CS Communication & Systemes SA (ENXTPA:SX) is in exclusive negotiations to acquire Novidy's SAS in a deal worth €35.6 million, CS said. CS will acquire some 70% of Novidy’s by paying €30 million in cash, which will be funded by a bank loan. CS will issue new stock and share warrants to acquire the remaining stake. CS will also raise €10 million in a rights issue to continue its expansion through mergers and acquisitions, the company said in an April 23, 2018 statement. “This is a first step in CS’s strategic plan, Ambition 2021, which aims to double the group’s size by 2021,” company Chief Executive Officer Eric Blanc Garin told Defense News on April 24, 2018. There had been competing bids for Novidy’s, which picked CS as the preferred bidder. The acquisition is key in the CS expansion drive, which seeks to boost annual sales to €300 million by 2021. The CS annual general meeting will vote June 26, 2018 on the proposed deal, which will be presented to CS staff and regulatory authorities.