CalAmp Offers to Acquire LoJack for $5.50 per Share in Cash, Representing a 58% Premium, in $113 Million Transaction
CalAmp's offer represents a premium of:
- 58% to LoJack's closing stock price on December 9, 2015;
- 75% to LoJack's average closing price for the last 60 days; and
- 24% to LoJack's 52 week high.
"For nearly two years, we have tried to engage with LoJack in friendly discussions regarding a combination of our two companies, and in the past 14 months we have made three all-cash offers to LoJack. To our disappointment, and to the detriment of LoJack's shareholders, LoJack has not demonstrated willingness to move toward actively negotiating a transaction with us. We are excited by the prospect of combining our two businesses and believe our $5.50 per share cash offer provides LoJack shareholders with a substantial premium for their investment in LoJack, while also eliminating the risks associated with LoJack continuing to operate on a standalone basis," said Michael Burdiek, CalAmp's President and Chief Executive Officer.
Mr. Burdiek continued, "The combination of LoJack's world renowned brand and strong relationships with CalAmp's leading portfolio of wireless connectivity devices, software, services and applications would create a market leader that is well-positioned to drive the broad adoption of vehicle telematics technologies and applications worldwide. Moreover, we respect and admire the talented team at LoJack and believe that the benefits of a business combination are significant for stakeholders of both companies. The Board of Directors of CalAmp unanimously supports this offer and believes, with close cooperation and focus among our respective teams, we can move expeditiously to complete due diligence and execute a definitive agreement. We look forward to LoJack's careful and serious consideration of our offer and remain ready to engage with LoJack's Board of Directors to complete this transaction."
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