SCHAUMBURG, IL -- Sparton announced today that it had entered into a merger agreement with Ultra Electronics Holdings pursuant to which Ultra will acquire Sparton for $23.50 per share in cash.

The price values Sparton at about $235 million.

Sparton's board of directors has unanimously approved the transaction. The transaction is subject to customary closing conditions, including regulatory clearances and approval of both companies' shareholders, and is expected to close by Jan. 1, 2018.

“This transaction is the result of the significant time and effort the Company has invested in its previously announced process to explore strategic alternatives, including a potential acquisition of Sparton,” said Joseph J. Hartnett, interim president and chief executive of Sparton. “We are pleased to have successfully concluded our process with a transaction that delivers significant value to the shareholders of Sparton.”

A deal had been expected since last year, when activist shareholders pushed for a breakup of the company, leading to the ouster of then-CEO Cary Wood.

Additional details regarding the transaction will be set forth in a proxy statement that Sparton will send to shareholders in advance of the special meeting at which they will be asked to approve the transaction.

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