Marlin Equity Partners is going to acquire Tellabs for $891 million. Tellabs is an unprofitable phone-equipment manufacturer that will become a private company. The board approved of the transaction after over 30 potential buyers were contacted. Based in Naperville, Illinois, Tellabs said that the offer is $2.45 per share, which is 4.3% higher than the company’s closing price on October 18th.
Tellabs saw 11 straight quarters of losses as the company has been shifting from older phone network switches to wireless systems. Last year, Tellabs’ chief executive officer Rob Pullen died from cancer. Tellabs chairman Mike Birck also said he would be stepping down because he was diagnosed with leukemia.
?This transaction will deliver to Tellabs stockholders certainty of value and liquidity, immediately upon closing,? stated Tellabs’ current chairman Vince Tobkin. Birck, a co-founder of Tellabs and second largest stockholder, has approved of the transaction.
?We view Tellabs?s business as an ideal opportunity to capitalize on the growth in the telecom network equipment sector,? stated Marlin Equity Partners partner Nick Kaiser. This transaction will be closed in the current quarter.