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Backhaul

Turin to Buy Carrier Access

The "Who's Going to Buy Carrier Access?" saga is over: Turin Networks Inc. is buying the converged access and wireless backhaul equipment vendor for $92.7 million in cash.

Turin has agreed to pay $2.60 for each Carrier Access Corp. (Nasdaq: CACS) share, slightly more than Friday's closing price of $2.50.

That's way less than some had expected. Tellabs Inc. (Nasdaq: TLAB; Frankfurt: BTLA) was linked with a potential $7-per-share bid earlier this year, while Huawei Technologies Co. Ltd. was rumored to have made an approach worth $6.35 per share. (See Tellabs Close to Carrier Access Buy and Huawei M&A Rumor.)

Carrier Access's share price duly reacted this morning, rising 10 cents, or 4 percent, to match Turin's offer of $2.60.

That's still way short of the stock's 52-week high of $6.80, reached in late 2006. Since then, though, the vendor's stock has been on a downward slide.

Turin says the price represents a near 15 percent premium over the $2.27 average price of Carrier Access stock in the 20 days up to December 14. The offer might still be adjusted if Carrier Access has less than $63 million of cash in the bank when the deal closes. The acquisition, which has been approved by the boards of both companies, is expected to close in the first quarter of 2008.

Carrier Access, which has more than 100 operator and enterprise customers using its backhaul and access gear, reported a net loss of $11.8 million from revenues of $7.4 million in its most recently reported quarter. (See CACS Reports Q3.)

We'll report more on this deal as the day progresses.

— Ray Le Maistre, International News Editor, Light Reading

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bollocks187 12/5/2012 | 2:57:18 PM
re: Turin to Buy Carrier Access A "private startup" that does not make any money - buys a "public" company that "loses" money.

How does the maths work out here ?
Mark Sebastyn 12/5/2012 | 2:57:18 PM
re: Turin to Buy Carrier Access .... the shrieking sounds of speculators everywhere
bollocks187 12/5/2012 | 2:57:18 PM
re: Turin to Buy Carrier Access If you read the message board on CACS

http://messages.finance.yahoo....

You will see a recent post to NWK ala NET buying CACS. Guess who is the chairman of the Board of Directors for NET : Mr Dixon DOLL. Dixon also happens to be the main investor in Turin Network.

Prediction next step is NET to buy Turin Networks.

bollocks187 12/5/2012 | 2:57:18 PM
re: Turin to Buy Carrier Access Since CACS has to have $63 Million on hand then the net transaction is $30Million.

The Turin CEO/President & VCs are using Turin as a front company to buy a public company in distress.

CAC should be buying Turin for $10Million since it has a superior balance sheet.

I think Occam networks did something like this with Accelerated Networks a while back.

Shell Game

grunt 12/5/2012 | 2:57:17 PM
re: Turin to Buy Carrier Access Im unclear on why a public company (NWK) would want to buy CAC through a non public startup instead of just buying it directly? What would be the advantages to such a shell game over just securing the deal in this fashion?
grunt 12/5/2012 | 2:57:17 PM
re: Turin to Buy Carrier Access Im unclear on why a public company (NWK) would want to buy CAC through a non public startup instead of just buying it directly? What would be the advantages to such a shell game over just securing the deal in this fashion?
bollocks187 12/5/2012 | 2:57:15 PM
re: Turin to Buy Carrier Access Well, perhaps to save money cash in the long term or perhaps Turin is going to buy NWK ?

Why would Turin buy CAC when it should be the other way around ? CAC is in far better financial shape than Turin ?


I simply found the reference to NWK on he Yahoo CACs message board. Then noticed that Dixon was on the board of NWK and also on the naord of Turin.

stuartb 12/5/2012 | 2:57:08 PM
re: Turin to Buy Carrier Access Philip?
bollocks187 12/5/2012 | 2:57:06 PM
re: Turin to Buy Carrier Access Bill
Stevery 12/5/2012 | 2:57:05 PM
re: Turin to Buy Carrier Access Barton? It's been what, 4-5 years since you worked at Turin?. Don't you think it's about time to move on?

Wow, you feel threatened by a guy who hasn't been in your place for 5 years?

He must be impressive.
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