to get its hands on the Internet protocol shop's cash.
Tut, a Lake Oswego, Ore., broadband networking company, said it will issue $24 million in stock for Cosine, of Redwood City, Calif. The deal, which offers CoSine shareholders a 13% discount to Friday's closing price, will effectively put CoSine out of existence: Tut indicated it won't add any employees or plants in the tie-up. CoSine had 148 workers at last count.
Tut said the merger, set to close by March 31, will bring it almost $23 million in cash. Tut plans to support current CoSine customers but won't offer CoSine products to future customers.
"We believe that the telco TV revolution is accelerating more quickly than we previously predicted, especially with regard to the largest North American carriers," said Tut chief Sal D'Auria. "Our product line, leading-edge technology and real-world
independent operating company deployment leadership uniquely position us to be a significant player in this market. This transaction with CoSine provides additional financial resources for accelerating our plans for industry leadership."
On Monday, Tut rose 38 cents to $4.46, and CoSine slipped 22 cents to $2.52.