Summary
Fortinet, Inc. (FTNT) has officially completed its acquisition of Meru Networks, Inc. The tender offer for Meru's common stock, priced at $1.63 per share, concluded with over 60% of outstanding shares tendered. Following the successful tender offer, Fortinet executed a merger, making Meru a wholly-owned subsidiary. The total cash outlay for the acquisition, including assumed equity awards, was approximately $44 million. Fortinet funded this transaction using its existing cash reserves, indicating a financially sound position for executing strategic acquisitions without incurring debt. Investors should monitor the integration of Meru's assets and technologies into Fortinet's portfolio to assess potential synergies and future growth contributions.
Key Highlights
- 1Fortinet successfully completed the acquisition of Meru Networks, Inc.
- 2The tender offer for Meru's common stock closed on July 7, 2015, with approximately 60.18% of shares tendered.
- 3The acquisition price was $1.63 per share, net of withholding taxes.
- 4A total of approximately $44 million was paid in cash for the acquisition, including assumed equity awards.
- 5Fortinet funded the acquisition entirely with cash on hand.
- 6Meru Networks, Inc. has become a wholly-owned subsidiary of Fortinet following the merger.
- 7Fortinet will file an amendment to this 8-K within 71 days to include financial statements and pro forma information of the acquired business.