Ekinops, a developer of next-generation optical network equipment, and the major shareholders of OneAccess, a supplier of network access solutions, have entered discussions for the acquisition of OneAccess by Ekinops.
The acquisition would create a leader in solutions for telecom networks with combined revenues of more than €76 million, and form what Exkinops is calling “a major player in transport solutions, Ethernet services and business routing for networks”. The companies are consulting with their respective employee representatives about the proposed plan. Their goal is to finalize negotiations once the opinions of workers are received.
OneAccess’s enterprise value is estimated at €60 million, approximately equivalent to its annual revenue, resulting in OneAccess’s equity value of €58 million. Ekinops’s acquisition of OneAccess would be paid for partly in cash and partly in Ekinops shares, subject to the approval by the parties.
If agreed, Ekinops will proceed with a capital increase with shareholders’ preferential subscription rights maintained, in an amount of approximately 50% of OneAccess’s equity capital. This transaction would be subject to approval by an initial general meeting of Ekinops’s shareholders to be held in May 2017.
A second general meeting of Ekinops’s shareholders would then be held once the capital increase is completed, in order to ratify the 50% contribution in kind to Ekinops of OneAccess’s shares and paid in newly Ekinop shares. Following this second shareholders’ meeting, OneAccess’s shareholders would contribute all of their shares and, in return, receive 50% of the value in cash and 50% in Ekinops shares.
For the contribution in kind, the new Ekinops shares would be issued at a reference price per share equal to the average share price weighted by volume of Ekinops shares as recorded on Euronext between 30 March and 15 April 2017, provided this price could not be less than €7.25 or greater than €8.21. Other details of the proposed deal are available on the Ekinops website (www.ekinops.net).
The transaction is expected to be completed in the course of the summer of 2017, after the two-successive extraordinary general meetings of Ekinops’s shareholders, the first to authorize the capital increase with preferential subscription rights maintained and the second to approve the contribution of new Ekinops shares in exchange for 50% of OneAccess’s equity.
Didier Brédy, Chairman and CEO of Ekinops, commented, “We’re especially enthusiastic about this acquisition plan that would allow the EKINOPS group to increase its reach with the contribution of the tremendous work OneAccess has done over the past fifteen years.
“By combining our technologies and our business assets, we could consolidate our positions and attack new, very high growth markets with a truly differentiated offer. With the two companies’ shared vision and strong software culture, we should be able to quickly create a great deal of value for our clients, employees, and shareholders.”
Didier Delepine, Chairman of the Board of Directors at OneAccess, said, “Pairing the resources and technologies of OneAccess and EKINOPS would not only address the current and future needs of telecommunications companies and carriers, but also define the coming innovation in telecommunications networks. This means their clients would be able to develop their services more efficiently and universally.”
More information at www.ekinops.net