Looks like I'll be getting a lot of ESI stock. Stingy low ball for stock offer IMO. I'll hold and hope a white knight appears.
ESI to buy Connecticut company for $173.5M
Portland Business Journal
In an all-stock deal valued at $173.5 million, Electro Scientific Industries Inc. is purchasing Zygo Corp.
Portland-based ESI (NASDAQ: ESIO) is paying $10.30 per share for Middlefield, Conn.-based Zygo (NASDAQ: ZIGO), which represents a premium of 36 percent over Zygo’s closing price of $7.57 per share on Wednesday.
Following the deal close, ESI will issue 18.1 million shares, giving Zygo shareholders a 40 percent stake in the combined company. Zygo shareholders will receive 1.0233 share of ESI stock for every share of Zygo.
ESI’s board has also approved an increase in the company’s current stock buyback program to $100 million of ESI’s outstanding stock. The company has already repurchased about $4.7 million worth of its own stock.
ESI’s shares fell on the merger news, to $9.19 in active early trading. ESI closed at $10.07 on Wednesday.
Zygo’s shares rose more than 10 percent on Thursday morning, to $8.37, in trading that was nearly double average volumes.
ESI makes laser systems used in electronics manufacturing. Zygo makes measurement and optical systems.
Over the past four reported quarters, ESI had revenue of $311.1 million, with earnings of $13.9 million. The four-quarter period included an extra month, as ESI has shifted its fiscal year.
Zygo had revenue of $159 million over the past four quarters, with earnings of $1.24 million.
ESI’s board will have eleven directors after the deal is completed, with three of them designated by Zygo. The current board has 10 directors.
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