Hibbett, Inc. (HIBB) announced a definitive agreement to be acquired by JD Sports Fashion PLC (JDSPY) for $87.50 per share in cash, representing an aggregate enterprise value of approximately $1.1 billion. The deal, which values Hibbett at a 21% premium to its April 22, 2024, closing price, is expected to close in the second half of 2024.
Quanex Building Products (NX) has acquired Tyman plc (TYMN) for $1.1 billion in a cash and stock deal. The transaction is expected to diversify Quanex’s revenue stream and product line, and generate significant cost savings of approximately $30 million annually. Despite some weakness in Quanex’s recent performance, the combined entity is expected to have an attractive valuation and growth prospects in the homebuilding market.
SuperCom (NASDAQ: SPCB), a leading provider of IoT and smart solutions, has announced robust financial performance for Q4 and full-year 2023. The company’s revenue reached a five-year high of $26.6 million, marking a 51% increase from the previous year. SuperCom’s focus on innovative technology and strategic acquisitions, particularly in the electronic monitoring sector within public safety, has been instrumental in driving this success. The company’s key takeaways include a 51% increase in revenue, with a record $4.8 million in EBITDA, indicating its fourth consecutive year of positive earnings. Gross profit increased by 60%, while operating expenses decreased. SuperCom’s cash and cash equivalents stood at $5.6 million at the end of 2023. The acquisition of LCA for $3 million has generated over $30 million in new project wins. The company holds over 100 patents and is exploring the potential for patenting AI capabilities.
Calibre Mining has emerged as a strong contender in the precious metals sector, thanks to its successful acquisition of Marathon Gold and its ongoing operational success. The company is now in a prime position to capitalize on higher gold prices and continue delivering value to its shareholders.
In 2023, Calibre achieved record gold production and outperformed its guidance, demonstrating its ability to consistently deliver results. The company’s Libertad and Limon Complex assets have been major contributors to this growth, and the addition of the Valentine Gold Project promises to further boost production in the coming years.
Calibre’s cost management has also been impressive, with all-in sustaining costs (AISC) remaining below industry averages despite inflationary pressures. The company is on track to bring AISC below $1,250/oz once the Valentine Project comes online, which will significantly improve its margins and cash flow generation.
With construction at Valentine well underway, Calibre is expected to face higher capital expenditures in the near term. However, the company is well-positioned to manage this with its strong financial performance and recent equity financing. The expected free cash flow generation from Valentine’s commercial production will further strengthen Calibre’s financial position, enabling it to pay down debt and enhance its overall balance sheet.
While Calibre’s valuation has increased due to its recent share dilution, the company still trades at a reasonable multiple of 0.75x P/NAV. Its growth prospects and improved jurisdictional profile warrant a premium valuation, and at current levels, Calibre offers potential for strong returns if it continues to execute on its plans and capitalize on favorable market conditions.
New Found Gold (NFGC) has agreed to acquire the Kingsway gold project from Labrador Gold (NKOSF) in an all-stock deal. The acquisition will add to New Found’s existing Queensway gold project in Newfoundland and Labrador, providing the company with additional growth potential in the region.
A highly anticipated acquisition rumor between Salesforce and Informatica has reportedly fallen through. Informatica publicly denied the rumors on Monday, stating that it is not currently considering any acquisition discussions. Many industry experts were skeptical of the potential deal, citing overlaps in their offerings and a lack of strategic alignment.
Mueller Industries Inc. (MLI) has announced the acquisition of Nehring Electrical Works Company and its affiliates for approximately $600 million, including a $25 million earn-out. Nehring is a leading manufacturer of wire and cable solutions, with annual net sales of $400 million in 2023. This acquisition expands Mueller’s presence in the electrical and power infrastructure market and is expected to be accretive to its 2024 financial results.
Mark Zuckerberg’s bold acquisition of Instagram, initially met with skepticism, has proven to be a transformative move for Facebook. Emails shed light on the thought process behind the $1 billion deal that propelled Instagram to its current status as a global powerhouse with over 2 billion active users.
Enterprise data management company Informatica has quashed rumors of being in acquisition talks with Salesforce. Informatica’s shares dropped over 7% on the news, while Salesforce’s rose around 1%. Salesforce had reportedly been discussing a bid in the mid-$30s per share. Negotiations reportedly broke down due to disagreement on terms. Informatica’s largest shareholders control over 75% of shares and would have had to approve any deal. Salesforce has faced criticism from activist investors for its aggressive acquisition strategy and has recently implemented layoffs and board changes.
Salesforce has officially ended acquisition negotiations with data management company Informatica due to a disagreement over pricing. According to sources, Salesforce offered a mid-$30s per share price, which fell short of Informatica’s expectations. The potential deal, if finalized, would have been one of Salesforce’s largest acquisitions since its purchase of Slack Technologies for nearly $28 billion.
