SPX Corporation (“SPX”) announced that it has entered into a definitive agreement to purchase CUES, Inc. (“CUES”) a leading manufacturer of pipeline inspection and rehabilitation equipment, headquartered in Orlando, Florida. CUES equipment is designed to go on robots to inspect within pipelines in the water, wastewater, and stormwater markets.
Under the agreement, a subsidiary of SPX will be merged with CUES’ parent company, ELXSI Corporation (“ELXSI”). As a result of the merger, stockholders of ELXSI will receive cash consideration equal to $51 per share of common stock outstanding as of the effective time of the merger, or a total of approximately $189 million.
ELXSI’s 2017 annual net sales were approximately $90 million, and following completion of the transaction, ELXSI’s results will be reported with SPX’s Radiodetection business within its Detection & Measurement segment.
EC M&A acted as exclusive financial advisor to SPX on this transaction.