Defense contractor Cubic Corp accepts proposal to go private

Defense contractor Cubic announced Wednesday that it has accepted a proposal to go private.

Cubic Corp. accepted a private-equity deal from Veritas Capital and Evergreen Coast Capital Corporation that will increase the company’s price per share to $75 in cash before the acquisition is complete.

“Under the terms of the Amended Agreement, Cubic shareholders will receive $75.00 in cash for each share of Cubic’s common stock, representing a premium of approximately 69% to Cubic’s unaffected closing stock price on September 18, 2020, the last trading day before the Company’s disclosure of third-party interest in potentially acquiring Cubic,” the announcement states.

“The all-cash transaction will be valued at approximately $3.0 billion, including the assumption of debt,” the company added.

Cubic Corp., a transportation and defense company that works with the U.S. military, has reportedly been considering multiple offers.

The company did receive a higher offer from Singapore Technologies Engineering Ltd for $78 per share but did not accept it. 

“The Board determined that, based on the superior certainty and anticipated timing of closing the existing transaction with Veritas and Evergreen, the revised proposal from Veritas and Evergreen was in the best interests of all Cubic’s shareholders,” the company said. 

Cubic shareholders will have a meeting on April 27 to adopt the amended agreement.