The combination expands the company's IP-based network internationally, enabling global end to end delivery of wholesale Voice, IP Transit and Ethernet solutions.
Neutral Tandem, Inc., a provider of interconnection services, recently announced that it has completed its acquisition of Tinet, SpA, a global carrier exclusively committed to the IP and Ethernet wholesale market. The company avers that the combination immediately expands its IP-based network internationally, enabling global end to end delivery of wholesale Voice, IP Transit and Ethernet solutions. It adds that the acquired business will now be a wholly owned subsidiary of the company.
According to it, the company and Tinet announced the signing of a definitive agreement on September 9, 2010. To acquire Tinet, the company 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, it 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).
"We believe that this deal will allow us to leverage our core competencies, expand our global footprint, accelerate our Ethernet initiatives and move beyond voice into data solutions," said Rian Wren, President and CEO of Neutral Tandem. "We are pleased to have completed this acquisition and are excited to begin our efforts to capitalize on the new opportunities created by the transaction."
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