By Lisa Kerner
Charlotte, N.C., June 17 - Alcatel-Lucent entered into a definitive agreement to acquire Motive, Inc. for $2.23 per share in a cash tender offer.
Total value of the deal is approximately $67.8 million, a joint company news release said.
The per-share offer price is a 53% premium over the closing price of Motive shares on June 16 and a 51% premium over the average closing price of the shares for the 90 days prior to June 16.
Following completion of the tender offer, Motive will be merged with and into a subsidiary of Alcatel-Lucent, the release said.
The tender offer is conditioned on at least 17,639,096 shares, or 58.3%, of Motive's common stock being tendered.
Alcatel-Lucent and Motive said they expect the transaction to close by early in the fourth quarter of 2008.
A $3 million termination fee is included in the agreement, it was reported in a form 8-K filing with the Securities and Exchange Commission.
According to the release, the two companies jointly develop and sell remote management software solutions for automating the deployment, configuration and support of advanced home networking devices called residential gateways.
Motive chairman and chief executive officer Alfred Mockett called the merger "a natural evolution" of the companies' existing relationship.
"Integrating Motive's broadband and mobile service management expertise with our portfolio of wireline and wireless access technologies will allow customers to offer a new generation of complex services, blurring the boundaries between fixed and mobile networks, and increasing customer retention but without adding operational complexity," Luis Martinez Amago, Alcatel-Lucent's president of fixed activities, said in the release.
Paris-based Alcatel-Lucent provides solutions to deliver voice, data and video communication services to end-users.
Motive is an Austin, Texas, supplier of management software for networked products and services.
| Acquirer: | Alcatel-Lucent
|
| Target: | Motive, Inc.
|
| Announcement date: | June 17
|
| Transaction total: | $67.8 million
|
| Price per share: | $2.23
|
| Termination fee: | $3 million
|
| Expected closing: | Fourth quarter of 2008
|
| Stock price of target: | Pink Sheets: MOTV.PK: $1.46 on June 16
|
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