Honeywell International (NASDAQ:HON) announced on Wednesday its plans to launch a voluntary tender offer for the acquisition of Civitanavi Systems, an Italian company specializing in aerospace and defense, for a cash payment of €6.30 per share, totaling approximately €200 million.
Shares of Civitanavi surged 14% in Milan.
This offer price is positioned at a 27.1% premium above Civitanavi's 30-day volume-weighted average share price as of March 26. Honeywell has already reached an agreement with Civitanavi's controlling shareholder, who holds about 66% of Civitanavi's outstanding shares, to tender their shares in support of the acquisition.
Honeywell expects to finalize the transaction by the third quarter.
"By integrating Civitanavi's inertial technologies and sensors across Honeywell's existing commercial, military, space and industrial platforms, our customers across the globe will now have access to a more robust portfolio of aerospace navigation solutions in support of their journey toward autonomous operations," said Jim Currier, President and CEO of Honeywell Aerospace Technologies.
"With this acquisition, we will be able to immediately expand our offerings to customers in the European Union through Civitanavi's navigation solutions, a capability we intend to further build out in the near-term,” he added.