Takeover deals can be a signal of positive market sentiment, indicating that the acquiring company is confident in its growth prospects and is willing to invest in expanding its market share. Such deals often lead to an increase in stock prices as they indicate potential value creation and synergies for the acquiring company. Takeover deals may provide an opportunity for investors to capitalize on market inefficiencies and earn profits through arbitrage strategies, such as buying the target company’s stock at a discount to the offer price and profiting from the price convergence upon deal completion.
Here are three takeover targets for the week –
GoHealth, Inc. – SYM: GOCO
Recent Price: $17.22
Takeover Action: GoHealth (GOCO), a health insurance marketplace and Medicare-focused digital health company, as noted in a recent 13D filing, has received a proposal for cash consideration of $20 per share or unit from its two largest shareholders Centerbridge Partners and NVX Holdings to acquire all of the outstanding Class A Common Stock and LLC Interests that these shareholders do not already own.
Description: GoHealth, Inc. operates as a health insurance marketplace and Medicare focused digital health company in the United States. It operates through four segments: Medicare Internal; Medicare External; Individual and Family Plans (IFP) and Other Internal; and IFP and Other External.
New Relic, Inc. – SYM: NEWR
Recent Price: $78.40
Takeover Action: According to WSJ, Private-equity firms Francisco Partners and TPG (TPG) are working together on a $5 billion-plus bid to acquire software company New Relic (NEWR).
Description: New Relic, Inc., a software-as-a-service company, delivers a software platform for customers to collect telemetry data and derive insights from that data in a unified front-end application. It offers a suite of products on its open and extensible cloud-based platform, which enables users to collect, store, and analyze telemetry data. The company’s platform also provides New Relic Instant Observability, an open-source ecosystem of quickstarts that delivers pre-built integrations, dashboards, and alerts for approximately 450 technologies and frameworks; and supports custom app development through common open-source frameworks, a library of existing applications, and a development environment. It sells its products through direct sales organizations, and online and offline sales in the United States and internationally. New Relic, Inc. was founded in 2007 and is headquartered in San Francisco, California.
Premier, Inc. – SYM: PINC
Recent Price: $26.65
Takeover Action: Premier Inc (PINC) announced its board was evaluating strategic alternatives and had established a special committee of independent directors for potential options, including a sale of part or all of the company.
Description: Premier, Inc., together with its subsidiaries, operates as a healthcare improvement company in the United States. It operates in two segments, Supply Chain Services and Performance Services. The Supply Chain Services segment offers its members with an access to a range of products and services, including medical and surgical products, pharmaceuticals, laboratory supplies, capital equipment, information technology, facilities and construction, and food and nutritional products, as well as purchased services, such as clinical engineering and workforce solutions. This segment also provides the ASCENDrive programs for members to receive group purchasing programs, tiers, and prices; SURPASS Performance Group services; STOCKD, an e-commerce platform; PROVIDEGX program, which identifies supply sources for drugs that are on or may be at risk of being added to the national drug shortage list, or that are vulnerable to pricing volatility, as well as direct sourcing business; SaaS informatics products; supply chain co-management services; purchased services contracts; direct sourcing solutions; and supply chain resiliency programs. The Performance Services segment provides technology and services platform with offerings that help optimize performance in three main areas, including clinical intelligence, margin improvement, and value-based care under the PINC AI brand; third party administrator services and management of health benefit programs under the Contigo Health brand; and digital invoicing and payables services that offers financial support services to healthcare product suppliers and service providers under the Remitra brand. The company also provides services to other businesses, including food service, schools, and universities. Premier, Inc. was incorporated in 2013 and is headquartered in Charlotte, North Carolina.