M&A; Activity Around the Globe: TYC, UTX, GR, GGS, Sensor, Geophysical, NICE, Fizzback
Monday, September 19, 2021 11:00 AM

As the US stocks trade sharply lower on Monday after renewed fears of a Greek debt default prompted investors to book some of last week's gains and turn to safer assets such as gold, several M&A activities took place around the world. Some notable M&A activities are discussed here.

Tyco International to Split into Three Separate Trading Companies

Tyco International Ltd. (NYSE: TYC) said Monday that it board of directors has unanimously approved a plan to separate the company into three independent, publicly traded companies. The three companies created through the separation will consist of: the ADT North America residential security business, North America's leading provider of security for homes and small businesses; the world's leading provider of flow control products and services; and the world's leading commercial fire and security business. The company intends to accomplish the separation by issuing tax-free stock dividends of the ADT and flow control businesses to Tyco shareholders, after which Tyco shareholders will own 100% of the equity in each of the three publicly traded companies. Tyco expects to complete the transaction in approximately 12 months. Upon completion of the transaction, it is contemplated that Breen will become non-executive chairman of the commercial fire and security company, a director of the flow control company, and a consultant to the ADT North America residential company. TYC was trading higher by 4.74 percent to $45.77 on Monday.

United Technologies In Talks to Buy Goodrich

United Technologies Corporation (NYSE: UTX), a diversified manufacturer, is said to be in talks to acquire aerospace company Goodrich Corp. (NYSE: GR) as it looks to expand through a major acquisition, according to three people with knowledge of the matter. Reuters reported on Friday that United Technologies was lining up $10 billion to $20 billion in financing for a U.S. acquisition that could shape up as its biggest takeover in a decade. A deal may be announced as soon as next week, said one of the people, who weren’t authorized to speak publicly. Goodrich is the most likely candidate of takeover targets being studied by Hartford, Connecticut-based United Technologies, one person said. Goodrich jumped 23 percent in late trading yesterday, adding to a market value of $11.6 billion. A move by United Tech could mark the start of a more aggressive phase of consolidation in the aerospace sector to prepare for cuts in defense spending in the United States and Europe. However, Talks continue with Charlotte, North Carolina-based Goodrich, and a deal may not be reached, the people said. UTX was down 1.21 percent to $74.59, while GR was trading higher by 12.12 percent to $104.15 on Monday.

Global Geophysical Plans to Acquire Sensor Geophysical

Global Geophysical Services Inc. (NYSE: GGS) said today, that it has signed a Letter of Intent to acquire 100 percent of the shares of Sensor Geophysical Ltd. of Calgary, Alberta. Completion of the transaction is subject to execution of a definitive purchase and sale agreement and the satisfaction of certain other conditions. The combination of GGS' extensive multi-component acquisition capabilities with Sensor's unique multi-component processing toolkit will create one of the industry's most advanced converted wave imaging providers. Sensor is one of the only independent 3C and 4C processing providers with their own proprietary software for advanced multi-component imaging. The transaction also provides GGS an excellent entry into the Canadian seismic marketplace. The terms of the deal were not disclosed by the company. GGS was trading down by 4.16 percent to $9.90, today.

NICE Systems to Acquire Fizzback for $80 Million

NICE Systems Ltd. (Nasdaq: NICE) said Monday, that it has reached an agreement to acquire Fizzback, introducing the most complete Customer Experience Management (CEM) with the integration of revolutionary, real-time Voice of the Customer (VoC) solution. The acquisition will create a complete Voice of the Customer offering, combining direct, indirect, and inferred customer feedback, as part of NICE's cross-channel analytics based solutions. The combination of Fizzback and NICE will both improve CEM as well as operationalize VoC both for the contact center and across the enterprise. Under the terms of the agreement, NICE will acquire Fizzback for a total cash consideration of approximately $80 million. The transaction is expected to close in the beginning of the fourth quarter of 2011 with 2 to 3 cents dilution of fully diluted Non-GAAP EPS for that quarter. NICE was trading lower by 2.01 percent to $30.27 on Monday.