NEW YORK (TheStreet) -- Zygo
(ZIGO - Get Report) shares are up 30.8% to $19.21 in trading Friday.
The jump follows the announcement that the company had agreed to terms on a merger with AMETEK Inc (AME - Get Report).
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Zygo, a high precision optical device manufacturer, and AMETEK, an electronics manufacturer, entered into a deal in which AMETEK will acquire all outstanding shares of Zygo stock at a price of $19.25 per share in cash.
The value of the deal is approximately $280 million. The merger is expected to be completed by the end of the second quarter of 2014.
TheStreet Ratings team rates ZYGO CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
- The revenue growth greatly exceeded the industry average of 1.9%. Since the same quarter one year prior, revenues rose by 39.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ZIGO has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.55, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for ZYGO CORP is rather high; currently it is at 54.59%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 8.41% is above that of the industry average.
- Net operating cash flow has significantly increased by 607.95% to $8.99 million when compared to the same quarter last year. In addition, ZYGO CORP has also vastly surpassed the industry average cash flow growth rate of -8.12%.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 383.8% when compared to the same quarter one year prior, rising from $0.84 million to $4.05 million.
- You can view the full analysis from the report here: ZIGO Ratings Report