Ixia (XXIA) Acquires Catapult Communications (CATT) for $9.25 Per Share

May 11, 2009 6:03 PM EDT

Catapult Communications Corporation (NASDAQ: CATT) has signed a definitive agreement with Ixia (NASDAQ: XXIA) under which Ixia will acquire Catapult for $9.25 per share in cash. This represents a 39% premium to the average share price over the three months ended Friday, May 8, 2009. The transaction is valued at approximately $105 million.

The acquisition will be conducted by means of a tender offer for all of the outstanding shares of common stock of Catapult, followed by a second-step merger. The board of directors of Catapult has unanimously recommended that the stockholders of Catapult accept the offer, and Richard A. Karp and Nancy Karp have entered into a support agreement to tender their shares, which represent approximately 37% of shares outstanding. The offer, which is expected to commence within the next ten business days, will be subject to customary conditions, including the tender of at least a majority of the shares outstanding on a fully diluted basis and receipt of regulatory approvals. The tender offer is expected to close by the end of June 2009 and the merger is expected to close early in the third quarter. [SM]

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