Tellabs To Be Purchased By Marlin Equity Partners For About $891 Mln Cash

(RTTNews) - Telecom equipment maker Tellabs (TLAB) has reached a definitive merger deal with entities affiliated with Marlin Equity Partners, which provides that Marlin entities would buy Tellabs' outstanding shares for $2.45 per share cash. This represents a premium of 4.3% over the closing share price on October 18, and 13.3% over the 180-day volume-weighted average closing share price as of the same day. Moreover, it represents a premium of 28.9% over the current 52-week-low closing share price, which occurred on April 17. The transaction value represents a total equity value of some $891 million on a fully diluted basis.

Pursuant to the merger agreement, Marlin's affiliate is required to begin a tender offer to purchase Tellabs' outstanding stock for $2.45 per share no later than November 1, 2013.

The transaction, which is not subject to a financing condition, may close in the fourth quarter of 2013. The Tellabs board has unanimously approved the transaction. Furthermore, Tellabs's co-founder and second-largest stockholder, Michael Birck, has communicated to the company saying he is supporting the transaction.