General Dynamics Division to Buy Axsys Technologies for $643 Million

One of General Dynamics' ( GD) units will buy optical and infrared specialist Axsys Technologies ( AXYS) for $643 million the two companies announced Thursday.

General Dynamics Advanced Information Systems, a unit of General Dynamics that specializes in defense systems, will purchase Axsys for $54 per share, which represents a paltry 8% premium over Axsys' Wednesday closing price of $50 per share. The acquisition is expected to close in the third quarter of this year and both companies' boards have already approved the deal. General Dynamics expects the deal to add to its earnings beginning in 2010; its shares fell 43 cents or 0.7%, in morning trading Thursday.

We removed shares of General Dynamics from our "recommended" list back on May 15 when the stock was trading at $55.84. The company has a dividend yield of 2.59% based on last night's closing stock price of $58.59.

The stock has technical support in the $48 to $52 price area. If the shares can firm up, we see overhead resistance around the $60 to $63 price levels. We would remain on the sidelines, but we do watch this former recommendation very closely. General Dynamics holds a Dividend.com DARS Rating of 3.4 out of 5 stars.

Intel Buying Wind River Systems in $884 Million Deal

Chip-making giant Intel ( INTC) said Thursday that it will acquire device software optimization experts Wind River ( WIND) in a deal valued at $884 million.

Intel said it will acquire all of Wind River's outstanding shares at a price of $11.50 each, representing a healthy 44% premium over the company's Wednesday closing price of $8 per share. Wind River makes development software that helps companies like Intel write and test software for various devices.

If you liked this article you might like

Tax Reform Is Coming and That Means Trump Stock Rally Is Ready to Kill It Again

'Trump Stock' Rally Is Back on Track

Stock Futures Fall, Gold Rises as North Korea Fires Another Missile Over Japan

Why I Love Apple, Alphabet, Nvidia and These Other Stocks for September

What North Korea's Claim It Has Tested a Hydrogen Bomb Means for Your Portfolio