Dec 5 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.