GSI Group to buy Excel Technology for $32 a share
NEW YORK, Jul 10, 2008 (Thomson Financial via COMTEX) -- By Staff Reporter
GSI Group Inc. Thursday said it would buy Excel Technology Inc. for $360 million, or $32 a share.
The company said the price per share represents a 30.2% premium to Excel's average closing price over the past 30 days. Excel shares closed Wednesday at $22.66.
The deal will be effected through a cash tender offer, followed by a merger to buy any untendered shares at the same price. The tender offer is scheduled to begin on July 23, while the deal is expected to close in the third quarter.
GSI said it would pay the purchase price through a combination of available cash and external financing. The company, and its GSI Group Corp. unit, are in agreements with various investors to issue $210 million in senior unsecured notes and warrants.
The company said the deal would add to its adjusted 2009 earnings.
GSI affirmed its second-quarter earnings outlook of about 2 cents a share and said it expects its revenue will be slightly above the midpoint of the $64 million to $68 million range.
Shares of GSI closed Wednesday at $7.76. Ryan Vlastelica rv/tk1
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