Tekelec finishes sales negotiations with Siris Capital
The deal values the company at $11 a share.
Tekelec has confirmed it will be acquired for around $780 million (£487 million) by a consortium led by Siris Capital.
It represents an all-cash deal of $11 a share - some 11 per cent above closing price on November 4th - which highlights the negotiation skill that was utilised.
Ron de Lange, president of Tekelec, noted customers do not have to worry about the quality of their service being affected by the move.
He added: "The acquisition will provide us even greater flexibility to deliver best-in-class solutions for the mobile data and video market."
The deal has been unanimously approved by the board of directors and now the customary closing conditions just have to be met.
It comes shortly after Tekelec announced third quarter results for 2011, which showed revenue was at $106.2 million.
As well as this, orders were at $67.9 million, which represents a 16 per cent drop in the same three-month period in 2010.
Posted by David Gleck
Source: Tekelec press release, November 7th