Mergers and Acquisitions

Mergers & Acquisitions

M&A corporate events consist of a bit more data because of updates that need to be made to cash and share positions. When an M&A event does occur there will be four (4) events created; Two transaction.created (changes in cash), and two positions.updated (removal of one symbol and addition of another). The sequence of events you would see are the following:

First Transaction Event

  • The first transaction event will be the addition of the acquirers shares as part of the merger or acquisition
{
    "id": "event_ff31400a-565a-4c35-9782-279313f18521",
    "type": "transactions.created",
    "timestamp": "2019-08-02T07:02:31.858026996Z",
    "payload": {
        "accountID": "0dd1b08f-3668-440a-be18-131443d85a47.1551208006668",
        "accountNo": "DWUV000073",
        "userID": "0dd1b08f-3668-440a-be18-131443d85a47",
        "transaction": {
            "accountAmount": 0,
            "accountBalance": 3616.2,
            "comment": "Added 5.51 shares of FB (part of merger/acquisition of TWTR by FB)",
            "finTranID": "GH.081b1011-7923-49fe-9144-aa1b555f0873",
            "wlpFinTranTypeID": "b9d3f58c-da1a-47de-af78-fe59401f396b",
            "finTranTypeID": "MERGER_ACQUISITION",
            "feeSec": 0,
            "feeTaf": 0,
            "feeBase": 0,
            "feeXtraShares": 0,
            "feeExchange": 0,
            "positionDelta": 5.51,
            "instrument": {
                "id": "4312a85c-b50d-4adb-93ba-cc7973243a53",
                "symbol": "FB",
                "name": "Facebook, Inc."
            },
            "mergerAcquisition": {
                "type": "ADD_SHARES",
                "acquirer": {
                    "id": "4312a85c-b50d-4adb-93ba-cc7973243a53",
                    "symbol": "FB",
                    "name": "Facebook, Inc."
                },
                "acquiree": {
                    "id": "bf4fc752-a5f4-4801-a416-0d75087c9779",
                    "symbol": "TWTR",
                    "name": "Twitter, Inc."
                }
            }
        }
    }
}

In this example we see that Facebook bought Twitter, and so we ADD_SHARES to the customers account. In this case 5.51 shares of FB were added (positionDelta)

Second Transaction Event
The second transaction event will be the removal of the acquiree's shares and addition of any cash as a result of the merger or acquisition.

{
    "id": "event_88602b5d-a189-4a0a-b4f7-941ad9a2fb4a",
    "type": "transactions.created",
    "timestamp": "2019-08-02T07:02:31.844056197Z",
    "payload": {
        "accountID": "0dd1b08f-3668-440a-be18-131443d85a47.1551208006668",
        "accountNo": "DWUV000073",
        "userID": "0dd1b08f-3668-440a-be18-131443d85a47",
        "transaction": {
            "accountAmount": 122.320596405,
            "accountBalance": 3616.2,
            "comment": "Removed 11.64958061 shares of TWTR (part of merger/acquisition of TWTR by FB)",
            "finTranID": "GH.b06c05f5-e1da-4989-9f4d-fbe5d8be4ac1",
            "wlpFinTranTypeID": "b9d3f58c-da1a-47de-af78-fe59401f396b",
            "finTranTypeID": "MERGER_ACQUISITION",
            "feeSec": 0,
            "feeTaf": 0,
            "feeBase": 0,
            "feeXtraShares": 0,
            "feeExchange": 0,
            "positionDelta": -11.64958061,
            "instrument": {
                "id": "bf4fc752-a5f4-4801-a416-0d75087c9779",
                "symbol": "TWTR",
                "name": "Twitter, Inc."
            },
            "mergerAcquisition": {
                "type": "REMOVE_SHARES_ADD_CASH",
                "acquirer": {
                    "id": "4312a85c-b50d-4adb-93ba-cc7973243a53",
                    "symbol": "FB",
                    "name": "Facebook, Inc."
                },
                "acquiree": {
                    "id": "bf4fc752-a5f4-4801-a416-0d75087c9779",
                    "symbol": "TWTR",
                    "name": "Twitter, Inc."
                }
            }
        }
    }
}

In this example we see that we removed the existing position of TWTR, and added the cash due to the customer.

First Position Update Event

  • The first position update will be for the addition of the acquiring company's shares
{
    "id": "event_06e436fe-1f2c-4b1e-b0ed-75134a0d37a7",
    "type": "positions.updated",
    "timestamp": "2019-08-02T07:02:31.845181651Z",
    "payload": {
        "accountID": "0dd1b08f-3668-440a-be18-131443d85a47.1551208006668",
        "accountNo": "DWUV000073",
        "userID": "0dd1b08f-3668-440a-be18-131443d85a47",
        "updateReason": "MERGER_AND_ACQUISITION",
        "previous": {
            "costBasis": 0,
            "openQty": 0,
            "symbol": "FB"
        },
        "current": {
            "costBasis": 0,
            "openQty": 5.51,
            "symbol": "FB"
        }
    }
}

In this example we can see the we added 5.51 shares of FB

Second Position Update Event

  • The second position update will be for the removal of the acquiree's shares
{
    "id": "event_fc0df771-084b-4d4c-b1b4-2f5cb5b86ad7",
    "type": "positions.updated",
    "timestamp": "2019-08-02T07:02:31.827375527Z",
    "payload": {
        "accountID": "0dd1b08f-3668-440a-be18-131443d85a47.1551208006668",
        "accountNo": "DWUV000073",
        "userID": "0dd1b08f-3668-440a-be18-131443d85a47",
        "updateReason": "MERGER_AND_ACQUISITION",
        "previous": {
            "costBasis": 500,
            "openQty": 11.64958061,
            "symbol": "TWTR",
            "avgPrice": 42.92
        },
        "current": {
            "costBasis": 0,
            "openQty": 0,
            "symbol": "TWTR"
        }
    }
}

In this example we can see that we removed all shares of TWTR as a part of the merger or acquisition