Marlin Equity Partners, a Los Angeles California-based private investment firm with over US$2.6 billion of capital under management, completed its previously announced acquisition of all of the outstanding shares of Tellabs in a deal valued at $891 million ($2.45 per share in cash, representing a 4.3% premium over the closing price on October 18th).
Tellabs continues operations as a supplier of packet-optical, mobile backhaul and Optical LAN networking solutions. The company serves telecom service providers, independent operating companies, MSO/cable companies, enterprises and government agencies with networks in more than 90 countries around the world.
Marlin said the addition of Tellabs builds on its track record of acquisitions in the telecom sector, which includes Coriant (formerly the Optical Networks business of Nokia Siemens Networks), Coriant America, Inc. (formerly Sycamore Networks Solutions Inc.), Openwave Mobility and Openwave Messaging.
“The ever-increasing demand for data is driving fundamental network transformation and impacting multiple segments and applications, including mobile backhaul, metro/regional optical transport and enterprise LANs,” said Pat DiPietro, an operating partner at Marlin. “Tellabs has successfully demonstrated technology innovation and market leadership in each of these areas, as well as in emerging technologies such as Software Defined Networking. The proven experience and expertise of the Tellabs team, combined with Marlin’s commitment to the market opportunity and a growing portfolio of complementary solutions, will offer Tellabs’ service provider, enterprise and government customers an enhanced value proposition today and into the future as their networks and services evolve.”
Dan Kelly, Tellabs president and CEO, added, “With Marlin as our strategic investor, we have gained a partner who not only shares our vision for advancing smart networks, but also one with deep domain experience and the financial resources to help us bring new innovations to market and expand the service and support capabilities for our long-standing customers.”
Credit Suisse and Evercore acted as financial advisors, and Schulte Roth & Zabel LLP acted as legal counsel to Marlin. Goldman, Sachs & Co. acted as financial advisor, and Sidley Austin LLP acted as legal counsel to Tellabs.
