Wednesday, July 30, 2008
MERGERS & ACQUISITIONS
XM Satellite and Sirius Complete Merger
XM Satellite Radio and Sirius Satellite Radio said they have completed their long-pending merger. The combined company plans to use the name Sirius XM Radio. Its stock will continue to be traded on the Nasdaq under the ticker symbol SIRI. They first announced their deal in March 2007. XM shareholders will receive 4.6 shares of Sirius common stock for each share of XM.
The combined company reaffirmed its guidance for the deal in a statement. It expects cost savings of about $400 million in 2009 and to post earnings before interest, taxes, depreciation and amortization of more than $300 million. It also plans to achieve positive cash flow, before satellite capital expenditures, in 2009.
The corporate headquarters will be located in New York, and XM Satellite Radio will remain based in the District.Protein Sciences Cancels Sale to Emergent
Flu-vaccine maker Protein Sciences said that it had terminated its sale to Emergent BioSolutions, claiming a breach of contract.
The maker of FluBlok said that Emergent had revealed confidential information about Protein Sciences in a lawsuit and cut off funding it had promised as part of the deal. Rockville-based Emergent said Protein Sciences had no legal right to end the deal on its own, calling the claims "baseless."
Emergent announced its agreement to buy Protein Sciences in May. But on July 10 it filed a lawsuit claiming Protein Sciences' management had tried to sabotage the purchase.
Emergent said it would continue to pursue the lawsuit and said it is still negotiating with the Protein Sciences board to make the purchase happen. Protein Sciences Chief Operating Officer Manon Cox said her company is in talks with new investors, which she declined to name.CONTRACTS
SI International Cancels Arrowpoint Bid
SI International, an information technology and network services provider based in Reston, said it terminated its agreement to acquire Arrowpoint. SI International said just two weeks ago that it would purchase the information technology government contractor for $16 million in cash. No reasons were provided as to why the deal was canceled.EARNINGS
Under Armour, a sports apparel maker based in Baltimore, said its second-quarter profit dropped 75 percent to $1.4 million from $5.7 million in the comparable period last year. Sales rose 30 percent, to $156.7 million. Under Armour blamed the decline on softer margins and higher marketing expenses.
Compiled from reports by Washington Post staff writers, the Associated Press and Bloomberg News.