M&A · Tech · Measuring & Controlling Devices, NEC
Veritas Capital and Evergreen Coast Capital to acquire Cubic Corp
Announced Feb 8, 2021 · Closed May 25, 2021
Deal value$2.80BEV $2.73B
Premium58.0%To unaffected price
EV / Adj. EBITDA13.1x1.9x EV / Revenue
ConsiderationAll cash$70.00 per share
Transaction
- Acquirer
- Veritas Capital and Evergreen Coast Capital
- Target
- Cubic Corp (CUB)
- Buyer type
- Private equity
- Offer price per share
- $70.00
- Enterprise value
- $2.73B
- Status
- Closed May 25, 2021
Deal protections
- Break fee (target pays)
- $45.5M · 1.6%
- Reverse fee (buyer pays)
- $114M · 4.1%
- Go-shop
- No-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- Not disclosed
- To the target
- JPMorgan
Sector context · Tech
- Comparable deals
- 18 in the prior 24 months
- Premium
- 58.0% vs. 33.3% sector median
- EV / Adj. EBITDA
- 13.1x vs. 18.6x sector median
- Break fee
- 1.6% vs. 3.0% sector median
Timeline
- AnnouncedFeb 8, 2021
- Proxy filedMar 8, 2021
- Definitive proxyMar 26, 2021
- Shareholder voteApr 27, 2021
- ClosedMay 25, 2021
Valuation · fairness opinions
Trading comparables$48.50$94.50
Discounted cash flow$60.75$84.75
Precedent transactions$34.25$68.25
Precedent transactions$38.50$66.25
Offer $70.00
Implied value per Cubic Corp share by analysis, from JPMorgan · DCF discount rate 9.5%–10.5%.