Velocity One and EMCORE Join Forces in Strategic Merger

Velocity One and EMCORE Merge for a Stronger Future

Velocity One, a newly established aerospace manufacturing holding company, recently announced an exciting merger agreement with EMCORE Corporation (NASDAQ: EMKR), a key player in the inertial navigation solutions sector for aerospace and defense. This merger is a pivotal move for both companies as it aims to combine their strengths and resources, creating a formidable entity in the aerospace industry.

Details of the Merger Agreement

Under the terms of this agreement, EMCORE will transition into a wholly owned subsidiary of Velocity One. The merger deal includes a purchase price of $3.10 per share in cash, a move unanimously approved by EMCORE's board of directors. This partnership is backed financially by Charlesbank Capital Partners, a well-respected investment firm overseeing over $22 billion in total assets.

Combining Forces for Innovation

This merger will allow Velocity One to unite three industry leaders: EMCORE, Cartridge Actuated Devices, Inc. (CAD), and Aerosphere Power. CAD, with its half-century legacy in designing and manufacturing energetic devices, and Aerosphere Power, known for its power system solutions tailored for aviation and military vehicles, complement EMCORE's offerings perfectly.

Leadership Vision for Growth

CEO of Velocity One, John Borduin, expressed enthusiasm about the merger, emphasizing their playbook and deep-rooted industry experience. Borduin stated, "EMCORE has excellent technology and offers a large product portfolio. We believe this aligns our collective philosophies with a robust framework for growth. Together, we can optimize performance and profitability across our business landscape."

The Perspective from Charlesbank

Brandon White, Managing Director at Charlesbank, highlighted the potential of bringing together these leading aerospace companies. He noted that EMCORE's specialized products would significantly contribute to the emergence of a new powerhouse in the market, driving overall success. White praised Velocity One's management team for their entrepreneurial prowess and industry expertise, setting the stage for meaningful growth.

EMCORE's Commitment to Customers

Matt Vargas, CEO of EMCORE, reaffirmed the merger's importance for their domestic and international customer base. He articulated that combining their strengths with those of Velocity One would equip EMCORE to better address global customer needs, fostering superior solutions while enhancing relationships across high-priority defense programs.

Endorsement from Financial Advisors

Skyway Capital Markets, LLC, and Launch Point Partners LLC have been appointed as financial advisors for Velocity One, while Craig-Hallum Capital Group LLC is advising EMCORE on this strategic venture. Such guidance signifies the confidence the financial community has in this merger's potential.

Positioning for Market Leadership

By aligning forces, Velocity One positions itself as a key player in the aerospace and defense sectors, seizing new opportunities and enhancing its standing in the market. This merger not only strengthens their technology offerings but also expands their customer base and market outreach exponentially, making them more formidable amidst increasing competition.

Looking Ahead

The combined entity is set to enhance operational efficiencies and leverage synergies across all three companies. The focus will be on innovating processes, enhancing product offerings, and achieving sustained growth in an evolving market landscape.

Frequently Asked Questions

What does the merger between Velocity One and EMCORE entail?

The merger will result in EMCORE becoming a wholly owned subsidiary of Velocity One, enhancing both companies' abilities in aerospace and defense.

How will this merger impact employees?

The merger aims to bring together talent from all three companies, creating an improved and innovative workplace that focuses on industry leadership.

What are the financial backing details of this merger?

The merger is financially supported by Charlesbank Capital Partners, which manages over $22 billion in total assets.

Why is the merger important for EMCORE?

This merger positions EMCORE to better serve its customers globally, allowing enhanced resource allocation and capabilities to meet evolving market demands.

How might this merger affect customers?

Customers can expect improved product offerings and enhanced service delivery as a result of the combined resources and technologies from the merger.

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