Wall Street’s main stock indexes rebounded from yesterday’s losses as investors were awaiting results from the Georgia runoff elections.
The tech-heavy Nasdaq Composite Index advanced 0.6%. The S&P 500 Index and the Dow Jones Industrial Average both rose 0.5%.
In deal news, shares of Boston Private Financial Holdings popped 32% after SVB Financial announced a cash and stock takeover deal worth $900 million. SVB Financial will pay $2.10 in cash and 0.0228 of its common stock for each share of Boston Private. The transaction has been approved by both companies’ board of directors and is anticipated to be completed in mid-2021. According to SVB Financial, the “Combined private bank and wealth management assets under management would be $17.7 billion,” based on Sep. 30, 2020 figures.
In dental healthcare-related merger news, Dentsply Sirona has bought teeth aligner company Byte in an all-cash deal for $1.04 billion. The dental technology supplier expects the acquisition to generate non-GAAP EPS accretion of at least $0.05 in 2021 and be incrementally accretive in the years thereafter. The net present value of the tax benefits associated with the transaction is estimated to be about $160 million. Barrington Research analyst Michael Petusky continued to maintain a Hold rating on the stock as although he likes the transaction and believes that it “holds the promise of helping the company to both accelerate its top line and drive margin expansion, we do not see the current valuation of XRAY as super-compelling given the near-term uncertainties associated with a still very challenging COVID-19 backdrop.” Shares climbed 3%.
Meanwhile, Twitter said that it has bought social podcast operator Breaker to help “create new experiences” for the social media giant’s users. Breaker will shut down its social podcasting app on January 15 as a result. Leah Culver, Breaker’s Chief Technology Officer will be joining Twitter to work on Twitter Spaces, its new audio-based networking project. Shares fell 1.3%.
ATN International announced the takeover of Alaska Communications Systems in a cash deal worth $332 million, including net debt. Per the deal terms, ATN along with its financial partner Freedom 3 Capital, LLC will form a new entity to buy all the outstanding shares of Alaska for $3.40 per share in cash. The deal has been approved by Alaska’s board but is still awaiting the approval of its shareholders and other regulatory approvals. Following the deal, which is likely to close in the second half of 2021, Alaska will become a privately-held company. ATN shares advanced 1.2%.
In coronavirus updates, Moderna announced that Israel’s Ministry of Health has granted authorization for the use of its COVID-19 vaccine (mRNA-1273). The country’s decision is based on a rolling submission of data and scientific evidence shared by Moderna, including data analysis from the pivotal Phase 3 clinical study released on November 30. Israel has secured 6 million doses of Moderna’s vaccine and the first deliveries are expected to be rolled out shortly. Israel is now the third country that has authorized the use of Moderna’s vaccine after the US and Canada. Shares declined 2.6%.
Last, but not least, shares of ViewRay dropped 1.6% after the company announced the pricing of a public offering of 10.31 million shares of common stock at a price of $4.85 per share, to raise gross proceeds of $50 million. As part of the offering, ViewRay has given the underwriters a 30-day option to purchase up to another 1,546,500 shares of common stock at the public offering price, less underwriting discounts and commissions. The company plans to use the offering proceeds for general corporate purposes, including working capital, capital expenditures, continued research and development and commercial expenses.