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Zygo, a high precision optical device manufacturer, and AMETEK, an electronics manufacturer, entered into a deal in which AMETEK will acquire all outstanding shares of Zygo stock at a price of $19.25 per share in cash.
The value of the deal is approximately $280 million. The merger is expected to be completed by the end of the second quarter of 2014.
TheStreet Ratings team rates ZYGO CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ZYGO CORP (ZIGO) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, expanding profit margins, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows: