LoJack Corporation (LOJN) Shares Jump 19.4% on Acquisition Deal with CalAmp (CAMP)


Shares of LoJack Corporation (NASDAQ:LOJN) are trading up 19.4% this morning after it was announced that the company has entered into a definitive agreement in which CalAmp (NASDAQ:CAMP) will acquire the company for $6.45 per share. The all cash transaction is worth around $134 million. The stock is currently trading at just $0.05 under the announced acquisition price in pre-market trading.

“The acquisition of LoJack aligns with our strategy to deliver innovative, next generation connected vehicle telematics technologies, thereby accelerating our roadmap in these large and fast growing markets, while creating value for our customers, partners and shareholders,” explained Michael Burdiek, CalAmp’s President and Chief Executive Officer. “By combining with LoJack, we expect to enhance our ability to deliver novel connected vehicle telematics technologies and applications to our global customers. Moreover, we believe that LoJack’s considerable relationships, particularly in the U.S. auto dealer channel, as well as in the commercial space with heavy equipment providers and their international licensee footprint, will create new opportunities for growth and strengthen our competitive position. We are excited to welcome LoJack’s talented team to CalAmp and look forward to realizing the benefits that we expect this transaction to create.”

“This transaction delivers immediate and significant cash value to our shareholders at a substantial premium and represents a successful conclusion to the Board’s review of strategic alternatives to enhance shareholder value,” said Randy Ortiz, LoJack’s President and Chief Executive Officer. “We are proud that CalAmp recognizes LoJack’s success over the last 30 years in creating best-in-class theft recovery solutions and developing strong channel and end customer relationships around the world. With CalAmp as our partner, the LoJack brand will continue to expand beyond our foundational stolen vehicle recovery business by providing our customers and partners with enhanced product offerings to better protect and manage their assets. We look forward to working with the CalAmp team to ensure a smooth transition and accelerate the strategic initiatives already underway at LoJack as we take our great brand into the future.”

The stock closed at $5.36 during the last trading session. It is up 52.27% since June 26, 2015 and is uptrending. It has outperformed the S&P500 by 59.98%.

The institutional sentiment increased to 1.2 in Q2 2015. It’s up 0.05, from 1.15 in 2015Q2. The ratio increased, as 2 funds sold all their LoJack Corporation shares they owned while 8 reduced their positions. 5 funds bought stakes while 7 increased their total positions. Institutions now own 7.62 million shares which is 10.13% less than the previous share count of 8.47 million in 2015Q2.

Tieton Capital Management Llc holds 5.35% of its total portfolio in LoJack Corporation, equating to 1.98 million shares. Prescott Group Capital Management L.L.C. owns 807,781 shares representing 0.57% of their total US portfolio. Moreover, Thompson Davis & Co. Inc. has 0.23% of their total portfolio invested in the company, equating to 56,950 shares. The Massachusetts-based Marble Harbor Investment Counsel Llc has a total of 0.16% of their portfolio invested in the stock. Moors & Cabot Inc., a Massachusetts-based fund reported 303,500 shares owned.

LoJack Corporation is a provider of after-market safety, security and protection services and products for tracking and recovering cars, trucks and other mobile assets. The company has a market cap of $103.41 million. The Firm has three business divisions: North America, International and All Other. It has 1089.43 P/E ratio. The Company’s North America segment consists of its domestic operations, which sells products that operate in 29 states and the District of Columbia in the United States, and its Canadian operation, which provides recovery services and products in the Provinces of Ontario and Quebec.