Networking equipment maker Tellabs has agreed to be taken over by Marlin Equity Partners for a cash payment of $891 million.
The deal represents a premium of 4.3% over the closing share price of Tellabs on October 18, according to a statement from the companies, and will see Marlin (Hermosa Beach, CA, USA) offer to acquire all outstanding shares of Tellabs (Naperville, IL, USA) for the sum of $2.45 per share no later than November 1.
Tellabs and Marlin expect the deal to close in the fourth quarter of 2013.
Tellabs says that its board of directors has unanimously approved the deal, as has Michael Birck, Tellabs’ co-founder and second-largest shareholder.
“This transaction will deliver to Tellabs stockholders certainty of value and liquidity, immediately upon closing,” said Vince Tobkin, Tellabs chairman. “Tellabs’ board of directors arrived at the decision to enter into a transaction with Marlin after a thorough review of Tellabs’ strategic alternatives and after more than 30 potential buyers, both strategic parties and financial sponsors, were contacted as part of a competitive bidding process.”
“This move begins an exciting new chapter for Tellabs, our customers, partners and employees,” added Tobkin. “We believe the transaction will enable us to invest in key technologies for future products, and become even more competitive as we help our customers succeed.”
Marlin said it was committed to extending Tellabs’ market leadership by continuing to invest in research and development, as well as in providing a superior customer experience.