NEW YORK (TheStreet) -- Aeroflex (ARX) surged more than 25% to a one-year high of $10.47 on Tuesday after British aerospace and defense supplier Cobham announced it would purchase the U.S. communications equipment manufacturer for $920 million.
Cobham said it would pay $10.50 a share in cash for the New York-based company in the deal, the largest in the company's 80-year history. The deal has a value of $1.46 billion, which includes the assumption of Aeroflex's $540 million of debt.
The stock closed up 25.63% to $10.44 on Tuesday. More than 1.4 million shares changed hands, which eclipsed the average volume of 89,066.
Separately, TheStreet Ratings team rates AEROFLEX HOLDING CORP as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AEROFLEX HOLDING CORP (ARX) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and generally higher debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows: