investment interests in Ausgold Ltd., A-Cap Resources, Maya Gold and Silver and Revelo Resources via a number of on-market and OTC transactions for an aggregate cash consideration of approximately GBP 830,000 (USD 1.194m), the company said.

Duke Royalty said it would use the funds raised from the disposals to provide additional working capital as the company progresses towards its inaugural royalty transaction.

Status: Closed

-UK CMA CLEARS CHEMRING'S ACQUISITION OF WALLOP DEFENCE

The UK Competition and Markets Authority has cleared a deal under which Chemring Group plc (LSE: CHG) will acquire US-based aerospace and defense industry supplier Esterline Corp's (NYSE: ESL) UK-based Wallop Defence Systems subsidiary, CMA said.

This deal was announced last November. Wallop products are a part of the Esterline Defense Technologies group and the assets involved in the transaction include infrared decoy flare countermeasure products used by military forces in the protection of aircraft from air-to-air and ground-to-air missiles.

Status: Agreed

-WPP ACQUIRES US HEALTHCARE MEDIA SPECIALISTS CMI

British advertising and public relations group WPP plc has acquired US-based healthcare media agency Communications Media, Inc., the group said.

CMI's unaudited revenues were USD 38m as of December 31, 2015. Its clients include 10 of the top 20 pharmaceutical advertisers in the United States and overall it represents 340 brands among 51 clients. CMI employs more than 210 people and is based in King of Prussia, PA, with offices in New York, Philadelphia, and Pennsauken, NJ. It was founded in 1989.

Status: Closed

-GLOBE CAPITAL BUYS 25% STAKE IN UK ONLINE RETAILER

UK-based investing company Globe Capital Ltd. has purchased a 25% stake in UK-based Sterling Craig Ltd., the company said.

Sterling Craig is an online retailer and will provide an opportunity to enter the men's retail fashion business. The purchase price is GBP 12,500 (USD 17,983), which will be settled in cash. Globe Capital also acquired the entire issued share capital of Globe Capital Administration Ltd for a total consideration of GBP 1,250 (USD 1,798).

Status: Closed

-SAVANNAH RESOURCES, RIO TINTO EXTEND LONG-STOP DATE ON JV

UK-based resource development company Savannah Resources plc (AIM: SAV) and British-Australian mining company Rio Tinto Group (ASX: RIO) have agreed to extend the long stop date for fulfillment of the conditions precedent of a joint venture announced on 22 June 20151, the companies said.

Under the revision, the long stop date is being extended from 31 March 2016 until 30 June 2016 (or such later date as may be agreed in writing between the parties) to enable further time to fulfil the applicable approval processes.

Status: Agreed

-EMPIRIC BUYS YORK, UK STUDENT PROPERTY FOR GBP 11.1M

UK-based student housing company Empiric Student Property plc (LSE: ESP) has acquired the land and entered into a forward funded development agreement for a 115 bed, premium student accommodation development in York for a total funding commitment of GBP 11.1m (USD 15.97m), the company said.

The property, Empiric's first in York, is located between York city centre and the University of York, and is approximately 1.5 miles from York St John University.

Status: Closed

-FASTNET EQUITY TO ACQUIRE AMRYT PHARMACEUTICALS FOR GBP 29.6M

UK-based healthcare sector investor Fastnet Equity plc (AIM: FAST) has agreed to acquire the entire issued share capital of Irish drugmaker Amryt Pharmaceuticals DAC for a consideration of GBP 29.6m (USD 42.58m) in shares, the company said.

The company is also proposing to raise GBP 10m (before expenses) through a conditional placing of 41,673,402 new ordinary shares at the placing price of 24 pence per new ordinary share (equivalent to 3 pence per share before the capital reorganisation) and the issue of placing warrants on the basis of one Placing warrant for every two Placing Shares subscribed.

Status: Agreed

-INLAND REAL ESTATE REBRANDED AS IRC RETAIL CENTERS FOLLOWING ACQUISITION

US-based REIT Inland Real Estate Corp has been rebranded as IRC Retail Centers Inc. following the acquisition of Inland by real estate funds managed by US-based investment advisor DRA Advisors LLC, the companies said.

The DRA funds acquired Inland Real Estate in a transaction valued at approximately USD 2.3bn. The companies agreed the deal last December. IRC became a privately-held real estate investment trust. This new IRC Retail Centers brand includes a new logo, tagline and updated web site. While its name has changed, IRC Retail Centers continues to focus on owning, operating, acquiring and developing open-air retail properties.

Status: Closed

-THERMO FISHER CLOSES USD 1.3BN ACQUISITION OF GENE TESTING FIRM AFFYMETRIX

US-based life science company Thermo Fisher Scientific Inc. (NYSE: TMO) has closed its acquisition of US-based gene testing company Affymetrix, Inc. for USD 14.00 per share in cash, for a total purchase price of approximately USD 1.3bn, the company said.

Thermo Fisher won the deal following the approval of Affymetrix shareholders, who joined the company's board in rejecting a rival bid from Origin Technologies Corp., LLC, a newly created entity owned by a group of former Affymetrix executives.

Status: Closed

-CHINESE TEXTILE GROUP SHANDONG RUYI TO BUY CONTROLLING STAKE IN FRENCH FASHION FIRM SMCP

Chinese textile manufacturer Shandong Ruyi Technology Group and US-based investment firm KKR, together with the founders and management team of French fashion group SMCP Group have signed an exclusivity agreement for the acquisition of a controlling stake in SMCP by Shandong Ruyi Group, the companies said.

The parties contemplate that SMCP's founders and management would reinvest alongside Shandong Ruyi Group as minority shareholders, while KKR would retain a minority interest in the group. The transaction remains subject to works council consultation and customary regulatory approvals.

Status: Agreed

-TIERPOINT CLOSES ACQUISITION OF CLOUD, COLOCATION AND MANAGED SERVICES PROVIDER COSENTRY

US-based data centre operator TierPoint, LLC has closed its acquisition of US-based cloud, colocation and managed services provider Cosentry, the company said.

Cosentry currently operates nine data centers in several Midwest markets, including Omaha, Nebraska; St. Louis, Missouri; Kansas City, Missouri and Kansas; Sioux Falls, South Dakota; and Milwaukee, Wisconsin.

Status: Closed

-ANBANG CONSORTIUM PULLS OFFER FOR STARWOOD, LEAVING FIELD TO MARRIOTT

A consortium consisting of Anbang Insurance Group Co., Ltd., J.C. Flowers and Co. and Primavera Capital Ltd. has informed US-based is a hotel and leisure company Starwood Hotels and Resorts Worldwide, Inc. (NYSE: HOT) that it is withdrawing its bid for the company due to market considerations, Starwood said.

This move clears the way for US-based hotel operator Marriott International, Inc. (NASDAQ: MAR) to close its amended deal to buy Starwood USD 21.00 in cash and 0.80 shares of Marriott class A common stock for each share of Starwood common stock.

Status: Agreed

-IRON MOUNTAIN MAKES PROGRESS IN US, CANADA TOWARD MEETING REGULATORY REQUIREMENTS FOR RECALL ACQUISITION

US-based storage and information management services company Iron Mountain Inc. (NYSE: IRM) has made progress in its efforts to meet the requirements specified by regulators in the US and Canada required to closed its acquisition of Australian information management solutions provider Recall Holdings Ltd. (ASX: REC), the company said.

Last June, Iron Mountain agreed to buy Recall for an enterprise value of approximately AUD 3.4bn (USD 2.54bn).

Status: Agreed

-DRUGMAKERS TAKEDA, TEVA ESTABLISH JAPAN GENERICS JV, NAME MATSUMORI TO HEAD

Israeli generic drugmaker Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) (TASE: TEVA) and Japanese drugmaker Takeda Pharmaceutical Co Ltd. (TSX: 4502) have established Teva Takeda Yakuhin Ltd. in Japan, the companies said.

