Services
Will LoJack Go for the Buyout Bid This Time? Is It Enough?
Published:
Last Updated:
Despite markets being generally flat over the course of 2015, we can always look to mergers and acquisitions (M&A) as a driver of returns, even on a flat year. LoJack Corp. (NASDAQ: LOJN) shareholders are seeing this as the stock hit new highs on Thursday, but the question is whether they will take the offer this time and realize these returns. CalAmp Corp. (NASDAQ: CAMP) announced a bid on Thursday morning to acquire LoJack for the price of $5.50 per share. The entire transaction is valued at approximately $113 million.
Currently the offer represents a premium of 58% to LoJack’s closing price from Wednesday ($3.48) and a 75% premium to the average closing price over the past 60 days. Not to mention, this is a premium of 24% from the previous 52-week high.
LoJack has been the target of CalAmp for nearly two years. During this time, the company tried to engage LoJack in friendly discussions regarding a combination of the two companies, and in the past 14 months it has also made three all-cash offers to LoJack.
Unfortunately for CalAmp, none of these previous offers were enough for LoJack’s shareholders, and the company itself has not demonstrated a willingness to be acquired. The $5.50 per share offer is the highest premium that LoJack’s shareholders have seen out of the previous three offers.
24/7 Wall St.Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
