logo-loader
viewCUI Global Inc

CUI Global proposes four-company acquisition deal

The combination of CUI Global as the public company platform, along with four privately-held companies, which remained unnamed, would create an energy services company with annual revenue of about $350 million

"Acquisition" street sign
The deal is expected to be announced definitively by June 1

CUI Global Inc (NASDAQ:CUI) signed a non-binding letter of intent late Wednesday to acquire four privately-held companies.

The combination of CUI Global as the public company platform, along with four privately-held companies, which remained unnamed, would create an energy services company with annual revenue of about $350 million. The combined entity intends to be known as Pro Forma CUI and would be led by former Quanta Services CEO Jim O'Neil.

The deal would include issuing 160 million shares of CUI stock, $30 million in cash, a $45 million one-year unsecured sellers note, the assumption of $15 million in outstanding debt and an earn-out payable over 5 years of up to $200 million.

The deal is expected to be announced by June 1.

Shares climbed 3.3% to close at $1.24.

READ: CUI Global subsidiary Orbital Gas Systems showcases new technologies at open house in Houston

The companies include a maintenance and repair services company with clients such as ExxonMobil and Motiva; an infrastructure services provider serving BP, OG+E and Noble Energy; an industrial services firm focused on insulation and related services boasting KBR, Kiewit and Gulf Island Fabrication as customers; and a wireless telecommunications firm focused on site acquisition activities and construction in the Southeastern United States and Puerto Rico with clients including AT&T, MasTec, Nokia and Verizon.

“Having established a presence for CUI Global in the U.S. energy market at our Orbital facility in Houston, we are thrilled to present our shareholders with an opportunity to enhance the company's valuation in the future,” said CEO William J. Clough. 

Contact Andrew Kessel at [email protected]

Follow him on Twitter @andrew_kessel

Quick facts: CUI Global Inc

Price: 1.07 USD

NASDAQ:CUI
Market: NASDAQ
Market Cap: $30.75 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of CUI Global Inc named herein, including the promotion by the Company of CUI Global Inc in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Capital Network analyst discusses 'transformational' CUI Global deal

Capital Network analyst Ed Stacey says a proposed deal to combine CUI Global (NASDAQ:CUI) with four other businesses will result in an entirely transformed entity with more than 3x the revenues (estimated) of the existing CUI business. The four target businesses provide services to...

on 05/20/2019

2 min read