A subway rider in New York City uses a Cubic fare system. Courtesy of the company

Long-time San Diego defense and transit contractor Cubic Corp. ended a bidding war for its ownership Wednesday by accepting a $3 billion offer from two New York private-equity firms.

The company said its board rejected a $78 per share proposal from Singapore Technologies Engineering after Veritas Capital and Evergreen Coast Capital, an affiliate of hedge fund Elliott Investment Management, increased their pending offer to $75 per share in cash.

Cubic said its board of directors chose the lower offer “based on the superior certainty and anticipated timing of closing the existing transaction.”

The board had earlier agreed to the buyout at $70 per share when the Singapore firm made an unsolicited counter offer, which the board was obligated to consider.

The final deal represents a 69% premium over Cubic’s stock price before Elliott Investment Management first began acquiring shares in September in preparation for a takeover.

Veritas and Evergreen have promised that their acquisition will be “seamless for customers and employees” with Cubic’s headquarters remaining in San Diego.

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.