Bioverativ(BIVV), Varex(VREX) Spins And LogMeIn(LOGM)/Citrix(CTXS) Reverse Morris Trust Drive S&P Index Changes

By |
10 Comments
As we near the end of the month, the completion of three spinoff transactions will be driving changes in various S&P Indexes. Citrix Systems(CTXS) will be spinning off its GetGo division which will then merge with LogMeIn(LOGM) in a reverse Morris Trust transaction. After the transaction is completed on January 31st, Citrix will remain in the S&P 500. LogMeIn, on the other hand, will move up from the S&P SmallCap 600 to the S&P MidCap 400. LogMeIn will be switching places with Triumph Group(TGI).

LogMeIn provides cloud-based services for individuals and businesses to securely connect to their workplace, colleagues, and customers. Headquartered in Boston, MA, the company will be added to the S&P MidCap 400 GICS (Global Industry Classification Standard) Internet Software & Services Sub-Industry index.

Triumph Group designs, engineers, manufactures, repairs, overhauls, and distributes aero structures, aircraft components, accessories, subassemblies, and systems. Headquartered in Berwyn, PA, the company will be added to the S&P SmallCap 600 GICS Aerospace & Defense Sub-Industry index.

Bioverativ(BIVV) is being spun off by another S&P 500 member, Biogen(BIIB). Biogen, which is also a member of the S&P 100, will remain in both indexes after the transaction closes on February 1st. Bioverativ will replace RH(RH) in the S&P MidCap 400. RH will move the S&P SmallCap 600, replacing Ciber(CBR), which is too small to remain in the index.

Bioverativ focuses on the research, discovery, development, and commercialization of therapies for the treatment of hemophilia and other blood disorders. Headquartered in Waltham, MA, the company will be added to the S&P MidCap 400 GICS Biotechnology Sub-Industry index.

RH engages in the retail of home furnishings. Headquartered in Corte Madera, CA, the company will be added to the S&P SmallCap 600 GICS Home Furnishing Retail Sub-Industry index.

Varex Imaging Corp(VREX) will be spun off from Varian Medical Systems(VAR) on January 27th. Like the others, Varian will remain in the S&P 500. Varex will be added to the S&P SmallCap 600, replacing Stage Stores(SSI), which is now deemed too small for inclusion in the index.

Varex Imaging designs and manufactures X-ray tubes, flat panel detectors, imaging software, high voltage connectors, and high-energy inspection accelerators. Headquartered in Salt Lake City, UT, the company will be added to the S&P SmallCap 600 GICS Health Care Equipment Sub-Industry index.

Index changes can sometimes lead to opportunity as index funds must sell or buy in order to track their index.

Disclosure: The author holds no position in any stock mentioned