J&J in $4.3 B Deal with Abbott, Avnet, Infoblox Surge on M&A Talk

Mukesh Buch
19 Sep, 2016
New York City

AIG agreed to sell 20% stake in Ascot Underwriting to Canada Pension Plan. Avnet agreed to sell its IT unit to Tech Data for $2.6 billion. Eldorado Resorts agreed to buy Isle of Capri Casinos for $950 million. Infoblox agreed to be acquired by privately held Vista Equity.

[R]2:00 PM New York – AIG agreed to sell 20% stake in Ascot Underwriting to Canada Pension Plan. Avnet agreed to sell its IT unit to Tech Data for $2.6 billion. Eldorado Resorts agreed to buy Isle of Capri Casinos for $950 million. Infoblox agreed to be acquired by privately held Vista Equity.[/R]

Tollbooth Index increased 22.36 or 0.2% to 10,953.82.

Earnings Review

American International Group Inc ((AIG)) gained 46 cents to $58.35 after the insurance services provider agreed to sell its 20% stake in Ascot Underwriting Holdings Ltd. and its financing subsidiary to Canada Pension Plan Investment Board for about $240 million.

Avnet, Inc ((AVT)) soared 8.8% or $3.46 to $42.67 after the electrical components distributor agreed to divest its IT business to technology products distributor and rival Tech Data Corporation for about $2.6 billion in cash and stock.

The transaction is expected to close in the first half of 2017.

Eldorado Resorts Inc ((ERI)) dropped 2.2% or 32 cents to $13.93 after the gaming and hospitality services provider agreed to buy rival casino operator Isle of Capri Casinos Inc for about $950 million in cash and stock.

Under the terms, the deal values Isle of Capri at $23 per share, a 36% premium over the closing price of Friday and agreed to pay 58% of the purchase price in cash and 42% in stock.

The transaction is expected to close in the second-quarter of 2017.

Shares of Isle of Capri Casinos surged 31.4% to $22.25.

Infoblox Inc ((BLOX)) surged 15% or $3.44 to $26.27 after the network services provider agreed to be acquired by privately held equity firm Vista Equity Partners for $26.50 per share or in a deal valued of about $1.6 billion.

The transaction is expected to close in Infoblox's second-quarter.

Kohl's Corporation ((KSS)) jumped 1.9% or 82 cents to $43.79 after the department stores operator said its plans to hire more than 69,000 additional workers for the upcoming holiday season at nationwide more than 1,100 stores in 49 states to ensure customers have a seamless omni-channel shopping experience.