Neutral Tandem Completes Acquisition of Tinet SpA
Neutral Tandem, Inc. (NASDAQ: TNDM), a leading provider of interconnection services, today announced it has completed the acquisition of Tinet, SpA, a global company based in Italy exclusively committed to the IP traffic and Ethernet market wholesale. The combination immediately expands IP-based network neutral in tandem at the international level, allowing end-to-end global delivery wholesale voice, IP traffic 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 purchase Tinet, Neutral Tandem paid cash of approximately € 74.5 million (about 99.8 million U.S. dollars), reflecting certain purchase price adjustments and includes the following cash and assumption of debt in the long term. As part of the purchase price of € 74,500,000, Neutral Tandem is approximately 5.2 million euros in cash (approximately $ 7 million) and caused Tinet to pay approximately 18.2 million in long-term debt (approximately $ 24 4 million).
“We believe this agreement will allow us to leverage our core competencies, expand our global presence, Ethernet accelerate our efforts and go beyond the voice-data solutions,” said Rian Wren, President and CEO of Neutral Tandem. “We are very pleased to have completed this acquisition and are pleased to begin our efforts to exploit new opportunities created by the operation.”