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Home>Itron to buy Silver Spring Networks for a 25% premium

Itron to buy Silver Spring Networks for a 25% premium

Itron to buy Silver Spring Networks for a 25% premium

09/18/2017

Itron Inc. (ITRI) said Monday it agreed to buy internet-of-things company Silver Spring Networks Inc. (SSNI) in a deal valued at $830 million. Under terms of the agreement, Silver Spring shareholders will received $16.25 in cash for each share they own, which represents a 25% premium to Friday's closing price of $13. Itron expects the deal to produce synergies of $50 million a year, add to gross margin in the first year after the deal closes and add to adjusted earnings per share in the second year. Itron plans to pay for the deal, which is expected to close in late 2017 or early 2018, with cash and $750 million in new debt. Silver Spring's stock, which was halted for news, has run up 23.5% over the past three months, while Itron shares have gained 5.0% and the S&P 500 has tacked on 2.8%.

-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com

 

(END) Dow Jones Newswires

09-18-17 0731ET

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