Velocity One Signs Merger Agreement with EMCORE
Deal News | Nov 08, 2024 | Globenewswire
Velocity One has signed a merger agreement with EMCORE Corporation, whereby EMCORE will become a wholly owned subsidiary of Velocity One at $3.10 per share in cash. The transaction is supported by Charlesbank Capital Partners, a private investment firm with more than $22 billion in assets. This merger presents an opportunity to create a new player in the aerospace manufacturing sector, combining EMCORE’s inertial navigation solutions with the expertise of Velocity One’s existing subsidiaries, Cartridge Actuated Devices and Aerosphere Power. The merger is expected to leverage shared industry experience and customer bases to propel growth and enhance efficiency and profitability. Key figures in this agreement include John Borduin, CEO of Velocity One, and Matt Vargas, CEO of EMCORE. Advisors to the transaction include Skyway Capital Markets and Launch Point Partners for Velocity One, and Craig-Hallum Capital Group for EMCORE.
Sectors
- Aerospace and Defense
- Private Equity
Geography
- United States – The companies involved, including EMCORE, Velocity One, and Charlesbank, have operations and headquarters primarily in the United States, influencing national and international defense strategies.
Industry
- Aerospace and Defense – The article discusses the merger involving companies within the aerospace and defense industry, such as EMCORE and Velocity One's subsidiaries, which focus on inertial navigation and power system solutions.
- Private Equity – Charlesbank Capital Partners is a key financial backer in the merger, representing the private equity industry's involvement in facilitating the transaction.
Financials
- $3.10 per share – The per-share cash price offered by Velocity One to acquire EMCORE.
- $22 billion – Total assets managed by Charlesbank Capital Partners, the financial backer for the merger.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Velocity One | Bidding Company/Buyer | Company | Aerospace manufacturing holding company consolidating industry leaders to create market competitive solutions. |
| EMCORE Corporation | Target Company | Company | A provider of inertial navigation solutions to the aerospace and defense industry. |
| Charlesbank Capital Partners | Private Equity Investor | Company | A private investment firm backing the merger, with substantial experience in management-led buyouts and growth capital financings. |
| Skyway Capital Markets, LLC | Buyside Financial Advisor | Company | Financial advisor assisting Velocity One in the merger transaction. |
| Launch Point Partners LLC | Buyside Financial Advisor | Company | Financial advisor assisting Velocity One in the merger transaction. |
| Foley & Lardner LLP | Legal Advisor | Company | Legal counsel for Velocity One in the merger deal. |
| Craig-Hallum Capital Group LLC | Exclusive Financial Advisor | Company | Exclusive financial advisor to EMCORE for the merger transaction. |
| Pillsbury Winthrop Shaw Pittman LLP | Legal Advisor | Company | Legal counsel for EMCORE in the merger deal. |