Wavetek Corp. has reached an agreement in principle to be acquired by San Diego-based Torrey Investments in a deal valued at $28.3 million, or $3.15 per share, the companies said Monday.
The proposed deal, which is subject to the execution of a definitive agreement, must be approved by Wavetek's shareholders. Also, the merger is "conditioned upon Torrey Investments obtaining certain financing," according to a prepared statement released Monday by Wavetek.
Wavetek's stock closed up $.375 at $2.50 Monday.
Wavetek officials said Torrey Investments was formed by Terence J. Gooding, an "entrepreneurial industrialist, for the purpose of acquiring a controlling interest in a medium-sized U.S.-based technology company."
Gooding previously helped found Maxwell Laboratories, a San Diego-based electronics company. He also owned a portion of Kratos, another San Diego-based high-tech company.
San Diego-based Wavetek has plants and offices in California, Florida, Indiana, New York, Germany, Hong Kong and the United Kingdom. It produces a broad line of electronic test and measurement equipment and related products.
Wavetek reported a $1.1-million profit on sales of $90.6 million for the fiscal year ended Sept. 29. The company reported an $895,000 profit on $85.1 million in revenue during the previous year.
In November, Wavetek President Fred Sehnert noted that "overall business conditions continued to be difficult through the fourth quarter." Sehnert was not available for comment Monday.