The newly established business venture has named Hiroshi Matsumori as chief executive officer and president of Teva Pharma Japan Inc. Teva Takeda Yakuhin is established by the name change of Taisho Pharm. Ind., Ltd., and a subsidiary of Teva, which runs a generic drug business and transfers Takeda's long listed products business in Japan as of the date.

Status: Closed

-SWEDISH HYGIENE COMPANY SCA CLOSES SALE OF SOUTH EAST ASIA, TAIWAN, SOUTH KOREA BUSINESS

Swedish hygiene and forest products company SCA (STO: SCAA) has closed the divestment of its business in South East Asia, Taiwan and South Korea to Chinese hygiene company Vinda International Holdings Ltd., SCA said on Friday. The purchase consideration amounts to HKD 2.8bn (USD 360m) on a debt-free basis. SCA is the majority shareholder in Vinda.

Status: Closed

-GOLDEN RIVER RESOURCES ACQUIRES US MOBILE COMMUNICATIONS FIRM GLOBEKEEPER

Australian exploration stage company Golden River Resources Corp. (OTCM: GORV) has entered into a term sheet with Dan Peleg, Carmi Peleg and Moty Weiss for the acquisition of all of the issued shares of US-based mobile communications firm GlobeKeeper LLC, the company said.

Golden River said it has a 150 day period to conduct due diligence and negotiate a formal share sale agreement. GlobeKeeper has developed a secured real-time mobile communications system. It is a tactical and operational platform that introduces military-grade security and encryption into civilian communication devices.

Status: Closed

-DESTIA ACQUIRES MAJORITY INTEREST IN CONSTRUCTION FIRM ITS-VAHVISTUS

Australian exploration stage company Golden River Resources Corp. (OTCM: GORV) has entered into a term sheet with Dan Peleg, Carmi Peleg and Moty Weiss for the acquisition of all of the issued shares of US-based mobile communications firm GlobeKeeper LLC, the company said.

Golden River said it has a 150 day period to conduct due diligence and negotiate a formal share sale agreement. GlobeKeeper has developed a secured real-time mobile communications system. It is a tactical and operational platform that introduces military-grade security and encryption into civilian communication devices.

Status: Closed

-SWEDISH ELECTRONIC TRADING TECHNOLOGY FIRM ORC GROUP, CAMERONTEC MERGE, FORM ITIVITI

Merged Swedish electronic trading technology companies Orc Group Holding AB and CameronTec Intressenter Top Holding AB have taken on the named Itiviti Group Holding AB, the companies said. This merger was announced on 14 October 2015. They formally merged on 2 February 2016.

With the purpose of simplifying and aligning the structure and organization of the new group, the legal structures are merged through the incorporation of CameronTec Intressenter Top Holding AB under Itiviti Group Holding AB. In connection with the transaction, the new group's cash management is optimised through the repayment of a SEK 220m bank loan, using existing cash balances and credit facilities.

Status: Closed

-ON SEMICONDUCTOR AGAIN EXTENDS TENDER OFFER FOR FAIRCHILD SHARES

US-based chipmaker ON Semiconductor Corp. (NASDAQ: ON) has again extended its tender offer to purchase all of the outstanding shares of common stock of US-based chipmaker Fairchild Semiconductor International Inc. (NASDAQ: FCS) for USD 20.00 per share in cash, from 31 March to 14 April, the company said on Friday.

The deadline has been extended before, most recently from from 17 March to 31 March. Before that, it was extended from 3 March to 17 March. On 18 November 2015, On Semiconductor and Fairchild agreed to merge. Then, has had to contend with competition from China Resources Microelectronics Ltd. and Hua Capital Management Co., Ltd. to acquire Fairchild for USD 21.70 per share in cash.

