By Rob Curran
Shares of military contractor Emcore rallied after aerospace holding company Velocity One agreed to buy it for $3.10 a share in cash, a 31% premium to Thursday's closing price.
Emcore surged 27% to $3.01 in premarket trading.
Velocity One's agreement to buy the New Jersey-based provider of military-grade navigation equipment was backed by investment firm Charlesbank Capital Partners. The deal is subject to approval by shareholders, as well as other conditions. In the event the deal doesn't go through because of a superior offer or other conditions, Emcore would be subject to a $1.5 million breakup fee.
Velocity One will add Emcore to two other aerospace-manufacturing firms under its holding-company umbrella: Cartridge Actuated Devices, which makes energetic devices, and Aerosphere Power, a maker of power systems for commercial and military applications.
Shares of Emcore closed Thursday at $2.37. Based on 9.1 million shares outstanding, the deal would value the company at about $28.2 million.
In August, Emcore posted a fiscal third-quarter loss of $16.9 million on revenue of $20.4 million.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
November 08, 2024 08:13 ET (13:13 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。