IKS Category: Patent Portfolio & Merger Acquisitions
IKS Article No: IKS_Article_04 March_01_2017
Compilation by: Chintan Gorasiya; Pritesh Gohel; Tejas Patel
Why This Article? This article is to inform how the mergers, acquisitions and alliances are in the spotlight as companies seek innovation to redefine their strategy. To stay competitive, companies strategically acquired new technology that improved processes and efficiencies. We provided few latest merger & acquisitions details.

Mergers, acquisitions and alliances are in the spotlight as companies seek innovation to redefine their strategy. Over the past 2 years, diversified industrial companies experienced persistent pressure to reduce costs and restructure in the face of sluggish market conditions and a low growth environment. To stay competitive, companies strategically acquired new technology that improved processes and efficiencies. The technology industry was among the most active for M&A in 2016, with US$612.9 billion in announced global transactions, according to Dealogic. Businesses across every part of the economy increasingly focused on technology, from the Internet of Things to artificial intelligence and autonomous vehicles.

Below is the list of some important M&A that seems to be a important deal for future development and may lead to industry restructure with patented technology acquisitions by industry giants.

  • ChemChina acquired Syngenta
    • In February 2016, Syngenta announced that ChemChina has offered to acquire the company at US$ 465 per ordinary share plus a special dividend of CHF 5 to be paid conditional upon and prior to closing. Syngenta's existing management will continue to run the company. After closing, a ten member Board of Directors will be chaired by Ren Jianxin, Chairman of ChemChina, and will include four of the existing Syngenta Board members. The transaction will enable further expansion of Syngenta's presence in emerging markets and notably in China.
    • In April 2016, deal faced minor protest, as around 400 Chinese citizens have signed a letter to protest the purchase of Swiss-based seeds and pesticides company Syngenta by state-owned ChemChina, saying the deal would eventually lead to genetically modified crops being sown across swathes of the country. Despite of this, deal was preceded ahead for regulatory clearance. In August 2016, ChemChina and Syngenta receive clearance from the Committee on Foreign Investment in the United States (CFIUS).
    • Although the deal is not come to a final decision, it is the largest ever foreign purchase by a Chinese firm. China, the world's largest agricultural market, is looking to secure food supply for its population. Syngenta's portfolio of top-tier chemicals and patent-protected seeds will represent a major upgrade of its potential output.

  • Bayer acquired Monsanto
    • Bayer clinches Monsanto with improved $66 billion bid at $128 a share deal. Bayer-Monsanto deal will be the largest ever involving a German buyer, beating Daimler's tie-up with Chrysler in 1998, which valued the U.S. carmaker at more than $40 billion. It will also be the largest all-cash transaction on record, ahead of brewer InBev's $60.4 billion offer for Anheuser-Busch in 2008.
    • Bayer said it expected the deal to boost its core earnings per share in the first full year following completion and by a double-digit percentage in the third year.

  • Facebook acquired FacioMetrics
    • Social media giant, Facebook acquired Carnegie Mellon University Spinoff Company, FacioMetrics, that developed basic algorithms for facial feature tracking and software that could run on most smartphone. The startup made an app called IntraFace that could detect seven different emotions in people's faces, but it's been removed from the app stores.
    • Facebook will use FacioMetrics to enhance its Snapchat selfie Lens-style augmented reality face masks that are making their way into its videos and live broadcasts. Although there are already some Facebook and Snapchat selfie masks that react to you, opening your mouth or raising your eyebrows. FacioMetrics' tech could add tons of new ways to trigger animated effects in your videos. Facebook's Oculus division is also working on making life-like avatars that convey emotions via "VR emoji".

  • Google acquired Apigee
    • Google acquired a leading API platform Apigee, under the terms of the definitive agreement by which Apigee stockholders will receive $17.40 per share in cash, for a total value of approximately $625 million. The company, helps customers build digital products with open APIs, has an impressive customer list including Walgreens, AT&T, Bechtel, Burberry, First Data and Live Nation.
    • By this acquisition, Google gets an established player in the API management space with a strong customer list to help companies going through the difficult process of becoming more digital.

  • Microsoft acquired LinkedIn
    • Microsoft Corp. snapped up LinkedIn Corp. in all-cash transaction deal of $26.2 billion, largest acquisition in its history, valued LinkedIn's shares at $196 each.
    • However Microsoft isn't revealed what it will use its LinkedIn acquisition for, but it assumed to be a step to boost the company's social networking presence. LinkedIn will retain its own brand and independence after acquisition also, and existing CEO Jeff Weiner will remain and report directly to Satya Nadella, Microsoft CEO.

  • Xiaomi acquired Intel patents
    • California-based semiconductor giant, Intel has transferred ownership of 332 US patents to Beijing Xiaomi Mobile Software Co, Ltd, covering a broad range of telecommunications, electronics and software-related technologies. Most of the transferred patents were originally assigned to Intel and fair few had initially been owned by fellow US chipmaker LSI.
    • In August 2014, Intel purchased LSI's former networking business from Avago, which had earlier acquired LSI in a $6.6 billion deal.
    • Intel's assignment of patents to Xiaomi follows rumours that the two companies had struck a deal over the supply of microprocessors - an issue that has proved to be of particular concern to Xiaomi. According to anonymous sources reported by DigiTimes, Intel has offered to give away one of its Atom processors - which power Xiaomi's Tablet 2 - with every one of its new Core chips that the Chinese company buys for its upcoming range of notebook computers.

  • Abbott Laboratories acquired St. Jude Medical
    • In April 2016, St. Jude Medical Inc. agreed to terms with Abbott Laboratories to be acquired for $85 a share, bringing two of the larger medical device companies together to form a complementary portfolio of cardiovascular products that enable gaining of more pricing power in the market. The deal includes cash and stock for St. Jude shareholders, as well as an assumption of $5.7 billion of debt by Abbott.
    • Merger is expected to result in $500 million in cost savings and boost Abbott's earnings per share (EPS) by 21 cents in 2017 after acquisition.

  • Eli Lilly and Company will acquire CoLucid Pharmaceuticals
    • Announced on 18 Jan 2017, Eli Lilly and Company and CoLucid Pharmaceuticals Inc will sign an agreement for Lilly to acquire CoLucid for $46.50 per share or approximately $960 million. This all-cash transaction will enhance Lilly's existing portfolio in pain management for migraine, while adding a potential near-term launch to its late-stage pipeline.
    • CoLucid Pharmaceuticals is a public biopharmaceutical company developing an oral 5-HT1F agonist (lasmiditan) for the acute treatment of migraine.

  • Onex and Baring Asia acquired Thomson Reuters Intellectual Property and Science Business
    • Onex Corporation ("Onex") and Baring Private Equity Asia had completed the acquisition of the Intellectual Property & Science business from Thomson Reuters, for $3.55 billion. The company's many well-known brands include Web of Science, Cortellis, Thomson Innovation, Derwent World Patents Index, Thomson CompuMark, MarkMonitor, Techstreet and Thomson IP Manager, among others. Newly independent company known as Clarivate Analytics, will continue to own and operate a collection of leading subscription-based businesses focused on scientific and academic research, patent analytics and regulatory standards, pharmaceutical and biotech intelligence, trademark protection, domain brand protection and intellectual property management.