In part 1 of a 2-part series, BNL Finance looks at five of 10 companies that are likely to be acquired at some point before 2017 ends. Furthermore, we will also tell you what company is the most likely acquirer. Now before you think we are just tossing out random ideas, it is important to note that this will act as our first official prediction sheet that will be monitored throughout the next year. Thus, the picks are very thought out.
We have not tracked success at predicting mergers in the past, but have been very successful with one of our core focuses being merger arbitrage and M&A discussions. Over the last few years, I have predicted acquisitions in Rite Aid, Santarus, Questcor Pharmaceuticals, Sprint, Salix Pharmaceuticals, Pharmacyclics, Alcatel-Lucent, King Digital, and the list goes on.
In part one of this two part series, I will explain why Fitbit Inc (NYSE:FIT), Twitter Inc (NYSE:TWTR), ACADIA Pharmaceuticals Inc (NASDAQ:ACAD), Skechers USA Inc (NYSE:SKX), and DISH Network Corp (NASDAQ:DISH) all have a great shot to join the list and be acquired sometime in 2017.
Acquisition Prediction: Apple buys FIT
Apple (NASDAQ:AAPL) has learned the hard way that it can not dominate the wearables space on name alone. Apple has the largest ecosystem, best products, and is at the epicenter of software innovation. Yet, little old Fitbit Inc (NYSE:FIT) remains the market share leader, and has done so throughout 2016 without launching a new smart watch since Q1.
In fact, Fitbit’s quiet year for launching new products has had a big effect on the entire wearables market, causing worse than expected growth. However, Fitbit will launch new products next year, presumably a smart watch in Q1, and we believe investors will see first hand just how much consumers love their Fitbit.
Keep in mind, FIT stock may be a train-wreck, but Fitbit has upped guidance and beat expectations in every quarter since going public (except last quarter).
With that said, Apple proved with the Beats acquisition that it will acquire a market leader when it is a market they want to dominate. Furthermore, the Beats acquisition was as much about leadership and talent as the company itself. Fitbit’s James Park has a better handle on the wearables industry than anyone, and his services would be of the utmost value to Apple. That’s why Apple will acquire Fitbit in 2017, if the company has a bounce back year with a new smart wearable.