Alcatel-Lucent acquires broadband firm Motive

19 Jun 2008
00:00

Alcatel-Lucent has entered into an agreement to acquire Motive, a provider of service management software for broadband and mobile data services.

Alcatel has made a cash tender offer for all outstanding Motive shares at a price of $2.23 per share, representing a value of approximately $67.8 million.

The offer represents a premium of around 53% over the 16 June closing price, and is around 51% higher than the average share price.

Closing date for the transaction is expected to be early in the fourth quarter of 2008.

Alcatel and Motive have been working together for three years, developing and marketing remote management solutions for automating the deployment of residential gateways.

The two companies have over 40 joint customers. Alcatel has also been reselling Motive's service integration products.

The acquisition will be a two-stage process, with the cash tender offer being followed by a merger of Motive into Alcatel as a subsidiary.

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