Tellabs has entered into an agreement to be acquired by Marlin Equity Partners for $2.45 per share in cash which equates to a total equity value of approximately $891 million. The transaction is expected to close in the fourth quarter of 2013 and is not subject to a financing condition.
“We are excited to back the Tellabs team and we view Tellabs’ business as an ideal opportunity to capitalize on the growth in the telecom network equipment sector,” said Nick Kaiser, partner at Marlin. “We are committed to extending Tellabs’ market leadership by continuing to make significant investments in research and development, and in providing a superior customer experience.”
The Tellabs Board of Directors has unanimously approved the transaction. In addition, Michael Birck, Tellabs’s co-founder and second-largest stockholder, has communicated to Tellabs that he supports the transaction.
Tellabs (NASDAQ: TLAB) designs, develops and supports telecommunications networking products. The company serves telecommunications service providers (including mobile wireless communication companies), independent operating companies, multiple-system operator cable companies, enterprises and government agencies. Revenues in 2012 were approximately $1 billion. Tellabs was founded in 1975 and is headquartered near Chicago in Naperville, IL (www.telllabs.com).
Marlin Equity Partners invests in businesses that have revenues of $20 million to $1 billion and that are in the process of undergoing varying degrees of operational, financial or market-driven change. Sectors of interest include technology, healthcare, consumer products and services, business services, manufacturing, aerospace & defense, distribution & logistics, and media. The firm has $2.6 billion of capital under management. Marlin is headquartered in Los Angeles with an additional office in London (www.marlinequity.com).
Goldman, Sachs & Co. is acting as financial advisor to Tellabs. Credit Suisse and Evercore are acting as financial advisors to Marlin.
© 2013 PEPD • Private Equity’s Leading News Magazine • 10-22-13
