M&A; Activity Around The Globe: MSi, Vector Capital, PRX, Anchen Pharmaceuticals, Aventis Pharma, Universal Medicare, SNY
Wednesday, August 24, 2021 10:32 AM

As the US stocks advance after the previous sessions sharp rise on Wednesday, several M&A activities took place around the world. Some notable M&A activities are discussed here.

Motorola Solution to Sell Orthogon and Canopy Businesses to Vector Capital

Vector Capital and Motorola Solutions Inc. (NYSE: MSI) said Wednesday that they have reached an agreement under which Vector Capital will acquire Motorola Solutions’ Point-to-Point (PTP or Orthogon) and Point-to-Multipoint (PMP or Canopy) Wireless Broadband Networks businesses for an undisclosed amount. The transaction is expected to be completed as early as the end of September and is subject to customary closing conditions. The Motorola PTP and PMP businesses are leaders in the wireless broadband industry. They are renowned for their extensive portfolios of unlicensed and licensed solutions that address key industry verticals, as well as a strong technology base that supports the broadest range of applications of any business in their market segments. Vector Capital, a private equity firm, intends to operate the businesses as a single standalone company called Cambium Networks that will be well-funded and positioned to benefit from a more tailored focus and agile organizational structure. MSI was trading lower by 0.60 percent to $39.76 a share on Wednesday.

Par Pharma to Acquire Generic rival Anchen for $410 Million

Par Pharmaceutical Companies Inc. (NYSE: PRX) said Wednesday that it entered into a definitive agreement to acquire Anchen Pharmaceuticals, a privately-held specialty pharmaceutical company focused on developing and commercializing extended release and niche generic products, for $410 million in cash.  The transaction is expected to be immediately accretive to non-GAAP earnings in 2011. Anchen is a profitable, fully-integrated pharmaceutical company with five commercialized products, 27 ANDAs on file with the US FDA, five of which are believed to be first-to-file, and approximately 26 additional products in development.  Anchen anticipates launching 8-10 niche generic products over the next two years. The Company intends to finance the transaction with cash on hand and a $350 million term loan. The acquisition is subject to customary conditions and approvals.  Par expects to complete the transaction by the end of the year. PRX is trading higher by 7.84 percent to $31.50 a share.

Sonofi’s Arm to Buy OTC Business of India’s Universal Medicare

France-based, Sanofi-Aventis’s (NYSE: SNY) business arm Aventis Pharma Ltd. said on Wednesday that it will acquire unlisted Universal Medicare's nutraceuticals business to boost its consumer healthcare and wellness segment in India. The transaction is expected to close in the fourth quarter of 2011 and involves transfer of about 750 employees of Universal to Aventis Pharma, the latter said in a statement. On Tuesday, Reuters had reported that Aventis was close to buying the over-the-counter business of Universal Medicare for about 5 billion rupees ($109.5 million). Universal Medicare's turnover of the nutraceuticals business, which comprises of over 40 over-the-counter formulations, was about 1.1 billion rupees, it said without disclosing the deal value. Under the term of the deals, Universal Medicare will manufacture the products and supply them to Aventis Pharma on mutually agreed terms. SNY was up 0.46 percent to $36.84 a share.