DALLAS—Somera Communications Inc. and Telmar Network Technology announced they have agreed to merge, saying they have reached a deal to pay Somera shareholders $4.60 per share, which is a 123 percent premium above the stock’s Friday closing price of $2.06 per share.
The agreement spells out that Somera will become a subsidiary of Telmar, creating a combined telecom asset management company with more than 400 employees with customers in 25 countries. The companies said they will provide products and services for network maintenance, expansion and asset management to carriers. Specifically, the company will offer new and refurbished legacy equipment, multi-vendor repair capabilities and Somera’s RecoveryPLUS asset management program.
“The combined strength of these two companies better positions us to serve our customers in these rapidly changing and consolidating markets,” stated John Kidwell, chief executive of Telmar.
Kidwell is set to serve as CEO of the combined company, while Somera’s CEO, David Heard, has agreed to step down July 1, but is expected to assist in the transition as a member of the advisory board and as a consultant for Somera. Wayne Higgins, chief operating officer of Somera, will be responsible for overseeing Somera during the transition, including both the traditional business lines and the continued expansion of the RecoveryPLUS service offering.
The deal is expected to close this year.
Somera’s stock hit $4.29 per share during midday trading.
Raymond James analyst Ric Prentiss gave the acquisition a thumbs-up, upgrading Somera’s shares to “market perform” from “underperform” and noting, “We agree that privatization is the right direction for the company.”
