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08 Feb 2021 | 12:33

Veritas and Evergreen Coast to acquire Cubic Corporation in $2.8bn deal

(Sharecast News) - Veritas Capital and Evergreen Coast Capital have agreed to acquire American public transportation and defence provider Cubic Corporation in a $70.0 per share cash deal. The trio revealed that Cubic shareholders will receive $70.0 in cash for each share of Cubic's common stock, representing a premium of approximately 58% to the group's unaffected closing stock price on 18 September 2020 - the last full trading day before its disclosure of a third-party interest in potentially acquiring the firm.

The all-cash transaction will value Cubic at approximately $2.8bn, including the assumption of debt.

The transaction will be financed through a combination of equity and debt financing and was expected to close during the second calendar quarter of 2021, subject to customary closing conditions.

Veritas chief executive Ramzi Musallam said: "Cubic has an unparalleled history of delivering innovative technology-based solutions to address the mission-critical needs of the global transportation and defence markets.

"We look forward to leveraging our expertise in the government technology market - a key focus of Veritas since our inception - in partnership with the team at Cubic to accelerate product development and drive growth as Cubic continues to improve the quality of global transportation systems and to deliver innovative defence solutions."

As of 1330 GMT, Cubic shares were up 8.55% in pre-market at $68.70 each.
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