Endace receives takeover over
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Endace has received a takeover offer that values the company at around $156 million
By Randal Jackson | Wellington | Thursday, 6 December, 2012 | 3 Comments
Endace has received a takeover offer that values the company at around 80 million pounds ($156 million).
El Dorado Research Ventures Limited (Emulex Bidco), a wholly owned subsidiary of Emulex Corporation, has made the offer under the New Zealand takeovers code to purchase the entire issued and to-be-issued share capital of Endace.
The offer is for 5 pounds in cash for each share, which represents a 65 percent premium to the mid-market closing price on December 5 of 302.50 pence.
It is subject to a number of conditions, including Emulex Bidco receiving acceptances for shares which confer 90 percent or more of the voting rights, Overseas Investment Office approval, and consent in respect of various grants received by Endace.
The Endace Board has agreed to provide Emulex with the opportunity to perform due diligence on the business.
The offer document is expected to be dispatched to shareholders on December 21.
Emulex says in a statement that it views the acquisition as an opportunity to enhance its network product offering through Endace’s network visibility and intelligent network recording solutions.
“This acquisition provides Emulex with a strategic entry point into the network performance management space at a disruptive point in time, as speeds move to 10Gb, making network visibility from end to end a critical requirement in a converged network environment,” says Jim McCluney, CEO of Emulex.
Endace’s independent directors and the full board have recommended that shareholders accept the offer.
Endace has been listed on London’s secondary AIM board since 2005.
Emulex, which was founded in 1979, is California based. It has a number of OEM agreements with major players such as Cisco, Dell and EMC.
Comments
Another taxpayer company heads offshore
Yet another company that received taxpayer funding through innovation grants sold off overseas. Will long suffering kiwi taxpayers get their $10.6 million back or will that effectively go in the shareholders' pockets? I bet I know.
Every man, woman and child in New Zealand has effectively subsidised this takeover bid - sending another of our finest overseas.
Good for Endace shareholders though.
Posted by Anonymous at 13:39:07 on December 6, 2012
Every man, woman and child in New Zealand has effectively subsidised this takeover bid - sending another of our finest overseas.
Good for Endace shareholders though.
Posted by Anonymous at 13:39:07 on December 6, 2012
Another taxpayer company heads offshore
A good case for Capital Gains Tax
At least the country gets something back for its investment.
You don't pay a tax unless you make a profit/gain.
The country provides a first world structure (and before you go charging off on that, we don't have people living by rubbish dumps just to exist) and it is only fair those who benefit from it give something back.
A 20% CGT means you keep 80c in the dollar and there is 20c more per dollar to plough back in.
Australia has a CGT and yet 1000 NZers per week are going there to live.
Must be some merit in it.
Posted by WayneD at 14:51:53 on December 7, 2012
At least the country gets something back for its investment.
You don't pay a tax unless you make a profit/gain.
The country provides a first world structure (and before you go charging off on that, we don't have people living by rubbish dumps just to exist) and it is only fair those who benefit from it give something back.
A 20% CGT means you keep 80c in the dollar and there is 20c more per dollar to plough back in.
Australia has a CGT and yet 1000 NZers per week are going there to live.
Must be some merit in it.
Posted by WayneD at 14:51:53 on December 7, 2012
Another taxpayer company heads offshore
CGT makes sense for property, but only if the "family home" is included. Not including it is simply political BS - if it's policy to tax on property capital windfalls then it should be ALL property capital windfalls.
However charging a CGT on everything, like Labour proposed, is completely different. For one, if everything's included it removes the incentive to invest in productive assets (eg business) over property which is the stated aim - turning it into just another tax grab. More to the point, however, businesses already pay tax on value generation (profit). Taxing on capital gains is effectively double taxation.
So yes, there should be a CGT, but it should be restricted to property.
But either way, it makes no difference to the above. There's no reason these grants couldn't be structured as interest free "loans" automatically written off after a few years if ownership structure remains in NZ, like the right hemisphere one. Would ensure only those that needed them got them too.
Posted by Anonymous at 1:05:40 on December 9, 2012
However charging a CGT on everything, like Labour proposed, is completely different. For one, if everything's included it removes the incentive to invest in productive assets (eg business) over property which is the stated aim - turning it into just another tax grab. More to the point, however, businesses already pay tax on value generation (profit). Taxing on capital gains is effectively double taxation.
So yes, there should be a CGT, but it should be restricted to property.
But either way, it makes no difference to the above. There's no reason these grants couldn't be structured as interest free "loans" automatically written off after a few years if ownership structure remains in NZ, like the right hemisphere one. Would ensure only those that needed them got them too.
Posted by Anonymous at 1:05:40 on December 9, 2012
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