Veritas Capital, Evergreen Announce $2.8B Acquisition of Cubic; Ramzi Musallam Quoted

Cubic Corporation has entered into a definitive agreement with an affiliate of Veritas Capital, under which Veritas and Evergreen Coast Capital, an affiliate of Elliott Investment Management, will acquire Cubic for $70.00 per share in cash. The all-cash transaction is worth approximately $2.8 billion, including the assumption of debt.

“Cubic has an unparalleled history of delivering innovative technology-based solutions to address the mission-critical needs of the global transportation and defense markets,” said Ramzi Musallam, CEO and managing partner of Veritas and 2021 Wash100 Award recipient. 

Cubic has been a provider of integrated solutions that increase situational understanding for transportation, defense C4ISR and training customers to decrease congestion and improve the warfighters effectiveness and operational readiness. 

Bradley Feldmann, chairman, president and CEO of Cubic Corporation, and another Wash100 awardee, said “This transaction is in the best interests of our shareholders and provides them with a significant premium and liquidity – while accelerating future growth to the benefit of our employees and customers.”

Under the acquisition, Veritas will leverage its expertise in the government technology market, in partnership with Cubic, to accelerate product development and drive growth. As part of the purchase, Cubic shareholders will receive $70.00 in cash for each share of Cubic’s common stock they currently hold. Following the close of the transaction, Cubic will remain headquartered in San Diego, Calif.

The deal will be financed through a combination of equity and debt financing. Cubic’s Board of Directors has unanimously approved the agreement, and has recommended that Cubic shareholders vote in favor of the transaction.

“We look forward to partnering with Veritas and remain grateful to our customers for their trust and to our fellow CUBES for their unwavering commitment to delivering innovative, mission-critical solutions,” Feldmann added. 

The transaction is expected to close during the second calendar quarter of 2021, subject to customary closing conditions, including the receipt of shareholder and regulatory approvals.

The deal with Cubic follows Veritas’ move to purchase Perspecta for $7.1 billion in January. Veritas plans to merge Perspecta with Peraton, its portfolio company, to establish a government technology platforms provider focused on delivering end-to-end information technology capabilities and mission support to U.S. government clients.

Perspecta stockholders will get $29.35 in cash per share under the terms of the transaction, which is expected to conclude in the first half of calendar year 2021.