Primus Telecommunications Group (OTC:PMUG) announced today that it has completed its acquisition of Arbinet Corporation (NASDAQ:ARBX), a provider of wholesale telecom exchange services to carriers in an all-stock transaction. Pursuant to the definitive merger agreement dated November 10, 2010, which was further amended on December 14, 2010, it is anticipated that Arbinet stockholders will receive approximately 0.5817 shares of Primus common stock for each share of Arbinet common stock that they hold. As I write, shares of Primus are flat at $15.60 per share on light volume. Primus has a market cap of $153 million and a 52-week range between $5.75 and $16.25 per share.Arbinet stockholders (by virtue of holding Arbinet common stock immediately prior to the effective time of the merger) now own approximately 25% of the outstanding shares of Primus common stock. The number of Primus shares outstanding, on a pro forma basis for the completion of the transaction, is 13,108,380.
Peter D. Aquino, Chairman, President and Chief Executive Officer, stated, "The combination of Primus' International Carrier Services group with Arbinet's thexchange(SM) creates a unit with over $500 million in annual revenue. This enhances our competitiveness and our ability to serve the diverse needs of our customers. The new business unit called PTGi International Carrier Services is uniquely positioned to fulfill customers' wholesale needs regardless of their sourcing preferences. We are now implementing our plan of integration, which we expect to be substantially completed over the next 12 months. We anticipate accretive cost synergies of approximately $3 million in 2011 and approximately $7 million in 2012. We continue to expect this to be a win for our customers and employees, and to generate additional value for stockholders. We welcome Arbinet's employees and its stockholders to PTGi."
Primus is a provider of advanced communication solutions, including, traditional and IP voice, data, mobile services, broadband Internet, collocation, hosting, and outsourced managed services to business and residential customers in the United States, Canada, Australia, and Brazil. Primus is also one of the international wholesale service providers to fixed and mobile network operators worldwide. Primus owns and operates its own global network of next-generation IP soft switches, media gateways, hosted IP/SIP platforms, broadband infrastructure, fiber capacity, and data centers located in Canada, Australia, and Brazil. Founded in 1994, Primus is headquartered in McLean, Virginia.
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