Deal of the Week: Tellabs acquires WiChorus to revolutionize the mobile Internet

Tellabs, a leader in mobile backhaul networks, will acquire WiChorus of San Jose, Calif. The combination creates advanced 3G/4G mobile networks that revolutionize the mobile Internet, deliver new applications to generate revenue and simplify networks to achieve significant savings for mobile carriers.
Under the terms of the transaction, which was approved by both companies’ boards of directors, Tellabs will pay approximately $165 million in net cash for WiChorus. The transaction is expected to be dilutive to Tellabs’ earnings in 2010, then additive to Tellabs’ non-GAAP earnings in 2011 and beyond. Non-GAAP earnings exclude amortization associated with acquired intangibles and other purchase accounting adjustments.
On completion of the transaction, Rehan Jalil, current president and CEO of WiChorus, will head a newly formed Tellabs IP and mobile Internet group, as senior vice president, reporting to Robert W. Pullen, chief executive officer and president of Tellabs. The transaction is subject to customary closing conditions and regulatory reviews. It is expected to close within the next several months.
Prior to close, Tellabs and WiChorus will continue to operate as separate companies. The combined company will employ about 3,250 people.
Read the entire press release.