CoSine Sold for $24M
Under the deal, Tut will issue approximately 6 million shares to the shareholders of CoSine, worth about $24.1 million. Tut expects to get $22.75 million cash out of the deal and says this is the primary reason for the takeover.
Tut will honor CoSine's existing customer support agreements but "does not expect to offer its products for sale to new customers." Tut is not planning on taking on any CoSine staff or facilities, according to its press release (see Tut Systems to Acquire CoSine).
The deal is subject to the approval of shareholders of both companies and is expected to close by the end of March.
Light Reading will publish further details on Monday.
— Peter Heywood, Founding Editor, Light Reading