Optical components maker Enablence Technologies Inc. (ENA.V) Thursday said that it has signed a definitive merger agreement to acquire Israeli corporation Teledata Networks Ltd. The transaction is expected to close following the completion of the applicable statutory waiting periods in Israel.
Enablence said the completion of the transaction is subject to the satisfaction of certain conditions agreed upon by the parties, including obtaining the approval of the TSX Venture Exchange and Teledata shareholder approval.
As per the terms of the agreement, the merger consideration will be a combination of US$10 million in cash, US$10 million in secured interest-bearing promissory notes payable on the second anniversary of the closing of the transaction, and US$30 million in common shares to be issued by Enablence at the closing based on a pricing formula set out in the agreement.
Arvind Chhatbar, Chairman of Enablence said, with this merger, Enablence will become a strategic player in the global broadband market, with the critical mass to meet the needs of service providers and the ability to service Tier 1 operators internationally.
"With Teledata's capabilities, Enablence will be able to serve its current customers that wish to extend the useful life of their existing copper networks. Teledata's customers will benefit from having Enablence's GPON and Active Ethernet solutions to migrate their existing copper networks to fiber," said Tim Thorsteinson, the incoming chief executive officer of Enablence.
Enablence Technologies designs, manufactures and sells optical components, subsystems, systems, advanced optical communications access networks, and planar lightwave circuit or PLC technology, which is used to integrate multiple components into a single optical chip.
Teledata Networks is a provider of innovative multiservice access solutions, which enables telecom providers to smoothly migrate to next generation networks.
ENA.V shares closed Wednesday's regular trading session at C$0.57 on the Canadian Stock Exchange.
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