Log in to your IBTimes Account

close
ID
Password
  • Set your IBTimes.com Edition

Polaris Acquisition buys Hughes Telematics



By AP
16 June 2008 @ 07:00 am ET

NEW YORK - Hughes Telematics Inc., a maker of automotive telecom services backed by private equity firm Apollo Management LP, said Monday it agreed to a $700 million stock swap takeover by Polaris Acquisition Corp.

Related Topic

Get stories by e-mail on this topic.

E-mail:
Quotes
TKP 6.02 0

Fort Lee, N.J.-based Polaris, is a publicly traded acquisition company, founded in June 2007. Hughes makes car electronics designed to assist with GPS navigation systems and Web access, similar to General Motors' OnStar technology. The company has long-term contracts with Chrysler Group and Mercedes-Benz USA, both of which will begin adding Hughes technology to their vehicles next year.

Atlanta-based Hughes said the deal gives it $140 million in capital to fund the company's growth opportunities, in addition to the $90 million invested to date by an affiliate of Apollo Management. Apollo, will maintain its current stake in Hughes Telematics, continue to help guide the company's management team and has agreed to a two-year lock-up deal.

"We promised our investors that we would methodically and quickly identify a consumer facing services company with great growth prospects," said Marc Byron, chairman and CEO of Polaris, said in a statement. "In merging with Hughes Telematics, we believe that we delivered on our promise."

Hughes shareholders will receive about 45 million shares of Polaris common stock at closing, and will be eligible to receive up to 29 million added shares upon reaching certain stock price targets over the next five years. Hughes shareholders will initially own about 65 percent of the combined company, which will continue to be led by the Hughes management team, including Chief Executive Jeff Leddy.

The deal is expected to close in the 2009 first quarter, pending Polaris stockholder and regulatory approvals.

Lazard is serving as financial adviser to Polaris, and Pali Capital is serving as financial adviser to Hughes Telematics.

Copyright 2009 The Associated Press. All rights reserved.
This material may not be published, broadcast, rewritten or redistributed.

    Click!
  • Rate this article:

Comments

Post Your Comment

*Name


advertisement
More Industries
Warren Buffett's Berkshire Hathaway Inc said it plans to limit the amount of business underwritten by its reinsurance operations, as it prepares to spend...
California was awarded $19.5 million in a settlement against Royal Dutch Shell Plc's U.S. unit for not storing fuel properly at filling stations in the s...
Citigroup Inc said on Friday that new accounting rules for securitization trusts may prevent the bank from funding some of its assets with a top debt rat...

advertisement
Advertisement
POS Magnetic Card Readers

Online distributor for point of sale equipment, TYSSO and Pegasus.

 
IBTimes.com Web
Partners
International Business Times© 2009 The Ibtimes Company. All Rights Reserved. Terms of service | Privacy Policy | Advertising | About Us | Contact Us | Archives