July 2009: MSC Software Buyout

Stock: MSC Software

Symbol: MSCS

Buyout Terms: Private equity consortium paying $7.63 cash for each MSCS share

Est. Closing Date: September 30th

Today’s date: July 9th

Today’s price: $7.47

Projections:

$/% Gain: $0.16/2.14%

Time frame: < 3 months

Annualized return: +9.3%

Update (October 2009): MSC Software attracted multiple bidders after the initial merger agreement was announced. The deal’s closing date was delayed until 10/13/09 but the final purchase price was $8.40 in cash, up from an original $7.63. That extra 10% premium resulted in annualized gains of +46.8% for merger arbs.