Specialist technology business e2v Group, which has major operations in Lincoln, is set for a £620 million takeover by Californian company Teledyne Technologies Inc, pending shareholders’ agreement.
e2v Group employs around 1,700 workers across 15 sites in Europe, America and Asia, including between 65 to 70 at its two sites in Lincoln, and supplies sectors including aerospace, defence and space.
It also produces components and subsystems that deliver high reliability radio frequency power generation for healthcare and industrial applications.
The aggregate enterprise value for the transaction is expected be approximately £627 million taking into account e2v stock options and net debt.
For the year ended March 31, 2016, e2v had sales of approximately £236 million. Excluding transaction-related expenses, Teledyne management expects the transaction to be accretive to earnings per share.
Under the terms of the offer, e2v’s ordinary shareholders will receive 275 pence in cash for each e2v share valuing the entire issued and to be issued ordinary share capital of e2v at approximately £620 million on a fully diluted basis.
It is expected that the acquisition will be completed in the first half of 2017.
Robert Mehrabian, Chairman, President and Chief Executive Officer of 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.
“We are both leaders in space and astronomy imaging.”
Neil Johnson, Chairman of e2v, said: “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.”