Feb, 2011 : PAETEC Holding Corp. to Acquire XETA Technologies
📅 - Acquisition builds on the company's strategy of offering comprehensive, managed service solutions to meet the diverse needs of Chief Information Officers.
PAETEC Holding Corp., a colocation and data center operator, today announced that it has signed a definitive agreement to acquire XETA Technologies, Inc., a provider of communication technologies, for $5.50 per share in cash valued at approximately $61 million.
The company says that founded in 1981, XETA Technologies sells, installs and services advanced communication technologies for enterprise customers. XETA is among the largest full-service, providers of advanced communications solutions with 32 locations and redundant 24/7 customer contact and data network operating centers. At the time of the Avaya and Nortel merger, XETA was the only national provider with the highest accreditations from both companies, and will expand on those relationships with the company's existing platinum partnership with Avaya.
It states that consistent with the company's vertical strategy for over a decade, XETA has a strong focus on vertical industries including the Hospitality, Education, Healthcare, and Government sectors. As part of that focus, XETA has developed customized products and services including software solutions, proactive monitoring and remediation, guest and back-of-the-house support services for hospitality customers, as well as professional services. The company adds that XETA will also become part of its robust Managed Services portfolio, consisting of products such as hosted services, service lifecycle management software and Allworx IP-PBXs.
It explains that for XETA Technologies' 2010 fiscal year ended Oct. 31, 2010, the company reported revenue of $85.7 million. For fiscal year 2011, XETA expects to generate over $100 million in revenue. After the closing of the transaction, the company plans to have approximately 5,100 employees nationwide. Under the terms of the merger agreement, which was approved by the boards of directors of both companies, XETA Technologies, Inc. will become an indirect wholly-owned subsidiary of the company. Neither the merger agreement nor the merger is subject to the approval of its stockholders. The merger agreement is subject to the approval of XETA's shareholders and other customary closing conditions. The companies expect that the transaction will close within three months.
The company avers that Stephens Inc. is acting as its financial advisor and Harter, Secrest & Emery is acting as its legal counsel. Stifel Nicolaus Weisel is acting as financial advisor and Barber & Bartz and Mayer Brown are acting as legal counsel to XETA.
"This transaction highlights our strategy to increase our capabilities to service enterprise CIOs beyond traditional telecom products with advanced managed services and cloud computing solutions," said Arunas A. Chesonis, Chairman and CEO of PAETEC. "PAETEC and XETA have a consistent national footprint and customer base while offering complementary services. As a result of this transaction and combined portfolios, both companies will have far stronger value propositions for our customers."
"After a thorough review of our strategic alternatives, our Board of Directors has unanimously determined that this transaction provides XETA shareholders a superior and certain value," said Greg Forrest, CEO and President of XETA Technologies. "We have a 30 year history of delivering best in class services to our customers. With the expanded scale and scope of PAETEC, the value proposition to our customers, vendors and business partners has never been stronger."
PAETEC Holding Corp., a colocation and data center operator, today announced that it has signed a definitive agreement to acquire XETA Technologies, Inc., a provider of communication technologies, for $5.50 per share in cash valued at approximately $61 million.
The company says that founded in 1981, XETA Technologies sells, installs and services advanced communication technologies for enterprise customers. XETA is among the largest full-service, providers of advanced communications solutions with 32 locations and redundant 24/7 customer contact and data network operating centers. At the time of the Avaya and Nortel merger, XETA was the only national provider with the highest accreditations from both companies, and will expand on those relationships with the company's existing platinum partnership with Avaya.
It states that consistent with the company's vertical strategy for over a decade, XETA has a strong focus on vertical industries including the Hospitality, Education, Healthcare, and Government sectors. As part of that focus, XETA has developed customized products and services including software solutions, proactive monitoring and remediation, guest and back-of-the-house support services for hospitality customers, as well as professional services. The company adds that XETA will also become part of its robust Managed Services portfolio, consisting of products such as hosted services, service lifecycle management software and Allworx IP-PBXs.
It explains that for XETA Technologies' 2010 fiscal year ended Oct. 31, 2010, the company reported revenue of $85.7 million. For fiscal year 2011, XETA expects to generate over $100 million in revenue. After the closing of the transaction, the company plans to have approximately 5,100 employees nationwide. Under the terms of the merger agreement, which was approved by the boards of directors of both companies, XETA Technologies, Inc. will become an indirect wholly-owned subsidiary of the company. Neither the merger agreement nor the merger is subject to the approval of its stockholders. The merger agreement is subject to the approval of XETA's shareholders and other customary closing conditions. The companies expect that the transaction will close within three months.
The company avers that Stephens Inc. is acting as its financial advisor and Harter, Secrest & Emery is acting as its legal counsel. Stifel Nicolaus Weisel is acting as financial advisor and Barber & Bartz and Mayer Brown are acting as legal counsel to XETA.
"This transaction highlights our strategy to increase our capabilities to service enterprise CIOs beyond traditional telecom products with advanced managed services and cloud computing solutions," said Arunas A. Chesonis, Chairman and CEO of PAETEC. "PAETEC and XETA have a consistent national footprint and customer base while offering complementary services. As a result of this transaction and combined portfolios, both companies will have far stronger value propositions for our customers."
"After a thorough review of our strategic alternatives, our Board of Directors has unanimously determined that this transaction provides XETA shareholders a superior and certain value," said Greg Forrest, CEO and President of XETA Technologies. "We have a 30 year history of delivering best in class services to our customers. With the expanded scale and scope of PAETEC, the value proposition to our customers, vendors and business partners has never been stronger."
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