Benzinga | Jun 16, 2021 11:46AM EDT

Viavi Solutions Proposes To Acquire EXFO At $7.5/Share

* Network test, measurement, and assurance technology company Viavi Solutions Inc (NASDAQ:VIAV) proposed to acquire telecom equipment company EXFO Inc's (NASDAQ:EXFO) outstanding subordinate voting shares and multiple voting shares at $7.50 per share.

* The proposal values EXFO at $430 million and represents a 103% premium on its June 4, 2021 closing price on the trading day before EXFO's going-private announcement. Recently EXFO founder and majority shareholder forged an agreement to acquire the remaining subordinate voting shares at a 62% premium. EXFO's shares will cease to trade on the NASDAQ and will become a private company under the agreement.

* Viavi offered a 25% premium to the going-private consideration of $6.

* Viavi's proposal is at the high end of the $5.75 - $7.50 formal valuation range of EXFO's subordinate voting shares.

* Viavi's board had unanimously approved the proposal. Viavi held $672 million in cash and equivalents as of April 3, 2021.

* Price action: EXFO shares traded higher by 16.9% at $6.93 on the last check Wednesday.