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Market Update

Shire in $2.4 B Deal with Servier, Adecco to Buy General Assembly


Author: Sarla Buch
ticker.com
Last Update: 11:09 AM EDT April 16 2018

4:00 PM Frankfurt – Adecco agreed to acquire the U.S.-based General Assembly. Rocket Internet plans early termination of its share buyback program. Software AG reported weaker-than-expected revenues. Shire agreed to sell its Oncology business to France-based Servier.

In London trading, FTSE 100 index fell 50.15 or 0.7% to 7,216.05 and in Frankfurt the DAX index decreased 60 or 0.5% to 12,376.71.

In Paris, CAC 40 index slid 5.16 to 5,304.06.

Adecco Group AG slid 0.2% to 66.98 Swiss francs after Switzerland-based staffing services provider agreed to acquire the U.S.-based technology education provider General Assembly for $412.5 million or £289 million, including debt.

The transaction is expected to close during the second-quarter of this year.

Rocket Internet SE advanced 1.1% to €25.16 after Germany-based incubator and internet provider said total revenues in the year ending in December surged 28% from a year ago €2.64 billion.

Net loss in the year narrowed to €6 million from €741.5 million in a year ago period and diluted loss per share decreased to €0.1 from €4.22.

Rocket Internet plans to terminate early its share buyback program for up to 5.5 million.

Software AG dropped 3.4% to €41.29 after Germany-based enterprise software provider reported revenues in the year ending in December increased 1% from a year ago to €878.9 million.

Net profit in the year rose 0.3% to €140.6 million from €140.2 million in a year ago period and diluted earnings per share increased to €2.38 from €2.37.

Revenues license business declined 2% to €256.7 million but maintenance revenues increased 2% to €421.6 million and revenues in the digital business platform (licenses and maintenance) declined 13.1%.

The enterprise software provider lifted fiscal 2018 revenues in IoT and cloud forecast to grow between 100% and 135% from earlier estimate of 70% to 100% and earnings per share of about €2.38.

Shire Plc increased 0.8% to 3,638.50 pence after the Ireland-based specialty drug maker agreed to sell its oncology unit to France-based privately held rival Servier S.A.S. for $2.4 billion in cash.

In fiscal 2017, Shire’s Oncology business generated revenues jumped 9.2% to $262 million.

The transaction is expected to close in the second or third-quarter of 2018.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc