Brightpoint to Acquire CellStarBrightpoint to Acquire CellStar
December 19, 2006
Mobile phone distributor Brightpoint Inc. is buying rival distributor CellStar Corp. for $88 million in cash.
The deal applies to CellStars assets and liabilities in its U.S. operations and the Miami-based division that targets Latin America.
None of CellStar’s operations in Mexico and Chile, or any other businesses are included in the acquisition.
The transaction, expected to close in March or April, is subject to regulatory, supplier and lender approvals, as well as the approval of CellStar stockholders. Brightpoint estimated revenue from the acquired operations will exceed $450 million in the first year following the close of the deal.
“The proposed acquisition reflects our commitment to enhance long-term shareholder value through the execution of our growth strategy,” said Robert J. Laikin CEO of Brightpoint. “We believe that the proposed transaction will expand our geographic reach, broaden our product offering, and improve our overall efficiency in order to create long-term value for all of our stakeholders.
Deutsche Bank Securities was financial adviser and Blank Rome LLP was legal counsel to Brightpoint for the acquisition.
Brightpoint Inc. www.brightpoint.com
CellStar Corp. www.cellstar.com
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