A wholly-owned subsidiary of global solutions integrator AGC Networks, AGC Networks Pte. Ltd. in Singapore and Black Box Corporation, on Monday said that they have entered into a definitive merger agreement under which AGC Singapore would acquire all the outstanding shares of Black Box for USD 1.08 per share in cash, subject to customary closing conditions and regulatory approvals.

“The Black Box Board of Directors unanimously approved the merger agreement following a thorough review of the full range of available strategic, financial and capital structure alternatives, which Black Box commenced and announced on February 6, 2018,” AGC Networks said in a filing to the Bombay Stock Exchange.

The transaction is expected to close prior to the end of the calendar year, it added.

The combination with Black Box will provide a substantial increase in AGC’s presence and offerings in North America. In addition, AGC will enhance its footprint in providing technologies and services throughout six continents. The acquisition will be significant for AGC, expected to add over USD 600 million in annual revenue and approximately 3,000 team members serving clients worldwide.

“We have known Black Box for many years and believe that its skilled teams and strong client relations with world-class enterprises and partners will allow us to better serve our global clients,” said Sanjeev Verma, Executive Director and CEO of AGC Networks.

“The merger of our two companies will create a unique organization that has the scale to deliver world-wide technical solutions to the largest organizations.”

“We were looking for a partner that could provide us with the resources to grow our services and products businesses in a way that benefitted clients and employees,” said Joel Trammell, CEO of Black Box.

Under the terms of the merger agreement, an indirect wholly owned U.S. subsidiary of AGC Singapore will commence a tender offer to purchase all of the outstanding shares of Black Box common stock for USD 1.08 per share in cash. Upon the successful completion of the tender offer, the U.S. subsidiary of AGC Singapore would acquire all remaining shares of common stock not tendered in the offer for USD 1.08 per share through a second-step merger.

The tender offer and the second-step merger are subject to customary conditions, including the tender of a majority of the outstanding shares of Black Box common stock. The U.S. subsidiary of AGC Singapore is financing the merger through a combination of equity and debt. Pathlight Capital will serve as administrative agent for the senior credit facilities.

Meanwhile, shares of company were trading at Rs 71.00 apiece, up 15.26 per cent, from previous close on the Bombay Stock Exchange at 10:45 hours.