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Mobile Networks Featured Article

Mobile Broadband Software Manufacturer Acquired for $530 Million

By Kelly McGuire, TMCnet Editor

After just recently releasing its mobile broadband software in what seemed to be an attempt to take advantage of the growing amount of mobile broadband traffic, Airvana (News - Alert) Inc. announced today that, pending shareholder approval, the company will be acquired.

Valued at approximately $530 million, Airvana entered into a definitive agreement transaction with 72 Mobile Holdings, LLC, a newly formed company owned by affiliates of S.A.C. Private Capital Group, LLC, GSO Capital Partners LP, Sankaty Advisors LLC and ZelnickMedia.

Randy Battat, president and CEO of Airvana, said that, as the company transitions to the private sector, it will continue to focus on the two major mobile broadband product lines, including EV-DO software, which was upgraded just recently, and its femtocell product.

At closing, pending various approval processes, each Airvana common stock share will be exchanged for $7.65 in cash, a premium of roughly 23 percent over the closing price on Dec. 17, the day the transaction was unanimously approved.

Additionally, Battat and Airvana founders Vedat Eyuboglu and Sanjeev Verma (News - Alert) will trade a portion of their Airvana shares for an equity interest in the acquirer. 

“Our customers should expect the same great products delivered by the same great team,” Battat said. 

“We are enormously excited about the opportunity to work with such a strong management team and talented group of employees to build on Airvana’s impressive track record,” Merle Gilmore, former president of Motorola’s (News - Alert) Communications Enterprise, said, who will serve as Chairman of the company following the closing.

In order to fund the acquisition, 72 Mobile has secured committed financing from various entities, including investor groups and debt financing funds. There is no financing condition to the obligation of the investor group to consummate the transaction.

On Dec. 17, Airvana’s Board of Directors, with the exception of Battat and Verma who abstained, along with a special committee of independent directors, the transaction was unanimously approved. Completion of the transaction is subject to approval of Airvana shareholders, regulatory approvals and other closing conditions and is expected to occur by the end of the first quarter 2010.

TMCnet reached out to Airvana, but no one was available for immediate comment.

Kelly McGuire is a TMCnet Web editor, covering CRM and workforce technologies, and anchor of its daily TMC Newsroom video broadcast. Kelly also writes about eco-friendly 'green' technologies and smart grids, compiling TMCnet's weekly e-Newsletters on those topics, as well as the cable industry. To read more of Kelly's articles, please visit her columnist page.

Edited by Kelly McGuire