NEW YORK (TheStreet) -- Boeing (BA) - Get Report said it will buy defense systems developer Argon (STST) in an all-cash tender offer and merger for $34.50 a share, or about $775 million, to expand its ability to address the cyber and intelligence markets.
The offer is roughly a 41% premium to Argon's closing price Tuesday of $24.43.
Boeing plans to fund the transaction with existing cash and said that the acquisition is expected to have little impact on its earnings.
The transaction is expected to close by the end of the third quarter. Once acquired, Argon will be a stand-alone subsidiary of Boeing and a new division of Boeing Network and Space Systems, a business within the $34 billion Boeing Defense, Space & Security operating unit. Argon will continue to be led by its current CEO Terry Collins and his management team.
Boeing knows Argon's employees well, having partnered with the Fairfax, Va.- based company for two years.
In the last fiscal year, Argon, which has about 1,000 employees, generated $366 million in revenue.
-- Reported by Andrea Tse in New York
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