Tellabs has amended an earlier announced agreement to acquire fiber-to-the-premises specialist AFC.
Under the new agreement, AFC shareholders will receive a 0.504 Tellabs common share and $12 in cash for each AFC share they own. In May, when the original deal was announced, AFC shareowners were set to receive 1.55 Tellabs shares and $7 in cash for each AFC share.
The revised exchange ratio places the total value of the deal at $1.5 billion, down from an original value of $1.9 billion.
Tellabs scaled back the terms after its board of directors conducted a review and analysis of AFC’s business and financial outlook. The revised term agreement “remains compelling,” said Tellabs President and CEO Krish Prabhu, in a release.
Upon closing, Tellabs stockholders will own 90 percent of AFC, and AFC shareholders will own 10 percent.