Command Security stock skyrockets after buy out by Spain’s Prosegur

Shares of Command Security Corporation (NYSE:MOC) climbed Wednesday after the company which offers aviation security services announced that it would be acquired by a wholly-owned subsidiary of Spain’s Prosegur Compañía de Seguridad SA (BME:PSG).

According to the terms of a signed agreement, Herndon, Virginia-based Command Security will be acquired by Prosegur SIS (USA) Inc for US$2.85 in cash per share. The transaction price represents a 50% premium to Command Security’s closing stock price on Tuesday, and a 71.6% premium to the company’s 3-month average closing price.

The stock shot up 42.1% to US$2.70 Wednesday in premarket trade.

Shareholders representing 60.7% of the company’s outstanding shares have agreed to support the proposed transaction. The company said its board saw the sale as an “outstanding” strategic opportunity and unanimously supported it.

“This is the perfect match for Command Security and a great deal for our shareholders. We believe that this merger will enable us to grow into new businesses, add broader capabilities, and deploy new resources to meet and expand our current base of business,” said Command Security Corp CEO Craig P. Coy.

Madrid-based security company Prosegur operates in 24 countries across five continents and clocks revenues of nearly US$5bn annually. It has more than 175,000 employees.

“We are excited to include Command Security in our operations. They have an impressive management team and high service quality,” said Prosegur Security Managing Director Javier Tabernero.

The transaction is expected to close by the fourth quarter of 2018 after receiving regulatory approvals.

Contact Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive 

Story by ProactiveInvestors