VEC - Vectrus Vertex enter all-stock merger pact

Vectrus (NYSE:VEC) and The Vertex Company have entered into an all-stock merger to create a leading global provider of mission-essential solutions. The combined company will offer significantly expanded technology and service capabilities, delivering a comprehensive suite of integrated solutions and critical service offerings to support national security readiness and modernization initiatives around the world. The merger will be well positioned to meet the mission-essential requirements of its clients while delivering cost savings, increased security and resiliency, and more strategic use of resources. Under the terms, Vertex shareholders will own ~62% of the combined company on a fully diluted basis, while Vectrus shareholders will own ~38%. The expected annualized cost synergies of $20M, resulting in Adjusted EBITDA margin of more than 8%. Broadens Portfolio of Solutions and Technologies to Provide Full Life-Cycle Support Across the Converged Environment The transaction expected to be accretive to Adjusted EPS and Free Cash Flow per share

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Vectrus, Vertex enter all-stock merger pact