Wi-Lan bids CAD 480 mln for Mosaid

News Wireless Global 18 AUG 2011
Wi-Lan bids CAD 480 mln for Mosaid
Licensing company Wi-Lan has made an unsolicited bid of CAD 480 million for rival Mosaid Technologies. The company is offering CAD 38 cash per share for Mosaid, representing a premium of 31.1 percent on the last share price, excluding Mosaid's cash. Wi-Lan said it had agreed an issue of CAD 200 million in convertible debt to finance the deal, with the remainder paid with existing cash and a CAD 110 million bridge facility from CIBC. If Mosaid accepts the offer, it would create a company with a combined portfolio of more than 4,200 patents in wireless, wireline, consumer electronics and semiconductor technologies. Wi-Lan said it expects cost savings of CAD 5-10 million per year from the deal, and the transaction would add to EPS and cash flow from fiscal 2012. Mosaid did not immediately respond to the offer.

Categories:

Mobile

Companies:

Wi-Lan,  Mosaid Technologies

Regions:

Global

Tags:

Components, Devices, Wireless, Wholesale, M&A buyouts & divestments, Research and development

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