Neutral Tandem Completes $99.8M Acquisition of Tinet SpA
Neutral Tandem, Inc. (Nasdaq: TNDM) announced today it has completed its acquisition of Tinet, SpA. The combination immediately expands Neutral Tandem's IP-based network internationally, enabling global end‑to‑end delivery of wholesale Voice, IP Transit and Ethernet solutions. The acquired business will now be a wholly owned subsidiary of Neutral Tandem.
Neutral Tandem and Tinet announced the signing of a definitive agreement on September 9, 2010. To acquire Tinet, Neutral Tandem paid cash consideration of approximately 74.5 million euros (approximately $99.8 million), which reflects certain purchase price adjustments and includes the following assumption of cash and repayment of long-term debt.
As part of the 74.5 million euros purchase price, Neutral Tandem assumed approximately 5.2 million euros in cash (approximately $7 million) and caused Tinet to pay off approximately 18.2 million euros in long-term debt (approximately $24.4 million).(1)
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