Shares of XETA Technologies Inc. (XETA) are higher on the session by 41%, currently trading at $5.41. The company today announced that it signed a definitive agreement to be acquired by PAETEC Holding Corp. (PAET) for $5.50 per share.
Under the terms of the agreement, which was approved by the boards of directors of both companies, XETA Technologies will become an indirect wholly-owned subsidiary of PAETEC Holding Corp. Based on the 10.7 million common and restricted shares issued and outstanding and the cashing-out of certain issued stock options and warrants, the aggregate equity value of this deal is approx. $61 million. Based on net debt as of October 31, 2010 of $1.5 million, the aggregate enterprise value of this transaction is $63 million.
The companies said they expect the merger to close within three months.
During Wednesday’s trading session, XETA’s volume has exploded with more than 1.9 million shares already trading hands compared to a daily average volume of just 14,000. XETA Tech closed at $3.84 yesterday, with a 52-wk range of $2.60 – $4.02. The co. has a market cap of $106 million and a current ratio of 1.33.