A consortium of investor firms led by private equity firm Siris Capital Group is looking to acquire Tekelec, a US-based mobile broadband solutions company, for approximately $780 million.
The consortium which also includes ComVest Group, and accounts managed by GSO Capital Partners Sankaty Advisors ZelnickMedia and other Siris LPs and affiliates, will pay $11 per share, representing a premium of 11 per cent over Tekelec's 4 November closing price of $9.90.
Morrisville, North Carolina-based Tekelec produces hardware and software solutions for telecommunication companies in land line, mobile and data. It provides solutions that allow service providers to both manage and monetise growth in mobile data traffic and multimedia applications.
Tekelec's management team is expected to remain in place, and Merle Gilmore, former president of Motorola's Communications Enterprise, will be Tekelec's executive chairman post closing of the deal.
''Our customers can expect the same level of innovation and quality from our market leading products and our global team,'' said Ron de Lange, president and CEO of Tekelec.
''Tekelec presents a unique opportunity to acquire market leading products in the signaling, policy, and diameter routing markets, a global customer base that includes 16 of the top 20 wireless service providers, and a highly skilled employee workforce,'' said Gilmore.
Siris Capital, which focuses on the technology, telecommunications and healthcare industries, said the investor group has secured committed financing, comprising a combination of equity and debt financing.