4 big deal reports: Michael Kors parent rockets on huge buyout deal with Tapestry

By Davit Kirakosyan

Here is your Pro Recap of 4 head-turning deal dispatches you may have missed this week: Deals at Capri-Tapestry, Decibel-Regeneron, Amazon in talks to potentially anchor Arm's IPO, and Digital World Acquisition and Trump Media & Technology Group reaffirm commitment to the merger.

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Tapestry agrees to buy Michael Kors parent Capri for $8.5 billion

Capri (NYSE:CPRI) shares rocketed more than 55% on Thursday after Tapestry (NYSE:TPR) said it agreed to buy Capri, the parent company of Michael Kors, for $57 per share in cash, as reported in real time on InvestingPro.

The deal is valued at roughly $8.5 billion.

The companies anticipate achieving cost synergies exceeding $200 million within three years of finalizing the transaction. Together, the businesses generated global annual sales of $12B and nearly $2B in adjusted operating profit in the prior fiscal year.

Tapestry shares dropped nearly 16% on Thursday following the announcement.

Digital World Acquisition and Trump Media & Technology Group reaffirm commitment to the merger

Special purpose acquisition company Digital World Acquisition (NASDAQ:DWAC) and Trump Media & Technology Group (TMTG), the latter of which operates the Truth Social platform, reaffirmed their commitment to merge after Wednesday's market close, unveiling an amendment to their October 2022 merger agreement, according to which TMTG will go public via a $1.7B SPAC deal with DWAC.

This development comes after DWAC revealed that it had received an email from Truth Network regarding a specific section of the agreement. DWAC's interpretation of this was that by obtaining shareholder approval to extend the liquidation timeline by three months - until September 8, 2024 - it can similarly prolong the agreement's "Outside Date" for that same duration. In contrast, Truth Network asserted that its obligations are only binding until September 8, 2023.

The amended agreement extends the merger’s “Outside Date” to December 31 of this year, with shared due diligence ahead of submitting updated filings to the SEC.

DWAC shares jumped more than 11% in Thursday's session.

Amazon in talks to potentially anchor Arm's IPO

Amazon (NASDAQ:AMZN) is currently engaged in discussions regarding the possibility of becoming an investor alongside other tech firms in SoftBank Group's (TYO:9984) Arm before its initial public offering, according to a Reuters report, which cited people familiar with the matter.

This potential participation by Amazon in the IPO highlights the significant role Arm plays in cloud computing. Amazon Web Services, the company's cloud division, develops its own processing chip named Graviton, utilizing Arm's design.

One of the sources mentioned that Arm is aiming to debut on the Nasdaq by early September, intending to raise an estimated $8B to $10B. Both Arm and Amazon declined to comment on the matter.

Regeneron Pharmaceuticals to take out Decibel

Decibel Therapeutics (NASDAQ:DBTX) shares jumped around 80% on Wednesday on word that it will be acquired by Regeneron Pharma (NASDAQ:REGN) at $4 per share, payable in cash at closing, with an additional non-tradeable contingent value right (CVR).

The CVR allows shareholders to receive an additional $3.50 per share in cash, contingent upon the successful accomplishment of specific clinical development and regulatory goals for Decibel's main investigational product, DB-OTO, which is being developed for the treatment of congenital, profound deafness resulting from otoferlin (OTOF) deficiency in pediatric patients.

The proposed acquisition values Decibel at a total equity value of approximately $109M based on the amount payable at closing, and a total equity value of up to approximately $213M if the CVR milestones are achieved.

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