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Sept 5 (Reuters) - Gerber Scientific Inc GRB.N, a supplier of automated manufacturing systems, said it plans to acquire Canadian industrial laser services provider Virtek Vision International Inc VRK.TO for C$35.1 million in cash, or C$1.05 per share.
The bid represents a premium of 2.9 percent to Virtek’s Thursday closing price of C$1.02 on the Toronto Stock Exchange.
However, Gerber said it was paying an 18 percent premium, considering Virtek’s closing price on Aug. 29, the last full trading day before Virtek said it had received the offer.
South Windsor, Connecticut-based Gerber plans to fund the acquisition through its existing $125 million line of credit. The acquisition of Virtek, which is based in Waterloo, Ontario, would immediately add about $50 million to Gerber’s annual revenue, it said.
Virtek operates in the aerospace, prefabricated construction, transportation, metalworking, tool and die and mold making markets.
Gerber’s shares were down more than a percent at $8.07 in early morning trade on the New York Stock Exchange. ($1 = C$1.06) (Reporting by S John Tilak in Bangalore)
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