PAE Inc (NASDAQ: PAE) stock saw gains of nearly 70% at the start of this week’s premarket trading. Shares in the diversified, global company rose after a definitive agreement with an affiliate of Amentum Government Services Holdings LLS – or, Amentum.
The transaction will be an all-cash acquisition, for a total amount of $1.9 billion – including any assumption of debt and evident fees. By acquiring PAE, Amentum are continuing to diversify and strengthen their government-based agenda, harnessing the power of Amentum to evaluate and deal with critical government issues; including international defense and security, intelligence, energy, and the environment.
Upon the completion of the merger – should everything go as planned – shareholders of PAE will be rewarded with $10.05 per share in cash which amounts to a 70% premium from Friday’s closing price.
Marshall Heinberg, Chairman of the Board of Directors of PAE commented on the deal’s value for its shareholders:
“By achieving an approximately 70% premium over PAE’s closing price on October 22, 2021, PAE’s Board believes this transaction will deliver significant value for PAE’s shareholders. This is a historic milestone in PAE’s legacy of service to the U.S. Government spanning over 66 years”
Charlie Peiffer, PAE Interim CEO stated:
“I believe joining the capabilities and resources of PAE and Amentum will benefit the customers and employees of both companies. This transaction creates new opportunities for the technology innovation our customers need to drive their critical missions”
Following the merger, PAE stock will surge to levels not seen this year, brushing up against 2020’s highs of $9.98 at a current $9.95.
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