A consortium led by private equity firm Sirius Capital Group has agreed to acquire Tekelec, the US-based provider of mobile broadband technology services, for approximately US$780m.
Under the agreement announced on 7 November, the consortium will…
A consortium led by private equity firm Sirius Capital Group has agreed to acquire Tekelec, the US-based provider of mobile broadband technology services, for approximately US$780m.
Under the agreement announced on 7 November, the consortium will acquire all of Tekelec’s outstanding shares for US$11 per share, which represents an 11% premium over the closing price of Tekelec’s common shares on 4 November.
The deal is expected to close in Q1 2012. It is subject to shareholder approval, regulatory approval and other customary closing conditions.
The consortium includes affiliates of ComVest Group, as well as funds and accounts managed by GSO Capital Partners LP, Sankaty Advisors LLC, ZelnickMedia and other partners of Siris.
Tekelec’s financial adviser is Goldman Sachs, while Bryan Cave LLP and Akin Gump Strauss Hauer & Feld LLC are acting as legal counsels.
Financial advisers for the PE consortium are Macquarie Capital and Perella Weinberg Partners. Its legal counsel is Simpson Thacher & Bartlett LLP.
A Tekelec statement said that the investor group had secured committed financing, made up of a combination of debt and equity financing.
According to information on the Tekelec website, the three leading institutional investors in Tekelec are Kensico Capital Management Corp, which holds 10.09% of Tekelec’s outstanding shares, Brookside Capital LLC (9.35%) and Blackrock Fund Advisors (6.14%).
Tekelec said that the management team is expected to remain in place.
Tekelec’s president and CEO, Ron de Lange, welcomed the agreement. He claimed that “the acquisition will provide us even greater flexibility to deliver best in-class solutions for the mobile data and video market”.
Tekelec produces technology services to help service providers manage the growth in mobile broadband traffic.
In its Q3 results, also published on 7 November, Tekelec reported net income of US$762,000 for the three months up to the end of September. It had made a net loss of US$134,000 in the same period last year.
Revenue for Q3 2011 was US$106m, slightly down on US$108m for Q3 2010.
