The $12.61 per share deal represents a 31 per cent premium on the closing share price on Friday, the last full trading day before the deal was announced.
Avista’s purchase include the assumption of $18.5m of net debt, and is expected to close within 50 to 75 days, the firm said.
Avista partner Brendan Scollans said, “Telular’s strong position in three rapidly growing machine-to-machine communications end markets and compelling recurring revenue business model make it a highly attractive platform for Avista. We are looking forward to working with Telular’s talented management team to drive the next phase of the Company’s growth both organically and through acquisitions.”
Telular is allowed to solicit superior proposals from other parties until May 29, and plans to release its second quarter earnings on May 2.
Oppenheimer & Co is acting as exclusive financial advisor and Kelley Drye & Warren LLP and Covington & Burling as legal advisors to Telular.
Kirkland & Ellis is serving as legal advisor to Avista, while SunTrust Robinson Humphrey is acting as financial advisor to Avista and has provided the debt financing commitment for the acquisition.
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