Router and switch maker
is being taken private by investment firms Gores Group and Tennenbaum Capital Partners in a deal that values the company at $386 million.
The acquisition puts a price of $13.92 on each Enterasys share, a premium of 32% to the stock's Nov. 11 closing price on the
New York Stock Exchange
. The transaction should be completed in the first quarter of fiscal 2006.
Shares of Enterasys were jumping $2.90, or 27.4%, to $13.47 Monday. The stock has traded in a range of 70 cents to $11.09 in the last 52 weeks.
"This transaction provides our shareholders with a substantial premium over the current market and enterprise values of the company," Enterasys said. "Looking forward, we believe operating as a private company with the backing of Gores and Tennenbaum will enable us to capture market opportunities not available to Enterasys today."
The company's current senior management team will continue to lead Enterasys, and its corporate headquarters will remain in Andover, Mass.