Siris Capital Group LLC agreed to buy Xura Inc. (Nasdaq: MESG) for $643 million in cash. The purchase price represents a 14.8 percent premium over Xura’s May 20 closing price of $20.98. The target was trading about 17 percent higher during mid-day trading on May 23.
Xura, headquarted in Wakefield, Massachusetts, makes cloud-based software for mobile messaging, voicemails, and messaging security. The target, formerly known as Comverse, works with communication service providers and business organizations.
“Working in a private setting will allow greater flexibility to accelerate our strategy to bring best-in-class messaging, voicemail, security, and monetization solutions to our customers,” says Xura CEO Philippe Tartavull. Siris is receiving debt financing from Cerberus Business Finance LLC to help fund the acquisition. The deal agreement gives Xura a 45-day go-shop period.
Siris is a New York-based technology focused private equity firm. In 2015, the firm took video conference software maker Premiere Global Services Inc. private. Also in 2015, Siris closed its third fund and completed its purchase of e-commerce company Digital River.
In other mobile technology deals, AT&T Inc. (NYSE: T) announced plans to buy video content streamer Quickplay Media Inc. and Madison Dearborn-backed Fleet Complete acquired ITmobile, which provides customers with fleet, asset and mobile worker technology for productivity, safety and compliance.
Goldman Sachs & Co. (NYSE: GS) and DLA Piper LLP are advising Xura. Guggenheim Securities LLC and Sidley Austin LLP are advising Siris on the Xura transaction.