(Adds details from regulatory filing, share movement)
May 12 Telecommunications equipment maker
Comtech Telecommunications Corp (CMTL.O) agreed to buy Radyne
Corp RADN.O for about $223.6 million to expand its satellite
earth station product portfolio and diversify global customer
Comtech will make a first step cash tender offer at $11.50
per share, representing a premium of about 33 percent over
Radyne's average closing price over the last 90 trading days
and about 49 percent over the closing of $7.75 Friday on
Shares of Radyne were up about 46 percent at $11.29 in
trading before the bell.
Comtech also said it would close a manufacturing facility
of Radyne, a maker of products used to send and receive data
over satellite, and eliminate "redundant overhead functions."
The acquisition, which has an enterprise value of $195
million, is expected to be accretive within 12 months of
closing, and significantly accretive, on an annual basis,
thereafter, Comtech said in a statement. As of March 31, 2008,
Radyne had cash and cash equivalents of $28.7 million.
Aggregate sales of the two companies would have been $651.5
million based on Comtech's sales of $504.3 million for its
fiscal ended Jan 31, 2008, and Radyne's sales of $147.2 million
for its fiscal ended March 31, 2008, Comtech said.
After the acquisition is closed, Fred Kornberg will
continue to be the chief executive of Comtech, the company said
in a filing to the U.S. regulators.
Comtech expects to save cost of about $3 to $4 million
within the first 12 months after closing of the transaction,
and about $9 to $11 million on an annual recurring basis
Radyne, in a seperate statement said, its first-quarter
earnings conference call, scheduled for Monday, May 12, 2008,
has been cancelled.
Needham & Co LLC is acting as financial advisor to Radyne.
Comtech's stock closed at $41.29 Friday on Nasdaq.
(Reporting by Purwa Naveen Raman in Bangalore; Editing by