API Technologies Corp. (ATNY) said it has completed the acquisition, through its UK-based subsidiary API Technologies (UK) Ltd., of the entire issued share capital of C-MAC Aerospace Ltd., a portfolio company of Francisco Partners and Shah Capital Partners, for a total purchase price of approximately $33 million.
API Technologies noted that the purchase delivers immediate EBITDA and cash flow accretion.
In connection with the closing of this transaction, API has amended and restated its credit agreement to provide an additional $16 million of term debt, resulting in a current total of $184.7 million of term debt.
After closing the purchase of C-MAC, API raised $16 million of capital from Senator Investment Group LP through the form of a convertible subordinated note, which will convert into preferred equity of API upon shareholder approval of the underlying class of preferred equity. Senator will have the option to convert the notes or any preferred equity issued upon conversion of the note into common equity of API at $6.00 per share.
Brian Kahn, Chairman and Chief Executive Officer of API Technologies, said, "..This strategic acquisition strengthens our leadership position in the RF/microwave and microelectronics field. We are very pleased to have the support of our lenders to complete this transaction, which we believe adds significant and immediate value to our shareholders."
"C-MAC acquisition is a major step forward towards our vision of being a dominant technology provider for the RF/Microwave and Microelectronic high-reliability end markets. C-MAC brings to API a large portfolio of proprietary and differentiating products along with an increased European and international presence," said Bel Lazar, President and Chief Operating Officer of API Technologies.
by RTT Staff Writer
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