Mobix Labs Inc. (NASDAQ:EMKR) Stock Rockets On Merger News

There were some companies that had clocked eye-catching gains on Monday, and one of those was Mobix Labs Inc. (NASDAQ:EMKR), which saw its stock record gains of 83% for the day. The company, involved in providing sophisticated connectivity and wireless services to the defense and military sectors, announced yesterday that it had provided EMCORE Corporation’s board of directors with a strong, non-binding proposal.

Mobix Labs Submits All Cash Offer to Acquire EMCORE Corporation

EMCORE is the biggest independent international navigation solutions provider in the world to the defense and aerospace sectors. As per the proposal, Mobix Labs seeks to acquire all the outstanding shares of EMCORE for the price of $3.80 a share. The company seeks to conduct the entire transaction in cash.

The news proved to be a source of considerable optimism in the markets, and it could be interesting to see if it continues to provide fuel to the stock this morning. The proposal from Mobix worked out to a premium of as much as 200% over the stock price of EMCORE at the close of trading on September 27, 2024. In the fiscal year that ended on September 30, 2023, EMCORE had grown its revenues by as much as 115% to delivery $97 million. It could be a good time to add the Mobix stock to the watch lists today.

Key Quote

EMCORE is a leading supplier of inertial sensors and systems for land, sea, air, and space applications in the aerospace and defense markets. “We believe this proposal presents an exceptional opportunity for EMCORE shareholders to realize immediate and significant value for their investment,” said Fabian Battaglia, CEO of Mobix Labs. “Our recent strategic acquisitions, including EMI Solutions and RaGE Systems, have significantly strengthened our position in the military, defense, and high-reliability electronics sector,” Battaglia added. “We believe integrating EMCORE’s products would further accelerate our growth and innovation in critical markets.”

Technicals

+/- EMA(20)	1.33 (+83.46%)
+/- SMA(50)	1.13 (+115.93%)
+/- SMA(200)	2.63 (-7.22%)