Spectel, the Dublin-based provider of voice-data conferencing systems, has acquired US firm Multilink for $30 million (€35 million) in a cash and stock deal.
Multilink, a subsidiary of Nasdaq-quoted company PictureTel, is a supplier of audio-conferencing systems and professional services.
Spectel, which completed a $10 million funding round this summer, will pay $26 million in cash and issue $4 million in Spectel shares. NCB Corporate Finance arranged $14.2 million in new equity investment and $15 million in new bank debt. Ulster Bank provided the bank debt. The integrated company will have a workforce of 220 and is valued at about $90 million. Multilink's customers include British Telecom, Conference Plus, Bell Canada, Lockheed Martin and Avaya Inc.
Mr Gerard Moore, Spectel president and chief executive, said Spectel's strength in Europe and Multilink's market-leading position in North America would make the company one of the most global players in the industry. He said the company would be in a position to go public next year, following the successful integration of Multilink.
"Spectel has been profitable for the past three years and we expect Multilink to produce revenues of $25 million this year," said Mr Moore.
He said there was a good overlap between the technologies of the two companies and Multilink would offer Spectel some new architecture software.
The integrated company will employ 40 research and development engineers in the US, and an additional 40 engineers in the Republic. Spectel conducts business on a global basis through its regional offices in Atlanta, Boston, Chicago, Denver, London and Singapore.
