U.S. Movers: Athenahealth, Bank of America, Illumina, Nationstar Mortgage

Mukesh Buch
07 Jan, 2013
New York City

Athenahealth agreed to acquire Epocrates Inc for $293 million in cash. Bank of America settled $3.6 billion mortgage claims with Fannie Mae. Illumina agreed to purchase Verinata Health, Inc. for $350 million. Nationstar acquired $215 billion mortgage service rights from Bank of America.

[R]10:15 AM New York – Athenahealth agreed to acquire Epocrates Inc for $293 million in cash. Bank of America settled $3.6 billion mortgage claims with Fannie Mae. Illumina agreed to purchase Verinata Health, Inc. for $350 million. Nationstar acquired $215 billion mortgage service rights from Bank of America.[/R]

Athenahealth, Inc. ((ATHN)) gained 2.8% or $2.18 to $78.53 after the clinical software provider agreed to acquire Epocrates Inc. for $11.75 per share or $293 million in cash.

Bank of America Corporation ((BAC)) added 7 cents to $12.18 after the bank agreed with Fannie Mae to resolve outstanding mortgage loans related claims. The bank will make cash payment to Fannie Mae of $3.6 billion to settle mortgage claims that were linked to loans issued by its subsidiary Countrywide Financial.

The bank will also repurchase $6.75 billion residential mortgage loans sold to Fannie Mae that are now trading at a deep discount to their original issued prices.

BioTime, Inc. ((BTX)) climbed 9.6% or 31 cents to $3.51 after the biotechnology agreed to purchase Geron Corporation to acquire the intellectual property and stem cell assets. BioTime, Inc. and newly formed BioTime Acquisition Corporation will provide $10 million to acquire Geron Corporation.

Commercial Metals Company ((CMC)) increased 4% or 62 cents to $16.16 after the metal fabricator said total revenues in the first quarter ending in November slipped 4% to $1.79 billion from $2 billion in the same period of last year. Net income in the quarter declined 13% to $49.7 million or 42 cents a diluted share compared to $107.7 million or 93 cents a share a year ago earlier.

Illumina, Inc. ((ILMN)), the life science tools maker agreed to acquire Verinata Health, Inc. for $350 million plus up to $100 million in milestone payments up to 2015.

Lexmark International, Inc. ((LXK)) gained 10 cents to $26.18 after the computer peripherals maker agreed to acquire a privately-held Acuo Technologies, for a cash purchase price of approximately $45 million.

Nationstar Mortgage Holdings Inc. ((NSM)) surged 16.7% or $5.57 to $38.80 after the non-banking company agreed to acquire approximately $215 billion in residential mortgage servicing rights, and certain other assets from Bank of America. The purchase price for the mortgage service rights is nearly $1.3 billion.

Sequenom, Inc. ((SQNM)) slid 2 cents to $5.21 after the diagnostic testing equipments maker announced preliminary results for the fourth quarter ending in December. Total revenue surged 59% to $89 million and diagnostic services revenues jumped $46 million.

Zep Inc. ((ZEP)) advanced 1% or 16 cents to $15.09 after the cleaning products provider stated revenue in the first quarter ending in November grew 3% to $158 million from $153.5 million in the same period of last year. Net income in the quarter slid 4% to $3.5 million or 16 cents a diluted share compared to $3.6 million or 16 cents a share a year ago earlier.