Cubic to be bought for $2.8bn

CTS owner is expected to be sold to private equity firms by the end of June this year
February 8, 2021 Read time: 1 min
Deal will 'accelerate future growth', says Cubic (© Phuttaphat Tipsana | Dreamstime.com)

Cubic Corporation, owner of  Cubic Transportation Systems (CTS), is to be bought by private equity firms.

The deal, with Veritas Capital and Evergreen Coast Capital Corporation, is expected to close between April and June this year, subject to the usual regulatory and shareholder approvals.

Cubic shareholders will receive $70.00 in cash for each Cubic share, valuing the company at around $2.8 billion.

Cubic will remain based in San Diego, California. A statement says: "The transaction is expected to be seamless for customers and employees across Cubic’s businesses."

The board is recommending the deal to shareholders, with CEO Bradley H. Feldmann saying it will accelerate "future growth to the benefit of our employees and customers".

Feldmann said the last fiscal year "brought unprecedented challenges".

As well as its transportation interests through CTS, Cubic is well known for its work in the defence industry.

Mentioning both sectors, Ramzi Musallam, CEO of Veritas, said: “We look forward to leveraging our expertise in the government technology market – a key focus of Veritas since our inception – in partnership with the team at Cubic to accelerate product development and drive growth."
 

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