The cash deal values Herley shares at $19.00 each, a premium of 17% to a regular-session closing price of $16.25. The stock last quoted at $18.80, up 15.7%, on late volume of more than 625,000, according to Nasdaq.com.
Kratos is now expected to launch a cash tender offer for Herley common stock no later than Feb. 25. Assuming a majority of Herley's outstanding common stock is tendered to the offer, as well as satisfaction of other customary closing conditions, Kratos would then purchase any remaining Herley shares in a second-step merger.
Based in Lancaster, Pa., Herley develops microwave technology products, including telemetry systems and flight termination receivers, for defense, aerospace and medical applications. On Dec. 9, the company reported sales of $48.9 million for its fiscal first quarter ended Oct. 31.Earlier on Monday, AOL (AOL) snapped up Huffington Post for $315 million, Danaher (DHR) reached terms to buy Beckman Coulter (BEC) for $6.8 billion, and Enesco hammered out a $7.3 billion cash-and-stock deal for Pride International (PDE).
Conexant SystemsShares of Conexant Systems (CNXT) also got a lift in late trades on M&A news after the Newport Beach, Calif.-based chip maker received a competing acquisition proposal from buyout firm Golden Gate Private Equity. The deal would value Conexant shares at between $2.35 and $2.45 each in cash, the company said. The stock closed Monday's regular session at $2.10, and was trading up nearly 14% at $2.38 on volume of around 640,000 after the closing bell. Conexant, which also reported its fiscal first-quarter results, already has an agreement in place to be acquired by Standard Microsystems (SMSC) for $2.25 a share in stock and cash, but the company said its board has already determined the Golden Gate Private Equity offer can be "reasonably expected" to lead to a superior proposal and consented to engage in talks with and provide financial information to the buyout firm. For the three months ended Dec. 31, Conexant posted a loss of $9.7 million, or 12 cents a share, on revenue of $46.1 million.
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