Tallahassee, FL 11/7/11 (StreetBeat) -- Network technology provider Tekelec (Nasdaq: TKLC) agreed to be bought by a private equity group led by Siris Capital for about $780 million in cash.The consortium will pay $11 per share, 11 percent more than Tekelec's Friday close of $9.90. The shares have leapt 32 percent since Oct. 19, when the company announced its largest ever order and gave a strong forecast for the third quarter.
Tekelec, which had an annual revenue of $424 million in 2010, helps phone companies enable services such as text messaging and its customers include most of the top carriers in the United States. Separately, the company posted third-quarter adjusted profit ahead of Wall Street estimates and forecast 2011 mostly in line with analysts' expectations. .
Apart from Siris, the private equity group includes affiliates of ComVest Group, GSO Capital Partners LP, Sankaty Advisors LLC and ZelnickMedia. The investor group has secured committed financing, consisting of a combination of equity and debt financing, Tekelec said in a statement.
Morrisville, North Carolina-based Tekelec's management team is expected to remain in place, and Merle Gilmore, chairman of the board of Airvana Network Solutions Inc, will become executive chairman of Tekelec after the deal closes, likely in the first quarter of 2012.
Goldman Sachs is acting as financial adviser to Tekelec. Perella Weinberg Partners and Macquarie Capital are serving as financial advisers to the consortium.
Tekelec shares rose 11 percent to $11.01 in pre-market trade.
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