Black Box to Acquire U.S. and Canadian Operations of NextiraOne
Black Box signed a non-binding letter of intent to acquire the U.S. and Canadian commercial and U.S. government operations of NextiraOne, a company owned by Platinum Equity. These operations service commercial and various government agency accounts and represent approximately $250 million to $275 million of projected annualized voice services revenues.
As part of this combination, Black Box will continue to support installed and new voice technology requirements for all NextiraOne clients. Black Box will also continue to be a Strategic Authorized National Nortel Elite Business Partner for all of Nortel's products and services throughout the USA and Canada. The letter of intent provides for an exclusivity period during which NextiraOne will work solely with Black Box regarding the sale of the NextiraOne business units. Additional terms were not disclosed pending completion of Black Box's due diligence and the negotiation and execution of a definitive purchase agreement. Upon reaching a definitive agreement, the transaction is expected to close in March 2006. The parties are not subject to any legally binding obligation to consummate the transaction and no such obligation will exist until they have negotiated and signed a definitive purchase agreement. The acquisition is further dependent upon the satisfactory completion of Black Box's due diligence investigation, board approval, financing, regulatory approval and other customary closing conditions. There is no assurance that a definitive purchase agreement will be entered into or, if such agreement is entered into, that the other conditions will be met and that the transaction will close.