Comtech Telecommunications (NASDAQ:CMTL) announced today it has signed a definitive agreement to buy CPI International (NYSE:CPII) in a cash and stock deal with a total value of $472.3 million.
CPI shareholders will receive $16.40 per share, in a combination of cash and stock, more than a 25% premium.
Comtech said it is funding the acquisition with $372 million in cash as well as an offering of 4.4 million share of common stock.
Comtech’s CEO said the deal is a significant step in Comtech’s strategy of developing a one-stop shopping approach for RF microwave products.
Comtech said the acquisition is expected to be accretive within the first year.
The transaction is still subject to CPI shareholder approval as well as approval by regulators.
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