Boeing Company (BA: 64.20 -0.46 -0.71%) is on its way to complete its previously announced acquisition of Fairfax, Virginia-based Argon ST Inc. (STST: 34.445 +0.005 +0.01%). Boeing instigated a cash tender offer to purchase all of the outstanding shares of Argon ST for roughly $775 million. Vortex Merger Sub Inc., a wholly-owned subsidiary of Boeing, is taking care of the offering for Boeing.Under the offer, Boeing will pay $34.50 in cash for each share of Argon ST common stock (validly tendered and not validly withdrawn) without interest and less any required withholding taxes. The tender offer is scheduled to expire on August 4, 2010, unless extended.
Argon ST’s board of directors stated that the offer and the other transactions included in the merger agreement are in the best interests of the company’s stockholders.
Boeing had agreed to acquire Argon ST on June 30, 2010. The acquisition will enable Boeing to meet the changing requirements of the U.S. Defense Department. The Pentagon is presently investing in high-tech intelligence equipment rather than the conventional big guns and heavy armor to fight terrorist groups from the Middle East and elsewhere.
Once the acquisition is completed, Argon ST will continue to perform as a standalone subsidiary of Boeing with the same chairman and management team. Argon ST will become a new division of Boeing Network & Space Systems, a business within Boeing’s operating unit Boeing Defense, Space & Security.
Boeing Defense, Space & Security is one of the world’s largest defense, space and security businesses, specializing in innovative and capabilities-driven customer solutions, and also a manufacturer of military aircraft. We believe the acquisition will enable the company to use the technical expertise of the Argon team but also have a new domestic and international customer base.
The major competitors of the company are General Dynamics Corporation (GD: 59.75 -1.09 -1.79%), Lockheed Martin Corporation (LMT: 74.73 -0.51 -0.68%)and Northrop Grumman Corporation (NOC: 54.61 -0.84 -1.51%).| Analysts' Targets | |
| Deutsche Bank Securities | $80 |
| Neutral | |
| Tuesday, June 08, 2010 | |
| Stifel Nicolaus | $90 |
| Buy | |
| Thursday, April 22, 2010 | |
| Argus Research | $85 |
| Hold | |
| Thursday, April 22, 2010 | |
| Credit Suisse | $98 |
| Outperformer | |
| Thursday, April 22, 2010 | |
| UBS Securities | $90 |
| Hold | |
| Wednesday, April 21, 2010 | |
| Oppenheimer & Co. Inc. | $80 |
| Underperform | |
| Monday, March 22, 2010 | |
| Wedbush Morgan Securities | $79 |
| Buy | |
| Wednesday, March 17, 2010 | |
| Barclays Capital | $65 |
| Equalweight | |
| Monday, January 04, 2010 | |
| Jesup & Lamont | $63 |
| Hold | |
| Monday, January 04, 2010 | |
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