TPG to acquire IntraPower

TPG (ASX: TPM) has announced it is to acquire IntraPower (ASX:IPX) in an off market takeover deal worth some $12.8 million.

Under the deal TPG will offer IntraPower’s shareholders either $0.30 cash per share — equating to a company value of $12.8 million — or $0.15 cash and 0.089 TPG shares per IntraPower share.

TPG’s shares last traded at $1.525, making the alternate offer worth approximately $0.286 per IntraPower share.

In an ASX statement IntraPower said its board of directors unanimously recommended that shareholders accept the deal.

TPG executive chairman, David Teoh, said in the same statement that the acquisition was a major step in the company’s plans to wide it s range of solutions to its business, corporate and government customers.

“Following the expansion of its nationwide high-speed telecommunications infrastructure through the acquisition of PIPE Network last year, TPG’s product set will be further enhanced by the addition of IntraPower’s TrustedCloud offering," he said.

“The TPG’ Group’s network and data centre services together with IntraPower’s proven capability will enable TPG immediately to meet the emerging demand from customers for the benefits that can be obtained from Cloud Computing.”

Teoh also noted the costs synergies likely to stem from the integration of the two companies’ network and data centres.

IntraPower chairman Mike Ahern said the company had to date explored a number of acquisition options with TPG’s being the superior proposal.

IntraPower recently jumped at the opportunity to capitalise on the booming Cloud Services market, signing on in May with UXC Connect — part of ICT services giant UXC (ASX: UXC) — to offer up yet more Web-based services.

The two outfits will attempt to lure the IT operations of major Australian companies and the government sector to the Cloud via the combination of IntraPower’s Trusted Cloud computing platform and UXC Connect’s project, IT and service management capabilities.

In February IntraPower said it expected an EBITDA of between $500,000 and $600,000 for the first half of 2011.

The company, which has around 2000 customers in the business and government sectors, said its forecast compares to a 1H10 EBITDA of $483,000.

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