By Lisa Kerner
Charlotte, N.C., Dec. 18 - Airvana, Inc. announced it will be acquired in a $530 million transaction by a newly formed company to be owned by affiliates of S.A.C. Private Capital Group, LLC, GSO Capital Partners LP, Sankaty Advisors LLC and ZelnickMedia.
Each share of Airvana common stock will be exchanged for $7.65 cash, a premium of approximately 23% over the company's closing share price on Thursday, an Airvana news release said.
Airvana president and chief executive officer Randy Battat and founders Vedat Eyuboglu and Sanjeev Verma will exchange a portion of their shares for an equity interest in the acquirer.
"As we transition to a private company, Airvana will continue to focus on its two major mobile broadband product lines, EV-DO software and femtocells," Battat said in the release.
72 Mobile Holdings, LLC, the entity formed to acquire Airvana, has secured committed financing for the transaction, which is expected to close in the first quarter of 2010 subject to shareholder approval.
Goldman, Sachs & Co. advised Airvana.
Airvana offers network infrastructure products used by wireless operators to provide mobile broadband services. The company is based in Chelmsford, Mass.
| Acquirer: | 72 Mobile Holdings, LLC
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| Target: | Airvana, Inc.
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| Announcement date: | Dec. 18
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| Transaction total: | $530 million
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| Price per share: | $7.65
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| Expected closing: | First quarter of 2010
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| Stock price for target: | Nasdaq: AIRV: $6.24 on Dec. 17
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