By Denny Jacob

Gentex is folding Voxx International into its operations after the two sides agreed to a merger valued around $196 million.

The car-safety technology company will acquire all of the issued and outstanding shares of Voxx it doesn't already own for $7.50 a share in cash.

The $7.50 a share offer is a premium of about 163% to Voxx's closing price of $2.85 on Aug. 26. The closing price in August was the last trading day before Voxx, a manufacturer of automotive and consumer technologies, said its board was exploring strategic alternatives as well as public notice that Gentex made an unsolicited proposal to acquire Voxx at $5.50 a share.

Shares of Voxx rose about 3% to $8 a share ahead of the opening bell Wednesday following an earlier trading halt. Gentex's stock is up 2% to $30.57 in early trading.

Gentex said the acquisition of Voxx strategically fits into its portfolio, noting it will soon have full access to the EyeLock iris biometric technology, among other benefits. The company expects its annual revenue will increase in the range of $350 million to $400 million a year as a result of the deal.

"The transaction committee and I unanimously support this decision, believing that it represents the best and most reliable path forward to maximize value for all Voxx stockholders," said Voxx Chairman Ari Shalam.

John Shalam founded the company around 60 years ago. The Shalam family, which owns about 57% of the outstanding voting power of Voxx's common stock, agreed to vote their shares of common stock in favor of the proposed merger.

The merger is expected to close during the first quarter of 2025. The transaction was approved by both companies' board of directors but remains subject to approval from Voxx shareholders and other customary closing conditions.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

December 18, 2024 09:49 ET (14:49 GMT)

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