(RTTNews) - SI International (SINT) climbed in pre-market trading, on news that Serco Group signed an agreement to acquire the company.
The stock was up $7.91 just after 9:20 am ET, advancing to $31.00. If pre-market gains hold, the stock will open at its highest level since late October 2007.
Serco said it entered into a definitive agreement to acquire SI International for US$32 per share in cash, valuing its fully diluted share capital at approximately US$423 million.
The proposed acquisition, which will be financed exclusively from new fully committed multi currency bank facilities, is expected to be accretive to Serco's Adjusted earnings in its first full year of ownership, and its returns are expected to meet Serco's cost of capital in the third full year of ownership.
The acquisition is expected to complete before the end of 2008.
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