Global Defense Technology and Systems Inc. (NASDAQ: GTEC) shares soared in today�s trading after the company announced that it will be acquired by private equity firm Ares Management for $24.25 per share. The small cap stock of Global Defense reached a 52-week high of $24.38 in today�s trading, and ended the day 50.81% higher at $24.25, with volume up from daily average of 26.413 to 1.88 million.
Ares Management will acquire Global Defense for $223.1 million. Following the acquisition, Global Defense will become a private company. The company had gone public back in November 2009. The $24.25 per share acquisition offer from Ares represents a 51% premium over Global Defense�s closing price on Wednesday.
The transaction is likely to close in the second quarter. The deal has been approved by Damain Perl, founder and CEO of Global Strategies Group, which is Global Defense�s largest shareholder.
Global Defense is a provider of information technology to the national security agencies and the U.S. government.
Last week the company reported its fourth-quarter results, posting 47% revenue growth on a year-over-year basis. The company reported fourth-quarter revenue of $82.2 million, compared with $55.8 million reported in the fourth quarter of 2009.
For full year 2010 the company reported revenue of $232.7 million, up 9% over 2009.
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