Veritas, Evergreen Coast to Acquire Public Transport Company Cubic

Cubic has entered into a definitive agreement to be acquired by Veritas and Evergreen Coast, an affiliate of Elliot Investment Management, for $70 per share in cash.

Veritas CEO and managing partner Ramzi Musallam, a past Potomac Officers Club event speaker and five-time Wash100 winner, said the partnership with Cubic's experts will accelerate product development and drive growth at the acquired company.

“Cubic has an unparalleled history of delivering innovative technology-based solutions to address the mission-critical needs of the global transportation and defense markets," Musallam added.

The acquisition is valued at about $2.8 billion, including debt, and will net shareholders an about 58 percent premium on the closing stock price, Cubic said Monday.

Cubic will remain based in San Diego, California. The company said the transaction will be seamless for customers and its employees across its businesses.

The acquisition is expected to close within the second calendar quarter of 2021 following customary closing conditions, including the receipt of shareholder and regulatory approvals.

Cubic is a technology-driven public transport company that also serves customers in the markets for defense; command, control, communications, computers, intelligence, surveillance and reconnaissance; and training.

Bradley Feldman, CEO and president of Cubic and a 2015 Wash100 winner, said the agreement will provide shareholders with significant premium and will accelerate his company's growth for the benefit of its employees and customers. 

J.P. Morgan Securities served as Cubic's lead financial adviser for the transaction, while Sidley Austin and Faegre Drinker Biddle & Reath served as legal counsel. 

Skaddan, Arps, Slate, Meagher & Flom served as legal counsel to Veritas, while Gibson, Dunn & Crutcher served as legal counsel to Evergreen.

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