Neutral Tandem To Acquire Leading IP Transit And Ethernet Company, Tinet SpA
CHICAGO and CAGLIARI, Italy, Sept. 9, 2010 (GLOBE NEWSWIRE) -- Neutral Tandem, Inc. (Nasdaq:TNDM), a leading provider of interconnection services, announced today it has entered into an agreement to acquire Tinet SpA, an Italian based global carrier exclusively committed to the IP Transit and Ethernet wholesale market. To acquire Tinet, Neutral Tandem will pay cash consideration of approximately 74.5 million euros (approximately $94.9 million), which reflects certain purchase price adjustments, the assumption of approximately 5.2 million euros in cash (approximately $6.6 million) and the assumption of approximately 18.2 million euros in long-term debt (approximately $23.2 million), which will be paid off at closing 1. The combination will immediately expand Neutral Tandem's IP-based network internationally, enabling global end-to-end delivery of wholesale Voice, IP and Ethernet solutions. The acquisition, to be financed by cash from Neutral Tandem's balance sheet, is subject to various standard closing conditions and is expected to close during the fourth quarter of 2010. After closing, Tinet will be a wholly owned subsidiary of Neutral Tandem.
"This acquisition redefines Neutral Tandem from a strictly voice interconnection company into a global IP-based network services company focused on delivering global connectivity for a variety of media, including voice, data and video," said Rian Wren, President and CEO of Neutral Tandem. "Furthermore, the integration of Tinet's global IP backbone will help accelerate and expand Neutral Tandem's and Tinet's Ethernet services. This combination will take our Ethernet eXchange service global and will position us for delivering cost-effective wholesale Ethernet interconnectivity solutions end-to-end."
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