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Emerald Group Publishing Limited
Copyright © 2002, MCB UP Limited
IFR Systems, Inc. agrees to be acquired by Aeroflex Incorporated
Keywords: Mergers and acquisitions, Aeroflex
IFR Systems, Inc has announced that it has entered into a definitive agreement for IFR Systems, Inc. to be acquired by Aeroflex Incorporated (ARXX). The transaction is valued at approximately $60 million in cash, including the retirement of IFR Systems' bank indebtedness.
Under the terms of the agreement, Aeroflex will commence a cash tender offer for all outstanding shares of IFR Systems' common stock for $1.35 per share followed by a merger at the same per share price.
As part of the agreement, IFR's banks have agreed to accept $48.8 million as payment in full for all obligations, which is approximately $35 million less than the amount owed to them. IFR's banks have also agreed to forbear immediate collection of IFR's defaulted loan until August 30, 2002 or the earlier termination of the proposed tender offer. This transaction has been unanimously approved by the Board of Directors of each company and is subject to various conditions. The transaction is expected to be completed by the end of the second calendar quarter, 2002. TM Capital Corp. acted as financial advisor to IFR Systems in connection with this transaction.