Tekelec, a publicly-listed mobile broadband solutions provider, is to be acquired by an investor group in a transaction valued at approximately $780m (or $11 per share) in cash. The investor consortium making the buy is led by PE firm Siris Capital Group and includes affiliates of The ComVest Group, funds and accounts managed by GSO Capital Partners Sankaty Advisors ZelnickMedia and other Siris LPs and affiliates.
According to a press statement, the investor group has already secured the funding needed to complete the transaction, consisting of a combination of equity and debt financing.
The deal is expected to close during the first quarter of 2012, pending shareholder approval, regulatory approvals and customary closing conditions.
Tekelec’s management team is expected to remain in place, and Merle Gilmore, former President of Motorola’s Communications Enterprise, will serve as Tekelec’s Executive Chairman following the closing of the deal.
In related news, Tekelec reported third-quarter earnings today: revenue for the quarter was $106.2 million, down 2 percent year-over-year. On a non-GAAP basis, the company reported net income for Q3 2011 of $13.1 million.
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