⁍ The offer is at a premium to Cubic’s closing share price on Tuesday of $54.73.
⁍ The exact value of the offer could not be learned.
⁍ Cubic currently has a market value of $1.7 billion.
– An activist investor and a private equity firm have teamed up to offer defense and transportation technology firm Cubic Corp. a buyout, sources tell Reuters. The sources say the offer is at a premium to Cubic’s closing share price of $54.73 on Tuesday. On Monday, Cubic adopted a poison pill after Elliott Management took a 15% stake in the company and expressed interest in acquiring the company with a private equity partner. Elliott confirmed its interest in a separate statement without disclosing the name of its partner for the deal. The hedge fund and Veritas Capital last partnered in 2018 for a $5.7 billion deal to take healthcare software company Athenahealth private. Cubic makes technology that helps major subway systems collect fares as well as technology for the defense industry, areas that are largely dependent on government spending. Cubic’s shares have slumped this year over fears the coronavirus pandemic may slow the company’s growth in the near term.
Source: https://www.reuters.com/article/cubic-ma-elliottmanagement/elliott-and-veritas-capital-submit-offer-for-cubic-sources-idUSL2N2GJ287