Endace has received a takeover offer that values the company at around 80 million pounds ($156 million).
El Dorado Research Ventures Limited (Emulex Bidco), a wholly owned subsidiary of Emulex Corporation, has made the offer under the New Zealand takeovers code to purchase the entire issued and to-be-issued share capital of Endace.
The offer is for 5 pounds in cash for each share, which represents a 65 percent premium to the mid-market closing price on December 5 of 302.50 pence.
It is subject to a number of conditions, including Emulex Bidco receiving acceptances for shares which confer 90 percent or more of the voting rights, Overseas Investment Office approval, and consent in respect of various grants received by Endace.
The Endace Board has agreed to provide Emulex with the opportunity to perform due diligence on the business.
The offer document is expected to be dispatched to shareholders on December 21.
Emulex says in a statement that it views the acquisition as an opportunity to enhance its network product offering through Endace’s network visibility and intelligent network recording solutions.
“This acquisition provides Emulex with a strategic entry point into the network performance management space at a disruptive point in time, as speeds move to 10Gb, making network visibility from end to end a critical requirement in a converged network environment,” says Jim McCluney, CEO of Emulex.
Endace’s independent directors and the full board have recommended that shareholders accept the offer.
Endace has been listed on London’s secondary AIM board since 2005.
Emulex, which was founded in 1979, is California based. It has a number of OEM agreements with major players such as Cisco, Dell and EMC.