UPDATE: Imperial Capital Downgrades Telular to In-Line Following Avista Capital Partners Acquisition Bid

In a report published Thursday, Imperial Capital analyst Jeff Kessler downgraded the rating on Telular Corporation

from Outperform to In-Line, but reiterated the $13.00 price target. In the report, Kessler noted, “Telular Corporation (WRLS) generated pro forma revenue of $24.8mn and EBITDA of $5.86mn during fiscal 2Q12, ended 3/31/13. EPS of $0.10 compared with $0.07 year-over-year (yoy). The company had $6.9mn in cash and net debt of $18.7mn as of that date, implying net leverage of 0.83x EBITDA for the latest 12 months (LTM) ended 3/31/13. We are downgrading our rating on WRLS to In-Line from Outperform and maintaining our one-year price target of $13 following the announcement on 4/29/13 of an accepted bid by Avista Capital Partners to acquire Telular for $12.61 per share, and $18.5mn in assumed net debt, or about $253mn in total consideration.” Telular Corporation closed on Wednesday at $12.69.