Tellabs to Go Private in $891M Deal

by Christopher Freeburn | October 21, 2013 10:58 am

business handshake 630 300x199 Tellabs to Go Private in $891M Deal[1]Shares of Tellabs (TLAB[2]) climbed more than 4% in Monday morning trading after the company agreed to be acquired[3].

Marlin Equity Partners will pay $2.45 a share, a 4.3% premium over the struggling telephone equipment manufacturer’s Friday closing price. The deal, which is expected to be close before the end of the year, is valued at about $891 million, Bloomberg noted.

Tellabs produces equipment for telephone networks. The company is attempting to introduce new products for wireless phone systems, migrating away from its traditional phone-network switch business. The board had sought offers from more than 30 potential suitors.

Last year, its CEO passed away after a battle with cancer and its chairman resigned due to medical issues.

Tellabs has posted 11 consecutive quarterly losses.

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