Cubic Accepts Revised $75-Share Bid from Veritas and Elliott

Cubic, the San Diego transportation- and defense-technology company, accepted a raised takeover bid from Veritas and Elliott at $75 a share.
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Transportation- and defense-technology company Cubic  (CUB) - Get Report on Wednesday agreed to be bought by private-equity firm Veritas Capital and hedge fund Elliott Investment Management at a raised buyout offer of $75 cash a share.

The deal marks an end to a bidding war, which also involved a revised takeover bid from Singapore Technologies Engineering.

The new Cubic-Veritas-Elliott deal is valued at around $3 billion, including the assumption of debt.

"The company has accepted this proposal and entered into an amendment to its previously announced definitive merger agreement with affiliates of Veritas to acquire the company," Cubic said in a statement.

Cubic said the board gave due consideration to a revised proposal received from Singapore Technologies to buy the company at $78 a share.

Cubic Target of Bidding War After Singapore Tech Proposal

But "the relative benefits and risks of the proposals" weighed in favor of Veritas and Evergreen Coast Capital, an affiliate of Elliott.

"The board determined that based on the superior certainty and anticipated timing of closing the existing transaction with Veritas and Evergreen, the revised proposal from Veritas and Evergreen was in the best interests of all Cubic’s shareholders," the company said.

Cubic has ceased engagement with Singapore Tech in accordance with the terms of the amended agreement, the company said.

The company also said it would provide additional disclosures to shareholders and file relevant documents with the U.S. Securities and Exchange Commission.

Cubic's board is set to meet on April 27 to adopt the new agreement.

The $75 deal price is a 69% premium to the closing stock price on Sept. 18, 2020. 

That date was the last trading day before the company disclosed that third parties were interested in potentially acquiring Cubic.

Shares of the San Diego company at last check were up 0.1% to $76.43.

Last week, Cubic had unveiled an unsolicited proposal from Singapore Technologies Engineering for $76 a share, or roughly $2.4 billion, cash.

In February, Cubic had agreed to be bought by Veritas Capital and Elliott at a proposed $70 a share.