Feeds

Emulex eats 87% of Endace for Ethernet examinations

Elliott says no thanks

Build a business case: developing custom apps

Emulex has acquired ownership of 89 per cent of New Zealand-based Ethernet network traffic analysis company Endace. One of the 11 per cent holdouts is an Elliott Management subsidiary which also holds Emulex shares. It wants Emulex to stop spending on acquisitions and slip a few greenbacks into shareholders' wallets.

Endace CEO Mark Riley becomes an Emulex SVP and general manager of the Endace division of Emulex. Jim McCluney, Emulex's CEO, reckons the acquisition will double Emulex's total addressable market. While the bid to buy Endace has been ongoing, two activist shareholders in Emulex - Elliott Management and Altai Capital - have been agitating for a change in direction by Emulex, driven by a new board. They're hoping for an evaluation of strategic options including selling the company as a way of returning cash to shareholders or raising share value.

Now it turns out that an Elliott subsidiary, Elliott International LP, together with partner Liverpool Limited Partnership, owns 1,543,500 Endace shares - which is 10.14 per cent of the 15,220,068 shares of Endace outstanding. It has refused the Emulex acquisition offer so far, and has until 13.00 London time on 12 March, 2013 to submit its shares to Emulex's offer of 500 pence/share.

It reported its holding on 27 December, 2012, back when Endace shares were trading at 475p. If it accepts the Emulex offer it can book a likely £385,875 profit, less dealing costs. Endace is likely to be delisted from the London Stock Exchange soon. ®

Build a business case: developing custom apps

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Microsoft says 'weird things' can happen during Windows Server 2003 migrations
Fix coming for bug that makes Kerberos croak when you run two domain controllers
Cisco says network virtualisation won't pay off everywhere
Another sign of strain in the Borg/VMware relationship?
VVOL update: Are any vendors NOT leaping into bed with VMware?
It's not yet been released but everyone thinks it's the dog's danglies
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.