UPDATE 1-Veritas Capital to buy CPI Int’l for $19.50/share

* Deal at 35 pct premium to Wednesday close

* Shares rise 29 pct pre-market

Nov 26 (BestGrowthStock) – CPI International Inc (CPII.O: ) agreed to
be bought by an affiliate of private-equity firm Veritas
Capital for $19.50 per share in cash, three months after larger
rival Comtech Telecommunications (CMTL.O: ) dropped plans to buy
the telecom equipment maker.

The offer from New York-based Veritas Capital, which
focuses on the defense and government-services sector, is at a
35 percent premium to CPI’s Wednesday close. The deal is valued
at about $525 million, CPI said.

In September, Comtech had offered to pay about $372 million
in cash and issue about 4.4 million shares for CPI, in what
could have been its largest acquisition ever. [ID:nSGE6490PZ]

Veritas Capital also owns Aeroflex Inc, a provider of
microelectronic and testing equipment to aerospace markets, and
Vangent, which provides information management and business
processing services.

Earlier this year, Veritas sold military-services
contractor DynCorp International to Cerberus Capital Management
[CBS.UL] for $1 billion.

Shares of Palo Alto, California-based CPI, which makes
microwave and radio-frequency products for defense,
communications, medical and other applications, rose 29 percent
to $18.65 in trading before the bell.

They have risen 43 percent over the last year.
(Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Vinu
Pilakkott and Don Sebastian) (([email protected];
within US +1 646 223 8780; outside U.S +91 80 4135 5800;
Reuters Messaging [email protected]))

UPDATE 1-Veritas Capital to buy CPI Int’l for $19.50/share