Private-equity firm Carlyle Group is on a shopping spree. The global alternative asset manager has agreed to buy telecommunications-services firm Syniverse Technologies Inc. for $2.6 billion.
Carlyle will acquire all of the outstanding common shares of Syniverse for $31 per share in cash representing a premium of approximately 35 percent over Syniverse's average closing share price during the 30 trading days ended Oct. 26, 2010. The transaction is expected to close in the first quarter of 2011.
According to its website, Syniverse “provides a full portfolio of mobile roaming, messaging and network solutions to more than 800 mobile operators, cable and Internet providers, and enterprises in over 160 countries.”
"After careful and diligent analysis, together with our independent advisers, the board of directors and I are proud to enter into this agreement with Carlyle," said Bob Marino, chairman of Syniverse. "The acquisition provides validation of the results we have achieved through our sound strategy, strong management team, and expert employee base, and provides our stockholders with a significant cash premium for their investment."
Syniverse represents Carlyle’s second big telecom acquisition this week. Earlier, CommScope, Inc., a provider of infrastructure solutions for communications networks, entered into a merger agreement with The Carlyle Group in a transaction valued at approximately $3.9 billion that will result in CommScope becoming a private company. The transaction is expected to close in the first quarter of 2011.
Bud Watts, managing director and head of Carlyle’s Technology Group, said, “We’ve known Frank, Eddie and other senior leaders at CommScope for many years. We have the greatest respect for them, CommScope’s many talented employees and the business they have built together. CommScope has a clear strategy, a culture of operational excellence and strong commitments to its employees, customers and partners around the world. We look forward to working with the ‘One CommScope’ team as it pursues the next phase of the company’s growth.”
Edited by
Erin Harrison