Status: Agreed

-HOLLY ENERGY PARTNERS CLOSES USD 39.5M ACQUISITION OF CRUDE OIL TANKAGE ASSETS FROM PLAINS AFFILIATE

US-based midstream energy company Holly Energy Partners, L.P. (NYSE: HEP) has acquired crude oil tankage located at HollyFrontier Corp.'s (NYSE: HFC) Tulsa refinery from an affiliate of Plains All American Pipeline, L.P. (NYSE: PAA) for USD 39.5m in cash, the partnership said.

This transaction was effective as of 31 March 2016. In connection with the closing of the acquisition, HollyFrontier and Holly Energy expect to enter into a ten-year throughput agreement containing minimum quarterly volume commitments from HollyFrontier.

Status: Closed

-TELECOMMUNICATIONS IMPASSE: ORANGE AND BOUYGUES EXTEND DEADLINE

French telecommunications firms Orange (PAR: ORAN) and Bouygues on Friday called off their months-long journey to agree on the term of a merger. Months of talks have failed to produce a deal that would result in the establishment of a French wireless giant, according to a report from Dublin-based Research and Markets.

Global LTE networks will be worth 800bn by 2020, according to a recent report available from Research and Markets, so it's understandable why both companies are keen to reach an agreement on the deal.

Status: Terminated

-VIRGINIA, US BANK HOLDING COMPANY BLUE RIDGE BANKSHARES TO ACQUIRE RIVER BANCORP

Virginia, US-based bank holding companies Blue Ridge Bankshares, Inc. (OTC: BRBS) and River Bancorp, Inc. have signed a definitive merger agreement pursuant to which Blue Ridge will acquire River in a 70% stock, 30% cash, transaction valued at approximately USD 12.4m, the companies said. This total is based on the 30-day volume weighted average price of Blue Ridge common stock.

River operates four branches in and surrounding Martinsville, Virginia and will add approximately USD 115m in assets, USD 100m in loans, and USD 98m in deposits to Blue Ridge.

Status: Agreed

-VIRGINIA, US DEFENCE EMPLOYEE-FOCUSED CREDIT UNIONS PENFED, BELVOIR FEDERAL TO MERGE

Virginia, US-based credit unions PenFed Credit Union and Belvoir Federal Credit Union will merge on 1 May 2016, the CUs said.

Through the new partnership, PenFed expands its field of membership to include the Fort Belvoir Military Community, which is comprised of uniformed personnel, government employees, defense contractors and family members.

Status: Agreed

-BRIGHTSTAR CAPITAL PARTNERS ACQUIRES US TECHNOLOGY RESELLER

US-based private equity firm Brightstar Capital Partners has acquired a majority ownership of US-based Global Resale, LLC in partnership with the company's founder and CEO, Jeff Zeigler, the firm said. Global Resale is a global provider of aftermarket services and reverse logistics, focused on resale, buyback, and disposition of technology devices.

As part of the transaction, Brightstar has initially committed USD 50m to Global Resale to fund the company's growth. Global Resale will use the capital infusion to broaden its geographic footprint, launch new online marketplaces, and expand its service offerings across various product categories.

Status: Closed

-ACQUARIUS CANNABIS TO ACQUIRE CALIFORNIA DELIVERY SERVICE SPEEDWEED

Puerto Rico, US-based medical and recreational marijuana branding company Aquarius Cannabis has signed a binding MOU with the California marijuana delivery service known as SpeedWeed, to acquire all rights, title and interest in all business assets owned by SpeedWeed and its co-founders in connection with the SpeedWeed business, Aquarius said.

SpeedWeed provides medical marijuana access to more than 25,000 medical marijuana patients in theLos Angeles area, generating more than USD 2.5m in revenue in 2015. Co-founders AJ Gentile, Jen Gentile, and Eugene Gentile have operated the business since 2011.

Status: Agreed

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Publication:M2 EquityBites (EQB)
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Date:Apr 1, 2016
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