Artilium Stock Up On Deal To Be Bought By Pareteum For $104.7 Mln

(RTTNews) - Shares of Artilium plc (ARTA.L) were gaining around 6 percent in the morning trading in London after the software development company agreed to by acquired by Pareteum Corp. (TEUM), a US-based cloud communications platform company, for approximately $104.7 million or 78.0 million pounds.

Under the deal terms, each Artilium shareholder will be entitled to receive 0.1016 Pareteum shares and 1.9 pence in cash per Artilium share upon completion of the transaction. The acquisition values each Artilium share at 19.55 pence, based on Pareteum's closing share price of $2.33 on June 6.

The transaction has been approved by the Pareteum Directors and all of the independent Artilium Directors.

Artilium and Pareteum have since October 2017 benefitted from a strategic alliance entered into with the intention of jointly pursuing new and developed markets.

The transaction is expected to be significantly accretive to Pareteum's non-GAAP earnings per share in FY2019, produce strong growth in pro-forma operating cashflow generation and provide material cost and revenue synergies.

The combination is expected to result in pro-forma fiscal 2018 revenues of $49 million.

Effective on completion of the acquisition, Artilium's CEO, Bart Weijermars will be engaged as Chief Executive Officer of Pareteum Europe and Artilium as subsidiaries of Pareteum.

The transaction is currently expected to close in September 2018, subject to the satisfaction of certain conditions.

In London, Artilium shares were trading at 17.50, up 6.06 percent.