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Siris Capital Set to Take Xura in Nine-Figure Deal
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May 23, 2016

Siris Capital Set to Take Xura in Nine-Figure Deal

By Steve Anderson
Contributing Writer

The names may not be household, but the functions behind the names are widely used, making the upcoming deal between Siris Capital and Xura (News - Alert) a development worth watching. Siris recently agreed to purchase Xura in a deal valued in the nine-figure range, and this new development will likely have substantial impact for anyone turning to communications services.

Xura offers a variety of products available for communications service providers (CSPs) geared toward improving several elements of the overall operation. From better network security—including spam and fraud prevention solutions—to a more modern overall operation and even more secure communications, Xura can work on several fronts to improve overall operations and make CSPs better for its input. Given the steady growth of mobile device use in both the workplace and at home, that makes improving CSP (News - Alert) performance a top priority, and likely at least part of what drew Siris Capital Group's attention and investment, valued at approximately $643 million.

The deal calls for Siris to purchase all outstanding shares of Xura stock for $25 per share, which represents a premium of 19.2 percent over closing share values on May 20. It's also considered a 14.8 percent premium over the 30-day weighted average price and a 26 percent premium against share prices on April 14 when the company first disclosed its potential sale to a then-unnamed buyer.

The offer was approved unanimously by the board of directors, though a special meeting with regular shareholders will follow, as well as a “go-shop” period measuring 45 days. During said period, Xura can go looking for alternate buyers, and potential better offers in the meantime. Siris, however, will have the right to match a better offer should one arise and still end up with the firm.

Siris Capital executive partner Hubert de Pesquidoux commented “We see great potential and talent within the organization, and we are excited to partner with Xura to build a business with digital innovation and customers at its core. Importantly, Siris has an extensive history of successfully operating businesses that provide mission-critical products to CSPs and understands that continued investment and customer partnership are instrumental to delivering world-class solutions.”

We all know that CSPs have become increasingly valuable to the world as a whole, especially given how much of our workforce has gone mobile and dependent on communications services. Throw in all the after-work activities that depend on communications services and the notion only becomes clearer. Siris' move to acquire a company that delivers clear value for CSPs gives it a larger stake in a market that's likely to experience rapid growth in a fairly short-term prospective.

Why Xura would be interested in selling is unclear, but Siris' motivation for buying is anything but. Siris likely wants a stake in a company that could be a major part of operations in the very near future, and Xura should fit that bill well.

Edited by Stefania Viscusi

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