Emerson to Acquire Stratos International
ST. LOUIS.-Emerson (NYSE: EMR) today announced that it has reached an agreement for Stratos International, Inc. (Nasdaq: STLW) to become part of Emerson Network Power. Emerson will acquire Stratos for $8 per common share in cash (for an aggregate consideration of approximately $85 million, net of acquired cash) pending customary regulatory approvals, approval by Stratos shareholders and satisfaction of other customary conditions. The agreement broadens the scope of Network Power’s offerings and strengthens the position of Emerson Connectivity Solutions in the $35 billion connector industry, particularly in the radio frequency (RF) sector.
“Stratos’ Semflex and Trompeter brands are an excellent complement to our portfolio and expand our product capabilities in the RF connector space. Stratos also diversifies the end market exposure of Emerson’s existing connectivity business, creating a stronger growth platform,” said David N. Farr, Emerson chairman, chief executive officer and president.
“We are excited at the growth and profitability opportunities that will exist for Stratos as part of Emerson,” said Brian G. Mason, president of Emerson Connectivity Solutions. “Combining Stratos’ RF, Microwave, and Optical portfolio with our existing connectivity products will allow Emerson to deliver a broad platform of solutions to our customers.”
The merger agreement provides that Emerson can require a pre-closing cash dividend to be paid to Stratos shareholders. In the event this dividend is paid, the total consideration received by Stratos shareholders, i.e. purchase price plus pre-closing dividend, would still total $8 per share.
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