Multibillion-Dollar Mergers Shape Financial Landscape in 2004

Strategic Insights -

In a monumental day of corporate restructurings, four companies involved in over $62 billion of acquisitions dominated premarket trading on Thursday. The mergers of Guidant Corp. and Johnson and Johnson, Valued at $23.9 billion, and Symantec Corp. and Veritas Software Corp., valued at $13.5 billion, sent shockwaves through the financial community. Additionally, United Technologies Corp. agreed to acquire U.K.-based Kidde PLC for $2.8 billion, and Cendant Corp. agreed to acquire Gullivers Travel Associates and Octopus Travel Group Ltd. for approximately $1.1 billion in cash.

Key Takeaways:

  • The merger of Guidant Corp. and Johnson and Johnson, valued at $23.9 billion, reshapes the competitive landscape in cardiovascular devices, making Johnson and Johnson the second biggest player in cardiac rhythm management.
  • The deal creates a potential software powerhouse with leading positions in some of the industry's fastest-growing segments, following the merger of Symantec Corp. and Veritas Software Corp., valued at $13.5 billion.
  • United Technologies Corp. is acquiring U.K.-based Kidde PLC for $2.8 billion, expanding its commercial security and fire protection business.
  • Cendant Corp. is acquiring Gullivers Travel Associates and Octopus Travel Group Ltd. for approximately $1.1 billion in cash, which will expand its travel and hospitality business.

Statistics:

  • $41 billion: The value of acquisitions involving companies that dominated premarket trading on Thursday.
  • $23.9 billion: The value of the merger between Guidant Corp. and Johnson and Johnson.
  • $13.5 billion: The value of the merger between Symantec Corp. and Veritas Software Corp.
  • $2.8 billion: The value of the acquisition agreement between United Technologies Corp. and U.K.-based Kidde PLC.
  • $1.1 billion: The value of the acquisition agreement between Cendant Corp. and Gullivers Travel Associates and Octopus Travel Group Ltd.
  • 5.5%: The premium at which each share of Guidant stock is valued under the terms of the agreement with Johnson and Johnson.
  • 9.5%: The premium at which each Veritas share is valued under the terms of the agreement with Symantec.

Sources:

  • ODJ Select
  • COMTEX
  • Dow Jones NEWSWIRES
  • CNBC
  • United Technologies Corp.
  • Kidde PLC
  • Cendant Corp.
  • Gullivers Travel Associates
  • Octopus Travel Group Ltd.