Modem-manufacturer Hayes Microcomputer Products plans to merge with remote-access vendor Access Beyond, in a deal valued at $US267.2 million that will turn Hayes into a public company, officials announced last week.
The stock deal calls for Access Beyond, already a public company, to issue roughly 45 million shares of stock for all of Hayes' outstanding shares, officials said. Access Beyond shareholders will own roughly 21 per cent of the merged company, which will be called Hayes Communications. The merged company's market capitalisation, based on a recent Access Beyond closing stock price of 515/16, would be roughly $US339 million.
Hayes and Access Beyond had already been working together under an OEM, research, development, and manufacturing agreement, officials said. The Access Beyond deal is expected to close by December, a Hayes spokeswoman said.
For Hayes locally, the merger is good news. General manager for Hayes Microcomputer Products in Australia, Andrew Phillips, told ARN the integration of the two companies would "add credibility into our push into the remote-access market. It [the merger] is really quite exciting."
"Modem companies have to go either very retail with new technology or keep their position with corporates returning to the back market with remote access."
Hayes' founder and chairman, Dennis Hayes, will be chairman of Hayes Communications, officials said. Access Beyond's chairman and CEO, Ron Howard, will be vice-chairman and executive vice-president of business development at Hayes Communications. Hayes' president and CEO, Joseph Formichelli, will be president and CEO of Hayes Communications.
Hayes Microcomputer Products
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