Shares of communications service provider, EF Johnson Technologies, Inc. (Nasdaq: EFJI) were up 40 percent from Friday’s close in morning trading on Monday after the company announced that an affiliate of Francisco Partners will acquire all of the outstanding shares of EF Johnson Technologies’ common stock for $1.50 per share in cash. The new offer represents a 42 percent increase over the $1.05 per share cash purchase price contemplated by the parties’ original merger agreement previously announced on May 17, 2010.
The merger was unanimously approved by EF Johnson Technologies’ board of directors.
“Our amended merger agreement with Francisco Partners provides increased all-cash premium value to our stockholders and reflects Francisco Partners’ strong commitment to the transaction,” said Michael E. Jalbert, Chairman of the Board and Chief Executive Officer of EF Johnson Technologies, Inc. in a statement. “We are proud of the value we have delivered to our stockholders through this amended merger agreement, and are excited to work closely with Francisco Partners to complete the transaction as expeditiously as possible.”
EF Johnson Technologies’ communications product portfolio includes Project 25 compliant two-way radios, P25 compliant trunked and conventional infrastructure systems, voice encryption modules for all brands of analog two-way radios, and FIPS 140-2 Validated™ secure wireless broadband, mesh and WLAN solutions. The company’s customers include the US Army, US Air Force, US Navy, US Department of Homeland Security, US Coast Guard, and FEMA, to name a few.
Shares of EFJI are up about 53 percent over the past three months.