Silver Spring Sold for $830 million

Itron to acquire Silver Spring  Networks for $16.25 per share in cash, or approx. $830M

 

Itron to acquire Silver Spring for $16.25 per share in cash. See Stockwinners.com for details

Itron, Inc. (ITRI) and Silver Spring Networks (SSNI) announced that they have signed a definitive agreement for Itron to acquire all outstanding shares of Silver Spring for $16.25 per share in cash.

The transaction is valued at approximately $830M, net of $118M of Silver Spring’s cash.

This represents a premium of 25% to Silver Spring’s closing share price on Sept. 15, 2017, the last trading day prior to the announcement of the transaction.

The transaction has been unanimously approved by the boards of directors of both companies.

Itron anticipates approximately $50M in annualized cost synergies to be substantially realized within three years of completing the transaction by optimizing combined operations and expenses.

The acquisition is expected to have a positive impact on Itron’s long-term growth rate, be accretive to gross margin in the first year after completing the transaction and be accretive to non-GAAP EPS and adjusted EBITDA in the second year, excluding one-time, transaction-related costs and including stock-based compensation costs that Silver Spring currently excludes from its reported non-GAAP results.

Itron plans to finance the transaction using a combination of cash and approximately $750 million in incremental new debt.

Fully committed financing has been provided by Wells Fargo. The transaction is expected to close in late 2017 or early 2018 and is subject to customary closing conditions, including regulatory approval and the approval of Silver Spring’s stockholders.

Centerview Partners and Credit Suisse are acting as financial advisors to Itron, and Jones Day is acting as its legal advisor. #Evercore is acting as financial advisor and Fenwick & West LLP as legal advisor to Silver Spring.


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This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.

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