Force Protection Inc. (Nasdaq: FRPT)

General Dynamics said it has agreed to buy Force Protection Inc., which makes armored vehicles, in a deal worth about $360 million. It is paying $5.52 for each Force Protection share, a 31 percent premium to the target company's closing stock price of $4.21 on Friday. Its shares rose $1.29, or 30.6 percent, to $5.50 in premarket trading.

General Dynamics said it will begin a tender offer for all of Force Protection's outstanding shares. The deal, which has been approved by the boards of both companies and is subject to antitrust approval, is expected to close by the end of the year.

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