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New York firm to buy Xeta Technologies [Tulsa World, Okla.]
(Tulsa World (OK) Via Acquire Media NewsEdge) Feb. 09--Broken Arrow-based XETA Technologies Inc., which has been on a corporate buying spree in recent years, is poised be bought out itself, the company announced Wednesday.
PAETEC Holding Corp., a business communications provider based in Fairport, N.Y., has agreed to buy XETA for $5.50 per share, or $61 million.
Shares of XETA soared more than 40 percent Wednesday, gaining $1.56 to close at $5.40 on the Nasdaq Stock Market.
XETA employs 469 people across the country, including about 160 in metro Tulsa. It is unclear how the deal would affect the local workers.
The purchase, which would make XETA an indirect, wholly owned subsidiary of PAETEC, is subject to approval by XETA's shareholders. The sale is expected to be completed within three months.
Greg Forrest, CEO and president of XETA, said the acquisition would provide great value to the company's stockholders.
"If you look at the value of the PAETEC proposal and what it delivers to our shareholders, this presents a significant premium over market value," Forrest said in a telephone interview.
Arunas A. Chesonis, chairman and CEO of PAETEC, noted in a news release that the two companies offer similar services.
The deal, he said, reflects PAETEC's strategy to boost its services to customers "beyond traditional telecom products with advanced managed services and cloud computing solutions."
PAETEC provides business communications for medium and large businesses, enterprise organizations and institutions across the nation. The company offers IP, voice, data and Internet services,
as well as enterprise communications management software, network security solutions and managed services.
PAETEC employs 4,500 people worldwide, including 117 in downtown Tulsa, Forrest said.
Although Forrest said it was too soon to speculate on how the deal would affect XETA's work force, he said the company should continue to grow aggressively under PAETEC.
The buyout comes after XETA has purchased a string of communications companies. Last year, it acquired Data-Com Telecommunications Inc., a New Jersey-based provider of communications equipment, applications and related services.
XETA's other 2010 purchases include Lorica Solutions, a Buffalo, N.Y.-based provider of managed networks for the hospitality industry, and Pyramid Communications Services Inc., a communications services provider based in Dallas.
Forrest said significant consolidation has occurred in business telecommunications, and the decision to sell came after XETA received interest from several potential buyers, including PAETEC.
"When you have a lot of successes and are growing faster than the general market, you get noticed," he said.
Forrest said the addition of PAETEC's product line should benefit XETA customers, and the culture for employees of both companies is similar.
He said he would help lead the integration of the two companies.
"I'm excited about the opportunity for PAETEC to come together with XETA," he said.
Shares of PAETEC closed Wednesday at $4.11, down 1 cent. PAETEC's 52-week high was $5.20 on April 29, and its 52-week low was $3.14 on Feb. 10, 2010.
To see more of the Tulsa World, or to subscribe to the newspaper, go to http://www.tulsaworld.com.
Copyright (c) 2011, Tulsa World, Okla.
Distributed by McClatchy-Tribune Information Services.
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