Cubic Corp has agreed to be bought by private equity firm Veritas Capital and U.S. investment fund Elliott Management in a deal valued at about $2.2 billion, the defense and transportation technology firm said on Monday.

The company had adopted a poison pill last year, allowing existing shareholders to buy more shares at a discount, after Elliott took a 15% stake in the firm with an aim to acquire the company.

The all-cash offer of $70 per share represents a premium of about 11% to Cubic’s closing price on Friday and values the company at about $2.8 billion, including debt.

Cubic makes technology that helps major subway systems collect fares and has also developed a game-based learning technology for the defense industry.

The deal is expected to close during the second quarter of 2021, Cubic said.

Source: Reuters

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