Boston, MA 05/21/2014 (wallstreetpr) – The leading wireless communication service provider Aeroflex Holding Corp. (NYSE:ARX) is all set to be acquired by a British company named Cobham Plc. (LON:COB). According to news, the agreed price for the acquisition transaction is $1.46 billion.
The British company will pay $10.50 per share to all the shareholders of the company. Other than the per share price, the company will also pay $540 million worth of debt of ARX. It will be a complete cash transaction. The deal is almost finalized and will be closed later this year. When asked about this deal from the Chief Executive Officer of ARX Len Borow, he said,” If looked closely, one can see that Cobham and ARX are natural fit for each other.”
Last few months were not good for Aeroflex Holding Corp. (NYSE:ARX) and it lost control over several domestically controlled public companies due to management inefficiencies. If you go in depth and have a look at the entities that got apart from ARX in past sometime, you will find that approx 2 dozen companies that are registered in stock exchanges, have either shut down their businesses or have shifted to somewhere else.
The deal still requires the approval of the shareholders and regulatory authority bodies. There are total 2700 people who work in ARX and announcing a deal in such manner seems weird. Though the announcement has put positive impact on the stocks of the company. All the shareholders witnessed a phenomenal hike of 25% in the stocks of the company once after the deal was announced.
Strategically it is a good step of Aeroflex Holding Corp. (NYSE:ARX) which beneficial for the company itself and the shareholders. ARX was not able to serve the stakeholders in a proper way since last some time. Now they hope that the acquirer will create some difference and take the companies to new heights. The actual situation will be clear in some time.
