Polaris Acquisition Corp. Announces Revised Terms for Merger with Hughes Telematics
NEW YORK – Polaris Acquisition Corp. has entered into an amended and restated merger agreement relating to its previously announced merger with Hughes Telematics Inc. The all-stock transaction is now valued at approximately $385 million. Polaris believes that the revised terms of the transaction provide its shareholders with an even more attractive opportunity to participate in a rapidly growing technology-enabled information and services company that is poised for strong recurring revenues and earnings, according to Business Wire.
Holders of Polaris common stock who do not elect conversion will continue to keep their shares after the closing of the transaction in the same manner as under the original agreement.
As per the original agreement, the revised terms of the transaction provide Hughes Telematics with access to approximately an additional $140 million in capital to fund the company's growth opportunities. This capital is in addition to the approximately $90 million invested to date by an affiliate of Apollo Management L.P. As per the original agreement, Apollo, which will maintain its current stake in Hughes Telematics, has agreed, along with management and other Hughes Telematics shareholders, to a two-year lock-up of the Polaris shares received at closing, and it will continue to play an important role in guiding the Company's management team.
Hughes Telematics shareholders are expected to initially own approximately 39 percent of the fully diluted equity of the combined company, and the Hughes Telematics management team, with significant experience in telematics, satellite radio, wireless, automotive, and entrepreneurial initiatives, will continue to manage the company. Hughes Telematics shareholders will also be permitted to vote the 59 million earn-out shares while they are in escrow, giving them control over the majority of the voting power of the company after closing.
For more information, visit www.HTIPolaris.com.