A consortium led by Siris Capital Group and affiliates of
The ComVest Group, funds and accounts managed by GSO Capital Partners, Sankaty
Advisors, ZelnickMedia and other Siris limited partners and affiliates, will
acquire Tekelec, a mobile broadband solutions company, for approximately $780
million.
The acquisition will provide Tekelec better
flexibility to deliver solutions for the mobile data and video market.
The consortium will continue investing in and building on
Tekelec’s reputation for innovation, scalability and reliability to extend the
company’s mobile data products to new markets and applications.
Tekelec’s management team is expected to remain in place,
and Merle Gilmore, former president of Motorola’s Communications Enterprise and
chairman of the Board of Airvana Network Solutions, will serve as Tekelec’s
executive chairman following the closing.
“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.
Siris Capital Group focuses on the technology,
telecommunications and healthcare industries. The investor group has secured
committed financing, consisting of a combination of equity and debt financing.
“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 Merle
Gilmore.
According to a media report,
Tekelec reported net income of $762 million for the three months ended
September 30, up from a loss of $134 million, a year ago. Revenues, however,
fell two percent to $106.18 million, from $108.31 million in the same period
last year.
Analysts had expected 17-cents per share, on $104 million in
revenues. Gross margins gained 500 basis points, to 68 percent, from 63 percent
in the same quarter last year.
By Telecomlead.com Team
