A New York subway rider uses a Cubic fare system. Courtesy of Cubic

A New York-based hedge fund joined forces with a technology buyout firm to purchase long-time San Diego defense and transit contractor Cubic Corp. on Monday for $2.8 billion.

Cubic shareholders will receive $70 in cash for each share of common stock they currently hold — a premium of 58% over the closing price on Sept. 18 when the possibility of a deal was first revealed.

Veritas Capital and Evergreen Coast Capital, an affiliate of hedge fund Elliott Investment Management, promised that the acquisition will be “seamless for customers and employees” with the company’s headquarters remaining in San Diego.

The company’s stock closed at $69.60 on Wall Street Monday before the final announcement.

“This transaction is in the best interests of our shareholders and provides them with a significant premium and liquidity — while accelerating future growth to the benefit of our employees and customers,” said Bradley H. Feldmann, Cubic’s chairman, president and chief executive officer. “We look forward to partnering with Veritas and remain grateful to our customers for their trust.”

The transaction is expected to close during the second quarter, subject to customary closing conditions, including the receipt of shareholder and regulatory approvals.

Cubic, which makes defense equipment and fare systems for public transit, was founded in 1951 by Walter Zable.

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Chris Jennewein

Chris Jennewein is Editor & Publisher of Times of San Diego.