ZF Friedrichshafen is one step closer to acquiring Wabco in a $7 billion deal following approval from the heavy-duty off-highway vehicle component supplier’s shareholders earlier today.
An overwhelming majority accepted the proposed merger offer at a special meeting held today in New York.
Under the agreement, the German-based firm will acquire all the outstanding shares for $136.50 per share in an all-cash transaction for an equity value of over $7 billion.
Of the company’s 71.97% of shareholders that participated in the vote, 68.44% were in favor of the acquisition, but now remains subject to further customary closing conditions and regulatory approvals, with the expectation being that the transaction will be fully completed and closed in early next year.
This merger will bring together two multi-national technology firms serving OEMs and fleets in the automotive and off-highway vehicle industry, combining Wabco’s capabilities in off-highway vehicle safety and efficiency, including technologies involved in vehicle dynamics control, active air suspension systems, and fleet management systems with ZF’s leading position in mobility technologies for cars and commercial vehicles.
Wolf-Henning Scheider, CEO of ZF, said: “It is a confirmation of our strategy that WABCO shareholders have approved this important transaction. Together with WABCO, ZF can form an integrated systems provider for commercial vehicle technology, creating long-term value and security for our customers, employees and shareholders. We will be shaping the future of technologies and services for efficiency, safety, automation and connectivity in the commercial vehicle sector together with the WABCO management.”
Jacques Esculier, chairman and CEO of Wabco, said, “We are very pleased that the shareholders have supported our merger plans recognizing that the ZF transaction offers a compelling strategic fit to advance the requirements of our industry, while also providing certainty of value and liquidity for our shareholders.”
Approximately 12 months ago, Wabco opened a $30million R&D facility in Hannover, Germany.