* Deal at 35 pct premium to Wednesday close
* Shares rise 29 pct pre-market
Nov 26 CPI International Inc CPII.O agreed to
be bought by an affiliate of private-equity firm Veritas
Capital for $19.50 per share in cash, three months after larger
rival Comtech Telecommunications (CMTL.O) dropped plans to buy
the telecom equipment maker.
The offer from New York-based Veritas Capital, which
focuses on the defense and government-services sector, is at a
35 percent premium to CPI's Wednesday close. The deal is valued
at about $525 million, CPI said.
In September, Comtech had offered to pay about $372 million
in cash and issue about 4.4 million shares for CPI, in what
could have been its largest acquisition ever. [ID:nSGE6490PZ]
Veritas Capital also owns Aeroflex Inc, a provider of
microelectronic and testing equipment to aerospace markets, and
Vangent, which provides information management and business
Earlier this year, Veritas sold military-services
contractor DynCorp International to Cerberus Capital Management
[CBS.UL] for $1 billion.
Shares of Palo Alto, California-based CPI, which makes
microwave and radio-frequency products for defense,
communications, medical and other applications, rose 29 percent
to $18.65 in trading before the bell.
They have risen 43 percent over the last year.
(Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Vinu
Pilakkott and Don Sebastian) ((email@example.com;
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