The most prominent M&A of June 2024 How to benefit
Here we highlight the most significant M&A deals of the month. We analyze these transactions from an investor’s perspective to assess the potential benefits for the target companies. Our insights aim to show how to capitalize on the value created by these mergers and acquisitions.
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Sony Music Entertainment (SONY)
As of June 2024, Sony Music Entertainment has acquired the music catalogue of the legendary British rock band Queen. The deal, valued at approximately $1.9 billion, includes Queen’s discography and other rights, excluding live performances. This acquisition is considered one of the most significant in the music industry, given the immense value and popularity of Queen’s music, which includes classics such as “Bohemian Rhapsody” and “Another One Bites the Dust”.
Key benefits from the acquisition
The deal marks a record-breaking amount for a music catalogue, emphasizing the enduring legacy and commercial viability of Queen’s music. The transaction has been in the works since May 2023, with various reports confirming the finalized agreement in June 2024.
In our view, Sony’s acquisition of Queen’s catalog not only adds valuable content to its portfolio but also opens up exciting opportunities for monetization and creative ventures. Queen’s enduring popularity provides commercial opportunities beyond music sales. Sony can leverage the band’s name and likeness for merchandising, jukebox musicals, and multimedia projects. This diversification can generate additional revenue streams.
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SONY – stock split is due on September 30, 2024
The board of directors has approved a stock split, effective October 1, 2024, with a record date of September 30, 2024. Each share will be split into five shares, increasing the total number of issued shares from 1,248,619,589 to 6,243,097,945.
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Boston Scientific Corporation (BSX)
On June 17, 2024, Boston Scientific announced its acquisition of Silk Road Medical (SILK), a company known for its innovative stroke prevention technology. The acquisition deal values Silk Road Medical at approximately $1.16 billion, with Boston Scientific agreeing to pay $27.50 per share in cash for the company, according to Boston Scientific.
Key benefits from the acquisition
This acquisition is expected to enhance Boston Scientific’s vascular portfolio, providing them with a platform of products designed to prevent strokes. The transaction, which is subject to customary closing conditions, is anticipated to be completed in the second half of 2024, as per Vascular News.
Silk Road Medical, which saw a significant boost in its stock price following the announcement, will become a wholly-owned subsidiary of Boston Scientific upon completion of the transaction. Silk Road Medical has guided to net revenue of approximately US$194–198 million in 2024, representing 10–12% growth over the prior fiscal year. The impact to Boston Scientific adjusted earnings per share is broadly expected to be immaterial in 2024 and 2025, and accretive thereafter.
However, in our view, the acquisition enhances Boston Scientific’s product portfolio, drives revenue growth, and positions the company for continued success in the vascular medicine field. The acquisition adds an innovative platform for stroke prevention to Boston Scientific’s vascular portfolio. Silk Road Medical has developed a minimally invasive procedure called transcarotid artery revascularization (TCAR) that helps prevent strokes in patients with carotid artery disease. TCAR involves accessing the carotid artery through a small incision in the neck and temporarily reversing blood flow away from the brain to prevent plaque dislodgment and stroke risk. This clinically differentiated technology enhances Boston Scientific’s offerings for physicians treating peripheral vascular disease.
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