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Pareteum +2.6% on $105M deal for Artilium

Published 06/07/2018, 09:26 AM
© Reuters.  Pareteum +2.6% on $105M deal for Artilium
TEUM
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  • Pareteum (NYSEMKT:TEUM) is up 2.6% premarket after reaching a deal to acquire communication service provider Artilium for $104.7M.
  • The deal is mostly stock, calling for Artilium shareholders to receive 0.1016 Pareteum shares and 1.9 British pence per Artilium share. Total value of the deal for each Artilium share is 19.55 pence (£78M in aggregate).
  • The two have been collaborating after forming an alliance a few months ago, resulting in seven sales wins and an increasing pipeline of potential deals adding some $65M to backlog.
  • The deal's expected to be "significantly" accretive to Pareteum's non-GAAP EPS, produce strong growth in pro forma operating cash flow, and material cost and revenue synergies.


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