Lowenstein Sandler represented Arotech Corporation (NasdaqGM: ARTX) (Arotech) in its entering into a definitive agreement with Greenbriar Equity Group, L.P. (Greenbriar) for a Greenbriar affiliate to acquire all outstanding shares of Arotech common stock for an aggregate equity value of approximately $80.8 million, a 32.7 percent premium over Arotech’s closing price on September 20, 2019.
The transaction, which was unanimously approved by Arotech’s Board of Directors upon recommendation by a Special Committee of the Board, is expected to close in the first quarter of 2020. It is subject to customary closing conditions and approval by the holders of a majority of the shares of Arotech common stock. Following completion of the transaction, Arotech will become a privately held company, and shares of Arotech’s common stock will no longer be listed on any public market.
Arotech is a Michigan-based defense and security company engaged in interactive simulation and mobile power systems.
Under the terms of the merger agreement, Arotech’s Board of Directors, with the assistance of its financial advisor, will conduct a 30-day “go-shop” process, during which it will actively initiate, solicit, facilitate, encourage, and evaluate alternative acquisition proposals and potentially enter into negotiations with any parties that offer alternative acquisition proposals. Arotech will have the right to terminate the merger agreement to accept a superior proposal, subject to the terms and conditions of the merger agreement.