Cubic Corp. priced its follow-on offering of 3.3 million shares of common stock at $60 per share, announcing the move late Nov. 28.
The business expects gross proceeds of $198 million before deducting underwriting discounts, commissions and expenses.
Cubic (NYSE: CUB) offers defense and transportation technology to governments.
The Kearny Mesa business said it planned to use part of the net proceeds to repay some of the money it borrowed to buy Trafficware. Cubic closed its $235.7 million purchase of Texas-based Trafficware in late October. The acquired company offers software and connected hardware for traffic control, including intersection management technology.
Cubic will use the rest of the proceeds for general corporate purposes.
The company has granted underwriters a 30-day option to buy up to 495,000 more shares at the public offering price, less discounts and commissions. J.P. Morgan and Citigroup are acting as joint book-running managers and representatives of the underwriters. Raymond James, William Blair, Canaccord Genuity, Needham & Co. and Drexel Hamilton are acting as co-managers.
The offering is expected to close on or about Dec. 3.