Shares of Com Dev (TSX:CDV) are up sharply today on rumours the company will be sold.
After being halted less than an hour into the trading day, the company issued a statement confirming the rumours but did not provide any detail on a particular transaction.
“Com Dev acknowledges that, in connection with a review of its strategic alternatives, it has been involved in confidential discussions with third parties with respect to potential strategic transactions involving the company, with the assistance of its financial adviser, Canaccord Genuity,” said the company. “While such discussions are continuing, no assurance can be given that any transaction will be announced or completed. Com Dev does not intend to make further comment unless or until there is a transaction to announce.”
BNN today reported that Comtech Telecommunications Corp, Honeywell International Inc, L-3 Communications Holdings Inc and Thales SA are some of the names approached by COM DEV about a potential deal.
On September 11, Com Dev reported its Q3, 2015 results. The company earned $3.07-million on revenue of $58.4-million, a topline that was up 15% over the same period a year prior.
CEO Michael Pley was upbeat about the company’s future. “Integration of our two recent acquisitions is proceeding as planned and in addition we are pursuing a number of compelling organic growth opportunities,” he said. “These factors, combined with the ongoing strength of our traditional business, position us to maintain and accelerate our recent momentum into 2016.”
Founded in 1974, Cambridge Ontario-based Com Dev develops and manufactures specialized satellite systems and components for the aviation and aerospace industry.
At the time its stock was halted, shares of Com Dev were up 20.3% to $5.40.