Arbinet Corporation, a Virgina-based VoIP provider is being acquired by Primus Telecommunications, an integrated facilities-based telecommunications services provider also based in Virginia. The all-stock transaction is valued at US$28m.
Based on…
Arbinet Corporation, a Virgina-based VoIP provider is being acquired by Primus Telecommunications, an integrated facilities-based telecommunications services provider also based in Virginia. The all-stock transaction is valued at US$28m.
Based on current capitalisations, Arbinet shareholders will be expected to own 23% of the combined company, and Primus shareholders will own approximately 77%.
There is a go-shop provision built into the agreement, whereby Arbinet may solicit alternative proposals from third parties during the next 45 calendar days.
BankStreet Group is serving as Arbinet’s financial adviser with Mintz, Levin, Cohn, Ferris, Glovsky & Popeo as legal adviser.
Houlihan, Lokey and Howard & Zukin acted as financial advisers to Primus in connection with the Arbinet merger.
Separately, Primus engaged Akira Partners to conduct a process to sell assets in the UK, France, Belgium and Italy. Primus has also worked to sell assets in other European countries. To date, the sales of the UK, Belgium, Spain, Sweden, Switzerland and Italy operations are closed.
The transaction is expected to close in the first quarter of 2011.
