Neutral Tandem signs Tinet acquisition deal

Neutral Tandem, a provider of interconnection services, has announced that it has entered into an agreement to acquire Tinet, an Italian-based global carrier committed to the IP Transit and Ethernet wholesale market. 

To acquire Tinet, Neutral Tandem will pay cash consideration of approximately €74.5m (£61.4m), which reflects certain purchase price adjustments, the assumption of approximately €5.2m in cash and the assumption of approximately €18.2m in long-term debt, which will be paid off at closing. 

The acquisition, to be financed by cash from Neutral Tandem’s balance sheet, is subject to various standard closing conditions and is expected to close during the fourth quarter of 2010. 

After closing, Tinet will be a wholly owned subsidiary of Neutral Tandem.