MKS, a global provider of instruments, will buy the technology products provider for $23 per share in cash, the companies announced on Tuesday. The combined company will have $1.4 billion in annual revenue.
The deal, which is expected to close in the 2016 second quarter, should generate $35 million in annual costs savings within 18 to 36 months, the companies said.
MKS stock is down by 0.35% to $33.49 in early-morning trading on Tuesday.
So far today, 2.75 million shares of Newport have traded, versus the company's 30-day average of about 205,000 shares.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "hold" with a ratings score of C.The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: NEWP