Aerojet Rocketdyne (NYSE:AJRD) stock is on the move today as investors react to a $4.7 billion deal with L3Harris Technologies (NYSE:LHX).
That deal has L3Harris Technologies agreeing to acquire Aerojet Rocketdyne for $58 per share in cash. That represents a 37% premium to the unaffected price of AJRD stock on Aug. 15. That’s the last day of trading before activist investor Elliott Investment Management took a stake in the company.
Aerojet Rocketdyne will continue to operate as a provider of technology to the Department of Defense following as part of L3Harris Technologies. The company’s offerings include “solid rocket motor boosters, scramjets, warheads and missile defense technologies.”
More Details on the AJRD Stock Deal
L3Harris Technologies notes that it will use cash on hand to fuel its purchase of Aerojet Rocketdyne. The company also notes that it expects the deal to close sometime in 2023. However, it first needs approval from shareholders and regulators.
Eileen Drake, President and CEO of Aerojet Rocketdyne, said the following in the news release announcing the deal:
“This agreement will accelerate innovation for national security propulsion solutions while providing a premium cash value for our shareholders and tremendous benefits for our employees, customers, partners and the communities in which we operate.”
Heavy trading follows AJRD stock on today’s news. This has some 4 million shares changing hands as of this writing. The company’s daily average trading volume is roughly 583,000 shares.
AJRD stock is up 1.7% as of Monday morning!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.