Deals/IPOs/M&A

Paladin Energy’s proposed $1.14 billion acquisition of Fission Uranium faces further delays as Canada’s national security review under the Investment Canada Act continues. Originally expected to close in September, the deal has been extended until at least December 30, 2024. The review, focused on the Patterson Lake South (PLS) uranium project, highlights concerns over foreign control of critical resources. Despite a court ruling in Paladin’s favor, government clearance remains uncertain, posing a significant hurdle. If approved, the deal would position Paladin as a major uranium supplier with assets in Canada, Namibia, and Australia, meeting the growing demand for clean energy. [more]

We have written a 16-page Update Report on DATA Communications Management (DCM) after it released Q3/2024. DCM is a Canadian-based communications, DAM, marketing, MarTech, and social media analytics solutions provider. Revenue increased 14.5% YTD driven by the Moore Canada Corporation (MCC) acquisition. Despite a 11.4% decline in quarterly revenue due to reduced client spending and strategic account exits, DCM continued to focus on operational efficiencies and cost reductions. Adjusted EBITDA rose 6.6% Y/Y to $12.6 million, supported by MCC synergies and restructuring efforts. The company launched ASMBL and acquired Zavy Limited to expand tech-enabled solutions. DCM remains optimistic about revenue recovery and targets an improved EBITDA margin of over 14% in the coming quarters. [more]

Wonder Group, a delivery-focused food hall operator, has agreed to acquire Grubhub from Just Eat Takeaway.com for $650 million. The deal, comprising $150 million in cash and $500 million in senior notes, is expected to close in Q1/2025. Wonder plans to integrate Grubhub’s platform, which connects 375,000 merchants across 4,000 U.S. cities, to enhance its super app for meal ordering. This acquisition comes as Wonder raises $250 million to support its growth and follows its 2023 purchase of Blue Apron. Grubhub continues to face market challenges, with declining share and ongoing profitability concerns. [more]

Elliott Investment Management has invested over $5 billion in Honeywell International and is advocating for the company to split into two independent businesses: Honeywell Aerospace and Honeywell Automation. The activist investor believes this separation could drive a 51%-75% share price increase by improving operational performance and valuation. This move follows a broader trend of industrial conglomerates simplifying their structures. Honeywell has acknowledged Elliott’s input and remains committed to sustainable growth and strategic portfolio optimization. [more]

Mattr (TSX: MATR) has acquired AmerCable Inc. from Nexans S.A. (ENXTPA: NEX) for US$280 million. AmerCable, a U.S.-based producer of engineered wire and cable solutions, complements Mattr’s Shawflex business and expands its U.S. footprint, particularly in medium voltage applications. The acquisition aligns with Mattr’s growth strategy, benefiting from electrification trends and infrastructure expansion. Expected to close by year-end, the deal is projected to deliver immediate earnings accretion, improve revenue stability, and enhance operational capabilities. AmerCable’s facilities in Arkansas and Texas will integrate with Mattr’s Canadian operations, creating one of North America’s leading custom-engineered cable manufacturers. [more]

We have written a 10-page Update Report on DATA Communications Management (DCM) after it acquired Zavy Limited, a New Zealand-based provider of social media analytics. This acquisition enables DCM to expand its MarTech offerings, enhancing capabilities in social media performance analytics, audience sentiment, and data-driven marketing. Zavy’s platform provides tools like social media benchmarking and AI-driven insights, aligning with DCM’s strategic goals to shift towards digital solutions. The acquisition also allows DCM to extend Zavy’s services to North American markets, meeting the demand for social media analytics among both large enterprises and small to medium-sized businesses. [more]

Gold Fields (JSE: GFI) has announced an agreement to acquire Osisko Mining (TSX: OSK) in an all-cash transaction valued at $2.16 billion. The acquisition, which includes the Windfall Project in Quebec, enhances Gold Fields’ portfolio by adding a high-grade gold development asset in a stable region. Osisko shareholders will receive $4.90 per share, representing a 55% premium to the 20-day VWAP as of August 9, 2024. The transaction is expected to close in Q4/2024, subject to regulatory and shareholder approvals. [more]

We have written a 17-page Update Report on DATA Communications Management (DCM) after it released Q2/2024 financials. DCM is a Canadian-based communications and marketing solutions provider. Revenue increased 5.7% to $125.8 million, though below our estimate due to deferred client projects. The company remains focused on completing the integration of Moore Canada Corporation by year-end and achieving annualized cost savings of $30 to $35 million. DCM‘s strategic initiatives target improved gross margins and revenue growth, particularly through technology-enabled solutions, including its new Digital Asset Management (DAM) solution called ASMBL. Focused on the merger integration, DCM reported a 22.2% increase in Adjusted EBITDA to $16.9 million. [more]