NEW YORK (AP) — Shares of Micronetics nearly doubled in premarket trading Monday after the maker of microwave and radio frequency components agreed to a takeover at about that per-share price by Mercury Computer Systems Inc.
Late Sunday, Mercury, based in Chelmsford, Mass., offered $14.80 per share for Micronetics, a premium of roughly 98 percent to its closing price Friday of $7.49.
The deal is worth $71.7 million, or $75.4 million including the assumption of debt, Mercury said.
Shareholders owning about 20 percent of Micronetics have agreed to vote their shares in favor of the agreement. Micronetics, based in Hudson, N.H., makes its subsystems and components for defense and commercial applications, including electronic warfare, radar and electronic countermeasures. The company has slightly more than 200 employees and its manufacturing facilities are in New Hampshire, New Jersey and California.
"Micronetics' unique microwave and RF capabilities will enhance our integrated digital and RF subsystem solutions for existing and next generation defense and intelligence programs," Mark Aslett, president and chief executive of Mercury, said in a statement. "This type of integrated solution is unique in the marketplace and is in high demand by our defense prime customers."
Mercury expects the acquisition to add to earnings within a year of closing. The transaction, subject to antitrust review, is scheduled to close by the end of September.
In premarket trading, shares of Micronetics Inc. rose 92 percent, or 25 cents, to $7.49. The stock has traded between $4.33 and $9.19 over the past year.