An angry investor has filed a proposed securities class action lawsuit in Connecticut state court on behalf of current investors of Axsys Technologies, Inc. (NASDAQ:AXYS) against Axsys Technologies, Inc. after Axsys announced that General Dynamics Advanced Information Systems has entered into a agreement to acquire Axsys Technologies, Inc., (NASDAQ: AXYS) for $54 per share.
According to the complaint the plaintiff claims the $54-a-share offer both companies announced on June 4 is too low. The price appears to be unfair given that in 2008 Axsys generated $245.48 million in total revenue with a net income of $25.87 million and Axsys shares traded over $72 per share as recently as December 2008 and the Board of Directors of Axsys Technologies, Inc breaches its fiduciary duty.

The cost of the transaction would be $643 million. The proposed acquisition has been approved by the boards of directors of Axsys Technologies and General Dynamics. According to the investigation the price is unfair given that Axsys shares NASDAQ:AXYS traded over $72 per share as recently as December 2008 and analysts currently placed a median price target of $64 per share with a high price target of $80 per share. Axsys Technologies, Inc, located in Rocky Hill, CT, is a designer and manufacturer of precision optical solutions for defense, aerospace, homeland security and commercial applications.

The Company operates in two business segments: the Surveillance Systems Group and the Imaging Systems Group. The Surveillance Systems Group designs, manufactures and sells highly precise camera systems for deployment on ground, marine and aerial vehicles. Axsys Technologies, Inc. (NASDAQ:AXYS) reported $171.62million in total revenue with a net income of $16.78million in 2007 and $245.48million in total revenue with a net income of $25.87million in 2008. Shares of Axsys Technologies, Inc. (NASDAQ:AXYS) were down from a 52weekHigh of $79.69 per share.