EMULEX OFFER FOR ENDACE SHARES DISPATCHED; Endace Board Unanimously Recommends That All Shareholders and Optionholders Accept the Emulex Offer
(M2 PressWIRE Via Acquire Media NewsEdge) COSTA MESA, Calif. and SUNNYVALE, Calif. -- Emulex Corporation (NYSE:ELX), the leading provider of converged networking solutions, and Endace Limited (LSE:EDA), a leading supplier of network visibility infrastructure products, announced today that Emulex's cash offer of 500 pence per share announced on December 5, 2012 has been officially dispatched to shareholders and optionholders, under the terms of the New Zealand Takeovers Code. Using the current exchange rate of 1.62 USD to the Pound Sterling, this represents a transaction value of approximately $131 million, a 65 percent premium to the mid-market closing price per Endace share on December 5, 2012 when the offer was announced.
In addition, with the finalization of the Grant Samuel report commissioned by the Independent Directors of Endace, as required by the New Zealand Takeovers Code, the Endace Board unanimously recommends that all shareholders and optionholders accept the Emulex Offer.
"We believe that the acquisition provides compelling value and we are committed to proceeding expeditiously to complete the transaction," said Jim McCluney, chief executive officer (CEO), Emulex. "Acquiring Endace doubles our total addressable market and places Emulex in another high-margin, high-growth market, enhancing our ability to deliver industry-leading solutions to connect, monitor and manage high-performance networks."
"By joining forces with Emulex, we will be able to create a new generation of network visibility solutions and take them to a global market," said Mike Riley, CEO, Endace. "Endace and Emulex share a common vision and have a strong cultural affinity, making the combination a great fit for both companies."
A copy of Emulex's Offer, Endace's response (including the Endace Board recommendation), and the Independent Adviser's report prepared by Grant Samuel should be received by all Endace shareholders and optionholders within the next few days. The transaction is expected to be completed in the March 2013 quarter, subject to certain closing conditions, including the acceptance of the Offer by the holders of 90 percent of the outstanding shares of Endace. Excluding transaction related expenses, the acquisition is expected to be neutral to Emulex's non-GAAP earnings per share for fiscal 2013 and accretive at the beginning of fiscal 2014.
Emulex, the leader in converged networking solutions, provides enterprise-class connectivity for servers, networks and storage devices within the data center. The Company's product portfolio of Fibre Channel Host Bus Adapters, 10Gb Ethernet Network Interface Cards, Ethernet-based Converged Network Adapters, controllers, embedded bridges and switches, and connectivity management software are proven, tested and trusted by the world's largest and most demanding IT environments. Emulex solutions are used and offered by the industry's leading server and storage OEMs including, Cisco, Dell, EMC, Fujitsu, Hitachi, Hitachi Data Systems, HP, Huawei, IBM, NEC, NetApp and Oracle. Emulex is headquartered in Costa Mesa, Calif. and has offices and research facilities in North America, Asia and Europe. More information about Emulex (NYSE:ELX) is available at www.Emulex.com.
Endace provides world-leading network visibility infrastructure , which is trusted by some of the world's largest organizations to accelerate their response to network and security problems.
Endace Intelligent Network Recorders guarantee to capture, index and record 100-percent of network traffic while scaling from 1 Gbps to 100 Gbps. EndaceVisio n is Endace's proprietary web-based application that enables engineers to visualize, search and retrieve network traffic from any Endace Recorder anywhere across the network.
Endace's marketing headquarters are in Sunnyvale, California. R&D is in Auckland, New Zealand. Sales offices across the US, in Reading, UK and Sydney, Australia provide support for customers.
