MORRISVILLE, N.C.-Tekelec has exercised its option to purchase a minority interest in Santera Systems for $75.6 million in cash, said the company. The purchase effectively terminates Santera’s minority stockholders’ indemnification obligations to Tekelec, it said.
Tekelec said it amended terms of its stockholders’ agreement among Tekelec, Santera Systems and the minority shareholders to provide for a call option with a fixed-option exercise price.
The transaction is expected to close in early October. Upon closing, Tekelec’s income statement will reflect all of Santera’s operating results.
“The purchase is significant and reaffirms our belief in our offerings and the long-term opportunities in the next-gen switching space,” said Fred Lax, Tekelec’s president and chief executive officer. “In the two years since we formed the majority-owned Santera subsidiary, we have become a leading player in the next-gen switching space, with deployments at multiple Tier 1 operators around the globe.”
