San Diego's Cubic Corp. Ends Bidding War By Agreeing To $3 Billion Buyout

San Diego CA

31 March, 2021

4:46 PM

Description

By Chris Jennewein, Times of San Diego March 31, 2021 Long-time San Diego defense and transit contractor Cubic Corp. ended a bidding war for its ownership Wednesday by accepting a $3 billion offer from two New York private-equity firms. The company said its board rejected a $78 per share proposal from Singapore Technologies Engineering after Veritas Capital and Evergreen Coast Capital, an affiliate of hedge fund Elliott Investment Management, increased their pending offer to $75 per share in cash. Cubic said its board of directors chose the lower offer "based on the superior certainty and anticipated timing of closing the existing transaction." The board had earlier agreed to the buyout at $70 per share when the Singapore firm made an unsolicited counter offer, which the board was obligated to consider. The final deal represents a 69% premium over Cubic's stock price before Elliott Investment Management first began acquiring shares in September in preparation for a takeover. Veritas and Evergreen have promised that their acquisition will be "seamless for customers and employees" with Cubic's headquarters remaining in San Diego. Cubic, which makes defense equipment and fare systems for public transit, was founded in 1951 by Walter Zable. Times of San Diego is an independent online news site covering the San Diego metropolitan area. Our journalists report on politics, crime, business, sports, education, arts, the military and everyday life in San Diego. No subscription is required, and you can sign up for a free daily newsletter with a summary of the latest news.