Cobham announced plans to acquire Aeroflex Holding, which produces test and measurement equipment as well as microelectronic components, for $1.46 billion.
Cobham and Aeroflex have signed an agreement in which Cobham will buy Aeroflex for $10.50 per share in cash. The total transaction figure includes Cobham assuming $540 million in net debt from Aeroflex.
The deal is expected to close in the third quarter of this year, contingent on regulatory approvals including those regarding foreign investment in the United States. Cobham, which acquired distributed antenna system provider Axell Wireless about a year ago, is based in the United Kingdom.
Cobham focuses on technologies including aerospace safety and refueling systems, as well as airborne communications in both military/defense and commercial markets. The company does about 25% of its business in the United Kingdom and European Union, and just over 50% in the United States.
Aeroflex CEO Len Borow called the two companies “a natural fit” in a statement and add that Aeroflex “will benefit from the larger scale, market presence and resources of the combined organization.”
