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Why CyberOptics Stock Was Shooting Nearly 30% Higher Today

By Eric Volkman – Aug 8, 2022 at 3:42PM

Key Points

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This is what happens when an eager would-be buyer signs an acquisition agreement with your company.

What happened

One big star of the stock market on Monday was a relatively obscure specialty tech company: CyberOptics (CYBE). The manufacturer of precision 3D sensing technology agreed to be acquired by a peer for quite a hefty premium to its share price. As a result, its share price was rocketing more than 29% higher as of late-session trading on the day.

So what

CyberOptics' owner-to-be is Nordson (NDSN 1.11%), which per the two companies' agreement will pay $54 per share in cash in the deal -- a premium of nearly 32% to the former's closing price on Friday. All told, net of cash acquired the arrangement is valued at roughly $380 million. The arrangement has been ratified by the boards of directors of both CyberOptics and Nordson.

In its press release on the acquisition, Nordson CFO Joseph Kelley said, "The differentiated technologies of CyberOptics combined with Nordson's global sales, applications and service infrastructure will enable accelerated growth rates and the realization of $6 million in net cost synergies."

Given the rich premium it's willing to pay for the specialty tech company, Nordson was clearly eager to get its hands on CyberOptics. What also helps is CyberOptics' recent performance -- the company managed to grow its revenue by 32% year over year in 2021, while posting almost $13 million in net profit.

Now what

The deal is subject to approval by holders of CyberOptics' common stock, although at a premium like this it's hard to imagine they'd be opposed to the arrangement. CyberOptics said in its press release on the buyout that it should close by the end of this year.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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