Comtech Telecommunications to buy Radyne for about $216.2M

Communications equipment maker Comtech Telecommunications Corp. said Monday it will buy Radyne Corp. for about $216.2 million.

The deal's value is based on Comtech's first-step cash tender offer of $11.50 per share and Radyne's 18.8 million shares outstanding as of May 1. The per share amount is an approximately 33 percent premium over Radyne's average closing price over the past 90 trading days.

The companies said the transaction has an equity value of about $223.6 million and an enterprise value of $195 million.

Comtech said the acquisition also will include about $5 million in transaction costs and is expected to save the company between $3 million and $4 million within the first year of closing and $9 million to $11 million annually in subsequent years.

The company said it expects the deal to add to earnings, excluding some items, within 12 months of closing and add "significantly" to earnings in later years.

Radyne provides technology for satellite and cable communication.

The transaction was approved by both companies' boards.

Shares of Radyne jumped $3.44, or 44.4 percent, to $11.18 in morning trading. The stock has traded in a 52-week range of $6.45 to $11.41.