EMS Technologies Inc. (Nasdaq: ELMG) shares gained 32.3% to $32.82 Monday, after Honeywell International Inc. (NYSE: HON) said it would acquire the maker of wireless-communications products for $33 a share. Volume for EMS stock topped the 4.7-million mark, far greater than its daily average of just above 80,000 shares.
Under the terms of the agreement, which has been unanimously approved by both companies’ Boards of Directors, a wholly-owned subsidiary of Honeywell will commence a tender offer within ten business days to purchase all of EMS’s outstanding shares for $33.00 per share in cash. The transaction represents a 33% premium to EMS’s closing stock price on June 10, and a 59% premium to EMS’s closing price on April 18, one day prior to the Company’s announcement that it was reviewing strategic alternatives.

The Board of Directors of EMS will recommend that EMS shareholders tender their shares in the tender offer. The transaction, which is subject to successful completion of the tender offer, regulatory approval and customary closing terms and conditions, is expected to be completed in the third quarter of 2011.

“This announcement is the culmination of the robust strategic review process we have been engaged in since April,” said Jack Mowell, Chairman of EMS’s Board of Directors in the June 13 press release trumpeting the deal. “With the assistance of experienced outside advisors, we determined that this transaction is the best way to maximize value for our shareholders.”

EMS, located in Norcross, Georgia, keeps people and systems connected – on land, at sea, in the air or in space. EMS offers industry-leading technology to support Aero Connectivity and Global Resource Management markets though a broad range of cutting-edge satellite and terrestrial network products; helping businesses, assets and people stay connected and promoting universal mobility, visibility and intelligence