DRS Technologies Acquires PEI's IDT Business
DRS Technologies Inc. (DRS, Parsippany, NJ) announced that it has completed its acquisition of PEI Electronics Inc. (Huntsville, AL) subsidiary Integrated Defense Technologies Inc. (IDT). In the transaction, a wholly owned subsidiary of DRS was merged with IDT. The transaction was completed following the approval by a majority of IDT stockholders at a special meeting. The acquisition is expected to add immediate earnings accretion to DRS.
Each share of IDT common stock was converted in the merger into the right to receive a combination of $12.25 in cash and 0.2027 of a share of DRS common stock, or approximately $17.29 per IDT share, based on the closing price of DRS Technologies’ common stock on November 3, 2003. The cash portion of the acquisition, together with the net debt of IDT, aggregated approximately $436 million at closing. Total consideration for the acquisition, including approximately $175 million of IDT's net debt that was refinanced at closing, was approximately $543 million before transaction expenses.