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Investing.com -- Cicor has announced a recommended offer for TT Electronics at 155p per share, representing a 64% premium to Wednesday’s closing price of 95p.
The offer consists of 100p in cash and 0.0028 New Cicor Shares for each TT Electronics share. Based on Wednesday’s closing price, TT Electronics shareholders are expected to own approximately 10% of Cicor following the transaction.
According to the announcement, the combined entity will become the largest global pure play EMS (Electronic Manufacturing Services) provider in the high mix low volume business segment. The enlarged Cicor Group will have a diversified footprint spanning Europe, the Americas, and Asia, with a focus on industrial, aerospace and defense, and healthcare applications.
The merger is projected to generate combined revenues exceeding CHF1.2 billion and deliver sector-leading EBITDA margins of 11% for fiscal year 2024, including run-rate cost synergies.
Warren Tucker, Chair of TT Electronics, cited the company’s "insufficient scale" as a factor that has hindered its growth and profitability. He also mentioned the uncertain macroeconomic outlook as a consideration behind the deal.
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