Private equity group Kohlberg Kravis Roberts & Co (KKR) has launched a $2.2 billion takeover for telco Vocus.
The offer is $3.50 cash per share. A short time ago, the share price was $2.86, up 1.7%.
Under the deal, KKR would also take on Vocus’s debt up to $1.1 billion.
The Vocus board of directors has formed an independent board committee to assess the offer.
Vocus has appointed Credit Suisse and Goldman Sachs as its financial advisors and Allens as legal adviser.
The company has been growing via a series of acquisitions, including M2 and Nextgen.
However, last month Vocus downgraded its revenue and profit forecasts.
Underlying EBITDA is now expected to be between $365 and $375 million compared to guidance of $430 to $450 million. And underlying net profit after tax is now expected to be in the range of $160 million to $165 million compared to guidance of $205 million to $215 million.
In February, Vocus posted a net profit after tax of $47.2 million from revenue of $888.2 million.