Avista Capital Partners will be taking over Telular Corp. in a USD 253 Million deal

Telular Corp., is a company that provides the public with cellular alarm communications equipment through the division of Telguard. The company made an announcement that Avista Capital Partners will be taking over the company. The deal is valued at 253 million US Dollars.

Avista Capital Partners is a private equity firm based in New York. The company mainly focuses on energy, health care and communications companies. Avista Capital Partners is assuming 18.5 million US Dollars debt as part of the buyout. This information gathered from a news release that featured both companies. Avista Capital Partners is set to pay 12.61 US Dollars per stake, a premium of 31 percent from Telular’s closing price of 9.63 US Dollars.
The current CEO of Telular, Joe Beatty described the deal as “a very positive event for our shareholders” and he also commented by saying that it will allow the company that is based in Chicago to expand on its success.
In the release Beatty said. “For our customers, we will continue to deliver the best remote wireless monitoring and tracking solutions available in the markets we serve.”
According to Shawn Welsh, who is the vice president of marketing and business development at Telular, assured the public that is will be “business as usual” for Telguard customers now under Avista Capital Partner’s ownership. Telguard provides 3G/4G cellular alarm communicators for residential and commercial industries and they have recently teamed with Mytrex, the Utah based firm to create a self-contained unit named cellular PERS .
In an emailed statement made by Welsh, he said “The acquisition of Telular … is further validation of the company’s leadership position in the machine-to-machine [M2M] and security communications space.” For our Telguard customers …we will continue to operate in the same way that we do today, with a continued focus on strong customer service
A partner at Avista Capital Partners, Brendan Scollans, said that Telular’s strong M2M background and “compelling” recurring revenue business model made this a very tempting acquisition.

In a prepared statement Scollans said.“We are looking forward to working with Telular’s gifted management team to drive the next phase of the company’s growth both organically and through acquisitions.”
Apparently this deal is the first for Avista Capital Partners in the security space. According to the company website, the firm lists 31 existing investments and 54 past investments, all in the energy, health care, communications and media verticals. James David, a media contact for Avista Capital Partners, declined to comment on the acquisition beyond what the firm included in the news release.