ibasis

KPN Acquires Rest Of iBasis For $93.3 Million In Cash

Next Story

New cell phone maker NEC-Casio goes America, targets 200% international sales boost

Dutch telecom group KPN has agreed to acquire the 44% of U.S.-based operator iBasis that it doesn’t already own for $3 a share, or $93.3 million in cash. A special committee of the iBasis board has approved the terms put forward a couple of weeks ago, and is urging company holders to accept KPN’s tender offer.

KPN says it intends to complete the acquisition of iBasis through a merger no later than today.

The deal price is more than double the $1.30 closing price of iBasis shares on July 10, the last trading day before KPN announced an offer for the company, and about a third more than the closing price on Friday of $2.26. KPN adds that all iBasis shares not validly tendered into the tender offer will be converted into the right to receive $3.00 per share, net to the holder in cash without interest.

KPN had to raise its offer to gobble up iBasis quite a few times, and the two companies were mixed up in litigation over the unsolicited buy-out offer. iBasis had filed a complaint last August, seeking declaratory and injunctive relief to stop KPNs “grossly inadequate tender offer”.

As part of their agreement, KPN and iBasis have now agreed to drop the litigation.

iBasis, founded in 1996, is one of the three largest carriers of international voice traffic in the world, having carried approximately 24 billion minutes of voice traffic in 2008 according to its website. Besides carrying international calls, the company also provides retail prepaid calling services, VoIP and other services for mobile operators.

The company has its headquarters in Burlington, Massachusetts.

blog comments powered by Disqus