Sevcon signs definitive agreement to be acquired by BorgWarner for $22 per share
Sevcon (SEV) announced that it has entered into a definitive merger agreement with BorgWarner (BWA) that provides for BorgWarner to acquire all of the outstanding shares of Sevcon’s common stock for $22.00 per share in cash and all of the outstanding shares of Sevcon’s Series A Convertible Preferred Stock for a price per share on an as-converted basis equal to the common stock, together with payment of any accrued and unpaid dividends.
Sevcon, Inc. designs and sells motor controllers under the Sevcon name in the United States, the United Kingdom, France, South Korea, Japan, and China.
The total transaction value, including the assumption of indebtedness, is expected to be approximately $200M at the closing of the transaction.
The transaction price of $22.00 per share represents a 61% premium to the closing sale price of common stock of the Company on Friday, July 14, 2017 and a 64% premium to the 30-day volume weighted average price of common stock of the company.
The Sevcon board has unanimously approved the merger agreement and has recommended approval of the merger by Sevcon’s stockholders.
The transaction is expected to close in the fourth calendar quarter of 2017 and is contingent on the approval of Sevcon’s stockholders, and is subject to the satisfaction or waiver of certain other closing conditions.
The transaction is not subject to a financing condition.
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