Home Stock PAE shares are up 65% on Monday: here’s what you should know

PAE shares are up 65% on Monday: here’s what you should know

by

Shares of Pacific Architects and Engineers Inc (NASDAQ: PAE) opened about 65% up on Monday after reports that an affiliate of Amentum will acquire the defence and government services contractor for $1.90 billion in cash.

What’s in it for PAE shareholders?

The deal offers $10.05 in cash to PAE shareholders that represents an about 70% premium on the per-share price at which the stock closed on Friday.

The terms of the agreement also offer a little over a month to PAE to look for alternative proposals. Commenting on the acquisition, Amentum’s CEO John Vollmer said:

The acquisition of PAE complements Amentum’s growth into intelligence and technology services, deepens its relationship with key agencies such as the Department of State, NASA and the Intelligence Community, and adds to Amentum’s scale, depth of client relationships and breadth of capabilities.

The deal is expected to close in Q1 of 2022

The acquisition that is expected to complete next year in the first quarter after complying with the customary closing conditions, will make PAE a wholly-owned subsidiary of the Amentum affiliate. The Virginia-based company is yet to secure approval for the deal from its shareholders as well.

With over $9.0 billion in combined revenue (trailing 12 months), the joined company will be one of the largest providers of critical services to U.S. federal and allied governments, as per the press release this morning.

Founded in 1955, PAE has a global workforce of about 20,000 employees, supporting operations in roughly sixty countries on all seven continents.

The post PAE shares are up 65% on Monday: here’s what you should know appeared first on Invezz.

You may also like