Enablence to Acquire Teledata

Enablence enters into a merger agreement to acquire Teledata Networks

April 15, 2010

1 Min Read

OTTAWA -- Enablence Technologies Inc. ("Enablence" or the "Company") (TSX VENTURE:ENA - News), a leading supplier of fiber-to-the-premise (FTTP) equipment for triple-play residential and business services and optical components and subsystems for access, metro and long-haul markets, today announced it has signed a definitive merger agreement (the "Agreement") to acquire Teledata Networks Ltd. ("Teledata"), an Israeli corporation (the Transaction"). Completion of the Transaction is subject to the satisfaction of certain conditions agreed upon by the parties, including obtaining the approval of the TSX Venture Exchange and Teledata shareholder approval, and satisfying other customary conditions for transactions of this nature. The Transaction is expected to close following the completion of the applicable statutory waiting periods in Israel.

Under the terms of the Agreement, the merger consideration will be a combination of US$10,000,000 in cash, US$10,000,000 in secured interest-bearing promissory notes payable on the second anniversary of the closing of the Transaction, and US$30,000,000 in common shares to be issued by Enablence at the closing based on a pricing formula set out in the Agreement.

Teledata is a leading provider of products and solutions enabling telecom providers to smoothly migrate to Next Generation Networks. Teledata has accumulated a wide installed base, spanning millions of lines in over 55 countries worldwide, including Brazil, Chile, Costa Rica, Kazakhstan and South Africa, many of which are Tier 1 service providers.

"With this merger, Enablence will become a strategic player in the global broadband market, with the critical mass to meet the needs of service providers in established and emerging markets and the ability to service Tier 1 operators internationally," said Arvind Chhatbar, Chairman of Enablence.

Enablence Technologies Inc. (Toronto: ENA)

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