PAE Stock Skyrockets On Deal To Be Acquired By Amentum For ~$1.9B

PAE Inc PAE has agreed to be acquired by an affiliate of Amentum Government Services Holdings LLC in an all-cash transaction valued at ~$1.9 billion, including debt and certain fees.
PAE shareholders will be entitled to receive $10.05 per share in cash upon the transaction's consummation. The purchase price represents an ~70% premium over PAE's closing price on October 22, 2021.
"I believe joining the capabilities and resources of PAE and Amentum will benefit the customers and employees of both companies. This transaction creates new opportunities for the technology innovation our customers need to drive their critical missions," commented PAE Interim CEO and President Charlie Peiffer.
PAE's Board of Directors has unanimously recommended that its stockholders approve and adopt the merger agreement with Amentum. The company expects the completion of the acquisition to occur by the end of the first quarter of 2022.
An affiliate of Platinum Equity, PE Shay Holdings, LLC, which owns ~22.5% of PAE's outstanding shares, has agreed with the company to vote its shares in favor of the proposed transaction.
Price Action: PAE shares are trading higher by 67.6% at $9.89 during the premarket session on Monday.