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M&A Report: Pype, Connect Tech, and Momenta Pharmaceuticals In the News

M&A Report: Pype, Connect Tech, and Momenta Pharmaceuticals In the News

In keeping with our mission to provide comprehensive advertising analysis, MediaRadar puts together a report of the most important mergers and acquisitions news each week. Stay in the loop, whether you sell advertising space or focus on business development. 

This week, Autodesk gained Pype, HEICO made a specialized purchase with Connect Tech and Johnson & Johnson broadened its leadership in immune-mediated pharmaceuticals by acquiring Momenta Pharmaceuticals. 

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Autodesk acquires Pype

Autodesk, known for its software services used for architecture, engineering, construction, manufacturing, media, education, and entertainment industries, acquired Pype Inc. Pype makes software that helps analyze and extract construction data for building projects. 

The deal marks Autodesk’s first AI-related acquisition. Following the acquisition, Autodesk plans to integregrate Pype products with Autodesk’s Construction Cloud. The company aims to use Pype’s software to help customers digitize the construction workflow process. 

The addition of AI and machine learning to Autodesk’s software will minimize tedious manual entry and other steps prone to human error.

Pype’s software is able to scan thousands of pages of documents containing all the requirements for a construction project, producing data-driven estimates for cost and scope of various projects. 

Financial terms of the deal have not been made public. 

HEICO gains large stake in niche manufacturer Connect Tech 

Aerospace company HEICO acquired 89.99% of Connect Tech Inc, a company that designs and manufactures small-form-factor embedded computing solutions.

The deal is HEICO’s 6th highly specialized, niche acquisition in the current fiscal year, and fourth since the onset of the COVID-19 pandemic. 

Connect Tech is the largest global embedded hardware partner for the tech company NVIDIA. CTI’s commercial products are designed to withstand harsh environments and are primarily used in rugged commercial and industrial industries. 

The company employs a team of 65 personnel; HEICO stated it does not expect any staff turnover as a result of the acquisition, and CTI will continue to operate out of its design and manufacturing facility in Ontario. 

The acquisition was financed in cash at closing, and potential additional cash consideration is to be paid if certain post-closing earnings levels are attained. Financial terms of the deal have not been made public.

Johnson & Johnson agreed to purchase Momenta Pharmaceuticals

Johnson & Johnson announced that it agreed to acquire drugmaker Momenta Pharmaceuticals Inc. for $6.5 billion, a 70% premium on Momenta’s closing price on August 18, 2020. 

Momenta is a biotechnology company focused on discovering and developing novel therapies to treat immune-mediated diseases. By acquiring Momenta, J&J gains access to its experimental drug – nipocalimab, which is part of a newer class of autoimmune drugs known as FcRn antibodies. 

According to Wall Street analysts, several companies including Alexion Pharmaceuticals are developing FcRn antibodies, but nipocalimab is one of the most clinically advanced, and it bodes well for J&J’s development of this molecule. 

The analysts also added that this new class of drugs could generate sales of more than $20 billion in the U.S. by 2030. As a result, this acquisition paves the way for J&J to expand its efforts into autoimmune disease treatments and broadens its leadership in immune-mediated diseases. 

In Other News

Here are further developments from this past week:

  • Video game developer Take-Two Interactive Software, Inc. announced that it is acquiring mobile gaming studio Playdots for $192 million, which will be made up of $90 million in cash and Take-Two common stock.  
  • British beverage company Diageo announced it reached an agreement to acquire Davos Brands for up to $610 million. 
  • French pharmaceutical company Sanofi has entered into a definitive agreement to acquire its partner Principia Biopharma Inc.
  • Warner Music Group, the record label which features artists such as Linkin Park, Madonna, and Ed Sheeran, has announced its acquisition of IMGN Media for the price tag of $85 million. 
  • According to the Wall Street Journal, media conglomerate ViacomCBS Inc. is in talks to sell its technology news and reviews site CNET to digital-media company Red Ventures LLC. 
  • According to French news outlet Le Figaro, French hotel group Accor has reportedly formed an internal group to assess the possibility of a merger with U.K.-based hospitality group InterContinental Hotels & Resorts. 
  • SPARC, the joint venture formed by the biggest U.S. mall owner, Simon Property Group and apparel licensing firm, Authentic Brands Group, has been tapped as the winning bidder by a bankruptcy court to acquire denim maker Lucky Brand.
  • Home-sharing giant Airbnb announced that it has filed documents to the Securities and Exchange Commission for an initial public offering