Shareholders at TTI Team Telecom International Ltd have voted with their wallets and given approval for the merger of the company with TEOCO Corp.
First announced in early June, the $58 million buyout passed one of its last hurdles on July 9. Up until this date, TTI was free to entertain better offers.
Virginia-based TEOCO provides cost, revenue and routing management solutions to telecom service providers of VoIP, IPTV, 3G and 4G wireless operators. TTI will help TEOCO expand internationally. TEOCO offered a 24 percent premium over TTI’s closing price of $2.42 earlier this month.
TEOCO and TTI had expected to secure shareholders’ approval and then close the merger in the third quarter. With that quarter just underway, the deal is expected to close before the end of the current quarter. Upon closing, TTI’s common shares will stop trading on the Nasdaq.
Combined, TEOCO and TTI will employ more than 600 people and work with more than 75 communications service providers in 25 countries. TTI is an Israeli supplier of operations support systems (OSS). A spokesperson said today that its shareholders have voted in favor of its merger with TEOCO and anticipate closing by the end of August.
Following the merger, TTI Telecom will become a private company and its outstanding ordinary shares and preferred shares will be automatically converted into the right to receive $3.00 in cash, without interest and less any applicable withholding tax. This amount is subject to adjustment but will remain at least USD 2.90, without interest.
The consummation of the Merger is subject to a 30-day statutory waiting period following shareholder approval and the satisfaction of certain other conditions set forth in the Merger Agreement.
