Monday, November 7, 2011

Tekelec Acquired for $780M (11% Premium); Receives Diameter Order of $13M

Tekelec announced that ".. it has entered into a definitive agreement to be acquired by a consortium led by Siris Capital Group, LLC (“Siris”) and including affiliates of The ComVest Group, funds and accounts managed by GSO Capital Partners LP, Sankaty Advisors LLC, ZelnickMedia and other Siris limited partners and affiliates. The transaction is valued at approximately $780 million .. representing an 11% premium over the closing price on November 4, 2011, and a 38% premium over the 30 day trading average closing price of Tekelec common stock".

The company also announced its Q3 results - "Revenue for the third quarter 2011 was $106.2 million, down 2% compared to $108.3 million for the third quarter 2010. Orders were $67.9 million for the quarter, down 16% from the same period in 2010. The orders decline was across both the Global Signaling Solutions and Broadband Network Solutions business units"

In October 2011 alone, Tekelec received 2 orders for its Diameter router product which accumulate to almost 50% of Q3 orders:  "The Company received a Diameter Signaling Router (“DSR”) related order in the amount of approximately $20 million in early October which was previously expected to be received in the third quarter [Verizon Wireless - here] . ..  The Company received a second DSR related order in the amount of approximately $13 million in late October from another large carrier"

See "Tekelec to Be Acquired for Approximately $780 Million" - here and "Tekelec Announces Third Quarter 2011 Operating Results" - here.

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