API Technologies Corp. (NASDAQ: ATNY) led the bulls on Monday morning following the announcement of an acquisition. The company said it had reached a definitive agreement to be acquired by an affiliate of private equity firm J.F. Lehman, which specializes in the aerospace, maritime and defense industries. This transaction is expected to close in the second fiscal quarter of 2016.
Under the terms of the agreement, a newly formed affiliate of J.F. Lehman will acquire all the outstanding shares of API Technologies common stock for $2.00 per share in cash in a merger transaction. The cash consideration represents a premium of approximately 98% to API’s closing share price on February 26, 2016, and a 74% premium to its weighted average trading price over the trailing 30 days.
The agreement, which is subject to customary closing conditions, was unanimously approved by the board of directors of API Technologies and was approved by a written consent of the stockholders of API Technologies holding a majority of its outstanding shares.
Robert Tavares, president and CEO of API, commented:
The acquisition of our company by a JFLCO affiliate demonstrates support for the strategies and tactics the leadership team has put in place over the past twelve months. Under the new ownership, API will have the liquidity and capital structure needed to execute on our various business improvement and growth plans – creating a stronger business for our customers and employees alike.
Louis Mintz, partner at J.F. Lehman, added:
We’re pleased to have API Technologies join our expanding array of aerospace, defense, and maritime portfolio companies. We believe API has tremendous potential given its strong product portfolio and superior RF/microwave technology, and we look forward to working with them to grow the business going forward.
Shares of API were trading up over 92% at $1.95 on Monday, with a consensus analyst price target of $3.75 and a 52-week trading range of $0.95 to $2.65.
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