The agreement provides for a subsidiary of Honeywell to commence a tender offer within 10 business days to purchase all outstanding shares of EMS.
The terms call for $33 per share in cash, for an aggregate purchase price of approximately $491 million, net of cash acquired. This is about 13 times EMS's 2010 earnings before interest, taxes, depreciation and amortization (EBITDA), or approximately 9 times 2010 EBITDA excluding certain corporate costs.
The point of the acquisition is to enhance Honeywell's existing capabilities in rugged mobile computing technologies and satellite communications within its Automation and Control Solutions and aerospace businesses, Honeywell officials say, adding that through its $174 million aviation division, EMS provides terminals, antennas, in-cabin network devices, rugged data storage, and surveillance applications predominantly for use on aircraft and in other data gathering objectives.
Also this week TMC had the news that Motorola (News - Alert) Mobility announced its intention to work with Honeywell Security Group to develop an end-to-end security product for cable and telecom service providers, offering subscribers a connected home security service that enables remote management of alarm panels and associated security devices using multiple control interfaces-including TV, smartphone, PC and tablet.
EMS's GRM division offers a broad range of products for supply chain logistics, mobile workforce management, and remote asset monitoring applications, supported by hundreds of partners worldwide.
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