Financial technology company CompoSecure (CMPO.US), backed by former Honeywell CEO David Cote, is reportedly planning to acquire injection molding equipment supplier Husky Technologies for approximately $5 billion (including debt) from Platinum Equity. As of press time, CompoSecure shares rose over 3% in Monday's pre-market trading.

The deal is said to be partially funded by around $2 billion in PIPE (Private Investment in Public Equity) investments, with CompoSecure expected to sell common shares at $18.50 per share.

Founded in 1953, Husky Technologies is a global leader in plastic injection molding systems, specializing in injection molding machines, hot runner systems, and mold controllers. The company serves industries such as packaging, healthcare, and automotive, employing over 4,300 people across 35 locations worldwide. Platinum Equity acquired Husky Technologies in 2018 for roughly $4 billion from Berkshire Partners and Omers Private Equity.

CompoSecure focuses on fintech and payment security solutions, primarily offering metal payment cards and secure authentication products. Last year, an investment group led by Cote and former Goldman Sachs executive Tom Knott acquired a controlling stake in CompoSecure, with Cote subsequently becoming executive chairman.

Reports indicate that Cote’s family office currently holds an approximately $1.1 billion investment in CompoSecure, which will be factored into this transaction. Meanwhile, Platinum Equity will retain around $1 billion in equity, maintaining a stake of just under 20% in the combined entity.