Fortinet buying Meru Networks for about $39.6 million
SUNNYVALE, Calif. (AP) — Tech security company Fortinet is buying Meru Networks Inc. for about $39.6 million in a move aimed at strengthening its position in the wireless market.
Meru is a provider of wireless networking equipment. The Sunnyvale, California-based company was founded in 2002 and completed its initial public offering in 2010. Its 2014 revenue totaled $90.9 million.
Fortinet will pay $1.63 per Meru share, an 18 percent premium to the company's Tuesday closing price of $1.38. Meru's stock jumped more than 15 percent to $1.60 in morning trading Wednesday .
The companies put the equity value of the transaction at about $44 million.
The deal is targeted to close in the third quarter.
Shares of Fortinet Inc., also based in Sunnyvale, California, slipped a penny to $39.28 in morning trading. Its shares are up 77 percent over the past year.