Friday, Starent Networks Corp.(STAR), a maker of infrastructure equipment used by wireless carriers, said that its shareholders approved the proposed acquisition of the company by Cisco Systems Inc.(CSCO).
The Tewksbury, Massachusetts-based company noted that as per the deal that was announced on October 12, shareholders will receive $35.00 in cash for each of its outstanding share and assume outstanding equity awards for an aggregate purchase price of about $2.9 billion, following the closing of the merger. The merger remains subject to regulatory approval and other closing conditions.
The company earlier had said that upon completion of the transaction, Starent will become the new Mobile Internet Technology Group within Cisco's Service Provider Business which is led by Pankaj Patel, Senior Vice President and General Manager. The new group will be led by Starent Networks' President and Chief Executive Officer Ashraf Dahod.
In its earlier statement Cisco, the world's largest computer networking gear maker, noted that it expects the acquisition to reduce non-GAAP earnings in fiscal years 2010 and 2011, and add to non-GAAP earnings in fiscal year 2012.
Starent in its third quarter posted lower profit of $15.1 million or $0.20 per share, compared to $19.6 million or $0.26 per share in the same quarter last year, reflecting the absence of a one-time tax benefit recorded last year. Revenue for the quarter rose to to $85.97 million from $66.1 million in the year ago period.
STAR closed Friday's regular trading at $34.52, down $0.05 or 0.14% on a volume of 1.39 million shares and CSCO closed trading at $23.77, down $0.17 or 0.71% on a volume of 24.23 million shares on the Nasdaq.
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