Whoa! Hughes Telematics bags a huge premium from Verizon.
The press release:
finance.yahoo.com
Verizon to Buy Hughes Telematics for $612 Million
By MICHAEL J. DE LA MERCED
DealBook
New York Times
June 1,, 2012
Verizon Communications said on Friday that it has agreed to buy Hughes Telematics, a maker of wireless systems for vehicles, for $612 million in cash.
Under the terms of the deal, Verizon will pay $12 a share, an exorbitant premium to of Hughes’ Thursday closing price of $4.35.
The deal is aimed at building up Verizon’s offerings in products like GPS and auto safety and entertainment features, at a time when telecom companies are seeking new sources of revenue.
John Stratton, the president of Verizon’s enterprise solutions unit, said in a statement: “In powerful combination with Verizon’s global IP network, cloud, mobility and security solutions, Hughes Telematics’ flexible service-delivery platform has the potential to reach beyond the automotive and transportation realm to create new opportunities in mHealth, asset tracking and home automation.”
The deal is expected to close in the third quarter, with Verizon keeping Hughes’ current management team and headquarters in Atlanta.
Verizon was advised by UBS and the law firm Debevoise & Plimpton. Hughes was advised by Barclays and the law firm Skadden, Arps, Slate, Meagher & Flom, while its special committee was counseled by Moelis & Company and the law firm Nelson Mullins Riley & Scarborough.
dealbook.nytimes.com |
