Shares of Vanguard Health Systems Inc. (NYSE: VHS) rallied more than 65% by afternoon trade on Monday. The hospital services provider, Tenet Healthcare Corp. (NYSE: THC) agreed to buy Vanguard Systems in a transaction valued at $1.63 billion. The acquisition will help Tenet to diversify its healthcare service business.
According to the deal, Tenet will offer $21 for each common share held at Vanguard, which implies a premium of 70% over Friday’s closing stock price. Including assumption of debt, which is valued at $2.5 billion, the deal is estimated $4.3 billion. The deal is expected to close by the year-end. Tenet expects that the merger will immediately help in driving up earnings. While Vanguard’s founder, Chairman and Chief Executive, Charlie Martin will become a board member following the merger, Vanguard’s current vice-chairman, Keith Pitts will serve as the vice chairman at Tenet. “This acquisition will take Tenet into new geographic markets, expand the breadth of our service offerings” said Trevor Fetter, Tenet Healthcare Corp’s President and Chief Executive.
Shares of ISIS Pharmaceuticals Inc. (NASDAQ: ISIS) rallied about 22% by afternoon trade. Chad Messer, an analyst at Needham & Company reaffirmed “Buy” rating on the stock and lifted price target on the stock to $29.0 from $26.0. In a research note on Monday, Messer said, “Over the weekend, ISIS presented data from the first of 3 Phase II studies of ISIS-APOCIIIRx. As previously observed in healthy volunteers, ISIS-APOCIIIRx treatment resulted in impressive reductions in APOCIII and triglycerides as well as other beneficial lipid changes. Importantly, in the current study ISIS-APOCIIIRx improved measures of glucose control and insulin sensitivity in a diabetic population.”
Shares of STEC Inc. (NASDAQ: STEC) catapulted 86% by afternoon trade. STEC said on Monday that it agreed to be acquired by HGST, which is a fully-owned subsidiary of Western Digital in an all cash deal valued at $340 million or $6.85 a share.
Shares of Keynote Systems Inc. (NASDAQ: KEYN) skyrocketed about 47% by afternoon trade. Keynote Systems Inc said on Monday that it entered in a definitive acquisition agreement with an affiliate of one of the leading private equity firms, Thoma Bravo LLC. The all-cash deal values Keynote Systems at $395 million. According to the terms of the deal, Keynote shareholders will receive $20.00 in cash for each common share held in the company, which implies about 48% premium over the Friday’s closing stock price. Keynote anticipates the deal to be closed by September 30, subject to an approval from Keynote’s shareholders and regulators. However, Keynote Board of Directors have unanimously approved the deal and said that they will recommend shareholders to approve the deal. After the acquisition, Thoma Bravo will hold 100% stake in Keynote while Keynote will no more remain as a publicly traded company.
Shares of Allergan Inc. (NYSE: AGN) slumped about 9.30% by afternoon trade after analysts at Deutsche Bank slashed their rating on the stock to “hold” from “buy”, in their research note on Monday.
Shares of Deere & Co. (NYSE: DE) fell about 2.70% by afternoon trade. The agricultural equipment provider’s stock was downgraded to “underweight” from “neutral” by JP Morgan on Monday.
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