Private equity firm Avista Capital Partners is buying Telular Corp. (Nasdaq: WRLS) for about $253 million.
Chicago-based Telular provides wireless monitoring and tracking services for security systems.
The purchase price works out to $12.61 per share in cash, plus $18.5 million in debt assumption. Telular’s shares closed at $9.82 on April 26, the last day of trading before the deal was announced.
Telular can solicit superior proposals from other potential buyers through May 29.
Avista, headquartered in New York, has more than $5 billion in assets under management. The firm invests mainly in energy, health care, communications, industrial and consumer companies. Avista’s investments include Basic Energy Services Inc., InvestorPlace Media and Spartan Offshore Drilling.
Oppenheimer & Co. Inc. is acting as Telular’s financial adviser, while Kelley Drye & Warren LLP and Covington & Burling LLP are providing legal advice. SunTrust Robinson Humphrey Inc. is Avista’s financial adviser, and Kirkland & Ellis LLP is the buyer’s legal counsel. SunTrust also provided the debt financing commitment for the deal.