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Company News

Elliott and Veritas Capital submit offer for Cubic -sources

Sept 22 (Reuters) - Hedge fund Elliott Management and buyout firm Veritas Capital have made a joint bid for Cubic Corp following weeks of private talks with the defense and transportation technology firm, people familiar with the matter said on Tuesday.

The offer is at a premium to Cubic’s closing share price on Tuesday of $54.73, said the sources, who asked to remain anonymous because the matter is private. The exact value of the offer could not be learned. Cubic currently has a market value of $1.7 billion.

Elliott and Cubic declined to comment. A spokesman for Veritas did not immediately respond to requests for comment.

On Monday, Cubic announced it adopted a poison pill after Elliott took a 15% stake in the firm and expressed interest in acquiring the company with a private equity partner. Elliott confirmed its interest in a separate statement without disclosing the name of its partner for the deal.

Elliott is best known for being an activist investor but has branched out into buying companies outright in recent years. The hedge fund and Veritas last partnered in 2018 for a $5.7 billion deal to take healthcare software company Athenahealth private.

Cubic’s shares have slumped this year over fears the coronavirus pandemic may slow the company’s growth in the near term. Cubic makes technology that helps major subway systems collect fares as well technology for the defense industry, areas that are largely dependent on government spending. (Reporting by Rebecca Spalding in New York and Mike Stone in Washington; Editing by Tom Brown)

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