UK IT group CSG is to buy Intec Telecom for approximately £236.7m, using existing cash resources and debt facilities.
The offer price of 72p per Intec share represents a premium of 44% on the closing share price of 50p per Intec Share at close of…
UK IT group CSG is to buy Intec Telecom for approximately £236.7m, using existing cash resources and debt facilities.
The offer price of 72p per Intec share represents a premium of 44% on the closing share price of 50p per Intec Share at close of business on July 22, and a multiple of 1.2x EV/FY 2010 revenue and 1.1x EV / FY 2011E revenue based on IBES consensus estimates as of September 23.
Intec was advised by RBS Hoare Govett, while CSG was advised by Greenhill.
The Intec board has said it will recommend the offer. Private equity group General Atlantic, which owns some 11.85% of the company, is also in favour of the deal.
The Acquisition is conditional upon 75% of shareholders approving the deal.
Commenting on the acquisition, CSG CEO Peter Kalan said “The communications industry is dramatically changing. Consumers have more choices for content, devices and providers. This has created an opportunity for service providers to differentiate their offerings by being more flexible and responsive to the end consumers. We believe that both Intec’s broad suite of solutions aimed at fixed mobile and next generation networks and CSG’s extensive customer interaction management suite will be attractive to one another’s customer base as well as service providers worldwide. As a result, we are today making an all-cash offer which represents excellent value for Intec’s shareholders. The strategic and commercial merits of combining CSG and Intec are compelling, and we are very excited about the potential that this transaction creates.”
According to Andrew Taylor, CEO of Intec, “The combination of CSG and Intec represents a major event in the BSS marketplace, with the creation of a global leader with significant product scope and scale across multiple geographies and multiple customer segments. Together, we will have a significant global market position, and will enhance our customer relevancy through the combination of first class product and service delivery capabilities, enhanced by over 3,500 employees, spread globally and focused on delivering value to our customers and to our other stakeholders. Given the increasingly difficult market conditions, and the importance of scale and relevancy to our customers, this combination represents a good deal for Intec and provides certainty for our shareholders and a bright future for our employees and our customers.”
