London-listed Kiwi firm Endace shares rocket on takeover offer

ENDACE, a New Zealand-based network equipment tester listed in London, saw its shares rise by almost 60 per cent yesterday on the back of an £80.7m bid from storage equipment firm Emulex yesterday.

The offer represented a 65 per cent premium to Endace’s closing price on Wednesday evening.

Endace’s board announced the offer yesterday and recommended the bid to shareholders.

The firm’s chief executive Mike Riley said: “Our companies share a common vision and have a strong cultural affinity. Together, we will create a new generation of network visibility solutions and take them to a global market.”

The acquisition would expand California-based Emulex’s offering. The Nasdaq-listed company makes hardware for servers and other computer equipment, but has been focusing on higher-margin software recently in a bid to offer more comprehensive packages.

“Our companies share a common vision and have a strong cultural affinity. Together, we will create a new generation of network visibility solutions and take them to a global market,” Emulex’s chief executive Jim McCluney said.

Panmure Gordon is advising Endace on the sale. The firm floated on the Alternative Investment Market in 2005, and is New Zealand’s only London-listed company.