( DRS) said it will acquire
Integrated Defense Technologies
for $17.50 a share in cash and common stock in a transaction that will combine two defense-electronics suppliers.
Each share of Integrated, based in Huntsville, Ala., will be converted into the right to receive a combination of $12.25 in cash and 0.1875 of a share of DRS. The companies expect to close the deal by the end of the year. DRS said the acquired Integrated operations will add to earnings immediately.
If DRS's average stock closing price before the completion of the deal falls below $28 a share, the exchange ratio will increase, but not above 0.2027 of a share of DRS.
The cash portion of the acquisition, combined with the Integrated debt to be refinanced, will be about $437 million. The total value of the merger is around $550 million, which includes roughly $175 million of IDT's net debt that will be refinanced.
Shares of Integrated closed at $15 Friday, while DRS, based in Parsippany, N.J., finished at $29.15 on the
New York Stock Exchange