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Spinoff resulting in XPERI shareholders getting shares of Adeia (ADEA) and Xperi, Inc (XPER) - October 2022

XPERI Holding Company changed its name to Adeia and its ticker symbol to ADEA. It then spun off a new company named Xperi, Inc with the ticker symbol XPER.

 

Resolution:

The companies plan to structure the reorganization so it is a non-taxable event. We will assume they are successful. In myICLUB, this will be accomplished by entering a merger of XPERI Holding with Adeia followed by a spinoff of Xperi, Inc from Adeia. The return calculations for Adeia will begin on the merger date and for Xperi, Inc on the spinoff date.

 

The Merger Entry -  Go to Accounting > Securities > Record merger of securities in myICLUB. If you are unfamiliar with merger transactions you can get help at this URL: http://www.iclub.com/support/kb/default.asp?page=normal_merger

 

Here is the information needed for the merger.

  • Date: 10/3/2022
  • Old Security or Merging Company: XPERI Holdings (XPER)
  • Price per share of old Security / :  Use last XPER valuation, if needed
  • Cash received:  See broker statement for cash-in-lieu received
  • New Security: Adeia (ADEA)   
  • New Security Price: 7.19  (Closing price of Adeia on 10/3/2022)
  • Shares received : 1.0 x (# of XPER shares owned)  Remember to include fractional shares.
    • For example, if you owned 100 BDX shares, you should receive 0.40 x 100 = 40 ADEA shares.

 Save the transaction and the merger is entered.

 

The Spinoff Entry

Go to Accounting > Securities > Record spinoff of securities in myICLUB. If you are unfamiliar with spinoff transactions you can get help at this URL: http://www.iclub.com/support/kb/default.asp?page=normal_spinoff

Here is the information you need to complete the spinoff. Be sure to enter this AFTER the XPER merger to become Adeia.

  • Date: 10/4/2022
  • Select Parent Security (or Parent Company) : Adeia (ADEA)
  • Remaining Basis Percentage: 54.561
  • Cash received:  See your broker statement for cash-in-lieu received
  • Spinoff  Security (or Symbol of New Company) : XPER, Inc (XPER)
  • Shares received : 0.4 x (# of ADEA shares owned)   Remember to include fractional shares.
    • For example, if you owned 100 ADEA shares, you should receive 0.40 x 100 = 40 XPER shares.
  • Price Per Share : 14.97   (Closing price on 10/3/2022)                                                          

Save the transaction and the spinoff is entered.