UPDATE 1-Emulex to offer $130 mln for New Zealand-based Endace
Dec 5 (Reuters) - Storage-equipment maker Emulex Corp said it intends to make an offer for New Zealand-based network equipment maker Endace Ltd for about $130 million in cash to expand its market.
The 500 pence-per-share offer represents a premium of 65 percent to Endace's Tuesday closing price of 302.5 pence on the London Stock Exchange.
"Acquiring Endace aligns with our software-defined convergence strategy, doubles our total addressable market and places Emulex in another high-margin, high-growth market," Emulex Chief Executive Jim McCluney said in a statement.
Emulex has entered into lock-up agreements with certain directors of Endace, including co-founder Ian Graham, and received expressions of support from co-founder Selwyn Pellett, the companies said in the joint statement.
Emulex has also received commitment letters from two other Endace directors who are shareholders.
The deal, expected to close in the March quarter, will add to Emulex's earnings at the beginning of the fiscal year starting September 2013.
Endace, which has a market value of $74 million, provides network monitoring equipment, network analytics software and high-speed network access switching.
Endace's independent directors have commissioned Grant Samuel to provide an independent adviser's report, as required by the New Zealand Takeovers Code.
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