Tellabs bought by Marlin Equity Partners for $891m

Mobile backhaul and optical networking specialist Tellabs has announced that it is to be bought by private equity firm Marlin Equity Partners for $891m, or $2.45/share. Tellabs said that it had accepted the offer from Marlin, which in December last year bought NSN’s optical business, after contacting more than 30 potential buyers.

While the price offered a premium of just 4.3 per cent over Tellabs closing price on Friday evening last week, it was 13.3 per cent over the 180-day average, Tellabs said, and 28.9 per cent higher than the firm’s 52-week low, which happened in April.

“This transaction will deliver to Tellabs stockholders certainty of value and liquidity, immediately upon closing,” said Vince Tobkin, Tellabs chairman. “This move begins an exciting new chapter for Tellabs, our customers, partners and employees. We believe the transaction will enable us to invest in key technologies for future products, and become even more competitive as we help our customers succeed,” Tobkin added.

Tellabs reported a net loss of $8m for the second quarter of 2013, compared to a loss of $5m for the same period in 2012.