MONTREAL-Wireless equipment manufacturer SR Telecom announced it will acquire broadband fixed-wireless equipment provider Netro Corp., strengthening its customer base as well as its financial position.
The transaction will be structured as a merger, in which a wholly owned subsidiary of SR Telecom will merge with Netro. Netro stockholders will receive approximately $3.11 per share, totaling approximately $121 million. Following the transaction, Netro stockholders will own approximately 43 percent of SR Telecom’s common shares.
“This transaction enables SR Telecom to leverage its global client base and distribution network and further extend our leadership position as the world’s premiere provider of fixed-wireless access solutions,” said Pierre St-Arnaud, SR Telecom’s president and chief executive officer. “Netro’s products complement our own product line in terms of frequency and applications. When combined, SR Telecom’s extensive channel to market and turnkey solutions capabilities and Netro’s products will enable us to address a number of previously identified opportunities within our existing customer base and will also give us the opportunity to pursue significant new contracts we would not otherwise be in a position to pursue.”
The acquisition is expected to close early in the third quarter of 2003.
