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Tellabs agrees to be sold for $891 million

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October 21, 2013 08:59 AM EST | AP


NAPERVILLE, Ill. — NAPERVILLE, Ill. (AP) — Communications equipment maker Tellabs has agreed to be acquired for $891 million by investment firm Marlin Equity Partners.

The deal announced Monday calls for Marlin to buy all of Tellabs shares for $2.45 each. The stock had closed at $2.35 on Friday, and rose 12 cents, or 5.1 percent, to $2.47 in premarket trading

A tender offer is expected to begin by Nov. 1. The deal is expected to close during the fourth quarter. It requires at least half of Tellabs' outstanding shares to be tendered.

Tellabs chairman Vince Tobkin said the board decided to sell after looking at its options and after contacting more than 30 potential buyers. Tellabs is based in Naperville, Ill.

Marlin Equity Partners partner Nick Kaiser said plans include making "significant investments in research and development" at Tellabs.