Network Engines to acquire TidalWire for $20 million

Network Engines today announced that it has entered into a definitive agreement to acquire TidalWire in a transaction valued at approximately $20 million.

Network Engines, a provider of enterprise server appliances and integration services has entered into an agreement to acquire TidalWire for approximately $20 million.

According to a statement, the combined company is expected to specialise in the development, manufacture, and distribution of server appliances and complementary components for storage, security and network management applications.

Transaction consideration will include approximately $9.4 million in cash, 5 million shares of Network Engines common stock (including the conversion of TidalWire options into Network Engines options) and the assumption of outstanding debt.

The transaction, which has been approved by the boards of directors of both Network Engines and TidalWire, is subject to approval by the shareholders of both companies as well as other customary closing conditions.

The transaction is expected to close at the end of the current quarter or the beginning of the next quarter.