E2v Technologies, an electronics manufacturer, is set to be acquired by Teledyne Technologies for £620m.
Under the terms of the deal, e2v’s shareholders will receive 275p in cash for each share, a premium of 48% on the startup’s closing share price on Friday.
Based in Chelmsford, e2v manufactures imaging sensors, camera solutions, components and sub-systems for application in various sectors including aerospace, space, defense, healthcare and communications.
Neil Johnson, chairman of e2v, commented: “Teledyne has recognised the value inherent in our business and prospects by making a cash offer at an attractive premium to the share price. The board of e2v has also considered the merits of being part of a larger, complementary group with enhanced scale and a wider range of capabilities to service its key customers and management and employees having access to the opportunities available in a larger group.”
“The board of e2v is therefore unanimously recommending e2v Shareholders to vote in favor of the acquisition,” he added.
Teledyne, which is based in California, also provides instrumentation, digital imaging products and software, as well as electronics and engineered systems for the aerospace and defense industries.
It is expected that the acquisition, which will broaden and strengthen Teledyne’s product offering, will complete in the first half of 2017.
Robert Mehrabian, chairman, president and CEO at Teledyne, said: “We have followed e2v for more than a decade. Over time, as both Teledyne and e2v evolved, our businesses have become increasingly aligned. In fact, every business within e2v is highly complementary to Teledyne.
“In machine vision applications, e2v’s advanced capabilities in proprietary CMOS sensor design add to Teledyne’s strengths in cameras and vision systems. While Teledyne designs advanced mixed signal circuits for government and commercial applications, e2v’s broader product portfolio enhances our offerings and channels to market,” he concluded.