June 9, 2010 / 1:27 PM / 9 years ago

UPDATE 1-Privately held Teoco to buy TTI Telecom for $58 mln

* Offer of $3 per share at premium of 24 pct

* TTI can seek superior offers till July 9

June 9 (Reuters) - Privately held Teoco Corp, which provides routing management to communications service providers, said it would buy Israel-based TTI Team Telecom International Ltd TTIL.O for $58 million to expand its presence worldwide.

Teoco will buy TTI Telecom for $3 per share, a premium of 24 percent to TTI’s Tuesday’s closing price of $2.42.

The purchase price may be lowered till $2.90 per share at closing if TTI’s transaction expenses are above an amount previously agreed upon.

Teoco does not expect the deal value to rise.

TTI Telecom, which provides operations support systems to communications service providers, can seek superior proposals till July 9, the companies said.

TTI Telecom has more than 70 service providers as customers in over 25 countries.

The companies expect to close the deal in the third quarter.

Shares of TTI Telecom were trading up 18 percent at $2.86 in trading before the bell. (Reporting by Manasi Phadke in Bangalore; Editing by Don Sebastian)

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