Tellabs acquires WiChorus from venture capital firms

Tellabs, Inc. has acquired WiChorus, Inc., a provider of hardware and software solutions for the deployment of WiMAX and 4G wireless core networks. Both the companies are based in the US.

Tellabs is a designer and marketer of equipment to telecommunication service providers.

Announcement (October 22, 2009):

Tellabs has agreed to acquire WiChorus for approximately $165 million in cash.

The Board of Directors of Tellabs and WiChorus have approved the proposed transaction.

Earlier, WiChorus had raised venture capital funding from Mayfield Fund, Redpoint Ventures and Accel Partners.

Deal Value (US$ Million) 165
Deal Type                Acquisition
Sub-Category             Majority Acquisition
Deal Status              Completed: 2009-12-01

Deal Participants

Target (Company)   WiChorus, Inc.
Acquirer (Company) Tellabs, Inc.

Deal Rationale

The acquisition will complement Tellabs' growth solutions portfolio including its mobile, optical and business solutions. The combination will create advanced 3G/4G mobile networks that revolutionize the mobile internet, deliver new applications to generate revenue and to achieve significant savings for mobile carriers.

Related terms: acquisition, business, hardware, internet, revenue, software, venture capital, wireless