Week Begins and Ends with Notable M&A Deals

Last week was off to a big start in terms of mergers and acquisitions activity, as T-Mobile announced over the weekend that it would acquire Sprint. The week also ended on a significant note, as Walmart successfully bid $15 billion to acquire a 75% stake in Flipkart, which competed head-to-head with Amazon in India. 

• T-Mobile (NASDAQ: TMUS) reached a definitive agreement to acquire Sprint (NSE: S) for $26.5 billion on April 29th. If cleared by Washington, the new company would be named T-Mobile and would be the third major wireless carrier in the United States, competing with AT&T and Verizon.

• Boeing (NYSE: BA), the world’s largest plane manufacturer, will acquire KLX, Inc. (NASDAQ: KLXI), an aerospace parts distributor, for $3.25 billion while assuming approximately $1 billion debt. The acquisition highlights CEO Dennis Muilenburg’s goal of expanding into services. The deal is currently contingent on the separation of KLX’s energy business, which is anticipated to be spun off to KLX’s shareholders.

• Eurofins Scientific (PAR: ERF) signed an agreement with LabCorp to acquire Covance Food Solutions. Covance, which fetched a valuation of $670 million, offers specialized laboratory testing and consulting services that ensure safety standards are met within the food & beverage and supplement industries.

• Cisco Systems (NASDAQ: CSCO) announced an agreement to acquire Accompany for $270 million. Accompany, founded in 2013, developed a database of senior executives at major corporations worldwide.
  

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• India’s version of Amazon, known as Flipkart, took bids from Walmart and Amazon last week to sell an equity position in the company. On Friday, it was announced that Walmart was the successful bidder, with Walmart securing a 75% stake in the company for approximately $15 billion.