Sweden-based aerospace and defence major Saab AB (STO:SAAB B) has made a EUR6.60 (USD8.18) per share public cash offer for Dutch sea and air-traffic control solutions firm Hitt NV (AMS:HITT), both companies said in a statement.
Hitt’s management and supervisory boards consider that the bid is fair and have recommended it to shareholders, who are going to cast their votes at an extraordinary general meeting on 21 September.
Saab, which announced its plans to buy the Dutch firm in June, commented that the offer fits in with the group’s strategy to be a leading global player in the traffic management market. According to it, the acquisition provides it with a strong growth base to enhance its capabilities to develop, sell, deliver and maintain leading products globally. It plans to fund the transaction with existing resources.
In addition, Hitt Holding BV, which owns 53.4% of the target’s stock, and other large shareholders together holding 20.2% have pledged to tender their shares. The acceptance period runs from 7 August till 2 October 2012 and is subject to extensions.
Hitt develops technology aimed at safety enhancement and traffic flow improvement, while also enabling significant cost reductions in infrastructure and logistics. Its core activities comprise developing, selling and maintenance of management and control systems and services for air and vessel traffic and hydro-graphic and navigation systems. In 2011 Hitt generated a revenue of EUR40.7m and a net profit of EUR3.4m with 188 employees.