Cubic Corp becomes a private company



through Marc Selinger

U.S. private equity firms Veritas Capital and Evergreen Coast Capital have agreed to acquire U.S.-based Cubic Corporation in a $ 2.8 billion deal that will convert the publicly traded company into a private entity, a. Cubic announced on February 8.

Cubic is based in San Diego, California. (Credit: cubic)

Ramzi Musallam, CEO and Managing Partner of Veritas, said his company plans to use its expertise in the government technology market to “accelerate product development and drive growth” at Cubic, which works in defense and transportation. .

Bradley Feldmann, Chairman, Chairman and CEO of Cubic, said Cubic shareholders will receive a “significant bonus” and the company will gain a “top and deeply experienced partner” to help it achieve. fuel its growth.

As part of the deal, which is expected to be finalized in the second quarter of 2021, Cubic will remain based in San Diego, California. The company has 6,300 employees in 17 countries.

“The transaction should be transparent to customers and employees across all Cubic businesses,” the announcement said.

Cubic first revealed in September 2020 that third parties were expressing interest in acquiring the company. As part of the Veritas-Evergreen deal, Cubic shareholders will receive $ 70 in cash per share, which is a 58% premium over Cubic’s closing price the day before the company made this disclosure.

Cubic’s defense segment, Cubic Mission and Performance Solutions (CMPS), achieved revenue of $ 121.7 million in the first quarter of FY2021, down 13% from the same period of fiscal 2020, Cubic revealed on Feb.8. Cubic attributed the decline primarily to reduced work on an airline training program in the Far East and lower orders and deliveries of communications products.

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