General Atlantic, Francisco in technology deal

The two firms have agreed to buy Nasdaq-traded Aeroflex for about $1bn.

General Atlantic and Francisco Partners have joined together in an agreement to buy Aeroflex, a technology solutions provider, in a deal worth about $1 billion (€765 million). Aeroflex currently trades on the Nasdaq under the ticker symbol ARXX.

Shareholders will receive $13.50 per share in cash. That price is a 22.6 percent premium over the company’s closing price on Friday, March 2.

Under the terms of the agreement, Aeroflex has the option to solicit bids from third parties until April 18. Should it accept another proposal, the company must pay a break-up fee, Aeroflex said in a statement.

Founded in 1937, Aeroflex is based in Plainview, New York. It creates high technology test, measurement and microelectronic products for the aerospace, cellular and broadband communications industries, General Atlantic managing director Philip Trahanas said in a statement. Len Borow is the company’s president and chief operating officer.

General Atlantic, founded in 1980, invests in information technology and intellectual property. Based in Greenwich, Connecticut, it has additional offices in New York, Palo Alto, London, Düsseldorf, Hong Kong and Mumbai. The firm invested an undisclosed amount in AKQA, an interactive marketing agency, in February.

Menlo Park-based Francisco Partners invests in private and public technology companies valued between $30 million and $2 billion. It bought Mincom, an Australian software company that sells to asset-intensive industries, for about $248 million in January.