Telecom Platform Deployment Featured Article
UNICOM Systems Finalizes Acquisition of Telecom Platform Deployment Provider NEI
By Deepika Mala, TMCnet Contributor
NEI (News - Alert), a provider of innovative telecom platform deployment solutions, recently revealed that it has entered into a definitive merger agreement with UNICOM (News - Alert) Systems, Inc. and a new UNICOM subsidiary.
Under the terms of this newly inked agreement, UNICOM, a global information technology company and part of the UNICOM group of companies, will acquire NEI for $1.45 per common share in cash.
Valued at approximately $63.2 million, the transaction is subject to customary closing conditions and the approval of NEI shareholders. The boards of directors of both NEI and UNICOM have unanimously approved the transaction and the board at NEI has recommended that its shareholders vote in favor of the transaction.
Once the merger is commenced, NEI will become a private company, wholly owned by UNICOM. In addition, the telecom platform deployment provider will be permitted to solicit alternative acquisition proposals from third parties through July 18, 2012 and intends to consider any such proposals.
In a press release, Greg Shortell, president and chief executive officer of NEI said, "This offer represents an attractive opportunity to deliver premium value and liquidity to NEI's shareholders. I am excited about the potential for future growth with a strategic partner of UNICOM's stature and global reach. This is an excellent opportunity to realize short- and long-term benefits for our customers, employees and technology partners."
At any time, subject to the terms of the definitive merger agreement, the telecom platform deployment provider will also be able to respond to unsolicited alternative acquisition proposals.
The document also contains certain break-up fees payable to each party in connection with the termination of the definitive merger agreement under certain circumstances.
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Edited by Jamie Epstein