Marlin Equity Partners, a Los Angeles California-based private investment firm with over US$1 billion of capital under management, will acquire all of the outstanding shares of Tellabs in a deal valued at $891 million ($2.45 per share in cash, representing a 4.3% premium over the closing price on October 18th).
"This transaction will deliver to Tellabs stockholders certainty of value and liquidity, immediately upon closing," said Vince Tobkin, Tellabs chairman. "Tellabs' Board of Directors arrived at the decision to enter into a transaction with Marlin after a thorough review of Tellabs' strategic alternatives and after more than 30 potential buyers, both strategic parties and financial sponsors, were contacted as part of a competitive bidding process.
“This deal reinforces Marlin’s long-term commitment to the telecommunications market sector and the business potential we believe is being driven by the concurrent demand for high-bandwidth mobile, video, and cloud-based services and applications,” said Pat DiPietro, an operating partner at Marlin. “Tellabs has an exceptionally strong heritage of technology innovation and customer-centric solutions, and we look forward to working closely with the Tellabs team to enhance long-term value for its premier customer base.
- Tellabs reported 2012 revenue of $1.05 billion with earnings per share (GAAP) of $.47. The company has about 2,100 employees and is based in Naperville, Illinois.
- Earlier this year, Marlin acquired the Optical Networks business unit of Nokia Siemens Networks as well as Sycamore Networks. The companies were combined into Coriant, a new optical transport company headquartered in Munich, Germany.