Comtech Buying CPI in $472M Deal

Comtech Telecommunications agreed to acquire CPI International in a deal with an enterprise value of about $472.3 million.
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MELVILLE, N.Y. (

TheStreet

) --

Comtech Telecommunications

(CMTL) - Get Report

agreed to acquire

CPI International

(CPII)

in a deal with an enterprise value of about $472.3 million.

Comtech said Monday it would fund the acquisition by redeploying about $372 million of its existing cash and will issue about 4.4 million common shares.

CPI shareholders will receive a combination of cash and stock currently valued at about $16.40 a share, a premium of 25.7% to CPI's closing price Friday of $13.05. Comtech shares closed Friday at $31.06.

Comtech makes and markets products for advanced communication systems. CPI International is the parent company of Communications & Power Industries, a provider of microwave, radio frequency, power and control solutions for defense, communications, and medical applications.

-- Reported by Joseph Woelfel in New York.

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