Quoted on London's AIM, the stock code is LSE: EDA.L
Emulex Safe Harbor Statement
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above include forward-looking statements that involve risk and uncertainties. Emulex wishes to caution readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include among others, intellectual property claims, with or without merit, that could result in costly litigation, cause product shipment delays, require Emulex to indemnify customers, or require Emulex to enter into royalty or licensing agreements, which may or may not be available. Furthermore, Emulex has in the past obtained, and may be required in the future to obtain, licenses of technology owned by other parties. Emulex cannot be certain that the necessary licenses will be available or that they can be obtained on commercially reasonable terms. If Emulex were to fail to obtain such royalty or licensing agreements in a timely manner and on reasonable terms, Emulex's business, results of operations and financial condition could be materially adversely affected. Ongoing lawsuits, such as the action brought by Broadcom Corporation ("Broadcom"), present inherent risks, any of which could have a material adverse effect on Emulex's business, financial condition, or results of operations. Such potential risks include continuing expenses of litigation, risk of loss of patent rights and/or monetary damages, risk of injunction against the sale of products incorporating the technology in question, counterclaims, attorneys' fees, incremental costs associated with product or component redesigns, and diversion of management's attention from other business matters. With respect to the Broadcom litigation, such potential risks also include the availability of an adequate sunset period of time to make design changes, the ability to implement any design changes, the availability of customer resources to complete any re-qualification or re-testing that may be needed, the ability to maintain favorable working relationships with Emulex suppliers of serializer/deserializer (SerDes) modules and the ability to obtain a settlement that does not put Emulex at a competitive disadvantage. In addition, the fact that the economy generally, and the technology and storage segments specifically, have been in a state of uncertainty makes it difficult to determine if past experience is a good guide to the future and makes it impossible to determine if markets will grow or shrink in the short term. The current economic downturn and the resulting disruptions in world credit and equity markets that are creating economic uncertainty for Emulex's customers and the storage networking market as a whole has, and could, continue to adversely affect Emulex's revenues and results of operations. Furthermore, the effect of any actual or potential unsolicited offers to acquire Emulex may have an adverse effect on Emulex's operations. As a result of these uncertainties, Emulex is unable to predict its future results with any accuracy. Other factors affecting these forward-looking statements include, but are not limited to, the following: faster than anticipated decline in the storage networking market; slower than expected growth of the storage networking market or the failure of Emulex's Original Equipment Manufacturer (OEM) customers to successfully incorporate Emulex products into their systems; Emulex's dependence on a limited number of customers and the effects of the loss of, decrease in or delays of orders by any such customers, or the failure of such customers to make timely payments; the emergence of new or stronger competitors as a result of consolidation movements in the market; the timing and market acceptance of Emulex products or Emulex OEM customers' new or enhanced products; costs associated with entry into new areas of the storage technology market; the variability in the level of Emulex's backlog and the variable and seasonal procurement patterns of Emulex's customers; any inadequacy of Emulex's intellectual property protection and the costs of actual or potential third-party claims of infringement and any related indemnity obligations or adverse judgments; impairment charges, including but not limited to goodwill and intangible assets; changes in tax rates or legislation; the effects of acquisitions; the effects of terrorist activities; natural disasters, such as the earthquake and resulting tsunami off the coast of Japan in March 2011 and the significant flooding in various parts of Thailand in October 2011, and any resulting disruption in Emulex's supply chain or customer purchasing patterns or any other resulting economic or political instability; the highly competitive nature of the markets for Emulex products as well as pricing pressures that may result from such competitive conditions; the effects of changes in Emulex's business model to separately charge for software; the effect of rapid migration of customers towards newer, lower cost product platforms; possible transitions from board or box level to application specific integrated circuit (ASIC) solutions for selected applications; a shift in unit product mix from higher-end to lower-end or mezzanine card products; a faster than anticipated decrease in the average unit selling prices or an increase in the manufactured cost of Emulex products; delays in product development; Emulex's reliance on third-party suppliers and subcontractors for components and assembly; Emulex's ability to attract and retain key technical personnel; Emulex's ability to benefit from research and development activities; Emulex's dependence on international sales and internationally produced products; changes in accounting standards; and the potential effects of global warming and any resulting regulatory changes on Emulex's business. These and other factors that could cause actual results to differ materially from those in the forward-looking statements are also discussed in Emulex's filings with the Securities and Exchange Commission, including its recent filings on Forms 8-K, 10-K and 10-Q. Statements in this release are based on current expectations and, except as required by law, Emulex undertakes no obligation to revise or update any forward-looking statements for any reason. All trademarks, trade names, service marks, and logos referenced herein belong to their respective companies.
Emulex Investor Contact:
Frank Yoshino, Vice President, Finance, +1 714-885-3697, firstname.lastname@example.org
Emulex Press Contact:
Katherine Lane, Director, Corporate Communications, +1 714-885-3828, email@example.com
Endace Press/Investor Contact:
Tim Nichols, Vice President, Corporate Marketing, +1 408-220-6149, firstname.lastname@example.org
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