Peregrine Systems, represented locally by CCH Enterprise Solutions, and Telco Research Corporation have announced that they have signed a definitive merger agreement under which Peregrine Systems will acquire all the outstanding shares of Telco Research. The acquisition will bring extensive telephony infrastructure management capabilities to Peregrine Systems` infrastructure management product line.
The merger agreement has been approved by the boards of directors of both companies and is subject to approval by the shareholders of Telco Research, regulatory approvals and customary closing conditions. The transaction is structured as a stock-for-stock exchange at a fixed ratio of .082511 shares of Peregrine Systems Common Stock for each share of Telco Research stock. As consideration for the merger, Peregrine Systems expects to issue approximately 1.28 million shares in exchange for all of the outstanding equity securities of Telco Research. Based on current market prices, the deal is valued at approximately $110 million.
The acquisition expands the Peregrine Systems infrastructure management suite to include voice and data collection solutions for telephony infrastructure management, enabling companies to allocate costs, measure performance, enforce policies, manage security, and control fraud.
"The acquisition of Telco Research is a natural next step for us," says Steve Gardner, president and CEO, Peregrine Systems. "Telephony systems constitute a large part of corporate infrastructure. By providing solutions that enhance our ability to manage those assets, we can offer our customers a further opportunity to dramatically lower total cost of ownership, while ensuring maximum availability of voice and data communication infrastructure."
Ralph Sonntag, president and CEO of Telco Research says: "We share a common vision with Peregrine Systems. The combination of our products and expertise will provide the market with robust, innovative solutions to help manage the entire corporate infrastructure. In the e-commerce world, the long-awaited convergence of information technology and telephony technology is upon us, and the ability to offer comprehensive integrated Technology Infrastructure Management is exactly what the market demands."
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