Ericsson has launched a bid of EUR 310 million cash for LHS, a specialist in telecom charging and billing systems. The offer values LHS at EUR 22.5 per share, equal to a premium of 33 percent to its average share price over the past month. Ericsson has agreed to acquire 55.1 percent of LHS’ share capital from LHS Beteiligungs, the investment vehicle controlled by LHS founder and chairman Hartmut Lademacher, and funds advised by General Atlantic. It also has irrevocable undertakings for another 20 percent of shares. The company expects LHS to add to earnings per share from 2008, excluding possible depreciation of intangibles. LHS has more than 120 installations, complementing Ericsson’s base of more than 150 customers in prepaid/real-time charging, and about 300 customers in mediation. Based in Frankfurt, LHS employs around 550 people and generated sales of EUR 71.6 million in 2006 and an adjusted EBITDA margin of 17 percent. Completion of the cash offer is expected in the third quarter.
Wireless Federation » Ericsson to acquire LHS for EUR 310 million
Ericsson to acquire LHS for EUR 310 million
- June 5th, 2007
- 9:32 am
