Streetbeat News

Acquisitions Mergers

AIR

TGI

Triumph Group, Inc. (NYSE:TGI) is selling its Product Support business to AAR Corp. (NYSE:AIR) for $725 million. The deal is valued at a 14.5x EBITDAP multiple based on trailing 12 months as of September 30, 2023. Triumph plans to use the proceeds for debt reduction, targeting a net leverage of 4.0x by March 2024. AAR expects the acquisition to be accretive to earnings, with tax benefits and synergies reducing the effective purchase price multiple. The Product Support division had revenues of $268 million for the trailing 12 months and is expected to generate $280 million in revenue and $55 million of EBITDA in FY2024. AAR will finance the acquisition with debt and equity, aiming for a pro forma net leverage of 3.0x at closing. TGI shares surged 32.23% to $16.23 following the announcement.

Portfolio Pulse from Akanksha Bakshi

December 21, 2023 | 6:01 pm

LUNA

Luna Innovations Inc (NASDAQ:LUNA) has received a $50 million strategic investment from White Hat Capital Partners. The funds will be used to partially finance the acquisition of Silixa for $21.5 million in cash and up to $16.5 million in earnouts based on 2024 performance. Silixa is expected to generate $30 million in revenue in 2023. Remaining funds will repay a $17 million term loan and support growth initiatives, including fiber optic sensing solutions. As of September 30, 2023, LUNA had $6.028 million in cash and equivalents. LUNA's stock price rose 4.41% to $6.80.

Portfolio Pulse from Lekha Gupta

December 21, 2023 | 5:40 pm

BMWYY

MBGAF

VWAGY

BMW aims to deliver over 500,000 EVs in 2024, indicating significant growth. Despite the end of a state-funded EV scheme in Germany, BMW's global plans remain unaffected. The company has also partnered with Mercedes-Benz Group China Ltd to manage a high-speed charging network in China and plans to expand its ChargeForward service in the U.S. Meanwhile, Volkswagen AG plans to stop selling combustion engine cars in Europe by 2035.

Portfolio Pulse from Shivani Kumaresan

December 21, 2023 | 5:29 pm

HOOD

Robinhood Markets, Inc. (NASDAQ:HOOD) has expanded its media presence by adding Chartr Limited, a U.K.-based data-driven media company and newsletter publisher, to its Sherwood Media unit. Chartr is known for its visual storytelling and will continue its newsletter while reaching millions of new readers through Sherwood Media. The acquisition aligns with Sherwood's strategy to enhance its editorial offerings, including Snacks, with news, reporting, and live events. Robinhood also reported an increase in wealthier clients and a growth in net cumulative funded accounts to 23.3 million as of November end. HOOD shares saw a slight increase of 0.02% to $12.62.

Portfolio Pulse from Nabaparna Bhattacharya

December 21, 2023 | 5:21 pm

PARA

Paramount Global's stock (NASDAQ:PARA) is down amid news of Byron Allen renewing his bid for BET Media Group, offering $3.5 billion for BET and VH1. This comes after reports of a potential $2 billion sale of BET to a management-led investor group. Previously, Paramount had rejected offers for BET, including from Allen and Tyler Perry. Allen's renewed interest coincides with talks of a larger merger between Paramount Global and Warner Bros Discovery. BET, a significant component of Black media, was acquired by Viacom in 2001 and its potential return to Black ownership has garnered attention.

Portfolio Pulse from Anusuya Lahiri

December 21, 2023 | 5:15 pm

BMMJ

Body and Mind Inc (OTCQB:BMMJ), a cannabis MSO, reported Q1 2024 earnings with a revenue decrease of 7% to $5.5 million from $5.8 million in Q1 FY2023. However, net income rose to $0.2 million from a net loss of $3.0 million in Q1 FY2023, primarily due to the sale of their Ohio dispensary. The company also repaid $7.3 million in senior secured debt, saving approximately $1 million annually in interest. Gross margins improved to 37.4%. BMMJ's stock traded 34.78% lower at $0.06 per share.

Portfolio Pulse from Patricio Liddle

December 21, 2023 | 5:14 pm

AISP

BYTS

Airship AI Holdings has completed its business combination with BYTE Acquisition Corp., and the combined company will trade on Nasdaq under the ticker 'AISP' starting December 22, 2023. Airship AI, which provides AI-driven surveillance solutions, has a $163 million pipeline and recently secured $10.9 million in contracts from the Department of Homeland Security. The company targets a rapidly growing edge AI market, projected to reach over $40 billion by 2030, and boasts a blue-chip customer base including federal agencies and Fortune 500 companies. The business combination is expected to enhance Airship AI's visibility, growth, and financial flexibility.

Portfolio Pulse from Benzinga Newsdesk

December 21, 2023 | 5:06 pm

SKT

On CNBC, Tanger President and CEO Stephen J. Yalof spoke about current shopping trends and the company's recent acquisitions. He highlighted how these factors are influencing Tanger's business strategy and growth.

Portfolio Pulse from Benzinga Newsdesk

December 21, 2023 | 4:50 pm

LDTC

PRSR

LeddarTech, an AI-based automotive software company, has completed its business combination with Prospector Capital Corp. and will start trading on Nasdaq under the ticker symbols 'LDTC' for common shares and 'LDTCW' for warrants. The company specializes in sensor fusion and perception software for ADAS and AD, aiming to enhance vehicle intelligence and reduce costs for OEMs and Tier 1s. With the automotive industry shifting towards software-defined vehicles, LeddarTech's market is expected to grow significantly. The company has raised $58.6 million in capital to support its technology's adoption and growth. Charles Boulanger, the retiring CEO, will be succeeded by Frantz Saintellemy, with Derek Aberle as the new Chairman of the Board.

Portfolio Pulse from Benzinga Newsdesk

December 21, 2023 | 4:33 pm

AMZN

BA

LMT

TSLA

Blue Origin, owned by Amazon founder Jeff Bezos, is reportedly interested in acquiring United Launch Alliance (ULA), a joint venture between Lockheed Martin and Boeing. ULA, a provider of launch services to NASA and the Department of Defense, has been up for sale and has received bids from Cerberus Capital Management and Textron as well. Blue Origin already has a relationship with ULA, supplying BE-4 rocket engines for ULA's rockets. The commercial space race has intensified with new entrants like SpaceX challenging ULA's dominance. Shares of Amazon, Tesla, Lockheed Martin, and Boeing saw increases in early trade on Thursday.

Portfolio Pulse from Neil Dennis

December 21, 2023 | 4:31 pm